CLRS Clarus Therapeutics (MM)

Clarus Announces Second Quarter 2004 Results STAMFORD, Conn., Aug. 5 /PRNewswire-FirstCall/ -- Clarus Corporation (NASDAQ:CLRS) today announced financial results for the quarter ended June 30, 2004. Clarus reported no revenues for the second quarter of 2004, compared to $25,000 from the recognition of deferred software service fees during the comparable period of 2003. Net loss for the second quarter of 2004 was $963,000 or $0.06 per diluted share compared to a net loss of $1.0 million or $0.07 per diluted share during the comparable period of 2003. As of June 30, 2004, Clarus' cash, cash equivalents and marketable securities were $85.0 million (or $5.12 gross cash per share(1)) compared to $88.7 million as of December 31, 2003. Clarus estimates that it has available net operating loss, capital loss, research and experimentation credit and alternative minimum tax credit carryforwards for U.S. federal income tax purposes of approximately $113.8 million, $15.2 million, $1.3 million and $53,000, respectively, which expire in varying amounts beginning in the year 2009 to the extent not limited under section 382 of the Internal Revenue Code. Clarus has also incurred foreign losses in the amount of approximately $4.0 million that are available to offset future taxable income in foreign jurisdictions. As reported in its June 25, 2004 press release, the Company is currently engaged in negotiation of a significant transaction to redeploy its assets, however, there can be no assurance that this transaction will be consummated. On June 22, 2004, the Company received notice from the staff of The Nasdaq Stock Market that the Company's common stock would be delisted from the Nasdaq National Market effective as of the opening of business on July 1, 2004. The Company has appealed such delisting to the Nasdaq Listing Qualification Panel and such appeal will stay the delisting of the Company's securities pending the Panel's decision. On July 1, 2004, the Company entered into a memorandum of understanding to settle a securities class action brought against the Company that was originally filed in 2000. Pursuant to the memorandum, the Company agreed in principle to settle the lawsuit in exchange for a payment of $4.5 million, which is expected to be covered by insurance. The final settlement of the consolidated class action is subject to certain action including the execution of definitive documentation and approval by the Court. Nigel Ekern, Clarus' Chief Administrative Officer stated, "We continue to be actively engaged in the negotiation of a significant transaction as part of our strategy to redeploy our cash and utilize our NOL's, to the extent available. Of course, no assurance can be given that this transaction will be consummated. Also, we are pleased that the securities class action lawsuit has been settled and that the settlement payment is expected to be covered by our insurance carriers." Clarus does not currently intend to hold conference calls to discuss quarterly earnings releases unless we consummate an acquisition in connection with our redeployment strategy. At such time, we plan to resume holding quarterly conference calls to review earnings and our 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 June 30, 2004 equals cash, cash equivalents and marketable securities of $85.0 million divided by 16.6 million common shares outstanding. Clarus has provided this Non-GAAP measure because it believes that it is useful to investors assessing the extent of the Clarus' assets available for redeployment. Clarus is unaware 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 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 statements 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 (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) JUNE 30, DECEMBER 31, 2004 2003 ASSETS CURRENT ASSETS: Cash and cash equivalents $34,798 $15,045 Marketable securities 50,150 73,685 Interest receivable 666 507 Prepaids and other current assets 698 132 Total current assets 86,312 89,369 PROPERTY AND EQUIPMENT, NET 2,458 38 OTHER ASSETS: Deposits and other long-term assets 1,536 38 TOTAL ASSETS $90,306 $89,445 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $3,357 $1,520 Deferred revenue 1,106 1,106 Total current liabilities 4,463 2,626 LONG-TERM LIABILITIES: Other long-term liabilities 41 -- Total liabilities 4,504 2,626 STOCKHOLDERS' EQUITY: Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued -- -- Common stock, $.0001 par value; 100,000,000 shares authorized; 16,663,240 and 16,649,048 shares issued and 16,588,240 and 16,574,048 outstanding in 2004 and 2003, respectively 2 2 Additional paid-in capital 369,232 367,031 Accumulated deficit (278,201) (276,767) Treasury stock, at cost (2) (2) Accumulated other comprehensive income (129) (17) Deferred compensation (5,100) (3,428) Total stockholders' equity 85,802 86,819 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $90,306 $89,445 CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, 2004 2003 2004 2003 REVENUES: Services fees $-- $25 $-- $78 Total revenues -- 25 -- 78 COST OF REVENUES: Services fees -- -- -- -- Total cost of revenues -- -- -- -- OPERATING EXPENSES: General and administrative 1,202 1,522 1,925 3,831 Depreciation and amortization 14 -- 14 761 Total operating expenses 1,216 1,522 1,939 4,592 OPERATING LOSS (1,216) (1,497) (1,939) (4,514) OTHER INCOME -- 75 17 380 INTEREST INCOME 253 390 487 748 INTEREST EXPENSE -- 10 -- 66 NET LOSS $(963) $(1,042) $(1,435) $(3,452) Loss per common share: Basic $(0.06) $(0.07) $(0.09) $(0.22) Diluted $(0.06) $(0.07) $(0.09) $(0.22) Weighted average shares outstanding: Basic 16,082 15,884 16,082 15,812 Diluted 16,082 15,884 16,082 15,812 CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) SIX MONTHS ENDED JUNE 30, 2004 2003 OPERATING ACTIVITIES: Net loss $(1,434) $(3,452) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization on property and equipment 14 761 Amortization of deferred employee compensation 478 -- Noncash other -- (70) Amortization of premium on purchase of marketable securities 707 -- Gain on sale of marketable securities (17) -- Non-cash general and administrative expense -- 86 Provision for doubtful accounts -- (67) Loss on disposal of assets -- 37 Changes in operating assets and liabilities: Accounts receivable -- 534 Prepaid and other current assets (725) 252 Assets held for sale -- 48 Deposits and other long-term assets -- 8 Accounts payable and accrued liabilities (484) 12 Deferred revenue -- (79) Liabilities to be assumed -- (220) Other long-term liabilities 41 -- NET CASH USED IN OPERATING ACTIVITIES (1,420) (2,150) INVESTING ACTIVITIES: Purchases of marketable securities (47,587) (109,823) Proceeds from sale of marketable securities 51,244 125,629 Proceeds from maturity of marketable securities 19,076 -- Proceeds from sale of equipment -- 11 Increase in transaction costs (97) 8 Purchases of property and equipment (1,514) (4) NET CASH PROVIDED BY INVESTING ACTIVITIES 21,122 15,813 FINANCING ACTIVITIES: Proceeds from the exercises of stock options 51 1,201 Repayment of debt -- (5,000) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 51 (3,799) Effect of exchange rate change on cash -- (48) CHANGE IN CASH AND CASH EQUIVALENTS 19,753 9,816 CASH AND CASH EQUIVALENTS, Beginning of Period 15,045 42,225 CASH AND CASH EQUIVALENTS, End of Period $34,798 $52,041 SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING, INVESTING, AND FINANCING ACTIVITIES: NON-CASH TRANSACTIONS Increase in property and equipment included in accounts payable and accrued liabilities $920 $-- Increase in transaction costs included in other assets and accounts payable and accrued liabilities 1,401 -- Issuance of Restricted Stock $50 $-- DATASOURCE: Clarus Corporation CONTACT: Nigel Ekern, Chief Administrative Officer of Clarus Corporation, +1-203-428-2000, Web site: http://www.claruscorp.com/ Company News On-Call: http://www.prnewswire.com/comp/133360.html

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