##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
 For the Quarterly Period Ended March 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
 Commission File Number 0-25040
 APPLIX, INC.
 (Exact name of registrant as specified in its charter)
 MASSACHUSETTS
    
    04-2781676(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification
Number)
 289 Turnpike Road, Westborough, Massachusetts 01581
(Address of principal executive offices)
 (508) 870-0300
(Registrants telephone number)
 Indicate by check mark whether the registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes þ No o
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated
filer in Rule 12b-2 of the Exchange Act. (Check one):
 Large accelerated filer o Accelerated filer þ Non-accelerated filer o
 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of
the Securities Exchange Act of 1934). Yes o No þ
 As of May 1, 2007, the Registrant had 15,914,374 outstanding shares of common stock.




---



##### 



APPLIX, INC.
 Form 10-Q
 For the Quarterly Period Ended March 31, 2007
 Table of Contents
 PageNo.Part I  Financial InformationItem 1. Condensed Consolidated Financial Statements (Unaudited):Condensed Consolidated Balance Sheets as of March 31, 2007 and December 31, 2006
    
    
    3Condensed Consolidated Statements of Income for the three months ended March 31, 2007 and 2006
    
    
    4Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2007 and
2006
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    10Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    17Item 4. Controls and Procedures
    
    
    18Part II  Other InformationItem 1A. Risk Factors
    
    
    19Item 6. Exhibits
    
    
    23Signature
    
    
    24EX-31.1 SECTION 302 CERTIFICATION OF CEOEX-31.2 SECTION 302 CERTIFICATION OF CFOEX-32.1 SECTION 906 CERTIFICATION OF CEOEX-32.2 SECTION 906 CERTIFICATION OF CFO
    2




---



##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 Applix, Inc.
 
 Condensed Consolidated Balance Sheets
(In thousands, except share and par value amounts)
 March 31,
    
    
    December 31,2007
    
    
    2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    31,025
    
    
    $
    23,487Short-term investments
    
    
    2,081
    
    
    
    3,723Accounts receivable, less allowances for doubtful accounts of $368
    
    
    9,825
    
    
    
    13,582Other current assets
    
    
    2,109
    
    
    
    1,585Deferred tax assets, current
    
    
    658
    
    
    
    619Total current assets
    
    
    45,698
    
    
    
    42,996Restricted cash
    
    
    400
    
    
    
    400Property and equipment, net
    
    
    1,222
    
    
    
    1,313Intangible assets, net of accumulated amortization of $2,108 and
$1,853, respectively
    
    
    5,222
    
    
    
    5,477Goodwill
    
    
    13,320
    
    
    
    13,341Deferred tax assets, long-term
    
    
    1,876
    
    
    
    1,876Other assets
    
    
    732
    
    
    
    684TOTAL ASSETS
    
    $
    68,470
    
    
    $
    66,087LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    1,976
    
    
    $
    2,068Accrued expenses
    
    
    7,438
    
    
    
    9,324Accrued restructuring expenses, current portion
    
    
    51
    
    
    
    51Current portion of debt
    
    
    2,167
    
    
    
    2,167Deferred revenues
    
    
    13,432
    
    
    
    11,052Total current liabilities
    
    
    25,064
    
    
    
    24,662Accrued restructuring expenses, long-term portion
    
    
    149
    
    
    
    161Long-term debt
    
    
    3,250
    
    
    
    3,792Other long-term liabilities
    
    
    158
    
    
    
    122Total liabilities
    
    
    28,621
    
    
    
    28,737Commitments and contingencies (Note 8)Stockholders equity:Preferred stock, $0.01 par value; 1,000,000 shares authorized;
none issued and outstanding
    
    
    
    
    
    
    Common stock, $0.0025 par value; 30,000,000 shares authorized;
15,885,018 and 15,657,258 shares issued and outstanding,
respectively
    
    
    40
    
    
    
    39Additional paid-in capital
    
    
    65,089
    
    
    
    63,365Accumulated deficit
    
    
    (23,925
    )
    
    
    (24,604
    )Accumulated other comprehensive loss
    
    
    (1,355
    )
    
    
    (1,450
    )Total stockholders equity
    
    
    39,849
    
    
    
    37,350TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    68,470
    
    
    $
    66,087
  3




---



##### Table of Contents



Applix, Inc.
 
 Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
 Three Months EndedMarch 31,2007
    
    
    2006Revenues:Software license
    
    $
    7,105
    
    
    $
    4,427Professional services and maintenance
    
    
    6,790
    
    
    
    4,566Total revenues
    
    
    13,895
    
    
    
    8,993Cost of revenues:Software license
    
    
    106
    
    
    
    44Professional services and maintenance
    
    
    1,510
    
    
    
    1,016Amortization of an acquired intangible asset
    
    
    93
    
    
    
    Total cost of revenues
    
    
    1,709
    
    
    
    1,060Gross margin
    
    
    12,186
    
    
    
    7,933Operating expenses:Sales and marketing
    
    
    6,543
    
    
    
    4,573Product development
    
    
    2,287
    
    
    
    1,568General and administrative
    
    
    2,373
    
    
    
    1,724Amortization of acquired intangible assets
    
    
    162
    
    
    
    63Total operating expenses
    
    
    11,365
    
    
    
    7,928Operating income
    
    
    821
    
    
    
    5Non-operating income (expense):Interest income
    
    
    304
    
    
    
    230Interest expense
    
    
    (144
    )
    
    
    (11
    )Other income (expense), net
    
    
    150
    
    
    
    (115
    )Income before income taxes
    
    
    1,131
    
    
    
    109Provision for income taxes
    
    
    372
    
    
    
    12Net income
    
    $
    759
    
    
    $
    97Net income per share, basic and diluted:Net income per share, basic
    
    $
    0.05
    
    
    $
    0.01Net income per share, diluted
    
    $
    0.04
    
    
    $
    0.01Weighted average number of shares outstanding:Basic
    
    
    15,553
    
    
    
    15,024Diluted
    
    
    17,950
    
    
    
    16,467
  4




---



##### Table of Contents



Applix, Inc.
 
 Condensed Consolidated Statements of Cash Flows
 Three Months EndedMarch 31,2007
    
    
    2006(in thousands)Cash flows from operating activities:Net income
    
    $
    759
    
    
    $
    97Adjustments to reconcile net income to net cash provided
by (used in) operating activities:Depreciation
    
    
    175
    
    
    
    115Amortization
    
    
    255
    
    
    
    63Provision for doubtful accounts
    
    
    (2
    )
    
    
    (16
    )Stock-based compensation expense
    
    
    738
    
    
    
    495Deferred income taxes
    
    
    176
    
    
    
    Changes in operating assets and liabilities:Decrease in accounts receivable
    
    
    3,823
    
    
    
    2,229Increase in prepaids and other assets
    
    
    (691
    )
    
    
    (52
    )Decrease in accounts payable
    
    
    (137
    )
    
    
    (349
    )Decrease in accrued expenses
    
    
    (1,767
    )
    
    
    (478
    )Decrease in accrued restructuring expenses
    
    
    (13
    )
    
    
    (9
    )Increase (decrease) in other liabilities
    
    
    36
    
    
    
    (29
    )Increase in deferred revenues
    
    
    2,177
    
    
    
    458Cash provided by operating activities
    
    
    5,529
    
    
    
    2,524Cash flows from investing activities:Acquisition, net of cash acquired
    
    
    (51
    )
    
    
    Property and equipment expenditures
    
    
    (88
    )
    
    
    (226
    )Decrease in restricted cash
    
    
    
    
    
    
    100Maturities of short-term investments
    
    
    3,750
    
    
    
    3,175Purchases of short-term investments
    
    
    (2,108
    )
    
