Applix Reports Record Revenues, Up 22% to $11.3 Million and a Loss Per Share of $0.22; Company Reduces Spending by $2 Million Per Quarter.Business/Technology Editors WESTBORO, Mass.--(BUSINESS WIRE)--April 24, 2001 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), today reported first quarter results with record revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $11.3 million, an increase of 22% over the first quarter of last year. The total loss per share for the first quarter of 2001 was $0.22, compared to a loss of $0.07 per share for the same period in 2000. The net gain from the discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. in the first quarter of 2001 was $718,000 or $0.06 per share. The net loss from continuing operations was $3.3 million, or $0.28 per share, compared to a net loss from continuing operations of $1.5 million or $0.14 per share, for the same period in 2000. The Company also announced that it is implementing initiatives that it expects will reduce 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. by $2 million per quarter, or 14%, beginning in the current fiscal quarter, to continue its path toward profitability in fiscal 2001. "Given the recent universal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in technology spending, we have established practical expense targets to preserve our cash balance," said Edward Terino, Applix Senior Vice President and Chief Financial Officer. "We are in a good position relative to the rest of the marketplace," said Applix President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Alan Goldsworthy. "Applix's highly flexible, next-generation technology empowers companies to leverage their distinct, competitive business practices consistently across all channels, including wireless and the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , in less than 90 days. " About Applix Applix is a leading global provider of customer analytics and business planning software that rapidly transforms information into knowledge, enabling companies worldwide to obtain and retain customers through better 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 . Applix captures information from every corner of a company's extended enterprise, including internal and external customers, financial operations, partners and suppliers. Designed to adapt to companies' unique and competitive business processes, Applix's flexible, scalable products provide real-time analysis, planning, measurement and response to changing customer requirements and business dynamics. Applix is one of the world's only single source providers of CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. , customer analytics and business planning, making it a pioneer of Demand Chain Management. Headquartered in Westboro, MA, Applix maintains offices in eight countries and has more than 4,000 customers worldwide. For more information on Applix, please visit 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 ability to execute cost reductions, future cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , and the ability to return to profitability, may be considered forward-looking and subject to a number of risks and uncertainties. Refer to the Company's most recently filed 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 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 that 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.
Consolidated Statement of Operations
For the Three Months ended March 31, 2001 2000
(In thousands, except per share data)
License revenue $ 5,814 $ 5,095
Service revenue 5,513 4,182
Total revenue 11,327 9,277
Cost of license revenue 491 467
Cost of service revenue 3,965 3,530
Gross margin 6,871 5,280
Operating expenses:
Selling and marketing 7,019 5,183
Research and development 2,108 1,821
General and administrative 1,145 946
Total operating expenses 10,272 7,950
Operating loss (3,401) (2,670)
Interest income - net 135 355
Loss from continuing operations
before income taxes (3,266) (2,315)
Provision for (benefit from) income taxes 44 (771)
Net loss from continuing operations (3,310) (1,544)
Discontinued operation:
Income from discontinued operation -- 747
Gain from discontinued operation 718 --
Net income (loss) $ (2,592) $ (797)
Basic and diluted income (loss) per share:
Continuing operations $ (0.28) $ (0.14)
Discontinued operation 0.06 0.07
Total income (loss) per share $ (0.22) $ (0.07)
Weighted average number of basic and
diluted shares outstanding 11,689 11,043
Balance Sheet Highlights
March 31, December 31,
2001 2000
(In thousands)
Cash and cash equivalents $12,183 $12,546
Total current assets $27,581 $27,421
Total assets $35,030 $33,047
Total liabilities $18,744 $14,840
Total stockholders' equity $16,286 $18,207
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