Applix Reports Revenues of $8.9 Million, Improves Collections, Reduces Expenses, Maintains Cash Balance; Company Announces Next Generation Solution.Business/Technology Editors WESTBORO, Mass.--(BUSINESS WIRE)--Oct. 23, 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), a leading provider of interactive planning, CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. and business intelligence software, today reported third quarter results for the period ended September 30, 2001. Revenues were $8.9 million and 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. before 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). per share was $0.19, compared to an operating loss per share of $0.22 for the same period in 2000. 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. before restructuring improved by 25% from a high of $14.7 million in the first quarter of 2001 to $11.1 million in the third quarter of 2001. "We made prudent expense reductions and achieved excellent results from our focus on cash collections. As a result, we maintained our cash balance," said Walt Hilger, Applix Vice President and CFO See Chief Financial Officer. . "We continue to drive cost savings to attain break-even performance at current quarterly revenue levels while maintaining our ability to achieve our long-term goals Long-term goals Financial goals expected to be accomplished in five years or longer. ." Applix also announced that it won 27 new customers during the quarter. "In a tough economy, customers demand a high return on investment. Applix solutions enable companies to respond quickly to changing environments, which delivers the return on investment they need. Applix solutions bring a high return-on-investment on an ongoing basis as well as a low total cost-of-ownership, which is evidenced by continued and significant repeat business," said Alan Goldsworthy, 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. . Applix gained repeat business during the third quarter from existing customers such as Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY), colloquially referred to as BMS, is a pharmaceutical corporation, formed by a 1989 merger between pharmaceutical companies Bristol-Myers Company, founded in 1887 by William McLaren Bristol and John Ripley Myers in Clinton, NY (both were , CNH CNH Carteira Nacional de Habilitação CNH Centro Nacional de Huracanes (Spanish) CNH California Nevada Hawaii (a district of Kiwanis International) CNH Club Náutico Hacoaj , EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. and Pharmacia & UpJohn. "We continue to strengthen the fundamentals of the company," Goldsworthy said. "During this year we have reduced operating expenses, improved DSO See CSO. and increased yield per employee." Applix forecasts revenues of approximately $9.4 million for the fourth quarter of 2001, with continuing expense management resulting in break-even performance and no change in cash for the second quarter in a row. New Solution Platform Forthcoming Applix also announced plans to unveil its next-generation product at the end of Q4. The new solution platform is the next step in the company's product migration roadmap for Applix iTM1 and Applix iEnterprise customers and partners. "All of our customers and partners can upgrade to this new platform and take immediate advantage of enhanced functionality and product features," said Alan Goldsworthy, Applix President and CEO. "Initial feedback from Applix customers and partners is very positive. This technology is a unifying extension of our strategy to blend 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. customer and operational information with financial data so that our customers can have a complete view of their business and make more informed decisions." "This solution renews our commitment to Applix iTM1, enhances our product offering to Applix iEnterprise customers and provides Applix with a single strategic focus, allowing us to further streamline operations, gain greater efficiencies and take advantage of a significant growth opportunity in emerging markets," Goldsworthy stated. Applix will host a conference call at 4:30 pm (EST EST electroshock therapy. EST abbr. electroshock therapy ) today to further discuss quarterly results and offer guidance for the remainder of the year and beyond. 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 and replay of the call will be available at www.applix.com. About Applix, Inc. Applix (NASDAQ:APLX) is a leading global provider of interactive planning, CRM and business intelligence software that rapidly transforms information into knowledge -- enabling companies 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. Its flexible, scalable products adapt to companies' unique and competitive business processes and provide real-time analysis, planning, measurement and response to changing customer requirements and business dynamics. Headquartered in Westboro, MA, Applix has offices in eight countries and more than 4,000 customers worldwide. For more information, 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 new product introductions, 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. , future revenue and the ability to return to profitability, are considered forward-looking and subject to a number of risks and uncertainties. Refer to the Company's most recently filed Quarterly Report on Form 10-Q Form 10-Q See 10-Q. under "Risk Factors" for a further discussion of these risks and uncertainties. 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.
Consolidated Statement of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
(In thousands, except
per share data)
License revenue $ 4,240 $ 7,007 $ 14,591 $ 17,045
Service revenue 4,618 3,960 16,038 12,137
Total revenue $ 8,858 $ 10,967 $ 30,629 $ 29,182
Cost of license revenue 619 490 1,663 1,471
Cost of service revenue 2,887 3,267 10,028 10,120
Gross margin $ 5,352 $ 7,209 $ 18,938 $ 17,591
Operating expenses:
Selling and marketing 4,726 6,676 17,731 18,865
Research and
development 1,698 1,893 5,513 5,653
General and
administrative 1,176 1,141 3,557 3,195
Total operating
expenses before
restructuring $ 7,600 $ 9,710 $ 26,801 $ 27,713
Operating loss before
restructuring (2,248) (2,501) (7,863) (10,122)
Restructuring expense 438 -- 950 --
Operating loss - net of
restructuring expense (2,686) (2,501) (8,813) (10,122)
Interest income - net 58 285 315 946
Loss from continuing
operations before
income taxes (2,628) (2,216) (8,498) (9,176)
Provision for (benefit
from) income taxes 50 (1,091) 169 (3,454)
Net loss from continuing
operations (2,678) (1,125) (8,667) (5,722)
Gain (loss) from
discontinued operation 363 (1,101) 1,081 (568)
Net income (loss) $ (2,315) $ (2,226) $ (7,586) $ (6,290)
Operating Loss before
restructuring per
share $ (0.19) $ (0.22) $ (0.67) $ (0.90)
Basic and diluted income
(loss) per share:
Continuing operations $ (0.22) $ (0.10) $ (0.73) $ (0.51)
Discontinued operation 0.03 (0.10) 0.09 (0.05)
Total income (loss)
per share $ (0.19) $ (0.20) $ (0.64) $ (0.56)
Weighted average number
of basic and diluted
shares outstanding 11,934 11,352 11,808 11,261
Balance Sheet Highlights
September 30, June 30, December 31,
2001 2001 2000
(In thousands)
Cash and cash
equivalents $ 9,008 $ 8,996 $ 12,546
Total current assets $ 19,592 $ 22,830 $ 27,421
Total assets $ 27,095 $ 30,790 $ 33,047
Total liabilities $ 15,470 $ 17,054 $ 14,840
Total stockholders'
equity $ 11,625 $ 13,736 $ 18,207
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