    
    (1,948
    )Cash provided by investing activities
    
    
    1,503
    
    
    
    1,101Cash flows from financing activities:Proceeds from issuance of common stock under stock plans
    
    
    933
    
    
    
    584Principal payments on long-term debt
    
    
    (542
    )
    
    
    Cash provided by financing activities
    
    
    391
    
    
    
    584Effect of exchange rate changes on cash
    
    
    115
    
    
    
    95Increase in cash and cash equivalents
    
    
    7,538
    
    
    
    4,304Cash and cash equivalents at beginning of period
    
    
    23,487
    
    
    
    20,740Cash and cash equivalents at end of period
    
    $
    31,025
    
    
    $
    25,044Supplemental disclosure of cash flow informationCash paid for income taxes
    
    $
    258
    
    
    $
    192Cash paid for interest
    
    $
    134
    
    
    $
    5
  5




---



##### Table of Contents



APPLIX, INC.
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 1. The Company
  2. Summary of Significant Accounting Policies
 Basis of Presentation
  Use of Estimates
  Reclassifications
  New Accounting Pronouncements
   6




---



##### Table of Contents



3. Acquisition
  Cash
    
    $
    11,455Common stock (330,252 shares)
    
    
    2,538Direct acquisition costs
    
    
    1,385Total
    
    $
    15,378
  4. Stock-based Compensation
 Share-Based Payment
  Three Months EndedMarch 31,2007
    
    
    2006Cost of revenues
    
    $
    21
    
    
    $
    16Sales and marketing
    
    
    264
    
    
    
    168Product development
    
    
    194
    
    
    
    120General and administrative
    
    
    259
    
    
    
    191Total
    
    $
    738
    
    
    $
    495
   7




---



##### Table of Contents



Options OutstandingWeightedAverageNumber
    
    Exercise PriceOptions outstanding at January 1, 2007
    
    
    3,997,791
    
    
    $
    4.29Options granted
    
    
    549,250
    
    
    $
    12.59Options exercised
    
    
    (175,920
    )
    
    $
    3.62Options cancelled
    
    
    (45,983
    )
    
    $
    12.71Options outstanding at March 31, 2007
    
    
    4,325,138
    
    
    $
    5.28Options exercisable at March 31, 2007
    
    
    2,384,022
    
    
    $
    3.20
   Three Months Ended
    
    Three Months EndedMarch 31, 2007
    
    March 31, 2006Stock Option
    
    Purchase
    
    Stock Option
    
    PurchasePlans
    
    Plan
    
    Plans
    
    PlanExpected life (years)
    
    
    4.6
    
    
    
    .5
    
    
    
    4.6
    
    
    
    .5Expected stock price volatility
    
    
    52.2
    %
    
    
    29.2
    %
    
    
    55.5
    %
    
    
    51.0
    %Risk free interest rate
    
    
    4.8
    %
    
    
    5.2
    %
    
    
    4.5
    %
    
    
    4.2
    %
 Expected Term,
  5. Earnings Per Share
  8




---



##### Table of Contents



Three Months EndedMarch 31,2007
    
    
    2006(In thousands, exceptper share amounts)Numerator:Net income
    
    $
    759
    
    
    $
    97Denominator:Denominator for basic net income per share  Weighted shares outstanding
    
    
    15,553
    
    
    
    15,024Dilutive effect of assumed exercise of stock options and contingently returnable shares
    
    
    2,397
    
    
    
    1,443Denominator for diluted net income per share
    
    
    17,950
    
    
    
    16,467Basic net income per share
    
    $
    0.05
    
    
    $
    0.01Diluted net income per share
    
    $
    0.04
    
    
    $
    0.01
  6. Comprehensive Income
  Three Months EndedMarch 31,(In thousands)2007
    
    
    2006Net income
    
    $
    759
    
    
    $
    97Other comprehensive income items:Foreign currency translation adjustments
    
