CLRS Clarus Therapeutics (MM)

Clarus Announces Third Quarter 2003 Results GREENWICH, Conn., Nov. 11 /PRNewswire-FirstCall/ -- Clarus Corporation today announced financial results for the quarter and nine months ended September 30, 2003. Clarus reported revenues of $104,000 for the first nine months of 2003 from the recognition of deferred software service fees compared to $8.0 million during the comparable period of 2002. Net loss for the first nine months of 2003 was $4.1 million or $0.26 per diluted share compared to a net loss of $31.0 million or $1.99 per diluted share during the comparable period of 2002. As of September 30, 2003, Clarus' cash, cash equivalents and marketable securities were $88.6 million (or $5.37 gross cash per share(1)) compared to $95.1 million as of December 31, 2002. Clarus currently has approximately $128 million of net operating losses, capital losses and other U.S. and foreign tax credit carryforwards to offset taxable income that Clarus may recognize in the future, subject to limitations of applicable tax laws. Nigel Ekern, Clarus' Chief Administrative Officer stated, "We are seeking to identify and continue to actively evaluate suitable acquisition and merger opportunities as part of our strategy to redeploy our cash and utilize our NOL's, to the extent available. We have seen a pick up in deal activity over the last couple months and are encouraged by these signs that companies are becoming more willing to engage in M&A transactions." Clarus does not currently intend to hold conference calls to discuss quarterly earnings releases unless and until the Company consummates an acquisition in connection with its redeployment strategy. At such time, the Company plans to resume holding quarterly conference calls to review earnings and Clarus' operating performance. Clarus, formerly a provider of e-commerce business solutions, is seeking to redeploy its assets and use its substantial cash and cash equivalent assets to enhance stockholder value. (1) Gross cash per share at September 30, 2003 equals cash, cash equivalents and marketable securities of $88.6 million divided by 16.5 million common shares outstanding. This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Exchange Act of 1934. Information in this release includes Clarus' beliefs, expectations, intentions and strategies regarding Clarus, its future and its products and services. Assumptions relating to the forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risks including our inability to execute successfully our planned effort to redeploy our assets to enhance stockholder value, the unavailability of our net operating loss carry forward, and that the unaudited financial information provided in this press release may be adjusted as a result of the year end audit. Clarus cannot guarantee its future performance. All forward-looking statements contained in this release are based on information available to Clarus as of the date of this release and Clarus assumes no obligation to update the forward-looking statement contained herein. For further information regarding the risks and uncertainties in connection with Clarus' business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Clarus' filings with the Securities and Exchange Commission, including but not limited to, its most recent annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained at the SEC's web site at http://www.sec.gov/. CLARUS CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) SEPTEMBER 30, DECEMBER 31, 2003 2002 ---------- ---------- ASSETS CURRENT ASSETS: Cash and cash equivalents $10,894 $42,225 Marketable securities 77,702 52,885 Accounts receivable, less allowance for doubtful accounts of $0 and $586 in 2003 and 2002, respectively -- 467 Prepaids and other current assets 980 1,262 Assets held for sale -- 48 --------- ---------- Total current assets 89,576 96,887 PROPERTY AND EQUIPMENT, NET 4 809 OTHER ASSETS: Deposits and other long-term assets 37 68 --------- ---------- TOTAL ASSETS $89,617 $97,764 ========= ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $1,875 $1,936 Deferred revenue 1,132 1,248 Current portion of long-term debt -- 5,000 Liabilities to be assumed -- 220 --------- ---------- Total current liabilities 3,007 8,404 LONG-TERM LIABILITIES: -- -- Other long-term liabilities -- -- --------- ---------- Total liabilities 3,007 8,404 