<PAGE>

                               AMENDMENT NO. 1 to
                                  FORM 10-Q/A

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                       FOR THE QUARTER ENDED JUNE 30, 2001

                                       OR

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
             FOR THE TRANSITION PERIOD FROM __________ TO __________

                         COMMISSION FILE NUMBER 0-25040

                                  APPLIX, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

            MASSACHUSETTS                              04-2781676
  (STATE OR OTHER JURISDICTION OF                   (I.R.S. EMPLOYER
   INCORPORATION OR ORGANIZATION)                 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 X   NO
                                      ---     ---

         INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS AN ACCELERATED FILER
(AS DEFINED IN RULE 12b-2 OF THE EXCHANGE ACT). YES     NO X
                                                   ---    ---

         INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S
CLASSES OF COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE:


         REGISTRANT HAD 12,002,155 SHARES OF COMMON STOCK, $.0025 PAR VALUE,
OUTSTANDING AT AUGUST 9, 2001.


<PAGE>


                                EXPLANATORY NOTE

This amendment No. 1 on Form 10-Q/A to the Registrant's Quarterly Report on Form
10-Q originally filed with the Commission on August 13, 2001 is being filed for
the purpose of restating the Registrant's Condensed Consolidated Financial
Statements as of June 30, 2001 and for the three and six months then ended, and
restating the related Notes to Condensed Consolidated Financial Statements. On
May 13, 2003, the Company announced that it had identified an error in the
timing of the recognition of certain compensation expenses related to its March
31, 2001 acquisition of Dynamic Decisions Pty Ltd. The restatement revises the
recognition of compensation expenses related to certain acquisition-related
contingent payments by recording them beginning the quarter ended June 30, 2001
rather than the quarter ended March 31, 2002. For the three and six months ended
June 30, 2001, compensation expenses have increased $511,000, respectively,
which has been accrued at June 30, 2001. See Note B of the Notes to Condensed
Consolidated Financial Statements for a summary of the significant effects of
the restatement.


This amendment does not reflect events occurring after the filing of the
original Quarterly Report on Form 10-Q on August 13, 2001, or modify or update
the disclosures presented in the original Quarterly Report on Form 10-Q, except
to reflect the revisions as described above.


                                  APPLIX, INC.

                                     INDEX

<TABLE>
<CAPTION>
                                                                                PAGE NO.
                                                                                --------
  <S>                                                                           <C>
  PART I - FINANCIAL INFORMATION

  Item 1.  Financial Statements (Unaudited):

     Condensed Consolidated Balance Sheets as of
       June 30, 2001 and December 31, 2000                                         3

     Condensed Consolidated Statements of Operations
       For the three months ended June 30, 2001 and 2000                           4

     Condensed Consolidated Statements of Operations
       For the six months ended June 30, 2001 and 2000                             5

     Condensed Consolidated Statements of Cash Flows
       For the six months ended June 30, 2001 and 2000                             6

     Notes to Condensed Consolidated Financial Statements                         7-10


  Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations                                    11-16

  PART II - OTHER INFORMATION

  Item 6.  Exhibits and Reports on Form 8-K                                        17

  Signature                                                                        18

  Certifications                                                                   19
</TABLE>




                                      -2-

<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                                  APPLIX, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS
           (UNAUDITED; IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

<TABLE>
<CAPTION>
                                                                          JUNE 30, 2001   DECEMBER 31, 2000
ASSETS                                                                      (Restated)
------                                                                    -------------   -----------------
<S>                                                                          <C>              <C>
  Current assets:
       Cash and cash equivalents                                             $  8,996         $ 12,546
       Accounts receivable, less allowance for doubtful accounts
            of $1,372 and $1,397, respectively                                 11,739           12,026
       Other current assets                                                     2,095            2,876
                                                                             --------         --------
            Total current assets                                               22,830           27,448

  Property and equipment, at cost                                              15,460           15,475
  Less accumulated amortization and depreciation                              (12,723)         (12,379)
                                                                             --------         --------
       Net property and equipment                                               2,737            3,096
  Capitalized software costs, net of accumulated
         amortization of $1,283 and $886, respectively                            967              910
  Goodwill, net of accumulated amortization of
         $1,028 and $915 respectively                                           2,165              370
  Other assets                                                                  2,091            1,250
                                                                             --------         --------
            Total assets                                                     $ 30,790         $ 33,074
                                                                             ========         ========

  LIABILITIES AND STOCKHOLDERS' EQUITY
  ------------------------------------
  Current liabilities:
       Accounts payable                                                      $  2,609         $  2,406
       Accrued liabilities                                                      8,301            7,145
       Deferred revenue                                                         5,527            4,222
       Net liabilities of discontinued operation                                1,128            1,067
                                                                             --------         --------
            Total current liabilities                                          17,565           14,840

  Stockholders' equity:
        Preferred stock, $.01 par value; 1,000,000 shares authorized,
             none issued and outstanding
       Common stock, $.0025 par value; 30,000,000 shares
            authorized; 12,156,339 and 11,893,893 shares issued,
            respectively                                                           30               30
       Capital in excess of par value                                          49,022           48,249
       Accumulated deficit                                                    (33,050)         (27,268)
       Accumulated other comprehensive loss                                      (580)            (580)
       Notes receivable from stockholders                                      (1,120)          (1,120)
       Treasury stock, 306,198 shares, at cost                                 (1,077)          (1,077)
                                                                             --------         --------
            Total stockholders' equity                                         13,225           18,234
                                                                             --------         --------
            Total liabilities and stockholders' equity                       $ 30,790         $ 33,074
                                                                             ========         ========
</TABLE>

          The accompanying notes are an integral part of the condensed
                       consolidated financial statements.

