APPTIX ANNOUNCES Q4 2006 RESULTS

Herndon, Virginia and Billingstad, Norway - February 7, 2007

Q4 2006 Highlights - Apptix Delivers First Ever Positive EBITDA for the Quarter
and Achieves 5th Consecutive Record Quarter in Bookings

Financial Highlights


Apptix Delivers First Ever Positive EBITDA for the Quarter and Achieves Record Bookings (PDF)
Recurring revenue grew by 45% over the third quarter of 2006 to $7.325 million in the fourth quarter of 2006. Top line revenue grew by 48% to $7.744 million in the same period and 9.3% relative to top line proforma revenue of $7.09 million in the third quarter. The growth in Q4 over Q3 was due to strong organic growth in small and medium-sized business (SMB) bookings through ASP-One, MailStreet and SharePointSite as well as the solid growth and the first full quarter of revenue for Mi8 since the acquisition. Mi8's financial results were consolidated into the Apptix financial statements beginning September 6, 2006.

EBITDA increased to $0.215 million from a third quarter loss of $0.70 million. Net loss decreased 49% in Q4 to a loss of $0.794 million compared to a loss of $1.57 million in Q3. Operating expenses increased to $6.5 million in Q4 compared to $5.10 million in Q3; however, the increase in operating expenses was due largely to the consolidation of Mi8 for a full quarter in the financial results.

The Company closed the fourth quarter with $4.479 million in cash.

Key Accomplishments

  • EBITDA Positive - The Company achieved positive EBITDA for the quarter for the first time in its history, contributing 36% of Q4 incremental revenues to EBITDA.
     
  • Sales Success - The Company set another sales record in Q4, booking approximately 24,500 seats of Exchange, an increase of 15% over the third quarter. All seats in Q4 were in the SMB segment, resulting in an increase of 33% over Q3 for this segment. MailStreet, ASP-One and Mi8 were the primary growth drivers within the direct business. IBM and Bell Canada were the primary growth drivers within the channel business.
     
  • Web Direct Business - The Web Direct business, comprised of MailStreet, ASP-One and SharePointSite, grew 12% in the fourth quarter compared to the third quarter.



Accounting Disclosure
The Financial Information has been prepared in accordance with IAS 34 - Interim Financial Reporting (IFRS). The group quarterly accounts have been prepared in accordance with the same principles as the annual financial statements (IFRS). For comparative purposes, the Company has used pro forma quarterly results from 2005 when appropriate.

Financial statements may be reviewed in their entirety at http://investor.sharepoint.apptix.net/default.aspx.