Applix Reports Profit for First Quarter 2004; Company Reaffirms Full Year Revenue and Profitability Guidance.Business Editors WESTBOROUGH Westborough, town (1990 pop. 14,133), Worcester co., E central Mass., on the Assabet River; inc. 1717. The town, which is largely residential, produces electronic components, tools, dyes, and other products. , Mass.--(BUSINESS WIRE)--April 29, 2004 Applix Applix Inc. is a software company based in Westborough, Massachusetts that publishes Applix TM1, a MOLAP database server, and related presentation tools, including Applix Web and Applix Executive Viewer. , 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 APLX is a modern, second generation, cross-platform dialect of the APL programming language. APLX is targeted at applications such as financial planning, market research, statistics, management information, and various kinds of scientific and engineering work. ), a global provider of Business Intelligence (BI) and Business Performance Management (BPM (Business Process Management) A structured approach that models an enterprise's human and machine tasks and the interactions between them as processes. BPM software provides users with a dashboard interface that offers a high-level view of the operation that typically ) software solutions, today reported that revenue for the quarter ended March 31, 2004 was $7.38 million, compared to $6.83 million in the first quarter of 2003. For comparison purposes, revenue for the year ago quarter includes $1.25 million from the Company's customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) business, which was sold during the first quarter of 2003. Reported revenue for the first quarter of 2004 consists exclusively of revenue derived from the analytics business (BI and BPM software), representing a 32.3% increase from the $5.58 million in same period last year. Analytics license revenue for the first quarter of 2004 was $3.77 million, compared to $2.44 million for the same period a year ago. Net income for the first quarter of 2004 was $738,000, or $0.05 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, compared to a net income of $5.06 million, or $0.40 per diluted share, for the year ago period. Included in the results for the first quarter of 2003 was the net gain from the sale of the CRM business of $8.0 million, or $0.63 per diluted share. David C. Mahoney Mahoney could refer to:
Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. we are gaining in the analytics marketplace, domestically and globally, and the increased interest by customers and prospects in the evident benefits that Applix's TM1 software delivers. We look forward to engaging with our customers at the upcoming BOSS user conference in May, and using those insights to further build our market position, in concert with our expanding partner community." Added Mr. Mahoney, "As we announced recently, we are delighted to learn that Gartner (Gartner, Inc., Stamford, CT, www.gartner.com) The largest information technology consulting firm that specializes in research and analysis. Founded in 1979 by Gideon Gartner, it has grown through acquisitions, including Dataquest in 1995 and Techrepublic in 2000. has included Applix in the Magic Quadrant The Gartner Magic Quadrant is a proprietary research tool developed by Gartner Inc., a US based research and advisory firm. It is designed to provide an unbiased qualitative analysis of a “markets’ direction, maturity, and participants. for Business Intelligence Platforms. This inclusion builds on Applix's entry in Gartner's Magic Quadrant for Corporate Performance Management as announced last quarter." Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the first quarter of 2004 totaled $5.51 million compared to $7.12 million in the year ago quarter. The improvement reflects continued cost controls, as well as the impact of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the company's headquarters lease announced last quarter, which reduced rent by approximately $150,000 over the first quarter last year and, will reduce expenses on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis by approximately $900,000. Additionally, operating expenses in the first quarter 2003 include $583,000 of compensation expense related to the company's 2001 acquisition of Dynamic Decisions, its primary Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. . Also included in the first quarter 2004 expenses was approximately $109,000 in legal costs associated with the previously announced investigation by the Securities & Exchange Commission. First Quarter Business Highlights -- Applix continued to build its customer base by adding more organizations that are realizing measurable benefits of employing 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. analytics for forecasting, planning and consolidations through the TM1 BI platform, such as Schering For the American pharmaceutical company created by seizure of assets from Schering AG during World War II, see . Schering AG was a research-centered pharmaceutical company founded in 1851 that merged with Bayer in December 2006. Plough plough: see plow. , DiBa Allgemeine Deutsche Direktbank AG, Whitehall Whitehall, cities, United States Whitehall. 1 City (1990 pop. 20,572), Franklin co., central Ohio, a suburb of Columbus; inc. 1948. Manufactures include water coolers and packaged meats. Agencies, First National Bank of Lexington Lexington. 1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. , Ainsworth Ainsworth redid dictionary manuscript burnt in fire. [Br. Hist.: Brewer Handbook, 752] See : Perseverance Game Technology Pty, Farmers' Trading Company Ltd., Prodrive