STOCKHOLDERS' EQUITY: Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued -- -- Common stock, $.0001 par value; 100,000,000 shares authorized; 16,564,358 and 15,762,707 shares issued and 16,489,358 and 15,687,707 outstanding in 2003 and 2002, respectively 2 2 Additional paid-in capital 366,393 361,715 Accumulated deficit (276,562) (272,436) Treasury stock, at cost (2) (2) Accumulated other comprehensive income 98 146 Deferred compensation (3,319) (65) --------- ---------- Total stockholders' equity 86,610 89,360 --------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $89,617 $97,764 ========= ========== CLARUS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ----------------- ----------------- 2003 2002 2003 2002 ---- ---- ---- ---- REVENUES: License fees $-- $162 $-- $2,649 Services fees 25 1,354 104 5,352 ----------------- ----------------- Total revenues 25 1,516 104 8,001 COST OF REVENUES: License fees -- 5 -- 21 Services fees -- 990 -- 4,809 ----------------- ----------------- Total cost of revenues -- 995 -- 4,830 OPERATING EXPENSES: Research and development -- 1,255 -- 6,437 Sales and marketing -- 1,020 -- 7,699 General and administrative 848 2,090 4,363 7,973 Intangible impairment loss -- -- -- 10,360 Provision for doubtful accounts (48) (300) 18 (297) Depreciation and amortization -- 971 762 3,859 ----------------- ----------------- Total operating expenses 800 5,036 5,143 36,031 OPERATING LOSS (775) (4,515) (5,039) (32,860) OTHER INCOME/(EXPENSE) (125) 14 3 26 INTEREST INCOME 228 568 976 1,986 INTEREST EXPENSE -- (56) (66) (169) ----------------- ----------------- NET LOSS $(672) $(3,989) $(4,126) $(31,017) ================= ================= Loss per common share: Basic $(0.04) $(0.26) $(0.26) $(1.99) Diluted $(0.04) $(0.26) $(0.26) $(1.99) Weighted average shares outstanding: Basic 15,975 15,630 15,867 15,597 Diluted 15,975 15,630 15,867 15,597 CLARUS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) NINE MONTHS ENDED SEPTEMBER 30, ----------------------- 2003 2002 ------ ------ CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(4,126) $(31,017) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization on property and equipment 762 3,404 Loss/(Gain) on sale of marketable securities 125 (15) Impairment of intangible assets -- 10,360 Amortization of intangible assets -- 455 Noncash sales and marketing expense -- 450 Noncash general and administrative expense 182 -- Provision for doubtful accounts 18 (297) Loss/(Gain) on disposal of property & equipment 36 918 Changes in operating assets and liabilities: Accounts receivable 449 1,900 Prepaid and other current assets 282 984 Assets held for sale 48 -- Deposits and other long-term assets 31 443 Accounts payable and accrued liabilities (61) (1,306) Deferred revenue (116) (4,923) Liabilities to be assumed (220) -- Other long-term liabilities -- (9) ------ ------ NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES (2,590) (18,653) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of marketable securities (100,915) (97,690) Proceeds from sale of marketable securities 14,025 4,228 Proceeds from maturity of marketable securities 61,899 73,717 Proceeds from sale of investments -- 200 Proceeds from sale of property & equipment 11 83 Purchases of property and equipment (4) (182) ------ ------ NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES (24,984) (19,644) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the exercises of stock options 1,243 268 Repayment of debt (5,000) -- Proceeds from issuance of common stock related to employee stock purchase plan -- 119 ------ ------ NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES (3,757) 387 ------ ------ Effect of exchange rate change on cash -- 27 DECREASE IN CASH AND CASH EQUIVALENTS (31,331) (37,883) CASH AND CASH EQUIVALENTS, Beginning of Period 42,225 55,628 ------ ------ CASH AND CASH EQUIVALENTS, End of Period $10,894 $17,745 ====== ====== SUPPLEMENTAL CASH FLOW DISCLOSURE: ------ ------ Cash paid for interest $-- $113 Significant Non-Cash Transaction: Grant of restricted stock to Warren B. Kanders on April 12, 2003 $2,680 $-- ====== ====== DATASOURCE: Clarus Corporation CONTACT: Nigel Ekern, Chief Administrative Officer of Clarus Corporation, +1-203-302-2000, Web site: http://www.claruscorp.com/ Company News On-Call: http://www.prnewswire.com/comp/133360.html

Copyright