Applix Reports Strong Fourth Quarter, Posts Pro Forma Operating Profit, Increases Cash Position, Adds 45 New Customers.Business/Technology Editors WESTBORO, Mass.--(BUSINESS WIRE)--Jan. 29, 2002 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 fourth quarter and year-end results for the period ended December 31, 2001. Revenues for the fourth quarter were $9.7 million, an increase of 9% over the previous quarter. Quarterly net income was a loss of $2.3 million, or $0.19 per share, compared with a net loss of $12.6 million or $1.09 per share in the fourth quarter of 2000. 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 operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net operating income per share were $131,000 and $0.01 respectively. Revenues for the year were $40.3 million, slightly ahead of the prior year. Net income for the year was a loss of $9.9 million, or $0.83 per share, compared with a net loss of $18.9 million or $1.68 per share in 2000. Pro forma net operating income and net operating income per share were a loss of $7.5 million and $0.63 per share respectively. The pro forma net operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the fourth quarter and full year 2001 excludes restructuring, loss on impaired investments, discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and amortization related charges of $2.1 million and $3.3 million respectively. "I am very pleased with our results. This year we focused on achieving a business model to return Applix to profitability in a difficult global market. We created a structure and revenue mix that allows for conservative revenue growth while returning to profitability and positive cash flow," said Alan Goldsworthy, Applix President & 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. . "At the same time, we continue to invest in technology. We recently launched Applix Integra, an integrated platform that enables companies to be more competitive and more responsive to the rapidly changing markets. And we are encouraged by the initial reactions of our partners and customers to this new platform." Applix ended the year in a strong financial position, with $9.3 million of cash and cash equivalents at December 31, 2001. Cash and equivalents ended the year with consecutive quarters of cash accretion. 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 declined to 70 days at year-end 2001, compared with 99 days at year-end 2000. Deferred revenue closed the year at $5.8 million, an increase of $1.6 million from $4.2 million at the end of the prior year. "We are very pleased to have exceeded the guidance provided for the fourth quarter in all of the key areas: revenue, profitability and cash flow. Our focus on long and mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" customer relationships is reflected in these results," said Walt Hilger, Applix Chief Financial Officer. "Forty-five new customers chose Applix solutions this quarter, an increase of 66% from last quarter." Q4 New Customers & Repeat Business Applix's 45 new customers from the fourth quarter are from Asia, Australia, Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in a range of industries, from pharmaceutical and healthcare to software and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . New customers include: Appstream, Aramark, Carat, Chamberlain, Cogent, Degussa, Forest Express, GoFly, Hansol, Medvantis, New York Public Library New York Public Library, free library supported by private endowments and gifts and by the city and state of New York. It is the one of largest libraries in the world. , Noble House, Procter & Gamble, Realtime, Sage Software, Sylvan Learning Sylvan Learning (formerly Sylvan Learning Center) is a chain of franchised tutoring centers which provide personalized tutoring in reading, writing, mathematics, study skills and test-prep for college entrance and state exams. Centers and Williamson-Dickie. Applix earned significant repeat business generated by many existing customers, including Australian Dept. of Defence, 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 , ExxonMobil, Lowe's Companies, Novartis, Pharmacia, Sungard, Trend Micro, the U.S. Navy and Valspar Corporation. Q4 Partner News During the quarter, Applix announced an OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partnership with SSA Global Technologies SSA Global Technologies (previous NASDAQ symbol: SSAG) was a company developing Enterprise resource planning (ERP) software. On May 15, 2006, SSA Global announced that it would be acquired by Infor Global Solutions. (SSA (Serial Storage Architecture) A fault tolerant peripheral interface from IBM that transfers data at 80 and 160 Mbytes/sec. SSA uses SCSI commands, allowing existing software to drive SSA peripherals, which are typically disk drives. GT) to deliver BPCS BPCS Business Planning and Control System BPCS Better Process Control School BPCS Basic Process Control System BPCS Base/Post/Camp/Station BPCS Broadband Personal Communications System (FCC) CRM, a fully functional sales, marketing and service desk suite of applications to its 6,500 customers worldwide. SSA GT is a global provider of enterprise solutions and services. Q4 Product News During Q4, the company announced Applix Integra, the first real-time, enterprise-wide interactive planning and CRM analytics solution on a single platform. Applix Integra provides immediate visibility into operational data, which allows managers to quickly stabilize operational fluctuations and take advantage of opportunities. Applix Integra integrates planning, analytics, business workflow, collaboration, exception alerting and forecasting. "Applix Integra integrates planning, performance measurement and operational data to enable companies to optimize business effectiveness and customer interaction regardless of geography or structure," Goldsworthy said. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry analysts, interactive planning and CRM analytics represent significant market opportunities, as noted in reports by Gartner about Business Activity Monitoring See BAM. (BAM Bam (bäm), town (1996 pop. 70,100), Kerman prov., SE Iran, on the intermittent Bam River. Located on the western edge of the Dasht-e Lut, Bam is a trade center in a henna-growing region. Dates and other fruits are also grown; camels are raised. ), by Forrester about Adaptive Planning and by AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Research about Active Financial Planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against . "Applix is poised to be a leader in this multi-billion dollar emerging market that will take corporate efficiency and productivity to a whole new level," Goldsworthy said. 2001 Highlights During 2001, Applix successfully streamlined its business, dramatically improved its expense and operational structure, enhanced its product offerings and grew its customer base. Here are a few of the highlights: -- Improved Business Structure: Reduced quarterly 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 32% (Q4 01 vs. Q4 00). Improved revenue mix. Returned to operating profitability on a pro forma basis in the final quarter. -- Streamlined Business: Applix sold its VistaSource subsidiary to Parallax parallax (pâr`əlăks), any alteration in the relative apparent positions of objects produced by a shift in the position of the observer. In astronomy the term is used for several techniques for determining distance. Capital Partners, receiving more than $1 million in cash, a portion of outstanding accounts receivable in the future and retaining a minority equity position in the acquired entity. -- Global Presence: Applix acquired one of Australia's fastest growing companies, Dynamic Decisions, a technology company providing Applix On-Line Analytical Processing (database) On-Line Analytical Processing - (OLAP) A category of database software which provides an interface such that users can transform or limit raw data according to user-defined or pre-defined functions, and quickly and interactively examine the results in various dimensions (OLAP (OnLine Analytical Processing) Decision support software that allows the user to quickly analyze information that has been summarized into multidimensional views and hierarchies. OLAP tools are used to perform trend analysis on sales and financial information. ) solutions in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and Australia. -- Advanced Technology: Applix continued to enhance its technology, including launching the groundbreaking new product, Applix Integra. In addition, Applix introduced Applix Weblink, representing the industry's first fully integrated Web and WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. deployment technology for customer and business analysis processes. Also, Applix iCRM became available in Japanese, Korean, and Standard and Simplified Chinese. -- Industry Honors: Applix won several technology awards, including the ISM See ISM band. Top 15 CRM Software Award, Aberdeen's Top Ten Implementations Award, Global Finance's Best Internet Infrastructure Award for the CRM category, CeBit Best of Show Award for the Wireless Category, DM Review Top 100 Award, and the eWeek eXcellence Award. -- Customer Growth: Applix added numerous world-class companies to its customer base, including Aprisma, Best Software, Bristol-Myers Squibb, CNH, ExxonMobil, Hansol, Lowe's Companies, Proctor & Gamble, Reliant Pharmaceutical, Terrible Herbst, Trend Micro and Virgin Atlantic Airways. In addition, BPAmoco expanded its implementation of Applix analytics and forecasting solutions to its global operations. -- Partner Expansion: Applix added several new partners to enhance solutions and broaden marketing and sales capabilities. New partners include: Alcatel, CAP Gemini, eProgram, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Business Services, Siemens Business Services, SSA Global Technologies, Scribe and Stratature. About Applix Applix (NASDAQ:APLX) is a global provider of interactive planning, CRM analytics and business intelligence solutions that enable companies to achieve better, faster decision-making. Applix solutions capture information from across the extended enterprise and enable continual marketplace responsiveness. Adaptable, scalable and real-time, Applix solutions support unique, complex and disparate business processes, providing analysis, planning, measurement and response to changing customer requirements and business dynamics. Headquartered in Westboro, MA, Applix has more than 2,600 customers worldwide, including over half of the Fortune 500. www.applix.com Notes to Investors 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 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 after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
Applix, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
As of December 31,
2001 2000
ASSETS
Current assets:
Cash, cash equivalents, and short term investments $ 8,228 $12,546
Accounts receivable, net 7,202 12,026
Prepaid and other 1,672 2,381
Total current assets 17,102 26,953
Restricted cash 1,050
Property and equipment, net 2,529 3,096
Net goodwill and acquired intangibles 2,430 370
Other assets 1,827 2,655
Total assets $24,938 $33,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 2,137 2,406
Accrued expenses 6,899 8,212
Deferred revenue 5,813 4,222
Total current liabilities 14,849 14,840
Total non-current liabilities 710 --
Total liabilities 15,559 14,840
Stockholders' equity:
Preferred stock; $.01 par value;
1,000,000 shares authorized, non issued
and outstanding -- --
Common stock; $.0025 par value; 30,000,000
shares authorized; 11,893,893
shares issued; and 11,449,300 shares
outstanding respectively 31 30
Additional paid in capital 49,217 48,249
Notes receivable from stockholders (1,120) (1,120)
Accumulated other comprehensive loss (503) (580)
Accumulated deficit (37,169) (27,268)
10,456 19,311
Less: 306,198 shares of treasury stock, at cost (1,077) (1,077)
Total stockholders' equity 9,379 18,234
Total liabilities and stockholders' equity $24,938 $33,074
Applix, Inc.