                                      -3-

<PAGE>

                                  APPLIX, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED
                                                      ---------------------------
                                                       JUNE 30,
                                                         2001            JUNE 30,
                                                      (Restated)          2000
                                                      ----------         --------
<S>                                                    <C>               <C>
  License revenue                                      $  4,537          $  4,943
  Service revenue                                         5,907             3,995
                                                       --------          --------
            Total revenue                                10,444             8,938

  Cost of license revenue                                   553               514
  Cost of service revenue                                 3,173             3,323
                                                       --------          --------
            Gross margin                                  6,718             5,101

  Operating expenses:
            Selling and marketing                         5,990             7,006
            Research and development                      1,707             1,939
            General and administrative                    1,154             1,107
            Restructuring expense                           512                --
            Compensation expenses and
               amortization of acquired
               intangible asset                             573                --
                                                       --------          --------
            Total operating expenses                      9,936            10,052
                                                       --------          --------
  Operating loss                                         (3,218)           (4,951)

  Interest income, net                                      103               306
                                                       --------          --------
  Loss from continuing operations before
    income taxes                                         (3,115)           (4,645)

  Provision (benefit) for income taxes                       75            (1,591)
                                                       --------          --------
  Loss from continuing operations                      ($ 3,190)         ($ 3,054)

  Loss from discontinued operations                          --              (214)
                                                       --------          --------
  Net loss                                             ($ 3,190)         ($ 3,268)
                                                       ========          ========

  Basic and diluted loss per share:

       Continuing operations                           ($  0.27)         ($  0.27)
       Discontinued operations                               --          ($  0.02)
                                                       --------          --------
            Total loss per share                       ($  0.27)         ($  0.29)
                                                       ========          ========
  Weighted average number of basic and
       diluted shares outstanding                        11,740            11,245

</Table>

          The accompanying notes are an integral part of the condensed
                       consolidated financial statements.

                                      -4-
<PAGE>

                                  APPLIX, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
                                                           SIX MONTHS ENDED
                                                      ---------------------------
                                                      JUNE 30,           JUNE 30,
                                                        2001               2000
                                                     (Restated)
                                                      --------           --------
<S>                                                 <C>                <C>
  License revenue                                     $ 10,351           $ 10,038
  Service revenue                                       11,420              8,177
                                                      --------           --------
            Total revenue                               21,771             18,215

  Cost of license revenue                                1,044                981
  Cost of service revenue                                7,141              6,853
                                                      --------           --------
            Gross margin                                13,586             10,381

  Operating expenses:
            Selling and marketing                       13,005             12,189
            Research and development                     3,815              3,760
            General and administrative                   2,277              2,053
            Restructuring expense                          512                 --
            Compensation expenses and
               amortization of acquired
               intangible asset                            573                 --
                                                      --------           --------
            Total operating expenses                    20,182             18,002
                                                      --------           --------
  Operating loss                                        (6,596)            (7,621)

  Interest income, net                                     215                661
                                                      --------           --------
  Loss from continuing operations before
    income taxes                                        (6,381)            (6,960)
  Provision (benefit) for income taxes                     119             (2,362)
                                                      --------           --------
  Loss from continuing operations                       (6,500)            (4,598)

  Income from discontinued operations                       --                533
  Gain on disposal of discontinued operations              718                 --
                                                      --------           --------
  Net loss                                            ($ 5,782)          ($ 4,065)
                                                      ========           ========

  Basic and diluted income (loss) per share:
       Continuing operations                          ($  0.55)          ($  0.41)
       Discontinued operations                        $   0.06           $   0.05
                                                      --------           --------
            Total loss per share                      ($  0.49)          ($  0.36)
                                                      ========           ========

  Weighted average number of basic and
       diluted shares outstanding                       11,714             11,217
</TABLE>



          The accompanying notes are an integral part of the condensed
                       consolidated financial statements.


                                      -5-

<PAGE>

                                  APPLIX, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (UNAUDITED, IN THOUSANDS)
<TABLE>
<CAPTION>
                                                                             SIX MONTHS ENDED
                                                                       ------------------------------
                                                                       JUNE 30, 2001    JUNE 30, 2000
                                                                        (Restated)
                                                                       -------------    -------------
  <S>                                                                    <C>              <C>
  OPERATING ACTIVITIES:
  Net loss                                                               $ (5,782)        $ (4,065)
  Adjustments to reconcile net loss to net cash
    provided by (used for) operating activities:
            Depreciation and amortization                                   1,014            1,560
            Amortization of deferred compensation                              --              360
            Changes in operating assets and liabilities:
                  Decrease in accounts receivable                             508            2,853
                  Decrease in other current assets                             87              533
                  Decrease (increase) in accounts payable                     (68)           1,681
                  Decrease in accrued liabilities                          (1,663)          (3,188)
                  Decrease (increase) in  deferred revenue                  1,205             (676)
                                                                         --------         --------
            Cash used for operating activities                             (4,699)            (942)

  INVESTING ACTIVITIES:
            Purchase of property and equipment                               (131)          (1,706)
            Capitalized software costs                                       (454)            (650)
            Cash received from the purchase of
                   Dynamic Decisions Pty                                       24               --
            Proceeds from the sale of discontinued operation                1,300               --
            Cash paid upon sale of subsidiary                                (100)              --
            Purchase of short-term investments                                 --           (17,176)
            Maturities of short-term investments                               --            17,701
                                                                         --------         --------
    Cash provided by (used for) investing activities                          639           (1,831)

  FINANCING ACTIVITIES:
            Proceeds from exercise of incentive stock options and
               and employee stock purchase plans                              546              713
            Payment of long term debt                                          --             (180)
                                                                         --------         --------
            Cash provided by financing activities                             546              533

            Effect of exchange rate changes on cash                           (36)             (46)
                                                                         --------         --------
            Net decrease in cash and cash equivalents                      (3,550)          (2,286)

  Cash and cash equivalents at beginning of period                         12,546           10,321
                                                                         --------         --------
  Cash and cash equivalents at end of period                             $  8,996         $  8,035
                                                                         ========         ========

  SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Stock issued for acquisition of Dynamic Decisions Pty                  $    227         $     --
  Note payable issued for acquisition of Dynamic Decisions Pty           $  1,549         $     --
  Cash paid for income taxes                                             $     15         $     --

</TABLE>


          The accompanying notes are an integral part of the condensed
                       consolidated financial statements.


