Applix Reports Third Consecutive Profitable Quarter.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. -- 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 September September: see month. 30, 2004 was $6.91 million, an 8% increase over third quarter 2003 revenues of $6.42 million. Software license revenue for the third quarter of 2004 totaled $3.31 million, a 6% increase over the comparable quarter a year ago. Net income for the third quarter of 2004 was $416,000, or $0.03 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 $708,000, or $0.06 per basic and diluted share, for the year ago period. The 2004 third quarter included a charge of approximately $604,000, or $0.04 per basic and diluted share, in connection with 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). of the company's UK office lease. David C. Mahoney Mahoney could refer to:
See also: Spite lower than planned revenue. We were successful in overcoming the traditional seasonality of the third quarter in Europe, and overall our international performance remained strong, indicating that our strategy is resonating res·o·nate v. res·o·nat·ed, res·o·nat·ing, res·o·nates v.intr. 1. To exhibit or produce resonance or resonant effects. 2. with customers and partners. We are continuing to move ahead with our previously announced transition program for North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. field operations, where the company's lower than planned third quarter license revenue resulted. With the changes we have implemented in 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. over the past two quarters, we are confident that we will be able to generate revenue growth and profitability in the fourth quarter and in 2005. Thus far in the fourth quarter, based upon a combination of factors, our business is quite strong and bodes well for Applix's continued growth and success." He added, "We continue to experience improved results from a range of partners and we believe the accolades we are receiving from customers and analysts indicate that Applix's TM1 is indeed the versatile and differentiated platform that we intend it to be. We are especially pleased with TM1's recent certification by SAP, since that opens a large and important market to us worldwide." 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 third quarter of 2004 totaled $5.71 million, compared to $5.46 million in the year ago period. The change reflects the company's announced plan to increase sales and marketing expenditures, particularly in North America, offset by the benefit from the restructuring of the company's headquarters lease announced early in 2004, which reduced rent by approximately $225,000 over the third quarter last year, and 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, approximately $900,000. The restructuring of the company's UK office lease, for which the company took a charge of $604,000 in the third quarter this year, is expected to reduce its rent by $62,000 per quarter and on an annualized basis, by approximately $248,000. Together, these two steps are expected to produce annualized savings of some $1.15 million. Also included in the third quarter 2004 expenses was approximately $249,000 in legal costs associated with the previously announced investigation by the Securities and Exchange Commission. Third Quarter Business Highlights --Applix announced a Strategic Alliance with Sybase Inc., providing the TM1 platform to the wide universe of Sybase customers. TM1 is now a certified See certification. BI platform available to Sybase customers worldwide. --Applix substantially completed a significant restaffing of its North American field operations, including adding industry-experienced BI/BPM sales and pre-sales staff. --Applix announced strong penetration of the worldwide postal services postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval market, as well as the worldwide energy and utility industries, with customers such as Deutsche Post Deutsche Post AG (ISIN: DE0005552004, LSE: DPO) is a German post, logistics and courier headquartered in Bonn, previously the German state-owned mail monopoly. It has 520,000 employees in more than 220 countries and territories worldwide and generated revenue of € 60. , Australia Post
