Applix Announces Second Quarter Revenues of $11.6 Million and a Loss of --$0.29-- Per Share; Company Completes Sales and Marketing Initiatives to Achieve Future Growth.Business/Technology Editors WESTBORO Westboro can refer to: Places
Applix, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :APLX), a leading global provider of eBusiness solutions and office productivity software, today announced its results for the second quarter ended June 30, 2000. The Company reported revenues of $11.6 million, compared to $14.2 million for the same period in 1999, representing a decrease of 18 percent. The net loss for the quarter ended June 30, 2000 was $3.3 million, or ($0.29) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, resulting from substantial costs associated with sales and marketing initiatives. The net loss compared to net income of $655,000, or $0.06 per diluted share, for the same period in 1999. Revenues for the Applix eBusiness unit were $8.9 million, an increase of 12 percent over the $8.0 million for the same period in 1999. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the Applix eBusiness unit was $4.5 million, an increase of $1.8 million from its operating loss of $2.8 million for the same quarter in 1999. The increased operating loss for the Applix eBusiness unit was attributed to incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales and marketing costs of more than $2 million associated with the repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of the unit in the Demand Chain Management market. Revenues for VistaSource, Applix's wholly owned office productivity software business, were $2.8 million compared to $6.2 million for the same quarter in 1999. The operating loss for VistaSource was $941,000. This compares to an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $3.5 million for VistaSource for the same quarter in 1999. The lower revenues and increased loss for VistaSource were attributed to lower revenues associated with the legacy Applixware business and increased investment of nearly $1 million in selling, marketing and new product development initiatives. "The results for the quarter were directly impacted by our very aggressive transition efforts for both the eBusiness and VistaSource business units, as well as a significant decrease in our legacy Applixware revenues. During the second quarter, we successfully launched the VistaSource subsidiary and substantially completed the repositioning of our Applix eBusiness unit to the Demand Chain Management market," commented Alan Goldsworthy, President and Chief Executive Officer of Applix, Inc. Bernie Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. , President of VistaSource, commented, "VistaSource made significant progress in the closing of reference accounts and increasing industry mindshare in the areas where we are clearly differentiated from our competitors. These differentiators include our ability to deliver applications with high performance from any browser browser Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used , and our scalability to support large numbers of clients off a single server. These strengths are key for the coming era of server appliances A self-contained computer system specialized for network use. Its applications are pre-installed, and access to setup and configuration is via a Web browser. Server appliances may provide a single application or several applications; for example, a single device may provide file server, , thin clients, and rented applications. We expect wins in these new areas to accelerate in coming quarters." Mr. Goldsworthy added, "The Applix eBusiness unit successfully completed the implementation of a global sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. , including the training of our world-wide sales team. Further, the Applix eBusiness unit launched its new identity, including a new Web site and rebranding itself in the rapidly growing Demand Chain Management market. During the quarter, we closed 23 new accounts to whom we will be supplying our eBusiness solutions, including several through recently signed channel partners. The average Applix eBusiness deal size more than doubled over last quarter, and we added 14 new quota quota In international trade, a government-imposed limit on the quantity of goods and services that may be exported or imported over a specified period of time. Quotas are more effective than tariffs in restricting trade, since they limit the availability of goods rather carrying sales reps, including the creation of an installed customer base sales team that will focus on mining Applix's existing 4,000 customers. We also created dedicated channel sales representatives focused on supporting channel partners and facilitating sales through these channel partners. We expanded our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. training capacity through the addition of staff from Agrippa, Inc., our former training partner." About Applix Applix, Inc. (NASDAQ: APLX), headquartered in Westboro, MA, is a global provider of eBusiness solutions including Internet-based customer relationship management, customer analytics and planning software, and interactive customer communities. As a single source of integrated solutions, Applix enables multi-national and multi-divisional eBusinesses to capture information from every corner of their extended enterprise -internal and external customers, partners and suppliers - to analyze, plan, measure and respond to changing customer requirements and business dynamics, all in real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. . With an innovative approach of combining its core solutions, iEnterprise (iCRM) and iTM1 (iPlanning), Applix aims to be the global leader of Demand Chain Management, providing the measurement and management of customer demand to drive profitable decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from across the enterprise. Applix maintains offices in eight countries and has over 4,000 customers worldwide. For more information on Applix, please visit http://www.applix.com. Notes to Investors This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially. Specifically, comments related to the demand for, revenue from and acceptance of the Company's products and the Company's position in the markets, may be considered forward-looking and subject to a number of risks and uncertainties, including but not limited to: the rate of growth in market demand for the products; the acceptance of the Company's products; intense competitive conditions; rapid technological change; frequent new product introductions; and evolving domestic and international standards, which may render existing products and services obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. . Refer to the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999 for a list of factors as discussed under "Risk Factors". Applix does not undertake - and specifically declines any obligation - to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of anticipated or unanticipated events. All trademarks, registered trademarks, and service marks are the property of their respective owners.
Applix, Inc. (In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
License revenue
eBusiness $ 4,944 $ 4,542 $ 10,039 $ 9,515
Vistasource 1,157 4,003 2,484 6,513
Total license 6,101 8,545 12,523 16,028
Service revenue
eBusiness 3,993 3,421 8,175 6,697
Vistasource 1,552 2,186 3,370 4,373
Total service 5,545 5,607 11,545 11,070
Total revenues 11,646 14,152 24,067 27,098
Cost of license revenue 808 525 1,420 1,050
Cost of service revenue 3,758 3,106 7,659 6,217
Gross margin 7,080 10,521 14,988 19,831
Gross margin % 60.8% 74.3% 62.3% 73.2%
Operating expenses:
Selling and marketing 8,573 6,001 14,437 11,509
Research and
development 2,886 2,404 5,619 4,717
General and
administrative 1,107 1,342 2,053 2,431
Total operating
expenses 12,566 9,747 22,109 18,657
Operating income (loss)
eBusiness (4,545) (2,769) (6,913) (4,736)
Vistasource (941) 3,543 (207) 5,910
Total operating
income (loss) (5,486) 774 (7,120) 1,174
Operating Margin % -47.1% 5.5% -47.5% 5.9%
Interest income (net) 300 265 669 491
Net income (loss)
before income taxes (5,186) 1,039 (6,452) 1,665
Provision for (benefit
from) income taxes (1,918) 384 (2,387) 615
Net income (loss) ($ 3,268) $ 655 ($ 4,064) 1,050
Basic earnings (loss)
per share ($ 0.29) $ 0.06 ($ 0.36) $ 0.10
Diluted earnings (loss)
per share $ 0.06 $ 0.09
Basic shares
outstanding 11,245 10,502 11,217 10,471
Diluted shares
outstanding 11,245 11,290 11,217 11,197
Applix, Inc.
Balance Sheet Highlights In (000's) as of
(Unaudited)
June 30, December 31, June 30,
2000 1999 1999
Cash & Cash Equivalents 22,665 25,476 24,519
Total Current Assets 40,147 46,343 42,969
Total Assets 49,101 54,681 47,303
Total Current Liabilities 15,705 17,888 16,128
Shareholders' Equity 32,495 35,713 31,175
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