                                      -6-

<PAGE>
                                  APPLIX, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

A.  NATURE OF BUSINESS

     Applix, Inc. ("Applix" or the "Company") develops, markets and supports a
suite of Internet-based software applications. The Company has one principal
business segment, its customer analytics and business planning software segment,
which is reported as continuing operations. The Company provides customer
relationship management and business planning software that enables customers to
automate their front office business operations, including customer relationship
management and business planning. On March 30, 2001, the Company sold its
VistaSource business unit, previously reported as the Linux Division. This unit
has been reported as a discontinued operation since December 31, 2000 (note G).

B.  REVISION OF FINANCIAL STATEMENTS TO ACCOUNT FOR CONTINGENT PAYMENTS TO
    EMPLOYEES

    On May 13, 2003, the Company announced that it had identified an error in
the timing of the recognition of certain compensation expenses related to its
March 31, 2001 acquisition of Dynamic Decisions Pty Ltd. ("Dynamic Decisions").
As discussed in Note H, a portion of the purchase price paid by the Company for
Dynamic Decisions was payable in 10 installments. Of the 10 installments, two of
the installments were guaranteed and were accounted for as purchase price. The
remaining eight installments are contingent upon the employment of two key
employees, who are former shareholders of Dynamic Decisions. The compensation
expenses relating to each of these eight installments was initially recognized
during the period in which such contingent payment were made, but they should
have been expensed ratably on a straight-line basis over the key employees'
contractual employment period, which commenced on April 1, 2001 and ends on
March 31, 2003. As a result of the restatement, compensation expenses related to
the acquisition have been increased by $511,000 for the three and six months
ended June 30, 2001, respectively, which has been accrued at June 30, 2001.

    A summary of the significant effects of the revision is as follows:

<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED    SIX MONTHS ENDED
                                                                    JUNE 30, 2001        JUNE 30, 2001
                                                                 ------------------    ----------------
                                                                          (IN THOUSANDS EXCEPT
                                                                             PER SHARE DATA)

<S>                                                             <C>                     <C>
Compensation expenses and amortization of
  acquired intangible asset as previously reported                    $     62             $    62
Compensation expenses and amortization of acquired
  intangible asset as restated                                             573                 573
Net loss as previously reported                                       $ (2,679)            $(5,271)
Net loss as restated                                                    (3,190)             (5,782)
Net loss per share, basic and diluted as previously reported          $  (0.23)            $ (0.45)
Net loss per share, basic and diluted as restated                     $  (0.27)            $ (0.49)

<CAPTION>
                                                                    JUNE 30, 2001
                                                                    -------------
<S>                                                                 <C>
Accrued expenses as previously reported                               $  7,790
Accrued expenses as restated                                             8,301
Accumulated deficit as previously reported                            $(32,539)
Accumulated deficit as restated                                       $(33,050)
</TABLE>

C.  BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions for Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Certain prior period amounts have been
reclassified to conform to the current presentation. Operating results for the
three and six month periods ended June 30, 2001 are not necessarily indicative
of the results that may be expected for the year ended December 31, 2001.

     The balance sheet at December 31, 2000 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.

     For further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for the
year ended December 31, 2000.

D.  COMPUTATION OF NET LOSS PER COMMON SHARE

     Basic net loss per share is computed using the weighted average number of
common shares outstanding during the period. Dilutive net loss per share is
computed using the weighted average number of common shares outstanding during
the period, plus the dilutive effect of potential common shares which consists
of stock options and unvested shares of restricted stock.

     Potential common shares were excluded from the calculation of net loss per
share for the periods ended June 30, 2001 and June 30, 2000 since their
inclusion would be antidilutive. Potential common shares excluded from the
calculation of diluted loss per share were 3,317,647 and 2,998,146 for the six
months ended June 30, 2001 and 2000, respectively.

                                      -7-
<PAGE>


                                  APPLIX, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (unaudited)

E.  COMPREHENSIVE INCOME (LOSS)

     Other comprehensive income (loss) includes foreign currency translation
adjustments.

<TABLE>
<CAPTION>
                                                       Three Months Ended                 Six Months Ended
                                                             June 30                           June 30
                                                   ------------------------------    ---------------------------
     (in thousands)                                     2001            2000             2001           2000
                                                     (Restated)                       (Restated)
                                                   ------------------------------    ---------------------------

     <S>                                              <C>              <C>             <C>            <C>
     Net loss                                         ($3,190)         ($3,268)        ($5,782)       ($4,065)
     Other comprehensive income (loss)                     63              (24)             --            (46)
                                                      -------          -------         -------        -------
     Total comprehensive loss                         ($3,127)         ($3,292)        ($5,782)       ($4,111)
                                                      =======          =======         =======        ========
</TABLE>


F.  EFFECT OF RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1998, The Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for
Derivative Instruments and Hedging Activities," which establishes accounting and
reporting standards for derivative instruments and hedging activities. It
requires that an entity recognize all derivatives as either assets or
liabilities on the balance sheet and measure those instruments at fair value.
The Company adopted SFAS No. 133 on January 1, 2001 without significant impact
to its results of operations or financial position.

