STOCKREPORTS		 Consilium, Inc. NASDAQ Symbol CSIM
19-JUL-97 Industry:
Computer (Software & Services)		 Summary: This company is the leading supplier of manufacturing execution systems software and services for the semiconductor, electronics, aerospace, defense and pharmaceutical industries.

Recent Price 4.06
52 Wk Range 7.00 - 2.88		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
C
Technical Evaluation:
NEUTRAL since 06/97
Rel. Strength Rank (1 Lowest - 99 Highest)
44
Insider Activity
NA

Business Profile 02-APR-97

Consilium supplies factory-floor management software and services for Digital Equipment, Hewlett-Packard and IBM computers. The company has shifted its focus from product development to sales and marketing, resulting in orders from leading companies. CSIM sells to a relatively small number of customers, leading to significant volatility in quarterly results. The FY 97 (Oct.) first-quarter loss was attributable primarily to investments made for product updates in the Healthcare Products and Process Industries business units. In addition, the Semiconductor and Electronics unit was negatively affected by industrywide delays in the construction of new semiconductor manufacturing facilities.

Operation Review 02-APR-97

Total revenues in the first quarter of FY 97 (Oct.) fell 6.4%, year to year, as declines of 62% and 73% for product and development sales, respectively, outweighed a 69% jump in services revenues. Fluctuations in new orders, due primarily to the timing of new semiconductor manufacturing facilities, negatively affected revenues. Product margins narrowed and service margins contracted, reflecting personnel additions. With higher R&D spending and growth in other operating expenses that outpaced revenue growth, operating income was replaced by a loss. A net loss of $3,942,000 ($0.50 a share, based on 4.0% fewer shares) contrasted with net income of $222,000 ($0.03).

Stock Performance 18-JUL-97n

In the past 30 trading days, CSIM's shares have increased 8%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 31,200 shares, compared with the 40-day moving average of 24,774 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 8.0
Avg. daily vol. (M) 0.022
Tang. Bk. Value/Share 1.04
Beta 0.56
Shareholders 200
Market cap. (B) $0.033
Inst. holdings 25%
Value of $10,000 invested 5 years ago:$ 2,500

Fiscal Year Ending Oct. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 8.57 9.16 7.62 7.04 6.01 6.21
Q2 11.09 7.78 8.11 6.99 8.00 7.01
Q3 NA 10.72 8.85 6.31 7.03 7.28
Q4 NA 10.49 8.55 7.61 7.43 7.07
Year NA 38.15 33.13 27.94 28.48 27.60

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 -0.50 0.03 0.01 -0.15 -0.24 -0.12
Q2 -0.14 -0.29 0.02 -0.25 -0.07 -0.10
Q3 NA -0.07 0.03 -0.47 -0.23 -0.43
Q4 NA -0.11 -0.04 0.02 -0.21 -0.12
Year NA -0.44 0.02 -0.85 -0.75 -0.77

Dividend Data: No cash dividends have been paid, and the company does not expect to pay any in the foreseeable future.

Business Summary 02-APR-97

Consilium is the leading independent supplier of manufacturing execution software (MES) and offers related software maintenance and consulting services to both discrete and process manufacturers. Its products, marketed under the WorkStream and FlowStream names, operate on Digital Equipment Corp.'s Alpha and VAX line of computers and on Hewlett-Packard series 9000 and IBM RS/6000 computers. Operating revenues in recent fiscal years (Oct.) were derived as follows:

1996 1995 1994
Product sales 50% 49% 38%
Services 45% 48% 52%
Development 5% 3% 10%

The WorkStream DFS (Distributed Factory System) product line consists of 24 integrated software modules sharing a common database and user interface. A WorkStream system monitors and controls manufacturing's five key elements (materials, equipment, personnel, specifications and facilities) during the production process.

WorkStream DFS software was developed for use by merchant semiconductor manufacturers and electronic systems companies, but it is also used by commercial aircraft, aerospace/defense and electronics manufacturers. The average per-site license fee for a new installation of WorkStream DFS in FY 96 was $411,000.

The FlowStream product line, developed during 1989 and 1990 in cooperation with Digital Equipment, was designed to complement the WorkStream product line by extending the benefits of Consilium's plant-floor management software to process manufacturers. FlowStream supports best practices for manufacturers in the pharmaceutical, medical device and chemical industries.

