• Applix continued to build its customer base by adding more organizations that are realizing measurable benefits of employing real-time analytics for forecasting, planning and consolidations through the TM1 BPM platform, such as UBS AG, MMAG Mautner Markhof AG, Chlorine Engineers Corp, BOC Gases, Robert Morris University and ACT Health.
• Applix added Solution Partners Systech Solutions and Think Systems and integration partners Zalesia, Issue Holdings, eVerge, Itelligrate and ADS Bilek.
• In response to customer feedback, Applix announced enhancements to its TM1 platform, adding more sophisticated planning and reporting functionality.
• An annual survey of BPM customers, the 2005 BPM Pulse Survey, revealed that TM1 customers were the most satisfied of all BPM users.
• Applix established the TM1 Center of Excellence to advance best practices in the usages of our products to address the needs of BI and BPM.
• Applix customer Barclaycard was a winner in the prestigious U.K. National Business Awards for 2004 for its use of TM1 to prevent fraud.
  

After the close of the quarter, Applix announced that Intelligent Enterprise Magazine had selected Applix as a "Company to Watch" in 2005, reflecting the technical capabilities of TM1 as well as the company’s leadership in the business performance space.

Total operating expenses for the first quarter of 2005 totaled $5.97 million compared to $5.51 million in the year ago quarter, reflecting higher expenditures for field sales and marketing operations, including lead generation activities, offset by previously-announced savings secured through lease restructurings negotiated in 2003 and 2004. Included in the first quarter 2005 expenses was approximately $80,000 in legal costs associated with the previously-announced investigation by the Securities & Exchange Commission.

Milt Alpern, Chief Financial Officer of Applix, commented, "We are pleased that the cost control measures taken in prior years enabled us to continue to be profitable despite the revenue seasonality and deal slippage we experienced in the past quarter. In addition, we continued to generate cash at a strong rate, which will enable us to continue to invest in our business moving forward."

First Quarter Financial Highlights

• Cash and short term investments totaled $20.34 million at 3/31/05, up from $15.92 million at 12/31/04 and $12.66 million a year ago.
• Gross margin for the first quarter of 2005 was 87.2%, up from 83.4% in the first quarter of 2004, but down slightly from the record 91.3% in the fourth quarter of 2004.
• Days sales outstanding was 52 days at 3/31/05, down from 59 days at 12/31/04, and slightly lower than the Company’s targeted 55-60 days.
• Average license deal size for transactions over $20,000 was between $45,000 - $50,000 and the number of +$100,000 license transactions was five.

Business and Financial Outlook for 2005

Applix is reiterating the guidance it provided on February 3, 2005 for fiscal year 2005. The company is targeting top-line revenue growth of approximately 20-30% for 2005, producing total revenues of between $37-40 million and license revenue growth of approximately 30-40%, producing total license revenues between $21-23 million. The company expects to achieve net income levels of 13-16% of total revenues in 2005, not including the impact of foreign exchange. Lastly, the company is targeting North American license revenues to be contributing 50% of total license revenues by the end of 2005. Net income exclusive of foreign exchange impact is a non-GAAP financial measure within the meaning of applicable SEC regulations. Applix is presenting this measure because it is currently unable to estimate the amount of foreign exchange gains or losses for 2005, and it believes that presenting net income excluding this item nonetheless presents investors with meaningful information about the company's projected operating performance for 2005.

Investor Conference Call and Webcast

The senior management of Applix will host a conference call and Webcast to discuss the first quarter results tomorrow morning, Friday, April 29, 2005 at 8:30 am EDT. To access the call, please dial 1-800-256-0241, using the confirmation code 19546864. Internationally, the call may be accessed by dialing 1-617-847-8704, using the same confirmation code. To listen via live audio Webcast, please visit the Company’s website, 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 (Nasdaq: APLX) is a global provider of Business Performance Management and Business Intelligence solutions. These solutions, based on Applix's TM1 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 (http://www.bpmstandardsgroup.org), and has been recognized by numerous industry analyst groups for its technical leadership and vision in the marketplace.

More than 2,000 customers worldwide use TM1 for its tight integration with Excel, realtime response, adaptability, and low total cost of ownership. Delivered by Applix and by 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. For more information about Applix, please visit.

To view the financial tables, click here

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act 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, 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 for the year ended December 31, 2004 under the heading "Risk Factors." The forward-looking statements provided by the Company in this press release represent the Company's views as of the date of this release. The Company anticipates that subsequent events and developments may cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, 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 release.

©2005 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.