Motive Reports Q2 Results

AUSTIN, Texas -- Motive, Inc. (NASDAQ: MOTV), a provider of management software that enables technology products to manage themselves, today announced results for the quarter ended June 30, 2004. Motive's core revenue, which excludes revenue acquired in business combination, was $22.0 million for the second quarter of 2004, a 30% increase over the same period in 2003 and a 14% increase over the first quarter of 2004. Motive's total revenue for the second quarter of 2004 was $24.0 million.

Motive's pro forma net income for the second quarter of 2004 was $798,000 or $0.04 per diluted share, compared to $257,000 or $0.01 per diluted share for the same period in 2003, and $617,000 or $0.03 per diluted share for the first quarter of 2004. Motive's GAAP net loss for the second quarter of 2004 was $2.1 million or $(0.20) per basic share. A reconciliation of GAAP to pro forma results has been provided in the financial statement tables available on request.

"Motive's second quarter results reflect the demand in the market for a new type of software that applies service-centric management to leading-edge Internet technologies being widely adopted in homes, small business and enterprises," said Scott Harmon, CEO of Motive. "We are very pleased to see the investments we've made in new products and market opportunities paying off."

"Our terrific execution allowed us to outperform our revenue and profit targets in the second quarter," said Logan Wray, COO of Motive. "Looking ahead, we are excited about our prospects for continued growth and solid results as we continue to apply our model in new segments and geographies."

Motive Inc.