Australia Post is trading name of the Australian Postal Corporation, the postal service with a monopoly in small letter mail Australia. and Shell UK Ltd. --IPC Media, the UK's premier consumer publisher, chose Applix's TM1 as its budgeting and planning solution, joining other leading media and entertainment companies worldwide that use TM1, including CBS (Cell Broadcast Service) See cell broadcast. , MTV Networks MTV Networks is a division of media conglomerate Viacom that oversees the operation of many TV network and Internet brands, including the first MTV channel. The company was established in 1984 after Warner Communications and American Express decided to divest the basic cable , Nickelodeon, Primedia, Time Warner Cable This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. and Viacom. --Applix added to its worldwide growing roster of Solution Providers with Metapraxis, Resonate res·o·nate v. res·o·nat·ed, res·o·nat·ing, res·o·nates v.intr. 1. To exhibit or produce resonance or resonant effects. 2. Solutions, Management Solution Partners, Cubespace, Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. TJ and Inspiriant. Applix Solution Providers are organizations that drive their consulting and implementation business through the sale of Applix software products. --Applix continued to expand its Strategic Alliance Partner network with Ultimus, a leading provider of Business Process Management solutions. Alliance Partners make it easier for customers to develop and deploy applications by offering complementary software products integrated and certified with TM1. Following the close of the third quarter, Applix announced that it had improved its position on Gartner Inc.'s Magic Quadrant The Gartner Magic Quadrant is a proprietary research tool developed by Gartner Inc., a US based research and advisory firm. It is designed to provide an unbiased qualitative analysis of a “markets’ direction, maturity, and participants. for Corporate Performance Management Suites, 2004 based on its ability to execute and completeness of vision. Third Quarter Financial Highlights --Cash and cash equivalents totaled $13.33 million at 9/30/04. --Days sales outstanding (DSO See CSO. ) was 55 days at 9/30/04, up from 50 days at 6/30/04; the company targets DSO at 55-60 days. --Gross margin for the third quarter of 2004 improved significantly to 87.5% from 76.8% for the third quarter of 2003 and rose to 85.1% for the first nine months of 2004 compared to 72.7% in the year-earlier period. --Average initial license deal size remained constant at $25,000 - $35,000 and the number of customers purchasing +$100,000 of software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. was three, versus two in the second quarter of this year. Milt Alpern, Chief Financial Officer of Applix, commented, "We are pleased that our cost control measures, along with the steps we have taken to reduce real estate expenses, are having a measurable impact on the company's bottom line. As we finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the build out of our North American field operations, we expect to generate sufficient 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. , high-margin revenue to more than offset those investments, resulting in continued profitability and cash generation." Results for the Nine Months Ended September 30, 2004 Total revenues for the first nine months of 2004 were $21.56 million compared to $19.20 million in the year ago period. For comparison purposes, revenue for the year ago period includes $1.25 million from the company's 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. Analytics-only revenue increased 20.1%, from $17.95 million in the first nine months of 2003 to $21.56 million in the 2004 period. Software license revenue for the first nine months of 2004 totaled $10.77 million, a 27% increase over the comparable period last year. Net income for the first nine months of 2004 was $1.61 million, or $0.11 per basic and $0.10 per diluted share, compared to net income of $2.66 million, or $0.21 per basic and diluted share, for the year ago period. Included in the 2003 results was the net gain from the sale of the CRM business of $7.91 million, or $0.62 per diluted share. Financial Outlook for 2004 The company expects to achieve revenue growth and profitability in the fourth quarter of 2004 ending the year with total annual revenues of between $30 - $31 million. Investor Conference Call and Webcast The senior management of Applix will host a conference call and Webcast to discuss the third quarter results tomorrow morning, Friday, October 29, 2004 at 8:30 am EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . To access the call, please dial 1-800-659-1942, using the confirmation code 31123989. Internationally, the call may be accessed by dialing 1-617-614-2710, 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, Inc. (NASDAQ: APLX) is a global provider of Business Intelligence and Business Performance Management solutions. These solutions, based on Applix's TM1 planning and analytics platform, enable the continuous planning, management and monitoring of performance across the financial and operational functions within the enterprise. Applix is a founder of the BPM Standards Group (www.bpmstandards.org), and has been recognized by numerous industry analyst groups for its technical leaderships and vision in the marketplace. More than 1,800 customers worldwide use TM1 for its tight integration with Excel A full-featured spreadsheet for Windows and the Macintosh from Microsoft. It can link many spreadsheets for consolidation and provides a wide variety of business graphics and charts for creating presentation materials. , 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. response, adaptability a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil , and low total
