Applix Reports Second Quarter 2002 Results.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)--July 18, 2002 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. ) - 74% Improvement in Net Loss - 65 New Customers Added Applix, Inc., (NASDAQ: APLX), a global provider of enterprise-wide interactive planning, analytics and CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. solutions, today reported results for the second quarter ended June June: see month. 30, 2002. Revenues for the second quarter ended June 30, 2002 were $9.2 million, compared to revenues of $10.4 million in the same period a year ago. On a Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) basis, net loss in the second quarter was $(675,000) or $(0.06) per share, compared to a net loss of $(2.7) million or $(0.23) per share in the year ago period. Excluding contingent costs and associated amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of $598,000, which are being accounted for as an operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. per GAAP, but are related to the Company's 2001 acquisition of Dynamic Decisions (DD) in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income was at breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations ($29,000) or $0.00 per share in the second quarter. Alan A`lan´ n. 1. A wolfhound. Goldsworthy Goldsworthy is the name of more than one person:
Applix ended the second quarter with $9.0 million of cash, restricted cash, and cash equivalents at June 30, 2002, down slightly from $9.4 million at the end of the first quarter, 2002. 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). in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying increased to 70 days at June 30, 2002, but remained well below the prior year. Walt Hilger, Chief Financial Officer of Applix, said, "Our balance sheet and liquidity position remain strong. There was a slight decrease in our cash balance due primarily to slower customer payments caused by the weak economy. At the same time we completed the development of our Applix Integra Integra™ Dermatology An acellular artificial skin used to cover severe burns and wounds. See Artificial skin, Burns. application product platform and upgraded some areas of the business in an effort to improve our ability to benefit from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. revenue opportunities. With the completion of Integra, we expect our cash balance will increase in the third quarter in line with trends seen earlier this year. We are continuing to review expenses as part of our business plan and goal of improving profitability." Goldsworthy concluded, "We also continued to make investments in intellectual property this quarter with the delivery of Applix iTM1 8.0 which has dramatically improved the performance of several existing mission critical analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. solutions. With the release of Applix iTM1 8.0 and Applix iEnterprise 8.3 last quarter, we have now delivered Applix Integra ready versions of our technology which provide our existing customers a direct adoption path for Applix Integra, our next generation technology for business performance management. This week we began rolling out our Applix Integra application platform to participants in our early adopter program in the U.S. and the U.K. and we are very pleased with the initial feedback. We are widening our launch efforts and are in the process of educating our large installed customer base on the benefits of the Applix Integra product application platform and plan to leverage this into 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. We will target Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , France, and Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. later this year as we roll out translated versions of Applix Integra. Germany represents our largest installed base in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and is an ideal market for our solutions.""Moving into the third quarter," continued Goldsworthy, "Applix remains financially healthy and we continue to benefit from our existing base of more than 2,600 customers worldwide, including over half of the Fortune 500. We are confident that we have the right solutions for our target markets, including our new Integra product, which sets the stage for success even in a flat IT spending marketplace." Separately, Applix's Board of Directors elected John Lowenberg as Chairman of the Board. He replaces the outgoing Jitendra Saxena Saxena is a surname of Anglo-Saxon origin. It derives from the parishes of Saxby, in the counties of Lincolnshire and Leicestershire, England. The surname Saxena is an example of a habitation name, the broad category of surnames that were derived from place names. , currently 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. and co-Founder of Netezza, and co-founder of Applix in 1982. Lowenberg has served as a director of Applix since March 2001. "Since joining Applix's board, John has been instrumental in developing the strategic plan we are now executing," added Goldsworthy. "Given his operations background, experience and active contributions, we are confident he will be able to help drive our growth going forward. At the same time, we appreciate Jitendra's contributions and wish him well in his many ongoing entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. endeavors." Lowenberg is a proven leader, with a track record of helping companies navigate (1) "Surfing the Web." To move from page to page on the Web. (2) To