     In July 2001, the FASB issued SFAS No. 141, "Business Combinations" and
SFAS No. 142, "Goodwill and Other Intangible Assets." SFAS 141 eliminates the
pooling-of-interests method of accounting for business combinations except for
qualifying business combinations that were initiated prior to July 1, 2001. SFAS
141 further clarifies the criteria to recognize intangible assets separately
from goodwill. The requirements of SFAS 141 are effective for any business
combination accounted for by the purchase method that is completed after June
30, 2001. Under SFAS 142, goodwill and indefinite lived intangible assets are no
longer amortized but are reviewed annually (or more frequently if impairment
indicators arise) for impairment. Separable intangible assets that are not
deemed to have an indefinite life will continue to be amortized over their
useful lives. The amortization provisions of SFAS 142 apply to goodwill and
intangible assets acquired after June 30, 2001. With respect to goodwill and
intangible assets acquired prior to July 1, 2001, companies are required to
adopt SFAS 142 in their fiscal year beginning after December 15, 2001. Because
of the different transition dates for goodwill and intangible assets acquired on
or before June 30, 2001 and those acquired after that date, pre-existing
goodwill and intangibles will be amortized during this transition period until
adoption whereas new goodwill and indefinite lived intangible assets acquired
after June 30, 2001 will not. The Company is currently in the process of
evaluating the impact of SFAS 142 will have on its financial position and
results of operations.


                                      -8-

<PAGE>


                                  APPLIX, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (unaudited)

G.  DISCONTINUED OPERATIONS

     In December 2000, the Board of Directors committed to a plan to dispose of
the operations of its VistaSource business. On March 30, 2001, the Company
completed the sale of the VistaSource business unit to Real Time International,
Inc. ("Real-Time"), a subsidiary of Parallax Capital Partners, LLC for $1.3
million and a 19% equity interest in Real-Time. The results of operations
including revenue, operating expenses, other income and expense, and income
taxes of the VistaSource business unit for 2001 and 2000 have been reclassified
in the accompanying statements of operations as a discontinued operation. The
Company's balance sheets at June 30, 2001 and December 31, 2000 reflect the net
liabilities of the VistaSource business as net liabilities of discontinued
operation within current liabilities.

     At December 31, 2000, the estimated net losses associated with the
disposition of the VistaSource business were approximately $3.6 million for
2000. These losses included approximately $367,000 in losses from operations for
the period from January 1, 2000 through the measurement date of December 17,
2000, $2.2 million relating to the removal of the net assets of the VistaSource
business, $1.1 million in estimated losses from operations from the measurement
date through the estimated date of disposal and $1.3 million in provisions for
employee severance and benefits, transaction costs, bank fees and other
contractual commitments. These losses were partially offset by proceeds of $1.3
million received from the divestiture.

    The VistaSource business generated a loss from its operations of $870,000 in
the first quarter of 2001 (through the date of disposal) compared to the
estimated $1.1 loss recognized at December 31, 2000. After adjustments for the
actual results of operations of the VistaSource business through the date of
disposal, changes in net assets delivered at closing and changes in estimates of
certain obligations, the net loss on the disposal was $2,877,000.

Summary operating results from the discontinued operation of the first six
months ended June 30, 2001 and 2000 are as follows:

<TABLE>
<CAPTION>
                                      SIX MONTHS ENDED             SIX MONTHS ENDED
       (in thousands)                   JUNE 30, 2001                 JUNE 30, 2000
                                      ----------------             ----------------
       <S>                                <C>                          <C>
       Revenue                             $1,666                       $5,853
       Cost of Sales                          249                        1,246
                                           ------                       ------
       Gross Margin                         1,417                        4,607
       Operating Expenses                   2,287                        4,106
                                           ------                       ------
       Operating Income                    ($ 870)                      $  501
                                           ======                       ======
</TABLE>


     On March 30, 2001 the Company closed the sale of the VistaSource business
and received the purchase price of $1,300,000. For the six months ended June 30,
2001, the Company has recognized a gain of $718,000 for discontinued operations
due to a favorable liquidation of the net assets and liabilities of the
VistaSource business. The reserve balance for the estimated costs associated
with the disposition as of June 30, 2001 was $ 1,128,000, consisting primarily
of estimated brokerage fees, legal and accounting fees, and severance costs.


                                      -9-
<PAGE>


                                  APPLIX, INC.
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (unaudited)

H.  ACQUISITIONS

     On March 31, 2001, the Company acquired all of the outstanding capital
stock of Dynamic Decisions Pty Limited ("Dynamic Decisions") for a purchase
price of $5,867,000 consisting of maximum cash consideration of $5,150,000,
transaction costs of $490,000, and 100,000 shares of the Company's common stock,
which had a fair market value at the date of acquisition of $227,000. The
acquisition was accounted for under the purchase method of accounting. Per the
terms of the share purchase agreement, the total maximum cash contingent
consideration is payable in 10 installment payments to be paid over a maximum of
30 months beginning on July 1, 2001. Of the total 10 installment payments, two
payments of approximately $1.3 million are guaranteed and have been accounted
for as purchase price and the remaining eight, or approximately $4.1 million,
are contingent upon the future employment of the two key employees, who are the
former shareholders of Dynamic Decisions, and therefore are being accounted for
as compensation expenses. These eight installments are being expensed ratably on
a straight-line basis over the key employees' contractual two-year employment
period, which commenced on April 1, 2001 and ends on March 31, 2003.

     A preliminary estimation of the fair value of the assets acquired and the
liabilities assumed in the transaction was done on March 31, 2001. The Company
is in the process of completing a valuation of the intangible assets, which will
be completed in the second quarter. Goodwill of approximately $1.9 million
(included in other assets on the balance sheet) was preliminary recorded for the
excess of the purchase price over the fair value of the assets acquired and
liabilities assumed and will be amortized on a straight-line basis over six
years. The results of operations of Dynamic Decisions are included in the
financial statements presented from the date of acquisition.

     Unaudited pro forma revenue, net loss, and loss per share shown below for
the six months ended June 30, 2001 and 2000 assumes the acquisition of Dynamic
Decisions occurred on January 1 of each respective period.

