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 MOUNTAIN VIEW, Calif., Aug. 24 /PRNewswire/ -- Consilium Inc. (NASDAQ: CSIM), the leading supplier of manufacturing execution systems (MES) software and services, today reported revenues of $7,028,000 for its third quarter of fiscal 1993, ended July 31, 1993, down slightly compared to revenues of $7,281,000 for the same period a year ago. The quarter's net loss was $1,601,000, or 23 cents per share, compared with a net loss of $2,991,000, or 43 cents per share, for the same quarter last year.
 For the nine-month period, revenues were $21,042,000, compared with revenues of $20,493,000 for the first nine months of 1992. Net loss was $3,777,000, or 54 cents per share, compared with $4,469,000, or 65 cents per share in the same period a year ago.
 "Although we are not yet profitable, we are encouraged by the significant growth in sales this quarter of FlowStream and WorkStream Open software -- our two new products," said Thomas Tomasetti, president and chief executive officer of Consilium. "Both products have gained substantial momentum this quarter -- FlowStream and WorkStream Open contributed 75 percent of product revenue this quarter compared to 23 percent in the first quarter of this fiscal year. We believe this is positive proof that our two-year product development investment is beginning to pay off.
 "Throughout this two-year period of heavy investment, we have continued to protect our cash reserves and are once again cash-flow positive for the quarter," added Tomasetti.
 Sales Highlights
 On the sales front, Consilium had more first-time customers this quarter than in any period since the third quarter of 1992. The company has been targeting multinational chemical and pharmaceutical manufacturers in Europe and the United States with its FlowStream product, and is pleased to report significant sales this quarter to major European companies. FlowStream sales were made in the third quarter to two leading chemical companies in Germany -- AKZO Fraser AG and a Global Fortune 50 manufacturer -- as well as to a U.S. division of Glaxo Holdings plc, a leading British pharmaceuticals company.
 Along with key sales into the process industries, the company reported new orders for its open systems software for the discrete industries, WorkStream Open, to the Optronics Division of Alcatel CIT, the leading telecommunications company in France, and to Hewlett-Packard in the United States.
 In addition, a new WorkStream semiconductor customer was added in Japan in the third quarter. Add-on sales of WorkStream were also made to U.S.-based disk drive maker Seagate and to Read-Rite Corp. sites in California and the Philippines.
 Expense Outlook
 According to Tomasetti, Consilium will continue to make product development a priority until critical projects are completed. Expenses will peak in the fourth quarter of this fiscal year as core FlowStream development is wrapped up and porting activities for WorkStream Open are increased. Following the completion of this investment phase, operating expenses are expected to decline in the first quarter of fiscal 1994," said Tomasetti.
 "Throughout this transition to new products, Consilium has sustained its leadership in the MES market, which puts us in a position of strength going forward," said Tomasetti.
 Consilium Inc. is the leading supplier of manufacturing execution systems (MES) software and services. With its WorkStream and FlowStream product lines, Consilium offers solutions that address key manufacturing issues, including regulatory compliance, quality control and continuous improvement, leading to World Class Manufacturing. The company is headquartered in Mountain View.
 NOTE: FlowStream and WorkStream are registered trademarks and WorkStream Open is a trademark of Consilium Inc.
 (In thousands, except per share data; unaudited)
 Three months ended Nine months ended
 July 31, July 31,
 1993 1992 1993 1992
 Product 3,030 3,197 9,276 9,093
 Maintenance 2,382 2,592 7,191 7,171
 Services 1,616 1,492 4,575 4,229
 Total Revenues 7,028 7,281 21,042 20,493
 Cost of Revenue
 Product 542 729 1,555 1,549
 Services 1,491 1,194 4,211 3,669
 Total cost of revenue 2,033 1,923 5,766 5,218
 Gross margin 4,995 5,358 15,276 15,275
 Selling and
 marketing 3,211 3,655 9,565 10,348
 Research and
 development 2,766 2,707 7,303 7,231
 General and
 administrative 608 775 2,167 2,050
 Restructuring charge -- 581 -- 581
 Total operating
 expenses 6,585 7,718 19,035 20,210
 Loss from
 operations (1,590) (2,360) (3,759) (4,935)
 Interest income, net 80 129 258 466
 Loss before income
 taxes (1,510) (2,231) (3,501) (4,469)
 Provision for
 income taxes 91 760 276 --
 Net loss (1,601) (2,991) (3,777) (4,469)
 Net loss per share (0.23) (0.43) (0.54) (0.65)
 Shares used in per
 share calculations 7,068 6,929 7,025 6,901
 (In thousands)
 July 31, 1993 October 31, 1992
 Current Assets:
 Cash and cash equivalents $ 5,507 $ 2,731
 Short term investments 8,308 12,806
 Accounts receivable, net 7,584 6,942
 Other current assets 1,945 2,746
 Total current assets 23,344 25,225
 Property and equipment (net) 3,115 3,517
 Software production costs (net) 5,625 5,407
 Other assets 340 357
 Total Assets 32,424 34,506
 Current liabilities:
 Accounts payable $ 1,503 $ 1,836
 Other current liabilities
 and accrued expenses 1,725 1,603
 Deferred revenue 4,550 4,116
 Capital lease obligation 376 316
 Total current liabilities 8,154 7,871
 Deferred revenue 1,072 404
 Deferred income taxes 2,334 2,334
 Capital lease obligation 410 464
 Accrued lease obligation 179 241
 Total Liabilities 12,149 11,314
 Stockholders' Equity
 Total stockholders equity 20,275 23,192
 Total Liabilities and
 Stockholders' Equity 32,424 34,506
 -0- 8/24/93
 /CONTACT: Darby Dye, investor relations manager for Consilium, 415-691-6100; or Joanne Marlin of Thomas Associates Inc. for Consilium, 415-325-6236/

CO: Consilium Inc. ST: California IN: CPR SU: ERN

PK-LH -- SJ003 -- 5564 08/24/93 16:04 EDT
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Publication:PR Newswire
Date:Aug 24, 1993

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