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Applix Reports Profit for First Quarter 2004

  • 03 May, 2004 12:44

<p>Company Reaffirms Full Year Revenue and Profitability Guidance</p>
<p>SYDNEY—3 MAY, 2004— Applix, Inc., a global provider of Business Intelligence (BI) and Business Performance Management (BPM) software solutions, today reported that revenue for the quarter ended 31 March, 2004 was US$7.38 million, compared to US$6.83 million in the first quarter of 2003. For comparison purposes, revenue for the year ago quarter includes US$1.25 million from the Company’s customer relationship management (CRM) business, which was sold during the first quarter of 2003. Reported revenue for the first quarter of 2004 consists exclusively of revenue derived from the analytics business (BI and BPM software), representing a 32.3% increase from the US$5.58 million in same period last year. Analytics license revenue for the first quarter of 2004 was US$3.77 million, compared to US$2.44 million for the same period a year ago.</p>
<p>Net income for the first quarter of 2004 was US$738,000, or US$0.05 per diluted share, compared to a net income of US$5.06 million, or US$0.40 per diluted share, for the year ago period. Included in the results for the first quarter of 2003 was the net gain from the sale of the CRM business of US$8.0 million, or US$0.63 per diluted share.</p>
<p>David C. Mahoney, President and Chief Executive Office of Applix, said, “We are pleased with our continued progress towards the steady-state business and operating model we have pursued over the last year, especially since we were able to deliver a profitable first quarter, better than the break-even we forecasted. We are cautiously confident about our prospects as we move ahead, buoyed by the continuing traction we are gaining in the analytics marketplace, domestically and globally, and the increased interest by customers and prospects in the evident benefits that Applix’s TM1 software delivers.”</p>
<p>Total operating expenses for the first quarter of 2004 totaled US$5.51 million compared to US$7.12 million in the year ago quarter. The improvement reflects continued cost controls, as well as the impact of the restructuring of the company’s headquarters lease announced last quarter, which reduced rent by approximately US$150,000 over the first quarter last year and, will reduce expenses on an annualised basis by approximately US$900,000.</p>
<p>Additionally, operating expenses in the first quarter 2003 include US$583,000 of compensation expenses related to the company’s 2001 acquisition of Dynamic Decisions, its primary Australian reseller.</p>
<p>First Quarter Business Highlights
• Applix announced important inroads in two key market sectors: healthcare and pharmaceuticals, with customer examples around the world.
• Applix was named a leader in BPM software in the critical “Beyond the Hype” annual Webcast co-sponsored by BPM Partners and Business Finance Magazine.</p>
<p>Milt Alpern, Chief Financial Officer of Applix, commented, “Applix continued to demonstrate meaningful financial improvement during what is typically a weaker quarter, generating a profit despite a reduced benefit from foreign currency exchange rates.”</p>
<p>First Quarter Financial Highlights
• Cash and cash equivalents totaled US$12.66 million at 31 March, 2004.
• Gross margin for the first quarter of 2004 improved to 83.4% from 77.1% in the fourth quarter of 2003 and from 68.6% in the first quarter of 2003.
• Average license deal size was US$30,000-$35,000 and the number of US$100,000+ transactions increased to six from four last quarter.</p>
<p>Business and Financial Outlook for 2004
Applix is reiterating the guidance that the Company is currently targeting total revenues of US$30-33 million in 2004. In February, the Company anticipated break-even results for the first quarter, followed by steadily improving profit in the following quarters in 2004. Based upon the better-than-expected profitability produced in the first quarter, the Company is continuing to anticipate profitability in each of the following quarters this year, as well as for the full year 2004.</p>
<p>To listen to the recorded audio Webcast, please visit the Company’s website,</p>
<p>About Applix
Applix (NASDAQ: APLX) is a global provider of Business Intelligence and Business Performance Management solutions. Based on the TM1 platform, these solutions for budgeting, planning and forecasting 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, 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 and the Pacific Rim. For more information about Applix, please visit</p>
<p>©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.</p>
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<p>For further information contact:
Kate Marshall / Graham Porter
Resolution Marketing Services
(612) 9431 9814 / 9810 /</p>

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