    
    94
    
    
    
    171Unrealized loss on short-term investments
    
    
    1
    
    
    
    Other comprehensive income
    
    
    95
    
    
    
    171Total comprehensive income
    
    $
    854
    
    
    $
    268
 7. Income Taxes
  Accounting for Uncertainty in Income Taxes Accounting for Income Taxes
  9




---



##### Table of Contents



8. Commitments and Contingencies
 Contingencies
  9. Restructuring Expenses
   FacilityExit CostsBalance at January 1, 2007
    
    $
    212,000Payments
    
    
    (13,000
    )Foreign currency translation adjustments
    
    
    1,000Balance at March 31, 2007
    
    $
    200,000
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW OF THE COMPANYS OPERATIONS
    10




---



##### Table of Contents



CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   
    
    Revenue Recognition
    
    Allowance for Doubtful Accounts
    
    Goodwill and Other Intangible Assets and Related Impairment
    
    Stock-based Compensation
    
    Restructuring
    
    Income Taxes
  11




---



##### Table of Contents



RESULTS OF OPERATIONS
 Three Months Ended March 31, 2007 and 2006
 Revenues
 (In thousands, except percentages)Three Months Ended March 31,Percent
    
    
    
    
    
    
    Percentof
    
    
    
    
    
    
    of2007
    
    
    Revenue
    
    
    2006
    
    
    RevenueSoftware License Revenues
    
    $
    7,105
    
    
    
    51
    %
    
    $
    4,427
    
    
    
    49
    %Professional Services Revenues
    
    
    1,075
    
    
    
    8
    %
    
    
    431
    
    
    
    5
    %Maintenance Revenues
    
    
    5,715
    
    
    
    41
    %
    
    
    4,135
    
    
    
    46
    %Total Professional Services and Maintenance Revenues
    
    
    6,790
    
    
    
    49
    %
    
    
    4,566
    
    
    
    51
    %Total Revenues
    
    $
    13,895
    
    
    
    100
    %
    
    $
    8,993
    
    
    
    100
    %
  Software License Revenues
    Professional Services and Maintenance
  12




---



##### Table of Contents



Cost of Revenues
 Three Months Ended March 31,(In thousands, except percentages)2007
    
    
    
    
    
    
    2006Cost of Software License Revenues
    
    $
    106
    
    
    
    
    
    
    $
    44Cost of Professional Services and Maintenance Revenues:Cost of Professional Services Revenues
    
    
    784
    
    
    
    
    
    
    
    411Cost of Maintenance Revenues
    
    
    726
    
    
    
    
    
    
    
    605Total
    
    
    1,510
    
    
    
    
    
    
    
    1,016Amortization of an acquired intangible asset
    
    
    93
    
    
    
    
    
    
    
    Total Cost of Revenues
    
    $
    1,709
    
    
    
    
    
    
    $
    1,060Gross Margin (A):Software License (B)
    
    $
    6,906
    
    
    
    97
    %
    
    $
    4,383
    
    
    
    99
    %Professional Services and Maintenance:Professional Services
    
    
    290
    
    
    
    27
    %
    
    
    20
    
    
    
    5
    %Maintenance
    
    
    4,990
    
    
    
    87
    %
    
    
    3,530
    
    
    
    85
    %Total
    
    
    5,280
    
    
    
    78
    %
    
    
    3,550
    
    
    
    78
    %Total Gross Margin
    
    $
    12,186
    
    
    
    88
    %
    
    $
    7,933
    
    
    
    88
    %
 
 (A)
    
    Gross margins calculated as a percentage of related revenues.(B)
    
    Software license gross margin calculated net of cost of software
license revenues and amortization of an acquired intangible asset. Cost of Software License Revenues
  Cost of Professional Services and Maintenance Revenues
  Amortization of an Acquired Intangible Asset
  13




---



##### Table of Contents



Operating Expenses
 Three Months Ended March 31,(In thousands, except percentages)Percent of
    