move through the menu structure in a software application. market changes, while creating and capitalizing on growth opportunities. Since 1996, he has served as a Managing Partner of JDL n. 1. Jewish Defense League. Enterprises, a consulting company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a and he is also an advisor to Safeguard Scientifics, a leading venture capital firm. Lowenberg served as interim President & CEO of Wang (Wang Laboratories, Inc., Lowell, MA) A computer services and network integration company. Wang was one of the major early contributors to the computing industry from its founder's invention that made core memory possible, to leadership in desktop calculators and word processors. Healthcare Information Systems, an electronic medical record solution company, from March 1998 to September September: see month. 1999, and served as interim CEO of FormMaker Software Inc. (now part of DocuCorp International), a document automation provider, from January 1997 to September 1997. He is currently a director of CompuCom, Diamond Cluster International, DocuCorp International and Sanchez Computer Associates. Investor Conference Call / Webcast Details Applix will review detailed second quarter 2002 results on July 18, 2002 at 5:00PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The conference call-in number is 800-233-2795. A replay will be available from 8PM EDT on July 18 through midnight EDT, July 25. The replay number is 888-566-0150 (domestic) or 402-220-9185 (international). The confirmation identification is APPLIX. The live call and replay will also be accessible over the web at www.applix.com. About Applix Applix (NASDAQ:APLX) is a global provider of enterprise-wide interactive planning, analytics and customer relationship management solutions that help customers automate To turn a set of manual steps into an operation that goes by itself. See automation. , analyze and optimize optimize - optimisation their operational and analytical business processes throughout their extended enterprises. More than 2,600 customers worldwide, including more than half of the Fortune 500, use Applix's adaptable a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil , scalable and
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. solutions to manage their business performance and respond to
the marketplace in real time. These solutions are delivered by Applix
and by a global network of partners. Headquartered in Westborough, MA,
Applix maintains offices in seven 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
http://www.applix.com.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. : This press release contains certain forward-looking statements 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 from those indicated. 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. , 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 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 period ended December 31, 2001 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.
Applix, Inc.
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
-------------------------------------------
-------------------------------------------
June 30, June 30, June 30, June 30,
-------------------------------------------
-------------------------------------------
2002 2001 2002 2001
-------------------------------------------
-------------------------------------------
Revenues
Software license 3,964 4,537 8,343 10,351
Professional services
and maintenance 5,227 5,907 10,131 11,420
-------------------------------------------
-------------------------------------------
Total revenues 9,191 10,444 18,474 21,771
-------------------------------------------
-------------------------------------------
Cost of revenues
Software license 944 553 1,718 1,044
Professional services
and maintenance 2,131 3,173 4,319 7,141
-------------------------------------------
-------------------------------------------
Total cost of
revenues 3,075 3,726 6,037 8,185
-------------------------------------------
-------------------------------------------
Gross margin 6,116 6,718 12,437 13,586
Operating expenses
Product development 1,364 1,707 2,445 3,815
Sales and marketing 3,560 5,990 6,983 13,005
General and
administrative 1,193 1,237 2,510 2,381
Acquisition related
costs (DD) and other
charges 598 - 1,176 -
Restructuring and
other charges (37) 512 (37) 512
---------- --------------------------------
---------- --------------------------------
Total operating
expenses 6,678 9,446 13,077 19,713
-------------------------------------------
-------------------------------------------
Operating income/(loss) (562) (2,728) (641) (6,127)
Permanent impairment
of cost based
investment - - - -
Interest and other
income, net 68 124 117 257
Provisions (benefit)
for income taxes 96 75 160 119
-------------------------------------------
-------------------------------------------
Net loss from
continuing operations (590) (2,679) (683) (5,989)
-------------------------------------------
-------------------------------------------
Discontinued operations (85) - (85) 718
-------------------------------------------
-------------------------------------------
Net income/(loss) (675) (2,679) (769) (5,271)
===========================================
Net income/(loss) per
share, basic and diluted:
Operating income (0.05) (0.23) (0.05) (0.52)
Continuing operations (0.05) (0.23) (0.06) (0.51)
Total income (loss)
per share (0.06) (0.23) (0.06) (0.45)
Weighted average number
of shares:
Basic and Fully Diluted 12,166 11,740 12,135 11,714
Applix, Inc.
