NexPrise, Inc. Reports Results for the Fourth Quarter and Year 2003 CARLSBAD, Calif., Feb. 17 /PRNewswire-FirstCall/ -- NexPrise, Inc. (BULLETIN BOARD: NXPS) , a provider of business process automation and management applications, today announced results for the quarter and year ended December 31, 2003. For the fourth quarter of 2003 NexPrise reported bookings, which represent contracted revenue for the next twelve months, of approximately $801,000, a decrease of 22% from the fourth quarter of 2002. The decrease results from approximately $600,000 of bookings reported in the fourth quarter of 2002 that converted to perpetual licenses during 2003 and so were not renewed in the fourth quarter of 2003. Bookings for the twelve months ended December 31, 2003 were approximately $4.6 million, an increase of 83% from 2002. Revenues, which are comprised of customer agreements recognized evenly over the length of the contracts and up front perpetual licenses fees, were approximately $952,000 and $3.5 million for the three and twelve months ended December 31, 2003, an increase of 27% and 25% over the comparable periods in 2002. Costs and expenses in the fourth quarter of 2003 were approximately $9.0 million, including $491,000 of intangible assetamortization and a write down of intangible assets of approximately $6.4 million. In the fourth quarter of 2002, costs and expenses totaled approximately $14.9 million and included $233,000 of intangible asset amortization and a goodwill impairment charge of approximately $11.7 million. As of December 31, 2003, NexPrise's cash, cash equivalents and short-term investments were approximately $6.0 million. Total cash used in the fourth quarter of 2003 was $1.7 million, an increase of approximately $1.0 million from the third quarter of 2003. The third quarter of 2003 included $1.0 million of cash received as a result of the sale of NexPrise's interest in an investment. Total cash used in 2003 was $4.3 million, down from $11.4 million used in 2002. The net loss per share in the fourth quarter of 2003 was $2.54, compared with a net loss per share of $4.44 in the same quarter last year. The net loss per share for the year 2003 was $4.50, compared with a net loss per share of $9.21 for 2002. NexPrise CEO Ted Drysdale said, "On the whole, we were able to show reasonable growth in bookings and revenue this year and I'm pleased with the way we managed our cash." Mr. Drysdale added, "We took additional steps in January of 2004 to streamline our organization and reduce our cost structure, and feel we're well positioned for 2004 and beyond." About NexPrise NexPrise, Inc., provides business process automation and management applications that can enable manufacturers to rapidly automate and managekey 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 ofthe Securities Exchange Act of 1934, about NexPrise, Inc. Forward-looking statements are denoted by such words as "contracted revenue" or "well positioned," "beyond" 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 CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) Dec 31, Dec 31, 2003 2002 ASSETS audited audited Current assets: Cash and cash equivalents $991 $3,225 Short-term investments 5,000 7,050 Accounts receivable 743 560 Prepaid expenses 321 671 Other current assets 362 841 Total current assets 7,417 12,347 Property and equipment, net 40 339 Intangible assets, net 139 9,150 Other long-term assets, net 317 1,168 Total assets $7,913 $23,004 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $94 $160 Accrued compensation 552 646 Accrued expenses 1,158 2,374 Deferred revenue 1,590 711 Accrued liabilities relating to discontinued operations -- 336 Total current liabilities 3,394 4,227 Notes payable 11,843 11,843 Commitments and contingencies Stockholders' equity: Preferred stock, no par value: 2,500 shares authorized: none issued or outstanding -- -- Common stock, $.0002 par value; 175,000 shares authorized; 3,236 and 3,230 shares issued and outstanding respectively 10 10 Additional paid-in capital 631,774 631,764 Deferred compensation (143) (416) Accumulated deficit (639,118) (624,576) Accumulated other comprehensive income 153 152 Total stockholders' equity (7,324) 6,934 Total liabilities and stockholders' equity $7,913 $23,004 NEXPRISE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2003 2002 2003 2002 Net revenues $952 $747 $3,489 $2,802 Costs and expenses Cost of product licenses and services 313 350 1,137 1,498 Cost of amortization of purchased technology 491 233 1,964 895 Research and development 538 892 2,637 5,295 In process research and development -- -- -- 399 Sales and marketing 860 935 3,849 5,469 General and administrative 411 790 2,658 5,087 Restructuring and settlement charges -- -- (493) -- Impairment of goodwill -- 11,652 -- 11,652 Write-down of intangible assets 6,385 -- 6,385 -- Total costs and expenses 8,998 14,852 18,137 30,295 Operating loss (8,046) (14,105) (14,648) (27,493) Interest expense (189) (190) (756) (749) Interest income and other, net 23 59 241 216 Investment Income (loss) -- -- 287 (1,420) Loss from continuing operations (8,212) (14,236) (14,876) (29,446) Gain from discontinued operations -- -- 334 -- Net loss $(8,212) $(14,236) $(14,542) $(29,446) Basic and diluted loss per share from continuing operations $(2.54) $(4.44) $(4.60) $(9.21) Basic and diluted gain per share from discontinued operations $-- $-- $0.10 $-- Basic and diluted net loss per share $(2.54) $(4.44) $(4.50) $(9.21) Weighted average common shares outstanding used in computing basic and diluted netincome (loss) per share 3,236 3,208 3,232 3,196 DATASOURCE: NexPrise, Inc. CONTACT: Jerome Natoli of NexPrise, Inc., +1-650-327-6850, or Web site: http://www.nexprise.com/

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