NexPrise, Inc. Reports Results for the Second Quarter of 2004

NexPrise, Inc. Reports Results for the Second Quarter of 2004



CARLSBAD, Calif., July 22  /PRNewswire-FirstCall/ -- NexPrise, Inc.
(OTC:NXPS.OB) (BULLETIN BOARD: NXPS.OB) , a provider of business process
automation and management applications, today announced results for the three
months ended June 30, 2004.

For the second quarter of 2004, NexPrise reported bookings, which represent
contracted revenue for the next twelve months, of approximately $1.0 million, a
decrease of 13% from the second quarter of 2003 but a sharp increase from the
approximately $170,000 of bookings reported in the first quarter of 2004. 
Revenues, which are comprised of customer agreements recognized evenly over the
length of the contracts and up front perpetual license fees, were approximately
$672,000 for the three months ended June 30, 2004, a decrease of 33% from the
comparable period in 2003 and an increase of 2% over the first quarter of 2004.

Costs and expenses in the second quarter of 2004 were approximately $1.9
million, a reduction of 31% from the costs and expenses of approximately $2.7
million, reported in the second quarter of 2003.  As of June 30, 2004,
NexPrise's cash, cash equivalents and short-term investments were approximately
$3.6 million.  Total cash used in the second quarter of 2004 was approximately
$1.2 million, approximately the same as that used in the second quarter of
2003.  The net loss per share in the second quarter of 2004 was $0.43, a 27%
improvement from the $0.59 net loss per share from continuing operations and a
12% improvement from the $0.49 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
               (dollars in thousands, except per share values)

                                                   June 30,   December 31,
                                                     2004           2003
                   ASSETS                          unaudited       audited
  Current assets:
   Cash and cash equivalents                        $2,114           $991
   Short-term investments                            1,500          5,000
   Accounts receivable                                 250            743
   Prepaid expenses                                    192            321
   Other current assets                                240            362
    Total current assets                             4,296          7,417
  Property and equipment, net                           77             40
  Intangible assets, net                                69            139
  Other long-term assets, net                          270            317
    Total assets                                    $4,712         $7,913
         LIABILITIES AND STOCKHOLDERS' DEFICIT
  Current liabilities:
   Accounts payable                                   $104           $ 94
   Accrued compensation                                402            552
   Accrued expenses                                  1,053          1,158
   Deferred revenue                                  1,523          1,590
    Total current liabilities                        3,082          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;
    20,000 shares authorized;
    3,238 and 3,237 shares
    issued and outstanding                              10             10
   Additional paid-in capital                      631,771        631,774
   Deferred compensation                              (37)          (143)
   Accumulated deficit                           (642,110)      (639,118)
   Accumulated other comprehensive income              153            153
    Total stockholders' deficit                   (10,213)        (7,324)
    Total liabilities and stockholders' deficit     $4,712         $7,913



                                NEXPRISE, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (in thousands, except per share data)
                                 (Unaudited)

                            Three Months Ended        Six Months Ended
                                 June 30,                 June 30,
                            2004         2003         2004        2003

  Net revenues              $672       $1,002       $1,326       $1,723

  Costs and expenses
   Cost of product
    licenses and services    242          305          554          586


   Cost of amortization
    of purchased technology   34          491           68          982

   Research and development  571          556        1,186        1,350

   Sales and marketing       407          954        1,002        1,921

   General and
    administrative           636          917        1,179        1,616

   Restructuring &
    settlement (benefit)      --        (493)           --        (493)

    Total costs and
     expenses              1,890        2,730        3,989        5,962

  Operating loss         (1,218)      (1,728)      (2,663)      (4,239)

  Interest expense         (189)        (189)        (378)        (378)

  Interest income and
    other, net                 9          128           49          161

  Investment losses           --        (113)           --        (113)

  Loss from continuing
    operations           (1,398)      (1,902)      (2,992)      (4,569)

  Gain from
   discontinued
   operations                 --          334           --          334

  Net loss              $(1,398)    $ (1,568)     $(2,992)     $(4,235)


  Basic and diluted
   loss per share
   from continuing
   operations            $(0.43)      $(0.59)      $(0.92)      $(1.42)

  Basic and diluted
   gain per share from
   discontinued operations   $--        $0.10          $--        $0.10

  Basic and diluted
   net loss per share    $(0.43)      $(0.49)      $(0.93)      $(1.32)

  Weighted average
   common shares
   outstanding used
   in computing basic
   and diluted net
   loss per share          3,237        3,226        3,237        3,226


DATASOURCE: NexPrise, Inc.



CONTACT:  investors, Jerome Natoli of NexPrise, Inc., [phone], or





Web site:  http://www.nexprise.com/ 

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