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Applix Completes VistaSource Sale

Applix Reports Final Fiscal 2000 Results

WESTBORO, Mass.--(BUSINESS WIRE)--April 3, 2001--Applix, Inc. (NASDAQ:APLX - news), a global provider of customer analytics and business planning software, announced that it completed the sale of its VistaSource subsidiary to Parallax Capital Partners, LLC on March 30, 2001; The Company previously announced an agreement for this transaction on March 15, 2001. As part of the transaction, Applix received over $1 million in cash. Further, Applix will receive a portion of outstanding accounts receivable collections in the future and Applix will retain a minority equity position in the acquiring entity.

The Company also announced that it had finalized its financial results for the year ended December 31, 2000, which were reported in its Form 10-K filed with the Securities and Exchange Commission yesterday. These financial results were affected by the Company's decision in late 2000 to exit the office productivity software business, and also reflects the VistaSource sale and the treatment of VistaSource as a discontinued operation for fiscal 2000.

Applix reported revenues from continuing operations of $40.2 million and a net loss from continuing operations of $1.36 per share for the year ended December 31, 2000. This compares to revenues from continuing operations of $36.9 million and net loss from continuing operations of $.40 per share for the year ended December 31, 1999.

The Company had previously reported preliminary financial results of $50.5 million in revenue and a net loss of $.69 per share for the year ended December 31, 2000 in its press release dated January 25th, 2001. In addition, in the same press release, the Company reported that it would treat VistaSource as a discontinued operation in its audited financial statements and that it expected to take a charge of $4 - $5 million for the discontinuance of VistaSource. The increase in net loss and earnings per share from what was reported in the January 25, 2001 press release is attributable to accounting for VistaSource as a discontinued operation, as well as the non-cash write-off of deferred tax assets associated with the decision to treat VistaSource as a discontinued operation.

With respect to the discontinued operation related to VistaSource, the Company reported a loss from discontinued operation of $367,000 for the year ended December 31, 2000, and a loss on the disposal of assets and losses during the phase-out period of $3.2 million for the year ended December 31, 2000. The discontinued operation generated revenues of $10.3 million and a net loss of $.32 per share for the year ended December 31, 2000, compared to revenues of $19.0 million and net income of $.62 per share for the year ended December 31, 1999.

About Applix:

Applix, Inc. (NASDAQ:APLX - news) is a global provider of customer analytics and business planning software that rapidly transforms information into knowledge, enabling companies worldwide to obtain and retain customers through better decision-making. Applix captures information from every corner of a company's extended enterprise, including internal and external customers, financial operations, partners and suppliers. Its flexible, scalable products - designed to adapt to companies' unique and competitive business processes - provide analysis, planning, measurement and response to changing customer requirements and business dynamics, all in real time. Applix is one of the world's only single source providers of CRM, customer analytics and business planning, making it a pioneer of Demand Chain Management. Headquartered in Westboro, MA, Applix maintains offices in eight countries and has more than 4,000 customers worldwide. For more information on Applix, please www.applix.com.

Notes to Investors:

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results to differ materially. Specifically, comments related to the demand for, revenue from and acceptance of the Company's products and the Company's position in the markets, may be considered forward-looking and subject to a number of risks and uncertainties, including but not limited to: the rate of growth in market demand for the products; the acceptance of the Company's products; intense competitive conditions; rapid technological change; frequent new product introductions and evolving domestic and international standards, which may render existing products and services obsolete. Refer to the Company's most recently filed Annual Report on Form 10-K for a list of factors as discussed under ``Risk Factors''. 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.

All trademarks, registered trademarks, and service marks are the property of their respective owners.



 
Editorial Contact:
Edward Terino
Applix
508-870-0300 Ext. 396
eterino@applix.com
 
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