cost of ownership. Delivered by Applix and a global network of partners,
TM1-based solutions help customers 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
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, 2003 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 amounts)
Three Months Nine Months
Ended Ended
---------------- ----------------
September 30, September 30,
---------------- ----------------
2004 2003 2004 2003
---------------- ----------------
Revenues:
Software license $3,307 $3,108 $10,766 $8,457
Professional services and
maintenance 3,602 3,315 10,789 10,741
-------- ------- -------- -------
Total revenues 6,909 6,423 21,555 19,198
Cost of revenues:
Software license 7 329 391 1,161
Professional services and
maintenance 856 1,164 2,829 4,089
-------- ------- -------- -------
Total cost of revenues 863 1,493 3,220 5,250
-------- ------- -------- -------
Gross margin 6,046 4,930 18,335 13,948
Operating expenses:
Sales and marketing (includes $0 of
stock-based compensation for the
three months ended September 30,
2004 and September 30, 2003, and
$0 and $23 of stock-based
compensation for the nine months
ended September 30, 2004 and
September 30, 2003, respectively) 2,473 2,332 7,631 7,812
Product development 1,059 1,343 3,614 4,233
General and administrative
(includes $15 and $105 of stock-
based compensation for the three
months ended September 30, 2004
and September 30, 2003,
respectively, and $45 and $252 of
stock-based compensation for the
nine months ended September 30,
2004 and September 30, 2003,
respectively) 1,507 1,723 4,603 6,003
Amortization of an acquired
intangible asset 63 63 188 188
Restructuring expenses 604 - 577 -
Compensation expenses related to
an acquisition - - - 583
-------- ------- -------- -------
Total operating expenses 5,706 5,461 16,613 18,819
-------- ------- -------- -------
Operating income (loss) 340 (531) 1,722 (4,871)
-------- ------- -------- -------
Non-operating income (loss):
Net gain from sale of CRM business - (12) - 7,910
Interest and other income (loss),
net 290 (59) 256 546
-------- ------- -------- -------
Income (loss) from continuing
operations before income taxes: 630 (602) 1,978 3,585
Provision for income taxes 178 - 293 764
-------- ------- -------- -------
Income (loss) from continuing
operations 452 (602) 1,685 2,821
-------- ------- -------- -------
Loss from discontinued operations (36) (106) (80) (162)
-------- ------- -------- -------
Net income (loss) $416 $(708) $1,605 $2,659
======== =======--======== =======
Net income (loss) per share, basic
and diluted:
Continuing operations, basic $0.03 ($0.05) $0.12 $0.23
Continuing operations, diluted $0.03 ($0.05) $0.11 $0.22
Discontinued operations, basic and
diluted ($0.00) ($0.01) ($0.01) ($0.01)
-------- ------- -------- -------
Net income (loss) per share, basic $0.03 ($0.06) $0.11 $0.21
Net income (loss) per share,
diluted $0.03 ($0.06) $0.10 $0.21
Weighted average number of shares
outstanding:
Basic 14,294 12,641 14,008 12,508
Diluted 15,590 12,641 15,483 12,839
September December
30, 31,
-------------------------
2004 2003
-------------------------
ASSETS
---------------------------------------------
Current assets:
Cash and cash equivalents $13,328 $9,241
Accounts receivable, net 4,227 5,715
Other current assets 2,001 2,125
-------------------------
Total current assets 19,556 17,081
Restricted cash 400 817
Property and equipment, net 709 973
Capitalized software costs, net - 265
Intangible asset, net 625 812
Other assets 645 843
Goodwill 1,158 1,158
-------------------------
TOTAL ASSETS $23,093 $21,949
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------------
Current liabilities:
Accounts payable $1,254 $1,083
Accrued expenses 5,457 6,657
Accrued restructuring expenses 431 3,400
Deferred revenues 6,542 8,060
-------------------------
Total current liabilities 13,684 19,200
Long term liabilities 205 494
-------------------------
Total liabilities 13,889 19,694
-------------------------
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; 14,677,026 and 13,272,379
shares issued, respectively 37 33
Additional paid-in capital 55,600 50,497
Accumulated deficit (43,770) (45,375)
Accumulated other comprehensive loss (1,354) (1,539)
-------------------------
10,513 3,616
Less: treasury stock, 357,627 shares at cost (1,309) (1,361)
-------------------------
Total stockholders' equity 9,204 2,255
-------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $23,093 $21,949
=========================
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