<TABLE>
<CAPTION>
                                                                SIX MONTHS ENDED
     (in thousands, except for share amounts)                  JUNE 30 (UNAUDITED)
                                                              ----------------------
                                                                2001           2000
                                                             (Restated)
                                                              -------         ------
     <S>                                                      <C>             <C>
     Revenue                                                  $22,329         $20,115
     Net loss                                                 ($5,441)        ($3,140)
     Total basic and diluted loss per share                    ($0.46)         ($0.28)
</TABLE>


I.  RESTRUCTURING EXPENSE

     In the second quarter of 2001, the Company adopted a plan of restructuring
aimed at reducing current operating costs company-wide. In connection with this
plan, 28 non-management employees, primarily sales, marketing, and
administrative positions, and 2 executive level employees were terminated. The
Company's restructuring plan also included the closure of the Company's sales
office in France. As a result of the restructuring plan, the Company recorded a
restructuring charge of $512,000 for the three months ended June 30, 2001. The
restructuring charge consists of $449,000 for severance costs and $63,000 for
the loss on disposal of the Company's French subsidiary, which was sold on June
30, 2001. In connection with the sale, the Company paid $100,000 to the
purchaser, which is included in the restructuring charge. At June 30, 2001,
$449,000 of the restructuring charge remained as a liability on the balance
sheet.


                                      -10-
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

OVERVIEW

     The Company was incorporated in 1983 to develop and market software
applications for the workstation market. In 1986, the Company introduced Alis,
its first office automation product, which accounted for substantially all of
the Company's revenue through 1990. Alis was replaced in 1991 by the Aster*x
product family, which represented the next generation of UNIX applications and
tools. In September 1993, the Company introduced its Applixware suite of desktop
and development tools for accessing, analyzing and communicating information in
real time, to replace the Company's Aster*x product family, on which it was
based.

     In October 1995, the Company acquired Target Systems Corporation, which
developed and marketed customer interaction software. In October 1996, the
Company acquired Sinper Corporation, doing business under the name TM1, which
developed and marketed software used for on-line analytical processing (OLAP).
These two acquisitions enabled Applix to expand its product offerings to include
front office business applications. The Company focuses on front office business
applications which include Applix iEnterprise, the Company's offering in the
customer relationship management (CRM) market, and Applix iTM1, the Company's
real time multi-dimensional analysis software for business intelligence
applications.

     In 1996, the Company introduced its Applix Anyware product line, an
application development and deployment solution that leverages Java to customize
and deploy Applixware's full suite of applications. Applix Anyware delivers the
functionality of Applixware, Applix iTM1 and Applix iEnterprise to "thin-client"
computing environments (i.e. systems running a Java-enabled browser such as
Netscape Navigator or Microsoft Explorer).

     The Company acquired Cosource.com in December 1999 to expand its
VistaSource Division into Internet accessibility and into a collaborative open
source software web environment, in a transaction accounted for under the
purchase method of accounting. In December 2000, the board of directors decided
to dispose of VistaSource. As a result of this decision, VistaSource was
classified as a discontinued operation as of December 31, 2000 and the Company
recorded an estimated loss of $3.6 million. At March 30, 2001, the company sold
the VistaSource division for $1.3 million which included approximately $367,000
in losses from operations for the period from January 1, 2000 through the
measurement date of December 17, 2000, $2.2 million relating to the removal of
the net assets of the VistaSource business, $1.1 million in estimated losses
from operations from the measurement date through the estimated date of
disposal and $1.3 million in provisions for employee severance and benefits,
transaction costs, bank fees and other contractual commitments. These losses
were partially offset by proceeds of $1.3 million received from the divestiture.

     On March 30, 2001, the company sold the VistaSource division for $1.3
million. For the three months ended March 31, 2001, and the six months ended
June 30, 2001, the Company has recognized a gain of $718,000 from discontinued
operations due to adjustments for the actual results of operations of the
VistaSource business through the date of disposal, changes in net assets
delivered at closing and changes in estimates of certain obligations, resulting
in a total net loss on the disposal of $2,877,000.

     On March 31, 2001, the Company acquired all of the outstanding capital
stock of Dynamic Decisions Pty Limited ("Dynamic Decisions") for a purchase
price of $5,867,000 consisting of maximum cash consideration of $5,150,000,
transaction costs of $490,000 and 100,000 shares of the Company's common stock,
which had a fair market value of $227,000 at the date of acquisition. The
acquisition was accounted for under the purchase method of accounting. Per the
terms of the share purchase agreement, the total maximum cash contingent
consideration is payable in 10 installment payments to be paid over a maximum of
30 months beginning on July 1, 2001. Of the total 10 installment payments, two
payments of approximately $1.3 million are guaranteed and have been accounted
for as purchase price and the remaining eight, or approximately $4.1 million,
are contingent upon the future employment of the two key employees, who are the
former shareholders of Dynamic Decisions, and therefore are being accounted for
as compensation expenses. These eight installments are being expensed ratably on
a straight-line basis over the key employees' contractual two-year employment
period, which commenced on April 1, 2001 and ends on March 31, 2003.

     A preliminary estimation of the fair value of the assets acquired in the
transaction was done on March 31, 2001. The Company is in the process of
completing a valuation of the intangible assets, which will be completed in the
second quarter. The excess of the purchase price over the estimated fair value
of the net assets acquired has been preliminarily allocated to goodwill and is
being amortized on a straight-line basis over six years.



                                      -11-
<PAGE>


     The following information should be read in conjunction with the unaudited
condensed consolidated financial statements and notes thereto included in this
Quarterly Report, with the Financial Statements, and Management's Discussion and
Analysis of Financial Condition and Results of Operations contained in the
Company's 2000 Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 2, 2001.

     Any statements in this report expressing the beliefs and expectations of
management regarding the Company's future results and performance are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are based on
current expectations that involve a number of risks and uncertainties. The
Company wishes to caution readers not to place undue reliance on any such
forward looking statements, which speak only as of the date made.

     Such forward looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected. Such risks and
uncertainties are described in the Company's 2000 Annual Report on Form 10-K
filed with the Securities and Exchange Commission on April 2, 2001.

