BusinessWeek recently ranked Applix
Applix develops business performance management (BPM) software that helps companies analyze huge amounts of data. Its customers include Verizon
CAPS member StocksInvestor is a bull on Applix and has this to say: "The ability to have different perspectives on information and analyze it to make quick decisions is critical in today's business environment. [Applix] operates in the mid-market and hence does not compete directly with big players like Oracle
Or there is this from CAPS member zversyp: "I think this company is a pioneer, providing a service that a lot of businesses are only now realizing that they need. Applix has a lot of room to grow here in the states, and a lot more room in China."
With Applix's software, companies get more visibility about their operations and help with planning, budgeting, forecasting, and consolidations. The technology is also affordable and fairly easy to implement.
As a result, Applix's new product line is getting lots of traction. In fiscal Q1, the company increased revenues 55% to $13.9 million and license revenues surged 60% to $7.11 million. The license revenue is critical because it should lead to ongoing maintenance and service fees.
For 2007, Applix forecasts revenue growth at 28% to 35%, which translates into a range of $67 million to $70 million. But this may be an understatement. Over the past year, the company has revved up its sales force and put more resources into partnerships.
Also keep in mind that Applix's industry has seen several M&A deals. In the past few months, Oracle spent $3.3 billion on Hyperion, and Business Objects
Taking this all in, I think CAPS has made a good call. And so far this year, the stock is up about 50% to $16.37 and is trading about 4 times revenues. While this is not necessarily cheap for an enterprise software player, it is still reasonable when you look at the strong growth rate and the M&A activity.
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