Nextera Announces 2004 First Quarter Results

[Nextera Enterprises via BizWire]

CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 29, 2004--Nextera
Enterprises, Inc. (OTC: NXRA) today reported results for the first
quarter March 31, 2004.
In the 2004 first quarter, Nextera recorded a net loss of $0.7
million, or $0.02 per share. In the 2003 first quarter, Nextera
recorded a net loss of $3.1 million, or $0.09 per share, which
included charges of $1.9 million, or $0.06 per share, associated with
the resignation of David Schneider, the Company's former chief
executive officer. Loss from continuing operations was $3.0 million
for the three-months ended March 31, 2003.
As previously announced, during the 2003 fourth quarter, Nextera
and its direct and indirect subsidiaries, Lexecon Inc., CE Acquisition
Corp. and ERG Acquisition Corp. (collectively "Lexecon"), completed
the sale of its Lexecon business to LI Acquisition Company, LLC, a
wholly-owned subsidiary of FTI Consulting, Inc. (collectively "FTI"),
under which FTI purchased substantially all of the assets Lexecon and
its subsidiaries used in their economic consulting business. In
accordance with generally accepted accounting principles, the
operating results of Lexecon have been presented as discontinued
operations for the three-month period ended March 31, 2003.
At the end of the first quarter 2004, Nextera had approximately
$18.5 million of cash on hand. The Company has net operating loss
carryforwards of approximately $43.0 million at March 31, 2004. A full
valuation allowance is maintained on the Company's deferred tax
assets, which includes the net operating loss carryforward, due to the
uncertainty of utilization of the future tax benefits.
As previously announced, the Company has retained an investment
banker to assist it in the identification and selection of potential
acquisition and merger candidates.
This press release contains forward-looking statements (as such
term is defined in the Private Securities Litigation Reform Act of
1995) relating to Nextera Enterprises that are based on the beliefs of
Nextera's management. Any statements contained in this press release
that are not historical facts are forward-looking statements. Such
statements are based on many important factors that may be outside of
Nextera's control, causing actual results to differ materially from
those suggested. Such factors include, but are not limited to, our
ability to utilize our net operating loss carryforwards and new
business acquisition efforts. Further information on these and other
potential factors that could affect Nextera's financial and operating
results are included in Nextera's 10-K filed on March 26, 2004 with
the Securities and Exchange Commission.

NEXTERA ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share amounts)

Three Months Ended
March 31, March 31,
2004 2003
------------ ------------
(unaudited)

Net revenues $ - $ -
Cost of revenues - -
----------- -----------
Gross profit - -
Selling, general and administrative expenses 760 1,056
Special charges (1) - 1,921
----------- -----------
Operating loss (760) (2,977)
Interest income, net 40 -
----------- -----------
Loss from continuing operations before
provision for income taxes (720) (2,977)
Provision for income taxes - 40
----------- -----------
Loss from continuing operations (720) (3,017)
Loss from discontinued operations - (46)
----------- -----------
Net loss $ (720) $ (3,063)
Preferred stock dividends (73) (74)
----------- -----------
Net loss applicable to common stockholders $ (793) $ (3,137)
=========== ===========

Net loss per common share, basic and diluted
from Continuing operations $ (0.02) $ (0.09)
Discontinued operations - (0.00)
----------- -----------
Net loss per common share, basic and diluted $ (0.02) $ (0.09)
=========== ===========

Weighted average common shares outstanding,
basic and diluted 33,870 34,038

(1) Special charges in 2003 consist of $1.0 million of salary
continuance costs and $0.9 million of a non-cash compensation
charge due to the acceleration of stock options, both associated
with the employment agreement of the Company's former Chief
Executive Officer, David Schneider.

NEXTERA ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

ASSETS March 31, December 31,
2004 2003
------------ ------------
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 18,546 $ 20,124
Accounts receivable, net - 528
Other current assets 2,030 2,389
----------- -----------
Total current assets 20,576 23,041

Other assets 96 25
----------- -----------
Total assets $ 20,672 $ 23,066
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LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and accrued expenses $ 2,538 $ 3,035
Accrued taxes 129 1,347
Accrued restructuring costs - 173
Other current liabilities 185 185
----------- -----------
Total current liabilities 2,852 4,740

Other long-term liabilities 943 943

Total stockholders' equity 16,877 17,383

------------ ------------
Total liabilities and stockholders' equity $ 20,672 $ 23,066
=========== ===========