RESULTS OF CONTINUING OPERATIONS

THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 2000

     Total revenue from continuing operations increased 17% to $10,444,000 for
the quarter ended June 30, 2001 from $8,938,000 for the quarter ended June 30,
2000.

    License revenue from continuing operations decreased 8% to $4,537,000 for
the quarter ended June 30, 2001 from $4,943,000 for the quarter ended June 30,
2000. The decrease was primarily due to the decline in the global economy and
the continued slowdown in information technology spending. The Company expects
license revenue to increase as a percentage of total revenue in the future due
to expected increased license revenue from channel partners due to a
strengthening pipeline.

    Service revenue from continuing operations increased in the quarter to
$5,907,000, or 57% of total revenue, compared to $3,995,000, or 45% of total
revenue in the same quarter last year. The increase was primarily due to
improved renewal rates for maintenance from existing customers. The Company
expects maintenance revenue to continue to increase due to continuing
improvement in maintenance renewals from existing customers and expects
consulting revenue to remain steady but decrease as a percentage of sales as the
Company expects total license revenue to increase.

     Domestic license revenue from continuing operations decreased 34% to
$1,121,000 for the quarter ended June 30, 2001 from $1,689,000 for the same
period in the prior year. The decrease was primarily due to the decline in the
domestic economy and the continued slowdown in information technology spending.
Domestic service revenue from continuing operations increased 37% to $2,102,000
from $1,532,000 in the same quarter last year primarily due to improved renewal
rates for maintenance from existing domestic customers.

     International license revenue from continuing operations increased 5% to
$3,416,000 for the quarter ended June 30, 2001 from $3,254,000 for the same
period in 2000. The increase was primarily due to the acquisition of Dynamic
Decisions offset by a slowing global economy and a continued decline in
information technology spending. International service revenues increased by 54%
to $3,805,000 in the


                                      -12-

<PAGE>

second quarter of 2001 from $2,463,000 in the same quarter last year primarily
due to improved renewal rates for maintenance from existing international
customers.

     Gross margin from continuing operations increased to 64% for the three
months ended June 30, 2001 from 57% for the same period in 2000. License revenue
gross margins from continuing operations decreased to 88% for the quarter ended
June 30, 2001 from 90% for the quarter ended June 30, 2000. Service gross
margins from continuing operations improved to 46% for the first quarter of 2001
from 17% in the same period last year. The overall increase in margins reflects
improved utilization of the Company's professional services organization as well
as higher maintenance revenues as a percent of total revenues.

     Selling and marketing expenses from continuing operations, which include
domestic sales and marketing expenses and the cost of the Company's
international operations, decreased 15% to $5,990,000 for the quarter ended June
30, 2001 from $7,006,000 for the quarter ended June 30, 2000. Selling and
marketing expenses decreased as a percentage of total revenue to 57% for the
quarter ended June 30, 2001 from 78% for the quarter ended June 30, 2000. The
decrease in total spending is attributable to efforts to cut costs company-wide
which included reduced spending on marketing programs in the second quarter of
2001 versus higher spending on marketing programs in the second quarter of 2000.
In addition, certain incentive related compensation costs were reduced as a
result of the lower sales in the current year.

     Research and development expenses from continuing operations, which consist
primarily of employee salaries, benefits and related expenses, decreased 12% to
$1,707,000 for the quarter ended June 30, 2001 from $1,939,000 for the quarter
ended June 30, 2000 and were 16% of total revenue for the quarter ended June 30,
2001 versus 22% of total revenue for the quarter ended June 30, 2000. The
decrease in total spending is attributable to efforts to cut costs company-wide
which included significant reductions in the use of outside research and
development consultants. Total research and development expenses from continuing
operations, including capitalized software costs, decreased to $1,985,000,
including $278,000 in capitalized software development costs, or 19% of total
revenues for the quarter ended June 30, 2001 from $2,091,000, including $152,000
in capitalized software development costs, or 23% of total revenue for the
quarter ended June 30, 2000. The Company expects research and development
expenses to increase in absolute dollars but not as a percentage of sales due to
better cost containment and an expected increase in revenue.

     General and administrative expenses from continuing operations, which
include the costs of the finance, human resources and administrative functions,
increased 4% to $1,154,000 for the quarter ended June 30, 2001 from $1,107,000
for the same period in 2000. This was primarily due to increased legal fees
incurred in the second quarter of 2001. General and administrative expenses was
11% of total revenue for the quarter ended June 30, 2001 compared to 12% for the
quarter ended June 30, 2000. The Company expects general and administrative
expenses to decrease in absolute dollars and as a percentage of sales.

     Compensation expenses and amortization of acquired intangibles consists
primarily of contingent cash consideration relating to the Company's March 2001
acquisition of Dynamic Decisions. Per the terms of the share purchase agreement,
maximum cash contingent consideration payments relating to the purchase of
Dynamic Decisions was $5,150,000 payable in 10 installments over a maximum of 30
months beginning on July 1, 2001.

     Of the 10 installments, two of the installments totalling $1,267,000 were
guaranteed and accounted for as purchase price. The remaining eight installments
are contingent upon the employment of the two key employees, who are the former
shareholders of Dynamic Decisions, and therefore are being accounted for as
compensation expense within operating expenses. These eight installments are
being expensed ratably on a straight-line basis over the key employees'
contractual employment period, which commenced on April 1, 2001 and ends on
March 31, 2003. For the three and six months ended June 30, 2001, the Company
recorded compensation expense, which includes the impact of foreign currency
exchange rate fluctuations of translating the Australian dollar to the U.S.
dollar, related to these contingent payments of $511,000, respectively.
Amortization expense of the acquired intangible asset for the three and six
months ended June 30, 2001 was $62,000, respectively.

