Applix Reports Revenues of $10.4 Million and a Loss Per Share of $0.23; Company Reduces Workforce by Approximately 20%.

Business/Technology Editors

WESTBORO, Mass.--(BUSINESS WIRE)--July 24, 2001

Applix, Inc. (NASDAQ:APLX) today reported second quarter results for the period ended June 30, 2001, with revenues of $10.4 million, an increase of 17% over the same period last year. The total loss per share for the second quarter of 2001 was $0.23, compared to a loss of $0.27 per share for continuing operations for the same period in 2000.

The Company also announced that it has implemented workforce reductions that have reduced the global workforce by approximately 20%. The Company expects that these reductions and other expense management initiatives will reduce operating expenses by approximately an additional $1.0 - $1.3 million per quarter, beginning in the third quarter of 2001, to be more in line with the Company's revised forecasted revenues. "We have revised our forecasted revenue targets and have made cuts that create a leaner organization, with expense targets that preserve our cash balance," said Edward Terino, Applix Senior Vice President and Chief Financial Officer.

Applix will host a conference call at 4:30 pm (EST) today to further discuss its results for the quarter, and offer guidance on revenues for the remainder of the year. To participate in the conference call, please dial domestically: 1-888-817-2198 and internationally: 1-706-634-8117 a few minutes before the scheduled start of the call. A live broadcast of the call, and a replay of the call will be available via the web at www.applix.com.

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. 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 iCRM, customer analytics and business planning software and solutions, 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 within the meaning of the Private Securities Litigation Reform Act 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, and the ability to return to profitability, 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. Refer to the Company's most recently filed Annual Report on Form 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 after the date hereof 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 Statements of Operations


(In thousands, except
 per share data)                 For the Three         For the Six
                                  Months Ended         Months Ended
                               June 30,  June 30,   June 30,  June 30,
                                 2001      2000      2001       2000

License revenue                 $4,537    $4,943    $10,351   $10,038
Service revenue                  5,907     3,995     11,420     8,177
     Total revenue              10,444     8,938     21,771    18,215

Cost of license revenue            553       514      1,044       981
Cost of service revenue          3,173     3,323      7,141     6,853
     Gross margin                6,718     5,101     13,586    10,381

Operating expenses:
   Selling and marketing         5,990     7,006     13,005    12,189
   Research and development      1,707     1,939      3,815     3,760
   General and administrative    1,237     1,107      2,381     2,053
                                 8,934    10,052     19,201    18,002

Operating loss before
 Restructuring                  (2,216)   (4,951)    (5,615)   (7,621)

Restructuring expense              512      --          512      --

Operating loss                  (2,728)   (4,951)    (6,127)   (7,621)

Interest income - net              124       306        257       661

Loss from continuing
 operations before
 income taxes                   (2,604)   (4,645)    (5,870)   (6,960)

Provision for (benefit
 from) income taxes                 75    (1,591)       119    (2,362)

Net loss from
 continuing operations          (2,679)   (3,054)    (5,989)   (4,598)


  Discontinued operation          --        (214)       718       533

Net income (loss)              $(2,679)  $(3,268)   $(5,271)  $(4,065)

Basic and diluted income
 (loss) per share:
   Continuing operations        $(0.23)   $(0.27)    $(0.51)   $(0.41)
   Discontinued operation         --      $(0.02)      0.06      0.05

     Total income (loss)
      per share                 $(0.23)   $(0.29)    $(0.45)   $(0.36)

    Weighted average number
     of basic and diluted
     shares outstanding         11,740    11,245     11,714    11,217


                       Balance Sheet Highlights

As of                            June 30,     March 31,    June 30,
                                   2001         2001         2000
(In thousands)

Cash and cash equivalents          $ 8,996    $ 12,183     $ 22,665
Total current assets              $ 22,830    $ 26,793     $ 40,147
Total assets                      $ 30,790    $ 34,681     $ 49,100
Total liabilities                 $ 17,054    $ 18,350     $ 16,605
Total stockholders' equity        $ 13,736    $ 16,331     $ 32,495