Released on = April 26, 2006, 1:39 pm

Press Release Author = John Busa

Industry = Software

Press Release Summary = Automation.com Reveals 1% COGS reduction Increases Net
Income by 16%

Press Release Body = On the income statement of most discrete manufacturing firms,
cost of goods sold, COGS, is typically in the range of 70-95% of revenue. For many
of those same companies, net income is typically in the range of 3-8% of revenue.
Looking at a representative company who's COGS is 80% of revenue and whose net
income is 5% of revenue; if you can reduce COGS by 1% (to 79.2% of revenue), that
savings goes directly to the bottom line, increasing net income to 5.8% of revenue
thus increasing net income by 16%.

Most discrete manufacturers believe they can achieve a modest 1% savings in their
COGS. According to Frank Azzolino, President and CEO of aPriori (www.apriori.com),
which produces cost management software, "Giving our customers accurate, predictive,
real-time product cost estimates along with their understanding of the leveraged
effect that reducing COGS has on net income (and the profit opportunity that this
represents) is one of our primary value drivers."

According to contributing editor, Thomas R. Cutler, in the current issue of
Automation.com, "Cost information in most organizations is fragmented throughout the
enterprise. Critical pieces of cost information are spread across independent silos
within an organization in different functions like engineering, planning,
manufacturing, sourcing, and finance. This situation typically results in estimates
that do not include all relevant information required to make accurate and
predictive product cost assessments."

Based in Concord, MA, aPriori is the technology leader providing innovative cost
management solutions to the discrete manufacturing industry. aPriori's Cost
Management Software Platform enables manufacturers to better understand product cost
decisions early and throughout the product lifecycle. aPriori's Cost Management
Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides
real-time visibility to "cost-critical" decision information, and builds critical
cost knowledge to go on the business "offensive." aPriori's patent-protected cost
management platform allows companies to assess, control, and reduce cost of goods
sold by whole percentages. The aPriori Platform enables "Cost Knowledge Before it
Matters."




Web Site = http://www.aPriori.com

Contact Details = John Busa
aPriori
www.aPriori.com
978-371-2006
jbusa@apriori.com