Prodrive Ltd. is a motorsport and automotive engineering group based in Banbury, Oxfordshire, England. It designs, constructs and races cars for companies and teams such as Subaru and Aston Martin. Ltd. and South Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. University Hospital Trust. -- Along with other industry leaders, Applix was a co-founder of the BPM Standards Group, which will accelerate the development of successful BPM practices across the enterprise and establish standards and provide thought leadership for the BPM industry. -- Applix announced important inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ in two key market sectors: healthcare and pharmaceutical, with customer examples around the world. -- Applix was named a leader in BPM software in the critical "Beyond the Hype" annual webcast co-sponsored by BPM Partners and Business Finance Magazine. -- Applix launched a strategic alliance program for BPM solutions, and named arcplan as the first partner to enroll as a member. Milt Alpern, Chief Financial Officer of Applix, commented, "Applix continued to demonstrate meaningful financial improvement during what is typically a weaker quarter, generating a profit despite a reduced benefit from foreign currency exchange rates. The lease restructuring measures announced previously also provide an important cost reduction, and will help enable us to invest in sales and marketing and field operations necessary for continued profitable growth." First Quarter Financial Highlights -- Cash and cash equivalents totaled $12.66 million at 3/31/04. -- During the first quarter of 2004, the Company sold $3 million of common stock to shareholder and director Brad Fire and another investor related to Mr. Fire. -- Applix finalized See finalization. a $2 million line of credit for working capital purposes and a $1 million line of credit for equipment financing with Silicon Valley Bank. -- Gross margin for the first quarter of 2004 improved to 83.4% from 77.1% in the fourth quarter of 2003 and from 68.6% in the first quarter of 2003. -- Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). was 58 days at 3/31/04, down from 63 days at 12/31/03, and within the Company's targeted 55-60 days. -- Average license deal size was $30,000 - $35,000 and the number of +$100,000 transactions increased to six from four last quarter. -- The number of outstanding shares of common stock increased to 14.2 million as of March 31, 2004, reflecting the impact of employee stock option exercises as well as the sale of shares discussed above during the quarter. Business and Financial Outlook for 2004 Applix is reiterating the guidance that it provided on February February: see month. 5, 2004 for the fiscal year 2004, that the Company is currently targeting total revenues of $30-33 million in 2004. In February, the Company anticipated break-even results for the first quarter, followed by steadily improving profit in the following quarters in 2004. Based upon the better-than-expected profitability produced in the first quarter, the Company is continuing to anticipate profitability in each of the following quarters this year, as well as for the full year 2004. Investor Conference Call and Webcast The senior management of Applix will host a conference call and Webcast to discuss the first quarter results tomorrow morning, Friday, April 30, 2004 at 8:30 am EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . To access the call, please dial 1-800-299-7635, using the confirmation code 66927058. Internationally, the call may be accessed by dialing 1-617-786-2901, using the same confirmation code. To listen via live audio Webcast, please visit the Company's website, www.applix.com at least ten minutes prior to the start of the call. The Webcast will be available as a replay starting one hour after the call is completed at the same location. About Applix Applix (NASDAQ: APLX) is a global provider of Business Intelligence and Business Performance Management solutions. Based on the TM1 platform, these solutions for budgeting, planning and forecasting enable the continuous management and monitoring of performance across the financial, operational, customer and organizational functions within the enterprise. More than 1,700 customers worldwide use Applix's adaptable a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil , scalable and real-time solutions, delivered by Applix and by
a global network of partners, to manage their business performance and
respond to the marketplace in real-time. Headquartered in Westborough,
MA, Applix maintains offices in four countries in Europe, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . For more information about Applix, please visit
www.applix.com.
