Motive Reports Q2

AUSTIN, Texas -- Motive, Inc. (NASDAQ:MOTV - News), a leading provider of management software, today announced results for the quarter ended June 30, 2005. Core revenue, which excludes the impact of business acquisitions, was $21.7 million, a one percent decrease from the second quarter of 2004. Total revenue for the second quarter of 2005 was $22.7 million.

Motive's pro forma net income for the second quarter of 2005 was $0.3 million or $0.01 per diluted share as compared to $0.8 million or $0.04 per diluted share for the second quarter of 2004. Motive's GAAP net loss for the second quarter of 2005 was $1.8 million or ($0.07) per share, compared to a net loss of $2.1 million or ($0.20) per share for the second quarter of 2004. A reconciliation of GAAP to pro forma results has been provided in the financial statement tables included in this press release.

"I am confident in the strength of our markets, particularly as broadband providers continue to invest heavily in the roll-out of advanced services. In addition, I am excited by the increasing role for Motive's software in addressing the complexity of new enterprise applications," said Scott Harmon, CEO of Motive. "I believe that our management software products are well-positioned to take advantage of these opportunities in both the near- and long-term."

Current Highlights

Financial Outlook

Core revenue for the third quarter of 2005 is expected to be in the range of $23.5 million to $24.5 million, and total revenue is expected to be in the range of $24.5 million to $25.5 million. Core revenue for the fiscal year 2005 is expected to be in the range of $95.5 million to $97.5 million, and total revenue is expected to be in the range of $99.5 million to $101.5 million. Pro forma earnings are expected to be in the range of $0.05 to $0.06 per diluted share for the third quarter of 2005 and in the range of $0.21 to $0.24 per diluted share for fiscal year 2005.

Motive Inc.