Applix Inc (932112) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2006

FOR IMMEDIATE RELEASE		Contact:
		Milt Alpern, CFO
		Applix Inc.
		508-475-2450
		malpern@applix.com

APPLIX REPORTS 45% INCREASE IN QUARTERLY LICENSE
AND TOTAL REVENUE;
LICENSE REVENUE RISES 54% FOR FULL YEAR

Company provides outlook for 2007: continued segment leading revenue growth

WESTBOROUGH, Mass. — February 8, 2007 — Applix, Inc. (Nasdaq: APLX), a global leader in performance management applications, today reported that revenue for the quarter ended December 31, 2006 was $16.04 million, a 45 percent increase over revenue of $11.08 million in the fourth quarter of 2005. License revenue for the fourth quarter of 2006 was $9.63 million, a 45 percent increase compared to $6.64 million for the same period a year ago.

Net income for the fourth quarter of 2006, as reported in accordance with U.S. generally accepted accounting principles (GAAP), was $5.97 million, or $0.34 per diluted share, compared to a net income of $2.48 million, or $0.15 per diluted share, for the year ago period. Fourth quarter 2006 net income included a tax benefit of $4.18 million, or $0.24 per diluted share, from the reversal of a valuation allowance on domestic net operating losses.

Fourth quarter 2006 non-GAAP net income was $2.96 million, or $0.17 per diluted share, reflecting the exclusion of the tax benefit from the valuation allowance reversal, approximately $631,000 of stock-based compensation charges primarily associated with the Company’s adoption on January 1, 2006 of Statement of Financial Accounting Standard No. 123(R), “Share-Based Payment,” approximately $255,000 of amortization charges primarily associated with the Company’s acquisition of Temtec International B.V. in June 2006, approximately $358,000 of legal expenses related to the Securities and Exchange Commission (SEC) investigation and the related income tax benefit of $76,000 on these non-GAAP operating adjustments. In the fourth quarter of 2005, non-GAAP net income was $2.71 million, or $0.16 per diluted share, reflecting the exclusion of stock-based compensation, amortization charges and SEC investigation-related legal expenses of approximately $170,000, $62,000 and $19,000, respectively, and the related income tax benefit of $19,000 on these non-GAAP operating adjustments. The SEC investigation was settled with respect to Applix in January 2006, with no monetary penalty assessed.

David C. Mahoney, President and Chief Executive Officer of Applix, said, “This strong fourth quarter performance capped off an outstanding year for Applix. As we entered 2006, we saw a distinct opportunity to extend our leadership position in the mid-market