Applix Reports Strong Fourth Quarter 2003 Results; Analytics Revenue Increases 33% from Year-Ago Quarter; Company Takes Restructuring Charge for Renegotiated Headquarters Lease.Business Editors/High-Tech Writers 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)--Feb. 5, 2004 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. ), a global provider of Business Intelligence (BI) and Business Performance Management (BPM (Business Process Management) A structured approach that models an enterprise's human and machine tasks and the interactions between them as processes. BPM software provides users with a dashboard interface that offers a high-level view of the operation that typically ) software solutions, today reported that revenue for the quarter ended December December: see month. 31, 2003 was $8.16 million, compared to $9.83 million in the fourth quarter of 2002. For comparison purposes, revenue for the year ago quarter included $3.71 million from the Company's customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) business, which was sold during the first quarter of 2003. Reported revenue for the fourth quarter of 2003 consists exclusively of revenue derived from the analytics business (BI and BPM software), representing a 33.3% increase from the same period last year. Analytics license revenue for the fourth quarter of 2003 was $4.77 million, compared to $3.27 million for the same period a year ago. For the past four quarters, the Company has generated sequential growth in both total analytics revenue, as well as analytics license revenue. Total analytics revenue increased from $5.58 million in the first quarter to $5.94 million in the second quarter to $6.42 million in the third quarter to $8.16 million in the fourth quarter, increases of 6.5%, 8.1% and 27.1%, respectively. Analytics license revenue increased from $2.44 million in the first quarter to $2.66 million in the second quarter to $3.11 million for the third quarter to $4.77 million for the fourth quarter, increases of 9.0%, 16.9% and 53.3%, respectively. The net loss for the fourth quarter of 2003 was $2.67 million, or $0.21 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of $2.95 million, or $0.24 per basic and diluted share, for the year ago period. Included in the results for the fourth quarter of 2003 was a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , totaling $3.24 million, or $0.25 per basic and diluted share, related to the renegotiation of the Company's Westborough, Mass. office lease to reduce space and on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" rent, which will result in an annual savings of approximately $900,000. David C. Mahoney Mahoney could refer to:
Gross margin for the fourth quarter of 2004 improved to 77.1% from 76.8% in the third quarter of 2003 and from 68.0% for the fourth quarter 2002. The improvement in gross margin was attributable to the higher percentage of license revenues, offset by the additional write-offs of approximately $250,000 in previously capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software development costs. On an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis, gross margin benefited from the reduction of lower margin services revenue and the related cost of that revenue associated with the Company's CRM business sold in the first quarter of 2003. 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. for the quarter ended December 31, 2003 totaled $9.16 million compared to $9.55 million in the year ago period. The fourth quarter this year included the real estate restructuring charge of $3.24 million and approximately $85,000 in legal costs associated with the previously-announced investigation by the Securities & Exchange Commission following two financial restatements. Results for the Year Ended December 31, 2003 Revenue for 2003 was $27.36 million, compared to $36.60 million in 2002. For comparison purposes, revenue for the 2002 period included $15.38 million from the Company's CRM business, sold during the first quarter of 2003. Reported revenue for 2003 included $26.10 million in analytics revenues, compared to $21.22 million in 2002, reflecting a 23.0% increase in analytics revenues from last year. The net loss for 2003, which includes a $7.91 million gain from the sale of the CRM business as well as the $3.24 million real estate restructuring charge, totaled $10,000, compared to a net loss of $5.77 million, or $0.47 per basic and diluted share, for the year ago period. Fourth Quarter Business Highlights -- Applix's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , TM1, was named the best-performing analytics engine in The 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. Survey 3 by independent analyst and OLAP (online analytical processing Online Analytical Processing, or OLAP (IPA: /ˈoʊlæp/), is an approach to quickly provide answers to analytical queries that are multidimensional in nature. ) authority Nigel Nigel is a masculine name of English origin and is another form of the name Neil, which is more commonly used. The origin of the name is unusual, as it comes from the form medieval scribes writing in Latin used to "translate" Neil, and the "g" in the name comes from Pendse. -- Applix continued to build its customer base with companies that are realizing measurable benefits of employing 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. analytics for forecasting, planning and consolidations. During the quarter, Airbus SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. , Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Asset Management, Eli Lilly For lily, the flower, see . Lilly is a surname and a female given name, and may refer to: People
