Applix Shares Up on 4Q Profit Increase

WESTBOROUGH, Mass. (AP) -- Business management software provider Applix Inc. said its fourth-quarter earnings nearly tripled on a tax benefit and higher software license revenue, sending shares surging 20 percent in morning trading.

After the bell Thursday, the company said net income rose to $6 million, or 34 cents per share, from $2.5 million, or 15 cents per share, in the year-ago period. The latest period includes a tax benefit of $4.2 million, or 24 cents per share.

Excluding the tax gain, a stock-based compensation charge and other costs, adjusted earnings were $3 million, or 17 cents per share, for the current quarter, up from $2.7 million, or 16 cents per share, on the same basis last year.

The results beat Wall Street's 14-cent consensus estimate, according to analysts polled by Thomson Financial.

Quarterly revenue climbed 44 percent to $16 million versus $11.1 million in the previous year. Software license sales grew to $9.6 million from $6.6 million, and professional services and maintenance revenue rose to $6.4 million from $4.4 million.

Shares of Applix climbed $2.18, or 20 percent, to $13.07 in morning trading on the Nasdaq Stock Market, having earlier hit a new 52-week high of $13.50. The shares previously traded in a 52-week range of $6.33 and $11.85.