CLRS Clarus Therapeutics (MM)

Clarus Announces 2003 Results GREENWICH, Conn., March 10 /PRNewswire-FirstCall/ -- Clarus Corporation today announced financial results for the quarter and fiscal year ended December 31, 2003. Clarus reported revenues of $27,000 for the fourth quarter of 2003 and $130,000 for the fiscal year ended December 31, 2003 from the recognition of deferred software service fees, compared to $1.0 million and $9.0 million during the comparable periods of 2002. Net loss for the fourth quarter of 2003 was $205,000 or $0.01 per diluted share compared to a net loss of $6.8 million or $0.43 per diluted share during the comparable period of 2002. Net loss for the fiscal year ended December 31, 2003 was $4.3 million or $0.27 per diluted share compared to a net loss of $37.8 million or $2.42 per diluted share during the comparable period of 2002. As of December 31, 2003, Clarus' cash, cash equivalents and marketable securities were $88.7 million (or $5.34 gross cash per share(1)) compared to $95.1 million as of December 31, 2002. Clarus currently has available approximately $134.0 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 tolimitations of applicable tax laws. Nigel Ekern, Clarus' Chief Administrative Officer stated, "We continue our efforts to identify and evaluate suitable acquisition and merger opportunities as part of our strategy to redeploy our cash and utilize our NOL's, to the extent available. Separately, we are pleased with the progress we have made so far in controlling Clarus' cash expenditure rate and managing administrative and professional expenses." 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 December 31,2003 equals cash, cash equivalents and marketable securities of $88.7 million divided by 16.6 million common shares outstanding. The Company has provided this Non-GAAP measure because it believes that it is useful to investors assessing the extent of the Company's assets available for redeployment. The Company is not aware of any comparable GAAP measure. 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 ournet 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 "Factors That May Affect Our Future Results" 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 CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2003 AND 2002 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) ASSETS 20032002 CURRENT ASSETS: Cash and cash equivalents $ 15,045 $ 42,225 Marketable securities 73,685 52,885 Accounts receivable, less allowance for doubtful accounts of $0 and$586 in 2003 and 2002, respectively -- 467 Interest receivable 507 573 Prepaids and other current assets 132 689 Assets held for sale -- 48 Total current assets 89,369 96,887 PROPERTY AND EQUIPMENT, NET 38 809 OTHER ASSETS: Deposits and other long-term assets 38 68 Total assets $ 89,445 $ 97,764 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 1,520 $ 1,936 Deferredrevenue 1,106 1,248 Current portion of long-term debt -- 5,000 Liabilities to be assumed related to assets held for sale -- 220 Total current liabilities 2,626 8,404 Total liabilities 2,626 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; 16,649,048 and 15,762,707 shares issued and 16,574,048 and 15,687,707 outstanding in 2003 and 2002, respectively 2 2 Additionalpaid-in capital 367,031 361,715 Accumulated deficit (276,767) (272,436) Less treasury stock, 75,000 shares at cost (2) (2) Accumulated other comprehensive income (loss) (17) 146 Deferred compensation (3,428) (65) Total stockholders' equity 86,819 89,360 Total liabilities and stockholders' equity $ 89,445 $ 97,764 CLARUS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS YEARS ENDED ENDED DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 REVENUES: License fees $-- $159 $-- $2,808 Services fees 27 874 130 6,226 Total revenues 27 1,033 130 9,034 COST OF REVENUES: License fees -- 5 -- 26 Services fees -- 689 -- 5,498 Total cost of revenues -- 694 -- 5,524 OPERATING EXPENSES: Research and development -- 826 -- 7,263 Sales and marketing -- 239 -- 7,938 General and administrative 725 4,601 4,986 12,574 Provision for doubtful accounts -- (263) 18 (560) Loss on impairment of goodwill and intangible assets -- -- -- 10,360 Loss on sale or disposal of assets 36 1,748 36 1,748 Depreciation and amortization -- 384 762 4,243 Total operating expenses 761 7,535 5,802 43,566 OPERATING LOSS (734) (7,196) (5,672) (40,056) OTHER INCOME 267 1 169 27 INTEREST INCOME 262 455 1,238 2,441 INTEREST EXPENSE -- (56) (66) (225) NET LOSS $(205) $(6,796) $ (4,331) $ (37,813) Net loss per common share: Basic $ (0.01) $ (0.43) $ (0.27) $(2.42) Diluted $ (0.01) $ (0.43) $ (0.27) $(2.42) Weighted average shares outstanding: Basic 16,021 15,630 15,905 15,615 Diluted 16,021 15,630 15,905 15,615 CLARUS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2003 AND 2002 (IN THOUSANDS, EXCEPT SHARE AMOUNTS) 2003 2002 OPERATING ACTIVITIES: Net loss $ (4,331) $ (37,813) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of property and equipment. 762 3,788 Amortization of intangible assets -- 455 Loss on impairment of intangible assets -- 10,360 Gain on sale of marketable securities and other -- (15) Provision for doubtful accounts 18 (560) Noncash sales and marketing expense -- 450 Noncash charge due to modification of stock options -- 500 Amortization of deferred employee compensation plans 287 -- Gain on sale of e-commerce assets to Epicor -- (514) Loss on sale or disposal of property and equipment 36 2,262 Changes in operating assets and liabilities: Accounts receivable 449 2,618 Interest receivable, prepaids and other current assets 623 1,203 Assets held forsale 48 -- Deposits and other long-term assets 30 420 Accounts payable and accrued liabilities (416) (4,539) Deferred revenue (142) (5,738) Liabilities to be assumed (220) -- Other long-term liabilities -- (265) Net cash (used in) operating activities (2,856) (27,388) INVESTING ACTIVITIES: Purchase of marketable securities (117,881) (123,611) Proceeds from the sale and maturity of marketable securities 96,918 135,860 Purchase of property and equipment (38) (182) Proceeds from sale of investment -- 200 Proceeds from sale of assets -- 1,000 Proceeds from sale of property and equipment 11 189 Net cash provided by (used in) investing activities (20,990) 13,456 FINANCING ACTIVITIES: Proceeds from the exercise of stock options 1,656 400 Proceeds from issuance of common stock related to employee stock purchase plans 10 119 Repayment of long-term debt (5,000) -- Net cash provided by (used in) financing activities (3,334) 519 Effect of exchange rate change on cash -- 10 CHANGE IN CASH AND CASH EQUIVALENTS (27,180) (13,403) CASH AND CASH EQUIVALENTS, beginning of year 42,225 55,628 CASH AND CASH EQUIVALENTS, end of year $15,045 $42,225 SUPPLEMENTAL CASH FLOW DISCLOSURE: Cash paid for interest $-- $225 NONCASH TRANSACTIONS: Retirement of 7,500 shares related to the termination of a sales and marketing agreement $-- $39 Grant of Restricted Stock $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

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