    
    
    
    
    
    Percent of2007
    
    
    Revenues
    
    
    2006
    
    
    RevenuesSales and marketing
    
    $
    6,543
    
    
    
    47
    %
    
    $
    4,573
    
    
    
    51
    %Product development
    
    
    2,287
    
    
    
    17
    %
    
    
    1,568
    
    
    
    17
    %General and administrative
    
    
    2,373
    
    
    
    17
    %
    
    
    1,724
    
    
    
    19
    %Amortization of acquired intangible assets
    
    
    162
    
    
    
    1
    %
    
    
    63
    
    
    
    1
    %Total operating expenses
    
    $
    11,365
    
    
    
    82
    %
    
    $
    7,928
    
    
    
    88
    %
 Sales and Marketing Expenses
  Product Development Expenses
  General and Administrative Expenses
  Amortization of Acquired Intangible Assets
   14




---



##### Table of Contents



Non-operating Income (Expense)
 Three Months Ended March 31,(In thousands, except percentages)Percent of
    
    
    
    
    
    
    Percent of2007
    
    
    Revenues
    
    
    2006
    
    
    RevenuesInterest income
    
    $
    304
    
    
    
    2
    %
    
    $
    230
    
    
    
    3
    %Interest expense
    
    
    (144
    )
    
    
    (1
    %)
    
    
    (11
    )
    
    
    
    %Other income (expense), net
    
    
    150
    
    
    
    1
    %
    
    
    (115
    )
    
    
    (1
    %)Total
    
    $
    310
    
    
    
    2
    %
    
    $
    104
    
    
    
    2
    %
 Interest Income
  Interest Expense
  Other Income (Expense), Net
  Provision for Income Taxes
  15




---



##### Table of Contents



LIQUIDITY AND CAPITAL RESOURCES
      16




---



##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   17




---



##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
   18




---



##### Table of Contents



PART II. OTHER INFORMATION
 
 ITEM 1A. RISK FACTORS
  OUR STOCK PRICE MAY BE ADVERSELY AFFECTED BY SIGNIFICANT FLUCTUATIONS IN OUR QUARTERLY RESULTS.
  
    
    demand for and market acceptance of our products and services;
    
    the size and timing of customer orders, particularly large orders;
    
    introduction of products and services or enhancements by us and our competitors;
    
    competitive factors that affect our pricing;
    
    the mix of products and services we sell;
    
    the hiring and retention of key personnel;
    
    our expansion into international markets;
    
    the timing and magnitude of our capital expenditures, including costs relating to the
expansion of our operations;
    
    the acquisition and retention of key partners;
    
    changes in generally accepted accounting policies, especially those related to the
recognition of software revenue and the accounting for stock-based compensation; and
    
    new government legislation or regulation.
  BECAUSE THE BUSINESS PERFORMANCE MANAGEMENT AND BUSINESS INTELLIGENCE MARKETS ARE HIGHLY
COMPETITIVE, WE MAY NOT BE ABLE TO SUCCEED.
  19




---



##### Table of Contents



WE MAY NOT BE ABLE TO SUCCESSFULLY INTEGRATE TEMTEC INTO OUR BUSINESS AND OPERATIONS.
  
    
    retain key Temtec personnel;
    
    integrate, both from an engineering and a sales and marketing perspective, Temtecs
products and services into our suite of product and service offerings;
    
    coordinate research and development efforts;
    
    train and integrate sales forces;
    
    integrate our business processes and systems; and
    
    eliminate redundant costs and consolidate redundant facilities.
  WE MAY NOT SUSTAIN PROFITABILITY OR BE ABLE TO FULFILL ANY FUTURE CAPITAL NEEDS.
   IF WE DO NOT INTRODUCE NEW PRODUCTS AND SERVICES IN A TIMELY MANNER, OUR PRODUCTS AND SERVICES
WILL BECOME OBSOLETE, AND OUR OPERATING RESULTS WILL SUFFER.
  20