(2) (NetWare Core Protocol) The file sharing protocol used in a NetWare network. (National Car Parks National Car Parks (NCP) is the United Kingdom’s largest private car park operator. NCP also acts as a parking enforcement service provider exercising local authority statutory powers. ), South African Airways South African Airways (SAA) is South Africa's largest domestic and international airline company, with hubs in Cape Town and Johannesburg. It is also known in Afrikaans as Suid-Afrikaanse Lugdiens (SAL) and Sun Life are just a few examples of the global leaders who selected the Company's TM1 BI platform. -- The Company continued to expand its worldwide distribution channel by signing 22 partners during the fourth quarter, including CorpSoft Nordic, KnowledgeLab Software and Lynx lynx, name given to several related small, ferocious members of the cat family. All have small heads, tufted ears, and heavy bodies with long legs and short tails. All are primarily terrestrial, although they are able to climb trees. Consulting. -- For the third consecutive year, Applix has been selected by the readers of DM Review magazine as a leading provider of business intelligence solutions. Applix's ranking in the 2003 DM Review 100 moved up more than 30 places from its 2002 position, making Applix one of the companies with greatest ranking improvement on the list. -- Applix named analytics visionary 1. visionary - One who hacks vision, in the sense of an Artificial Intelligence researcher working on the problem of getting computers to "see" things using TV cameras. (There isn't any problem in sending information from a TV camera to a computer. Manny Manny may refer to: In nobility:
of Chief Technology Officer. Perez will play a key role in determining the technology direction and architecture of the company's award-winning BI and BPM products. Milt Alpern, Chief Financial Officer of Applix, commented, "We were able to show significant improvement from a financial standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the this quarter, including strong revenue growth and positive cash flow generation, while we also benefited from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign currency exchange rates. The 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). measures we took this year will enable the company to save approximately $900,000 in annual rent expense going forward, thus enabling us to invest prudently in revenue-enhancing areas of our business without impeding im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped our ability to achieve the profitable business model we are targeting." Fourth Quarter Financial Highlights -- Cash and cash equivalents totaled $9.24 million at 12/31/03; subsequent to year-end, the Company made a $3 million payment to its landlord in connection with its real estate restructuring. -- The Company generated positive cash flow during the quarter of approximately $150,000 as compared to burning approximately $600,000 during the third quarter. -- 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). was 63 days at 12/31/03 up from 48 days at 9/30/03, which was unusually low. -- Average license deal size remained constant at $25,000 - $35,000 and the number of +$100,000 transactions increased to four. Following the close of the quarter, Applix agreed on the terms for a $2 million line of credit for working capital purposes and $1 million line of credit for equipment financing with Silicon Valley Bank, subject to the Bank's final credit approval. Business and Financial Outlook for 2004 -- The Company is currently targeting total revenues of $30-33 million in 2004. -- The Company is targeting break-even results for the first quarter, followed by steadily improving profit in the following quarters in 2004. Investor Conference Call and Webcast The senior management of Applix will host a conference call and Webcast to discuss the fourth quarter results tomorrow morning, Friday, February 6, 2004 at 8:30 am EST EST electroshock therapy. EST abbr. electroshock therapy . To access the call, please dial 1-800-901-5213, using the confirmation code 26063351. Internationally, the call may be accessed by dialing 1-617-786-2962, using the same confirmation code. To listen via live audio Webcast, please visit the Company's website, www.applix.com at least ten minutes prior to the start of the call. The Webcast will be available as a replay starting one hour after the call is completed at the same location. About Applix Applix (NASDAQ: APLX) is a global provider of Business Intelligence and Business Performance Management solutions. These solutions enable the continuous management and monitoring of performance across the financial, operational, customer and organizational functions within the enterprise. More than 1,700 customers worldwide use Applix's adaptable a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil , scalable and real-time solutions, delivered by Applix and by
a global network of partners, to manage their business performance and
respond to the marketplace in real-time. Headquartered in Westborough,
MA, Applix maintains offices in four 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
www.applix.com.
This news release contains 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. , including targeted financial results for 2004, which involve risks and uncertainties. Forward-looking statements in this document are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Forward-looking statements concerning future plans or results are only estimates and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences include without limitation, competitive pressures, changes in customer demands, adverse economic conditions, loss of key personnel, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , potential fluctuations in quarterly results, lengthy sales cycles, market acceptance of new or enhanced products and services, factors affecting spending by customers and other risks, uncertainties and factors including those described in 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 year ended December 31, 2002 under the heading "Risk Factors" and its most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. under the heading "Factors That May Affect Future Results." The forward-looking statements provided by the Company in this press release represent the Company's views as of the date of this release. While the Company anticipates that subsequent events and developments may cause the Company's views to change, it disclaims any obligation to update these forward-looking statements, and these forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release. (C)2004 Applix, Inc. All rights reserved. Applix and TM1 are registered trademarks of Applix, Inc. All other trademarks and company names mentioned are the property of their respective owners.
