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/
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