Applix Deserves Applause: Fool by Numbers

On Thursday, Motley Fool Rule Breakers pick Applix (Nasdaq: APLX  ) released earnings for the second quarter, which ended June 30.

  • Although our table reports results according to GAAP, Applix prefers to exclude stock-based compensation and certain charges arising from its settlement with the SEC last year. (Don't they all?) On that basis, the company earned $0.15 per share on $17.4 million in second-quarter revenue.
  • The year-over-year earnings shortfall was caused by an increase in its effective tax rate to 40% from 12% during last year's Q2.
  • Management projects $67 million to $70 million in full-year 2007 revenue and $38.5 million to $40.5 million in license revenue. Both figures would represent at least 28% year-over-year gains.
  • The professional and amateur stock pickers following Applix in our Motley Fool CAPS investor-intelligence database give it five out of five stars.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$17,440

$13,320

30.9%

Net Profit

$2,129

$2,327

(8.5%)

EPS

$0.12

$0.14

(14.3%)

Diluted Shares

18,335

16,702

9.8%

Get back to basics with a look at the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

88.84%

90.39%

(1.55)

Operating Margin

18.13%

17.47%

0.66

Net Margin

12.21%

17.47%

(5.26)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$38,137

$26,332

44.8%

Accounts Rec.

$12,363

$10,083

22.6%

Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$2,134

$2,208

(3.4%)

Long-Term Debt

$4,875

$6,500

(25.0%)

The balance sheet reflects the company's health.

Cash Flow Highlights
No cash flow statement provided. (Whatever.)

Free cash flow is a Fool's best friend.

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this article at the time of publication. Find Tim's portfolio here and his latest blog commentary here. He plans to buy shares of Applix when The Motley Fool's disclosure policy is done giving him the stiff-arm.


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