It has now posted a fourth-quarter net loss of $2.9m, down from a net loss of $3.2m, on revenue at $9.8m, from $8.8m in the year-ago quarter. For the year to December 31, it reported a net loss of $5.8m, down from a net loss of $10.8m, on revenue of $36.6m, down from $39.4m in 2001. The fourth-quarter results include $2.7m in charges related to the company’s 2001 acquisition of Dynamics Decisions in Australia, as well as other costs.
Looking forward, the company said it believes the January sale of its CRM business to Platinum Equity LLC for $8.75m will continue to have a short-term impact on its business, as it finalizes related transaction issues. As a result of the disposal of the CRM business, it expects revenue in the first quarter to be in the $5.5m to $6m range.
It has been an eventful year so far for Applix. After disposing of its CRM business in January, it ran into trouble after reporting it would have to restate its figures for 2001 and 2002 because of irregularities. The Westborough, Massachusetts-based company claimed the errors were the result of mistakes made in good faith and not the result of any fraud or dishonesty on the part of management.
However, the markets reacted badly to the news, and its shares tumbled 15.8% to $1.65 on the news, with a stock market value of just $20.4m. Its stock is currently trading at $1.55, and its market capitalization has slipped further to $19.2m, and some are questioning its ability to survive as an independent company.
Following the news of the restatement of its financial results, Alan Goldsworthy quit as CEO and David Mahoney was appointed as interim CEO while it hunts for a full-time replacement. To try to prevent the wrath of investors, it also appointed the company’s largest stockholder and long-term critic, Brad Fire, to the board.
Fire, who owns a 12.3% stake in the company, last December called for sweeping changes to Applix’s management and strategy. He blamed poor business decisions which have resulted in, and will continue to result in, a substantial drop in performance and stock value. Fire said he believes the company is undervalued due to a chronic neglect of its TM1 product. TM1 is Applix’s core OLAP engine that powers many of its analytic applications.
Source: Computerwire