Consolidated Statement of Operations
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenues
Software $4,713 $6,690 $19,304 $23,735
Professional services
maintenance and other 4,961 4,367 20,999 16,504
Total Revenues 9,674 11,057 40,303 40,239
Cost of Revenues
Software 672 554 2,335 1,985
Professional services
maintenance and other 2,508 3,597 12,539 13,757
Total Cost of Revenues 3,180 4,151 14,874 15,742
Gross margin 6,494 6,906 25,429 24,497
Operating expenses
Product development 1,335 1,848 6,855 7,502
Sales and marketing 3,940 6,716 21,673 25,580
General and administrative 1,088 1,066 4,371 4,165
Amortization of goodwill and
acquired intangible assets 109 32 374 127
Loss on impaired investment 1,250 -- 1,250 --
Restructuring expense 750 -- 1,700 --
Total operating expenses 8,472 9,662 36,223 37,374
Operating income/(loss) (1,978) (2,756) (10,794) (12,877)
Interest income - net 59 207 376 1,153
Income before taxes (1,919) (2,549) (10,418) (11,724)
Provision (benefit)
for income taxes 389 (7,036) 558 3,583
Net loss from
continuing operations (2,308) (9,585) (10,976) (15,307)
Loss on disposal
of Vista source -- (3,238) -- (3,238)
Discontinued operations -- 201 1,081 (367)
Net Income/(loss) (2,308) (12,622) (9,895) (18,912)
Basic and diluted income
(loss) per share:
Operating income (0.17) (0.24) (0.91) (1.15)
Continuing operations (0.19) (0.83) (0.93) (1.36)
Total income (loss)
per share (0.19) (1.09) (0.83) (1.68)
Weighted average number
of basic & diluted 11,975 11,580 11,861 11,246
Applix, Inc.
Pro Forma(a) Consolidated Statement of Operations
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenues
Software $4,713 $6,690 $19,303 $23,735
Professional services
maintenance and other 4,961 4,367 20,999 16,504
Total Revenues 9,674 11,057 40,303 40,239
Cost of Revenues
Software 672 554 2,336 1,985
Professional services
maintenance and other 2,508 3,597 12,539 13,757
Total Cost of Revenues 3,180 4,151 14,874 15,742
Gross margin 6,494 6,906 25,428 24,497
Operating expenses
Product Development 1,336 1,849 6,855 7,502
Sales and Marketing 3,940 6,715 21,675 25,580
General and administrative 1,088 1,066 4,371 4,165
Amortization of goodwill and
acquired intangible assets -- -- -- --
Loss on impaired investments -- -- -- --
Restructuring expense -- -- -- --
Total operating expenses 6,363 9,662 32,901 37,247
Operating income/(loss) 131 (2,756) (7,472) (12,750)
Interest income - net 59 207 376 1,153
Income before taxes 189 (2,549) (7,096) (11,597)
Provisions for
(benefit) income taxes 389 7,036 558 3,583
Net loss from
continuing operations (200) (9,585) (7,654) (15,180)
Loss on disposal
of Vista source -- -- -- --
Discontinued operations -- -- -- --
Net Income/(loss) (200) (9,585) (7,654) (15,180)
Basic and diluted
income (loss) per share:
Operating income 0.01 (0.24) (0.63) (1.13)
Continuing operations (0.02) (0.83) (0.66) (1.35)
Total income (loss)
per share (0.02) (0.83) (0.66) (1.35)
Weighted average number
of basic & diluted 11,975 11,580 11,861 11,246
(a)Pro Forma excludes restructuring expenses, loss on impaired
investments, amortization of goodwill and discontinued operations.
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