Pro Forma* Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
--------------------------------------------
--------------------------------------------
June 30, June 30, June 30, June 30,
--------------------------------------------
--------------------------------------------
2002 2001 2002 2001
--------------------------------------------
--------------------------------------------
Revenues
Software license 3,964 4,537 8,343 10,351
Professional services
and maintenance 5,227 5,907 10,131 11,420
--------------------------------------------
--------------------------------------------
Total revenues 9,191 10,444 18,474 21,771
Cost of revenues
Software license 944 553 1,718 1,044
Professional services
and maintenance 2,131 3,173 4,319 7,141
--------------------------------------------
--------------------------------------------
Total cost of
revenues 3,075 3,726 6,037 8,185
--------------------------------------------
--------------------------------------------
Gross margin 6,116 6,718 12,437 13,586
Operating expenses
Product development 1,364 1,707 2,445 3,815
Sales and marketing 3,560 5,990 6,983 13,005
General and
administrative 1,193 1,237 2,510 2,381
Acquisition related
costs (DD) and
other charges - - - -
Restructuring and
other charges - - - -
--------------------------------------------
--------------------------------------------
Total operating
expenses 6,117 8,934 11,938 19,201
--------------------------------------------
--------------------------------------------
Operating
income/(loss) (1) (2,216) 499 (5,615)
--------------------------------------------
Permanent impairment
of cost based
investment - - - -
Interest and other
income, net 68 124 117 257
Provisions (benefit)
for income taxes 96 75 160 119
Net loss from
continuing operations (29) (2,167) 456 (5,477)
Discontinued operations - - - -
--------------------------------------------
--------------------------------------------
Net income/(loss) (29) (2,167) 456 (5,477)
============================================
Net income/(loss)
per share,
basic and diluted:
Operating income (0.00) (0.19) 0.04 (0.48)
Continuing operations (0.00) (0.18) 0.04 (0.47)
Total income
(loss) per share (0.00) (0.18) 0.04 (0.47)
Weighted average number
of shares:
Basic and Fully Diluted 12,166 11,740 12,135 11,714
Applix, Inc.
Condensed Consolidated Balance Sheet
(In thousands, except per share data)
(Unaudited)
June 30, December 31,
------------------- --------------
------------------- --------------
2002 2001
------------------- --------------
------------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 7,897 $ 8,228
Accounts receivable, net 7,168 7,202
Prepaid expenses
and other current assets 2,011 1,672
------------------- ------------
Total current assets 17,076 17,102
Restricted cash 1,050 1,050
Property and equipment, net 2,316 2,529
Goodwill and intangible
assets, net 2,306 2,431
Other assets 2,644 1,826
Total assets $ 25,392 $ 24,938
=================== ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 1,972 2,137
Accrued liabilities 6,429 6,898
Deferred revenue 7,307 5,813
------------------- ------------
------------------- ------------
Total current liabilities 15,708 14,848
Long term liabilities 667 709
------------------- ------------
------------------- ------------
Total liabilities 16,375 15,557
------------------- ------------
------------------- ------------
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;
12,478,393 and 12,320,096 issued,
respectively 31 31
Additional paid in capital 49,423 49,212
Notes receivable
from stockholders (1,120) (1,120)
Accumulated other
comprehensive loss (309) (503)
Accumulated deficit (37,931) (37,162)
------------------- ------------
------------------- ------------
10,094 10,458
Less: 306,198 shares
of treasury stock,
at cost (1,077) (1,077)
------------------- ------------
------------------- ------------
Total stockholders'
equity 9,017 9,381
------------------- ------------
------------------- ------------
Total liabilities and
stockholders' equity $ 25,392 $ 24,938
=================== ============
--30--md/sw/ny*
CONTACT: Applix, Inc., Westborough
Walt Hilger, 508/870-0300, ext. 288
whilger@applix.com
or
The Ruth Group, New York
David Pasquale, 646/536-7006
dpasquale@theruthgroup.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS NETWORKING
CONFERENCE CALLS EARNINGS
SOURCE: Applix, Inc.
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