NexPrise, Inc. Reports Results for the First Quarter of 2004 CARLSBAD, Calif., April 21 /PRNewswire-FirstCall/ -- NexPrise, Inc. (BULLETIN BOARD: NXPS.OB) , a provider of business process automation and management applications, today announced results for the three months ended March 31, 2004. For the first quarter of 2004 NexPrise reported bookings, which represent contracted revenue for the next twelve months, of approximately $170,000, a decrease of 89% from the first quarter of 2003. Bookings for the first quarter of 2003 included approximately $900,000 of perpetual licenses. Revenues, which are comprised of customer agreements recognized evenly over the length of the contracts and up front perpetual license fees, were approximately $654,000 for the three months ended March 31, 2004, a decrease of 9% over the comparable period in 2003. Costs and expenses in the first quarter of 2004 were approximately $2.1 million, including $34,000 of intangible asset amortization. That is a reduction of 34% from the costs and expenses total of approximately $3.2 million, including $491,000 of intangible asset amortization, reported in the first quarter of 2003. As of March 31, 2004, NexPrise's cash, cash equivalents and short-term investments were approximately $4.8 million. Total cash used in the first quarter of 2004 was $1.2 million, an increase of approximately $500,000 from the first quarter of 2003, which included the collection of $500,000 of other receivables that did not recur in 2004. The net loss per share in the first quarter of 2004 was $0.49, a 41% improvement from the $0.83 net loss per share reported in the same quarter last year. About NexPrise NexPrise, Inc., provides business process automation and management applications that can enable manufacturers to rapidly automate and manage key business processes and produce a return on investment in less than 6 months. These solutions complement and expand on currently installed enterprise systems and allow for the ongoing process improvements companies require to meet their changing business demands. NexPrise, Inc. is headquartered in Carlsbad, California. For more information, please visit http://www.nexprise.com/. Safe Harbor Statement This press release contains "forward-looking" statements, as that term is used in Section 21E of the Securities Exchange Act of 1934, about NexPrise, Inc. Forward-looking statements are denoted by such words as "contracted revenue" or "can enable" and similar terms and phrases. These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, NexPrise's ability to collect revenues associated with such contracts and its ability to continue to generate business from new contracts. In addition, our forward- looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our on Form 10-K and 10-Q filings, available online at http://www.sec.gov/. All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements. NEXPRISE, INC CONSOLIDATED BALANCE SHEETS (in thousands, except per share value) March 31, December 31, 2004 2003 ASSETS unaudited audited Current assets: Cash and cash equivalents $2,185 $991 Short-term investments 2,600 5,000 Accounts receivable 312 743 Prepaid expenses 323 321 Other current assets 285 362 Total current assets 5,705 7,417 Property and equipment, net 57 40 Intangible assets, net 104 139 Other long-term assets, net 285 317 Total assets $6,151 $7,913 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $190 $94 Accrued compensation 373 552 Accrued expenses 1,143 1,158 Deferred revenue 1,467 1,590 Total current liabilities 3,173 3,394 Notes payable 11,843 11,843 Commitments and contingencies Stockholders' deficit: Preferred stock, no par value: 2,500 shares authorized: none issued or outstanding -- -- Common stock, $.0002 par value; 175,000 shares authorized; 3,238 and 3,237 shares issued and outstanding 10 10 Additional paid-in capital 631,771 631,774 Deferred compensation (87) (143) Accumulated deficit (640,712) (639,118) Accumulated other comprehensive income 153 153 Total stockholders' deficit (8,865) (7,324) Total liabilities and stockholders' deficit $6,151 $7,913 NEXPRISE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three Months Ended March 31, 2004 2003 Net revenues $654 $721 Cost of product licenses and services 312 281 Cost of amortization of purchased technology 34 491 Research and development 615 794 Sales and marketing 595 967 General and administrative 543 699 Total costs and expenses 2,099 3,232 Operating loss (1,445) (2,511) Interest expense (189) (189) Interest income and other, net 40 33 Net loss $(1,594) $(2,667) Basic and diluted loss per share $(0.49) $(0.83) Weighted average common shares outstanding used in computing basic and diluted net loss per share 3,237 3,218 DATASOURCE: NexPrise, Inc. CONTACT: investors, Jerome Natoli of NexPrise, Inc., +1-650-327-6850, or Web site: http://www.nexprise.com/

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