     In the second quarter of 2001, the Company adopted a plan of restructuring
aimed at reducing current operating costs company-wide. In connection with this
plan, 28 non-management employees, primarily sales, marketing, and
administrative positions, and 2 executive level employees were terminated. The
Company's restructuring plan also included the sale of the Company's sales
office in France. As a result of the restructuring plan, the Company recorded a
restructuring charge of $512,000 for the three months ended June 30, 2001. The
restructuring charge consists of $449,000 for severance costs and $63,000 for
the loss on disposal of the Company's French subsidiary, which was sold on June
30, 2001. In connection with the sale, the company paid $100,000 to the
purchaser, which is included in the restructuring charge. At June 30, 2001,
$449,000 of the restructuring charge remained as a liability on the balance
sheet.


                                      -13-
<PAGE>


     Interest income in the second quarter of 2001 decreased to $103,000 from
$306,000 in the second quarter of 2000 which is directly attributable to fewer
funds invested during the three months ended June 30, 2001 versus the same
period last year.

    The Company recorded a provision from income taxes for the quarter ended
June 30, 2001 of $75,000 based on the Company's foreign income tax obligations,
compared to a benefit of $1,591,000 for the quarter ended June 30, 2000.

SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2000

     Total revenue from continuing operations increased 20% to $21,771,000 for
the six months ended June 30, 2001 from $18,215,000 for the six months ended
June 30, 2000.

    License revenue from continuing operations increased 3% to $10,351,000 for
the six months ended June 30, 2001 from $10,038,000 for the six months ended
June 30, 2000. The increase was primarily due to the acquisition of Dynamic
Decisions acquired in 2001, offset by the decline in the global economy and the
continued slowdown in information technology spending. The Company expects
license revenue to increase as a percentage of total revenue in the future due
to expected increased license revenue from channel partners due to a
strengthening pipeline.

    Service revenue from continuing operations increased to $11,420,000, or 52%
of total revenue, compared to $8,177,000, or 45% of total revenue in the same
quarter last year representing a 7% increase. The Company expects maintenance
revenue to continue to increase due to continuing improvement in maintenance
renewals from existing customers and consulting revenue to remain steady but
decrease as a percentage of sales as compared to last year as the Company
expects total license revenue to increase.

     Domestic license revenue from continuing operations increased 9% to
$3,425,000 for the six months ended June 30, 2001 from $3,126,000 for the same
period in the prior year. Domestic service revenue from continuing operations
increased 31% to $4,067,000 from $3,107,000 in the same period last year.

     International license revenue from continuing operations was $6,926,000 for
the six months ended June 30, 2001 compared to $6,912,000 for the same period in
2000. International service revenues increased by 45% to $7,353,000 in the first
six months of 2001 from $5,070,000 in the period last year due to continuing
improvement in maintenance renewals from existing customers in the international
market space.

     Gross margin from continuing operations increased to 62% for the six months
ended June 30, 2001 from 57% for the same period in 2000. License revenue gross
margins from continuing operations remained unchanged at 90% for the six months
ended June 30, 2001 and June 30, 2000. Service gross margins from continuing
operations improved to 37% for the six months of 2001 from 16% in the same
period last year due to lower third-party contractor cost and improved employee
utilization levels.

     Selling and marketing expenses from continuing operations increased 7% to
$13,005,000 for the six months ended June 30, 2001 from $12,189,000 for the six
months ended June 30, 2000. The increase was primarily due to increased staffing
in the sales and marketing departments compared to the first six months of 2000.
Selling and marketing expenses decreased as a percentage of total revenue to 60%
for the six months ended June 30, 2001 from 67% for the six months ended June
30, 2000.


                                      -14-

<PAGE>
     Research and development expenses from continuing operations increased 1%
to $3,815,000 for the six months ended June 30, 2001 from $3,760,000 for the six
months ended June 30, 2000 and were 18% of total revenue for the six months
ended June 30, 2001 versus 21% of total revenue for the six months ended June
30, 2000. Total research and development expenses from continuing operations,
including capitalized software costs, increased to $4,270,000 primarily due to
continuing work on foreign translations of our iCRM and iPlanning products,
including $454,000 in capitalized software development costs, or 20% of total
revenues for the six months ended June 30, 2001 from $4,055,000, including
$295,000 in capitalized software development costs, or 22% of total revenue for
the six months ended June 30, 2000. The Company expects research and development
expenses to increase in absolute dollars but not as a percentage of sales.

     General and administrative expenses from continuing operations increased
11% to $2,277,000 for the six months ended June 30, 2001 from $2,053,000 for the
same period in 2000. This was primarily due to increased travel and legal fees
in the first six months of 2001 compared to the same period in 2000. General and
administrative expenses remained at 11% of total revenue for the six months
ended June 30, 2001 and June 30, 2000. The Company expects general and
administrative expenses to decline for the remainder of 2001.

     Compensation expenses and amortization of acquired intangibles consists
primarily of contingent cash consideration relating to the Company's March 2001
acquisition of Dynamic Decisions. Per the terms of the share purchase agreement,
maximum cash contingent consideration payments relating to the purchase of
Dynamic Decisions was $5,150,000 payable in 10 installments over a maximum of 30
months beginning on July 1, 2001.

     Of the 10 installments, two of the installments totalling $1,267,000 were
guaranteed and accounted for as purchase price. The remaining eight installments
are contingent upon the employment of the two key employees, who are the former
shareholders of Dynamic Decisions, and therefore are being accounted for as
compensation expense within operating expenses. These eight installments are
being expensed ratably on a straight-line basis over the key employees'
contractual employment period, which commenced on April 1, 2001 and ends on
March 31, 2003. For the three and six months ended June 30, 2001, the Company
recorded compensation expense, which includes the impact of foreign currency
exchange rate fluctuations of translating the Australian dollar to the US
dollar, related to these contingent payments of $511,000, respectively.
Amortization expense of the acquired intangible asset for the three and six
months ended June 30, 2001 was $62,000, respectively.

     In the second quarter of 2001, the Company adopted a plan of restructuring
aimed at reducing current operating costs company-wide and recorded a
restructuring charge of $512,000 for the six months ended June 30, 2001.