Products are marketed through a direct sales force in the U.S., South Korea, Japan, Taiwan, Germany and the U.K. and through distributors in Japan, South Korea, Israel and portions of western Europe and Southeast Asia. A majority of domestic customers are Fortune 500 companies. Revenues from foreign customers represented 45%, 34% and 31% of total revenues in fiscal 1996. 1995 and 1994, respectively.

In December 1996, Consilium and Hewlett-Packard Co. concluded a corporate licensing agreement for worldwide acquisition of the company's WorkStream DFS manufacturing execution system product family for HP's internal use.

Capitalization

Long Term Debt: None (1/97).
Options: To buy 1,580,000 shs. at $4.50 to $15 ea. (10/96).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 1.51 2.06 1.84 2.61 3.33 4.55 4.61 3.61 1.15 0.65
Cash Flow -0.06 0.52 -0.66 -0.54 -0.53 0.41 1.10 0.83 0.61 NA
Earnings -0.44 0.08 -0.85 -0.75 -0.77 0.21 0.82 0.59 0.36 0.06
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil NM Nil Nil Nil Nil Nil Nil
Prices - High 12 3/8 15 1/8 10 1/2 10 17 1/4 24 1/4 27 1/2 16 7/8 NA NA
- Low 5 7 3 3/4 5 1/2 6 1/2 11 3/4 15 3/8 9 NA NA
P/E Ratio - High NM NM NM NM NM NM 34 29 NA NA
- Low NM NM NM NM NM NM 19 15 NA NA

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 38.1 33.8 27.9 28.5 27.6 31.5 32.4 23.1 16.3 11.2
Oper. Inc. 0.3 3.7 -2.9 -3.8 -3.5 2.6 8.8 6.2 4.5 2.3
Depr. 3.1 3.3 1.4 1.5 1.7 1.4 2.0 1.5 1.3 1.1
Int. Exp. 0.1 0.0 0.0 0.1 0.0 Nil Nil 0.0 0.1 0.5
Pretax Inc. -2.5 1.1 -5.5 -5.0 -5.2 2.2 8.1 5.3 3.1 0.7
Eff. Tax Rate NM 45% NM NM NM 32% 30% 34% 40% 54%
Net Inc. -3.5 0.6 -6.3 -5.3 -5.3 1.5 5.6 3.5 1.9 0.3

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 9.1 12.2 12.2 14.4 15.5 15.1 19.7 17.5 3.3 0.4
Curr. Assets 19.3 21.6 18.4 22.6 25.2 31.7 30.2 23.9 8.1 5.8
Total Assets 29.0 29.4 27.0 31.6 34.5 40.7 37.8 28.4 12.2 10.4
Curr. Liab. 15.6 12.1 11.1 9.1 7.9 7.4 5.3 3.7 3.1 3.5
LT Debt Nil Nil Nil 0.3 0.5 Nil Nil Nil 0.2 0.7
Common Eqty. 13.3 15.7 13.6 18.8 23.2 31.1 30.8 23.3 6.8 4.9
Total Cap. 13.3 15.9 14.0 21.5 26.0 32.7 32.1 24.2 8.6 6.4
Cap. Exp. 3.7 1.5 0.7 0.7 0.6 1.5 3.2 1.0 0.3 0.1
Cash Flow -0.5 4.0 -4.9 -3.8 -3.6 2.8 7.6 5.0 3.2 NA

Curr. Ratio 1.2 1.8 1.7 2.5 3.2 4.2 5.7 6.4 2.6 1.7
% LT Debt of Cap. Nil Nil Nil 1.5 1.8 Nil Nil Nil 1.8 11.3
% Net Inc.of Revs. NM 1.9 NM NM NM 4.7 17.4 15.3 11.5 2.9
% Ret. on Assets NM 2.2 NM NM NM 3.7 16.8 17.4 16.7 3.2
% Ret. on Equity NM 4.3 NM NM NM 4.7 20.6 23.5 32.1 7.0

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Reincorporated--in Delaware in 1991. Office--485 Clyde Ave., Mountain View, CA 94043. Tel--(415) 691-6100. Website--http://www.consilium.com Chrmn & Secy--J. J. Golovin. Pres & CEO--L. Hootnick. VP, CFO & Investor Contact--Clifton Wong. Dirs-- R. C. Fink, J. J. Golovin, L.R. Hootnick, G. R. Horne, T. Tomasetti. Transfer Agent & Registrar--Bank of Boston. Empl-- 237. S&P Analyst: Adam Penn


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