---



##### Table of Contents



ATTEMPTS TO EXPAND BY MEANS OF BUSINESS COMBINATIONS AND ACQUISITIONS MAY NOT BE SUCCESSFUL AND
MAY DISRUPT OUR OPERATIONS OR HARM OUR REVENUES.
  
    
    difficulty in assimilating the operations, technology and personnel of acquired
companies;
    
    disruption in our business because of the allocation of resources to consummate these
transactions and the diversion of managements attention from our core business;
    
    difficulty in retaining key technical and managerial personnel from acquired companies;
    
    dilution of our stockholders, if we issue equity to fund these transactions;
    
    assumption of increased expenses and liabilities;
    
    our relationships with existing employees, customers and business partners may be
weakened or terminated as a result of these transactions; and
    
    additional ongoing expenses associated with write-downs of goodwill and other purchased
intangible assets.
 WE RELY HEAVILY ON KEY PERSONNEL.
  WE MAY NOT BE ABLE TO MEET THE OPERATIONAL AND FINANCIAL CHALLENGES THAT WE ENCOUNTER IN OUR
INTERNATIONAL OPERATIONS.
  
    
    we may have difficulty managing and administering a globally-dispersed business;
    
    fluctuations in exchange rates may negatively affect our operating results;
    
    we may not be able to repatriate the earnings of our foreign operations;
    
    we have to comply with a wide variety of foreign laws;
    
    we may not be able to adequately protect our trademarks overseas due to the uncertainty
of laws and enforcement in certain countries relating to the protection of intellectual
property rights;
 21




---



##### Table of Contents




    
    reductions in business activity during the summer months in Europe and certain other
parts of the world could negatively impact the operating results of our foreign operations;
    
    export controls could prevent us from shipping our products into and from some markets;
    
    multiple and possibly overlapping tax structures could significantly reduce the
financial performance of our foreign operations;
    
    changes in import/export duties and quotas could affect the competitive pricing of our
products and services and reduce our market share in some countries; and
    
    economic or political instability in some international markets could result in the
forfeiture of some foreign assets and the loss of sums spent developing and marketing those
assets.
 BECAUSE WE DEPEND IN PART ON THIRD-PARTY SYSTEMS INTEGRATORS TO PROMOTE, SELL AND IMPLEMENT OUR
PRODUCTS, OUR OPERATING RESULTS WILL LIKELY SUFFER IF WE DO NOT DEVELOP AND MAINTAIN THESE
RELATIONSHIPS.
  BECAUSE THE SALES CYCLE FOR OUR PRODUCTS CAN BE LENGTHY, IT IS DIFFICULT FOR US TO PREDICT WHEN OR
WHETHER A SALE WILL BE MADE.
  OUR BUSINESS WILL BE HARMED IF WE ARE UNABLE TO PROTECT OUR TRADEMARKS FROM MISUSE BY THIRD
PARTIES.
  OUR PRODUCTS MAY CONTAIN DEFECTS THAT MAY BE COSTLY TO CORRECT, DELAY MARKET ACCEPTANCE OF OUR
PRODUCTS AND EXPOSE US TO LITIGATION.
   22




---



##### Table of Contents



OUR FINANCIAL RESULTS MAY BE ADVERSELY IMPACTED BY HIGHER THAN EXPECTED TAX RATES OR EXPOSURE TO
ADDITIONAL INCOME TAX LIABILITIES.
  
 ITEM 6. EXHIBITS
 (a) Exhibits
 ExhibitNumber
    
    Description31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 23




---



##### Table of Contents



SIGNATURE
  APPLIX, INC.Date: May 10, 2007
    /s/ Milton A. AlpernMilton A. AlpernChief Financial Officer and Treasurer
(Duly Authorized Officer and Principal Financial
and Accounting Officer) 24




---



##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 25