    Interest income for the six months ended June 30, 2001 decreased to $215,000
from $661,000 for the same period in 2000 due to fewer funds invested during the
six months ended June 30, 2001 versus the same period last year.

    The Company recorded a provision from income taxes for the six months ended
June 30, 2001 of $119,000 based on the Company's foreign income tax obligations
compared to a benefit of $2,362,000 for the six months ended June 30, 2000.

LIQUIDITY AND CAPITAL RESOURCES

     As of June 30, 2001, the Company had cash and cash equivalents of
$8,996,000 as compared to $12,546,000 as of December 31, 2000. Cash used in the
Company's operations was $4,699,000 and $942,000 for the six months ended June
30, 2001 and June 30, 2000 respectively. The net loss of $5,782,000 was
partially offset by the decrease in operating assets and liabilities of $69,000
and by depreciation and amortization of $1,014,000 for the six months ended June
30, 2001.

    Cash provided by investing activities totaled $639,000 for the six months
ended June 30, 2001 compared to total cash used of $1,831,000 for the six months
ended June 30, 2000. The increase in cash provided by investing activities
primarily resulted from the Company receiving proceeds of $1,300,000 from the
sale of VistaSource. This was partially offset by capital expenditures of
$131,000, capitalized software development costs of $454,000, and a payment of
$100,000 in connection with the sale of the Company's French subsidiary.

     Cash provided from finance activities totaled $546,000 for the six months
ended June 30, 2001 which consisted of proceeds received from the exercise of
incentive stock options and the Company's employee stock purchase plan compared
to total cash provided of $533,000 for the same period in 2000.

     In connection with the acquisition of Dynamic Decisions, the Company
expects to pay out $5.6 million over the next 30 months.


                                      -15-

<PAGE>


    The Company believes that the funds currently available will be sufficient
to fund the Company's operations at least through the next twelve months. The
Company has no commitments or specific plans for any significant capital
expenditures in the next twelve months. To date, inflation has not had a
material adverse effect on the Company's operating results.


                                      -16-


<PAGE>


Part II. Other Information

Item 6. Exhibits and Reports On Form 8-K

(A) Exhibits


      99.1     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

      99.2     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

      10.11*   Applix, Inc 2001 Employee Stock Purchase Plan

      10.12+*  Executive Stock Option Acceleration Agreement between the
               Registrant and Craig Cervo, dated June 9, 2000

      10.13+*  Executive Change-in-Control Agreement between the Registrant and
               Alan Goldsworthy Dated July 3, 2001

      10.14+*   Executive Change-in-Control Agreement between the Registrant and
               Edward Terino Dated July 3, 2001

      +  Management contract or compensatory plan

      * Previously filed with Registrants' Quarterly Report on Form 10-Q for the
        fiscal quarter ended June 30, 2001 filed with the Commission on August
        13, 2001.

(B) REPORTS ON FORM 8-K

The Registrant filed no reports on Form 8-K during the quarter ended June 30,
2001,

                                      -17-

<PAGE>


                                    SIGNATURE

     Pursuant to the requirements of Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                      APPLIX, INC.


                                      By: /s/ Walt Hilger
                                         ---------------------------------------
                                         Walt Hilger
                                         Chief Financial Officer
                                         (Duly Authorized Officer and
                                         Principal Financial Officer)


Date:  May 19, 2003




                                      -18-
<PAGE>
                                 CERTIFICATIONS

I, David Mahoney, certify that:



1. I have reviewed this quarterly report on Form 10-Q, as amended hereby, of
   Applix, Inc.;


2. Based on my knowledge, the quarterly report, as amended, does not contain any
   untrue statement of a material fact or omit to state a material fact
   necessary to make the statements made, in light of the circumstances under
   which such statements were made, not misleading with respect to the period
   covered by the quarterly report, as amended;


3. Based on my knowledge, the financial statements, and other financial
   information included in the quarterly report, as amended, fairly present in
   all material respects the financial condition, results of operations and cash
   flows of the registrant as of, and for, the periods presented in this
   quarterly report.



     Date: May 19, 2003


                                        /s/ David C. Mahoney
                                        -----------------------
                                        David C. Mahoney
                                        Chief Executive Officer
<PAGE>
                                 CERTIFICATIONS



I, Walt Hilger, certify that:



1.  I have reviewed this quarterly report on Form 10-Q, as amended hereby, of
    Applix, Inc.;


2.  Based on my knowledge, the quarterly report, as amended, does not contain
    any untrue statement of a material fact or omit to state a material fact
    necessary to make the statements made, in light of the circumstances under
    which such statements were made, not misleading with respect to the period
    covered by the quarterly report, as amended;


3.  Based on my knowledge, the financial statements, and other financial
    information included in the quarterly report, as amended, fairly present in
    all material respects the financial condition, results of operations and
    cash flows of the registrant as of, and for, the periods presented in this
    quarterly report.




          Date: May 19, 2003


                                        /s/ Walt Hilger
                                        ----------------------------
                                        Walt Hilger
                                        Chief Financial Officer






<PAGE>


                                 EXHIBIT INDEX

      99.1     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

      99.2     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

      10.11*   Applix, Inc 2001 Employee Stock Purchase Plan

      10.12+*  Executive Stock Option Acceleration Agreement between the
               Registrant and Craig Cervo, dated June 9, 2000

      10.13+*  Executive Change-in-Control Agreement between the Registrant and
               Alan Goldsworthy Dated July 3, 2001

      10.14+*   Executive Change-in-Control Agreement between the Registrant and
               Edward Terino Dated July 3, 2001

      +  Management contract or compensatory plan

      *  Previously filed with Registrants' Quarterly Report on Form 10-Q for
         the fiscal quarter ended June 30, 2001 filed with the Commission on
         August 13, 2001.

(B) REPORTS ON FORM 8-K

The Registrant filed no reports on Form 8-K during the quarter ended June 30,
2001,



                                      -23-