This news release contains 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. , including targeted financial results for 2004, which involve risks and uncertainties. Forward-looking statements in this document are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Forward-looking statements concerning future plans or results are only estimates and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences include without limitation, competitive pressures, changes in customer demands, adverse economic conditions, loss of key personnel, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , potential fluctuations in quarterly results, lengthy sales cycles, market acceptance of new or enhanced products and services, factors affecting spending by customers and other risks, uncertainties and factors including those described in the Company's Annual Report on 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, 2003 under the heading "Risk Factors." The forward-looking statements provided by the Company in this press release represent the Company's views as of the date of this release. While the Company anticipates that subsequent events and developments may cause the Company's views to change, it disclaims any obligation to update these forward-looking statements, and these forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release. (C)2004 Applix, Inc. All rights reserved. Applix and TM1 are registered trademarks of Applix, Inc. All other trademarks and company names mentioned are the property of their respective owners. Financial Tables Follow
Applix, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
--------------------
March 31,
--------------------
2004 2003
--------------------
Revenues:
Software license $3,767 $2,691
Professional services and maintenance 3,616 4,142
---------- ---------
Total revenues 7,383 6,833
Cost of revenues:
Software license 206 412
Professional services and maintenance 1,023 1,734
---------- ---------
Total cost of revenues 1,229 2,146
---------- ---------
Gross margin 6,154 4,687
Operating expenses:
Sales and marketing 2,513 2,707
Product development 1,326 1,537
General and administrative (includes $15
and $45 of stock-based compensation for
the three months ended March 31, 2004 and
2003, respectively) 1,608 2,228
Compensation expenses and amortization of
acquired intangible asset 63 646
---------- ---------
Total operating expenses 5,510 7,118
---------- ---------
Operating income (loss) 644 (2,431)
---------- ---------
Non-operating income:
Net gain from sale of CRM business - 8,000
Interest and other income, net 147 174
---------- ---------
Income from continuing operations before income
taxes: 791 5,743
Provision for income taxes 27 649
---------- ---------
Income from continuing operations 764 5,094
---------- ---------
Loss from discontinued operations (26) (33)
---------- ---------
Net income $738 $5,061
========== =========
Net income per share, basic and diluted:
Continuing operations, basic $0.06 $0.41
Continuing operations, diluted $0.05 $0.40
Discontinued operations, basic and diluted ($0.00) ($0.00)
---------- ---------
Net income per share, basic $0.05 $0.41
Net income per share, diluted $0.05 $0.40
Weighted average number of shares outstanding:
Basic 13,517 12,453
Diluted 15,061 12,649
Applix, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and par value amounts)
March 31, December 31,
----------- ------------
2004 2003
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $12,657 $9,241
Accounts receivable, net 4,796 5,715
Other current assets 2,037 2,125
----------- ------------
Total current assets 19,490 17,081
Restricted cash 400 817
Property and equipment, net 776 973
Capitalized software costs, net 133 265
Goodwill 1,158 1,158
Intangible asset, net 750 812
Other assets 843 843
----------- ------------
TOTAL ASSETS $23,550 $21,949
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,049 $1,083
Accrued expenses 6,025 6,657
Accrued restructuring expenses 304 3,400
Deferred revenues 8,021 8,060
----------- ------------
Total current liabilities 15,399 19,200
Long term liabilities 453 494
----------- ------------
Total liabilities 15,852 19,694
----------- ------------
Stockholders' equity:
Preferred stock; $.01 par value; 1,000,000
shares authorized, none issued and
outstanding - -
Common stock; $.0025 par value; 30,000,000
shares authorized; 14,541,723 and
13,272,379 shares issued, respectively 36 33
Additional paid-in capital 55,208 50,497
Accumulated deficit (44,637) (45,375)
Accumulated other comprehensive loss (1,600) (1,539)
----------- ------------
9,007 3,616
Less: treasury stock, 357,627 shares at
cost (1,309) (1,361)
----------- ------------
Total stockholders' equity 7,698 2,255
----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $23,550 $21,949
=========== ============
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