Clarus Announces 2004 Results STAMFORD, Conn., March 15 /PRNewswire-FirstCall/ -- Clarus Corporation (OTC:CLRS) today announced financial results for the quarter and fiscal year ended December 31, 2004. Clarus reported no revenues for the fourth quarter of 2004 and recognized $1.1 million of deferred software service fees during the fiscal year ended December 31, 2004, compared to $27,000 and $0.1 million during the comparable periods of 2003. Net loss for the fourth quarter of 2004 was $0.9 million or $0.06 per diluted share compared to a net loss of $0.2 million or $0.01 per diluted share during the comparable period of 2003. Net loss for the fiscal year ended December 31, 2004 was $2.9 million or $0.18 per diluted share compared to a net loss of $4.3 million or $0.27 per diluted share during the comparable period of 2003. As of December 31, 2004, Clarus' cash, cash equivalents and marketable securities were $83.5 million (or $5.00 gross cash per share) compared to $88.7 million as of December 31, 2003. Gross cash per share at December 31, 2004 equals cash, cash equivalents and marketable securities of $83.5 million divided by 16.7 million common shares outstanding. Clarus has provided this Non-GAAP measure because it believes that it is useful to investors assessing the extent of Clarus' assets available for redeployment. Clarus is unaware of any comparable GAAP measure. Net operating loss carryforwards at December 31, 2004 increased significantly due to the write off for tax purposes of significant investments in foreign subsidiaries in Ireland and the United Kingdom, whose losses had previously been reflected in our financial statements for prior periods. 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 $212.8 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. 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 in managing administrative and professional expenses in connection with the continued administration of the public company as well as costs and expenses associated with identifying, evaluating and negotiating potential redeployment 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. 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 our web site at http://www.claruscorp.com/ or the SEC's web site at http://www.sec.gov/. CLARUS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2004 AND 2003 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) ASSETS 2004 2003 ---- ---- CURRENT ASSETS: Cash and cash equivalents $ 48,377 $ 15,045 Marketable securities 35,119 73,685 Interest receivable 350 507 Prepaids and other current assets 182 132 -------- --------- Total current assets 84,028 89,369 -------- --------- PROPERTY AND EQUIPMENT, NET 2,367 38 -------- --------- OTHER ASSETS: Deposits and other long-term assets 42 38 -------- -------- Total assets $ 86,437 $ 89,445 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 1,468 $ 1,520 Deferred revenue -- 1,106 -------- --------- Total current liabilities 1,468 2,626 ------- -------- Deferred rent 115 -- -------- --------- Total liabilities 1,583 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; 16,734,947 and 16,649,048 shares issued and 16,659,947 and 16,574,048 outstanding in 2004 and 2003, respectively 2 2 Additional paid-in capital 368,385 367,031 Accumulated deficit (279,656) (276,767) Less treasury stock, 75,000 shares at cost (2) (2) Accumulated other comprehensive income (loss) (130) (17) Deferred compensation (3,745) (3,428) --------- -------- Total stockholders' equity 84,854 86,819 --------- --------- Total liabilities and stockholders' equity $ 86,437 $ 89,445 ========= ========= CLARUS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) THREE MONTHS YEARS ENDED ENDED DECEMBER 3 DECEMBER 31, ----------------- ------------------ 2004 2003 2004 2003 ---- ---- ---- ---- REVENUES: License fees $ -- $ -- $ 1,106 $ -- Services fees -- 27 -- 130 ------------------ ------------------ Total revenues -- 27 1,106 130 COST OF REVENUES: License fees -- -- -- -- Services fees -- -- -- -- ------------------ ------------------ Total cost of revenues -- -- -- -- OPERATING EXPENSES: General and administrative 1,066 725 3,395 4,986 Provision for doubtful accounts -- -- -- 18 Transaction expenses 175 -- 1,636 -- Loss on sale or disposal of assets -- 36 -- 36 Depreciation and amortization 86 -- 186 762 ------------------ ------------------ Total operating expenses 1,327 761 5,217 5,802 OPERATING INCOME (1,327) (734) (4,111) (5,672) OTHER INCOME 2 267 19 169 INTEREST INCOME 402 262 1,203 1,238 INTEREST EXPENSE -- -- -- (66) ------------------ ------------------ NET LOSS $ (923) $ (205) $ (2,889) $ (4,331) ================== ================== Net loss per common share: Basic $ (0.06) $ (0.01) $ (0.18) $ (0.27) Diluted $ (0.06) $ (0.01) $ (0.18) $ (0.27) Weighted average shares outstanding: Basic 16,123 16,021 16,092 15,905 Diluted 16,123 16,021 16,092 15,905 CLARUS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2004 AND 2003 (IN THOUSANDS, EXCEPT SHARE AMOUNTS) 2004 2003 ---- ---- OPERATING ACTIVITIES: Net loss $ (2,889) $ (4,331) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of property and equipment 186 762 Amortization of premium and discount on securities, net 982 -- Gain on sale of marketable securities and other (17) -- Provision for doubtful accounts -- 18 Amortization of deferred employee compensation plans 583 287 Loss on sale or disposal of property and equipment -- 36 Changes in operating assets and liabilities: Accounts receivable -- 449 Interest receivable, prepaids and other current assets 107 623 Assets held for sale -- 48 Deposits and other long-term assets (4) 30 Accounts payable and accrued liabilities (52) (416) Deferred revenue (1,106) (142) Deferred rent 115 -- Liabilities to be assumed -- (220) --------- ----------- Net cash (used in) operating activities (2,095) (2,856) --------- ----------- INVESTING ACTIVITIES: Purchase of marketable securities (59,754) (117,881) Proceeds from the sale and maturity of marketable securities 97,242 96,918 Purchase of property and equipment (2,515) (38) Proceeds from sale of property and equipment -- 11 --------- ------------ Net cash provided by (used in) investing 34,973 (20,990) FINANCING ACTIVITIES: Proceeds from the exercise of stock options 454 1,656 Proceeds from issuance of common stock related to employee stock purchase plans -- 10 Repayment of long-term debt -- (5,000) --------- ---------- Net cash provided by (used in) financing activities 454 (3,334) --------- ---------- Effect of exchange rate change on cash -- -- CHANGE IN CASH AND CASH EQUIVALENTS 33,332 (27,180) CASH AND CASH EQUIVALENTS, beginning of year 15,045 42,225 --------- --------- CASH AND CASH EQUIVALENTS, end of year $ 48,377 $ 15,045 ========= ========= NONCASH TRANSACTIONS: Grant of Restricted Stock $ 50 $ 2,680 DATASOURCE: Clarus Corporation CONTACT: Nigel Ekern, Chief Administrative Officer, Clarus Corporation +1-203-428-2000, Web site: http://www.claruscorp.com/ http://www.sec.gov/ Company News On-Call: http://www.prnewswire.com/comp/133360.html

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