BW: Applix Announces First Quarter Revenues of $12.4 Million and a Loss of $0.07 Per Share

“Applix, Inc. (NASDAQ: APLX), today announced its results for
the first quarter ended March 31, 2000 with revenues of $12.4
million, compared to $12.9 million for the same period in 1999,
representing a decrease of 4.1%. Net loss for the quarter ended
March 31, 2000 was $797,000, or ($0.07) per diluted share, compared
to net income of $395,000, or $0.04 per diluted share, for the same
period in 1999. Revenues for the eBusiness Division were $9.3
million, an increase of 12.5% over the $8.2 million for the same
period in 1999. Revenues for the Linux Division were $3.1 million
compared to $4.7 million for the same quarter in 1999. New business
revenues for the Linux Division were $526,000 for the first quarter
for 2000, an increase of 38% over the first quarter of 1999. Legacy
revenues for the Linux Division were $2.6 million for the quarter
ended March 31, 2000, a decrease of 39% from the first quarter of
1999.”

“The Company also announced that it has established a
wholly-owned subsidiary to facilitate the spin off of its Linux
Division. Applix intends to provide up to $6 million in capital to
finance the growth of the new company.”

“Jit Saxena commented, “During the quarter, we focused on
strategically separating the two businesses and building the
management team and their respective business plans. We feel that
the investments in sales and marketing initiatives and increased
product development efforts, position us well to achieve our goal
of over 40% annual license growth in our eBusiness and over 100%
annual license growth in our Linux business by the fourth quarter
of 2000. Our efforts this quarter lay the foundation for our
focused growth and success as two distinct businesses.””

Press Release