Applix, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Year Ended
----------------------------------------
December 31, December 31,
----------------------------------------
2003 2002 2003 2002
----------------------------------------
Revenues:
Software license $4,765 $4,368 $13,222 $16,050
Professional services and
maintenance 3,392 5,464 14,133 20,546
----------------------------------------
Total revenues 8,157 9,832 27,355 36,596
Cost of revenues:
Software license 689 765 1,850 2,040
Professional services and
maintenance 1,181 2,384 5,270 9,989
----------------------------------------
Total cost of revenues 1,870 3,149 7,120 12,029
----------------------------------------
Gross margin 6,287 6,683 20,235 24,567
Operating expenses:
Sales and marketing
(includes $0 and $23 of
stock-based compensation
for the three months and
year ended December 31,
2003, respectively) 2,935 4,900 10,747 15,311
Product development 1,279 1,639 5,512 5,699
General and administrative
(includes $15 and $267 of
stock-based compensation
for the three months and
year ended December 31,
2003, respectively) 1,650 1,413 7,653 5,249
Compensation expenses and
amortization of acquired
intangible asset 62 613 833 2,405
Write down of notes
receivable - 964 - 964
Restructuring expense 3,238 20 3,238 381
----------------------------------------
Total operating expenses 9,164 9,549 27,983 30,009
----------------------------------------
Operating loss (2,877) (2,866) (7,748) (5,442)
----------------------------------------
Non-operating income
(expense):
Net gain (loss) from sale
of subsidiary - 141 (164) 141
Interest and other income
(expense), net 223 (38) 933 (47)
Net gain from sale of CRM
business - - 7,910 -
----------------------------------------
(Loss) income from continuing
operations before income
taxes: (2,654) (2,763) 931 (5,348)
Provision for income taxes - 111 764 222
----------------------------------------
(Loss) income from continuing
operations (2,654) (2,874) 167 (5,570)
----------------------------------------
Loss from discontinued
operations (15) (76) (177) (204)
----------------------------------------
Net loss $(2,669) $(2,950) $(10) $(5,774)
========================================
Net (loss) income per share,
basic and diluted:
Continuing operations,
basic ($0.21) ($0.23) $0.01 ($0.46)
Continuing operations,
diluted ($0.21) ($0.23) $0.01 ($0.46)
Discontinued operations,
basic and diluted ($0.00) ($0.01) ($0.01) ($0.02)
----------------------------------------
Total loss per share,
basic and diluted ($0.21) ($0.24) ($0.00) ($0.47)
Weighted average number of
shares outstanding:
Basic 12,876 12,365 12,601 12,223
Diluted 12,876 12,365 13,197 12,223
Applix, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
December 31, December 31,
------------------------------
2003 2002
------------------------------
ASSETS
----------------------------------------
Current assets:
Cash and cash equivalents $9,241 $8,389
Accounts receivable, net 5,715 5,810
Other current assets 2,125 1,906
------------------------------
Total current assets 17,081 16,105
Restricted cash 817 933
Property and equipment, net 973 1,875
Capitalized software costs, net 265 1,460
Goodwill 1,158 1,187
Intangible asset, net 812 1,062
Other assets 843 925
------------------------------
TOTAL ASSETS $21,949 $23,547
==============================
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------
Current Liabilities:
Accounts payable $1,083 $2,296
Accrued expenses 6,657 9,563
Accrued restructuring expense 3,400 -
Deferred revenue 8,060 8,703
------------------------------
Total current liabilities 19,200 20,562
Long term liabilities 494 566
------------------------------
Total liabilities 19,694 21,128
------------------------------
Stockholders' equity:
Preferred stock; $.01 par value;
1,000,000 shares authorized, none
issued - -
Common stock; $.0025 par value;
30,000,000 shares authorized;
13,272,379 and 12,675,176 issued,
respectively 33 32
Additional paid in capital 50,497 49,600
Accumulated deficit (45,375) (45,365)
Accumulated other comprehensive loss (1,539) (487)
------------------------------
3,616 3,780
Less: treasury stock, 357,627 and
306,198 shares, respectively (1,361) (1,361)
------------------------------
Total stockholders' equity 2,255 2,419
------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $21,949 $23,547
==============================
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