STAMFORD, Conn., May 9 /PRNewswire-FirstCall/ -- Clarus Corporation
(Pink Sheets: CLRS.PK) today announced financial results for the
quarter ended March 31, 2007. Clarus reported no revenues for the
quarters ended March 31, 2007 and 2006, respectively. Net income
for the first quarter of 2007 increased $1.6 million, to $202,000
or $0.01 per diluted share compared to a net loss of $1.4 million
or $0.08 per diluted share during the comparable period of 2006.
The increase in net income was primarily a result of a $1.3 million
reduction in transaction expenses, a $209,000 increase in interest
income due to higher rates on our cash, cash equivalents and
marketable securities and a $97,000 reduction in general and
administrative costs. Prior year transaction expenses represent the
costs incurred during due diligence and negotiation of potential
acquisitions such as legal, accounting and other professional fees
and related expenses. As of March 31, 2007, Clarus' cash, cash
equivalents and marketable securities were $84.6 million, (or $4.92
gross cash per share) compared to $84.4 million as of December 31,
2006. Gross cash per share at March 31, 2007 equals cash, cash
equivalents and marketable securities of $84.6 million divided by
17.2 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. Clarus estimates
that it has available net operating loss, research and
experimentation credit and alternative minimum tax credit
carryforwards for U.S. federal income tax purposes of approximately
$222.8 million, $1.3 million and $53,000, respectively, which
expire in varying amounts between 2009 and 2026, after application
of the limitation under Section 382 of the Internal Revenue Code.
Of the approximately $222.8 million of net operating losses
available to offset taxable income, approximately $206.4 million
does not expire until 2020 or later, subject to compliance with
Section 382 of the Internal Revenue Code. Clarus also has capital
loss carryforwards of $14.0 million which expire in 2007 and 2008.
See the table at the end of the press release detailing the
expiration dates and amounts of our net operating loss and capital
loss carryforwards. Clarus does not currently intend to hold
conference calls to discuss quarterly earnings releases unless and
until it consummates an acquisition in connection with its
redeployment strategy. At such time, Clarus plans to resume holding
quarterly conference calls to review earnings and operating
performance. Clarus, formerly a provider of e-commerce business
solutions, is seeking to redeploy its assets and use its
substantial cash, cash equivalent assets and marketable securities
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 "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 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 (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE
AND PER SHARE AMOUNTS) MARCH 31, DECEMBER 31, 2007 2006 ---------
------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $
17,051 $1,731 Marketable securities 67,559 82,634 Interest
receivable 340 402 Prepaids and other current assets 615 207
--------- ------------ Total current assets 85,565 84,974 PROPERTY
AND EQUIPMENT, NET 1,630 1,699 --------- ------------ TOTAL ASSETS
$ 87,195 $86,673 ========= ============ LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and
accrued liabilities $688 $680 --------- ------------ Total current
liabilities 688 680 Deferred rent 293 277 --------- ------------
Total liabilities 981 957 --------- ------------ STOCKHOLDERS'
EQUITY: Preferred stock, $.0001 par value; 5,000,000 shares
authorized; none issued -- -- Common stock, $.0001 par value;
100,000,000 shares authorized; 17,226,747 and 17,188,622 shares
issued and 17,151,747 and 17,113,622 outstanding in 2006 and 2005,
respectively 2 2 Additional paid-in capital 368,251 367,945
Accumulated deficit (282,036) (282,238) Treasury stock, at cost (2)
(2) Accumulated other comprehensive (loss)/gain (1) 9 ---------
----------- Total stockholders' equity 86,214 85,716 ---------
----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $87,195
$86,673 ========= =========== CLARUS CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED MARCH 31,
------------------------ 2007 2006 --------- ----------- REVENUES:
$ -- $ -- --------- ----------- Total revenues -- -- OPERATING
EXPENSES: General and administrative 784 881 Transaction expenses
-- 1,280 Depreciation expense 90 88 --------- ----------- Total
operating expenses 874 2,249 OPERATING LOSS (874) (2,249) OTHER
EXPENSE (1) (1) INTEREST INCOME 1,077 868 --------- ----------- NET
INCOME/(LOSS) $ 202 $ (1,382) ========= =========== Income/(loss)
per common share: Basic $0.01 $(0.08) Diluted $0.01 $(0.08)
Weighted average common shares outstanding: Basic 16,620 16,612
Diluted 16,990 16,612 CLARUS CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE
AMOUNTS) THREE MONTHS ENDED MARCH 31, ------------------------ 2007
2006 --------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss) $ 202 $ (1,382) Adjustments to reconcile net
income/(loss) to net cash used in operating activities:
Depreciation on property and equipment 90 88 Amortization of
deferred employee compensation 67 75 Amortization of premium and
discount on securities, net (714) (406) Changes in operating assets
and liabilities: Increase in interest receivable, prepaids and
other current assets (107) (22) Increase/(decrease) in accounts
payable and accrued liabilities 8 (977) Increase in deferred rent
16 19 Decrease in deposits and other long-term assets -- 956
--------- ----------- NET CASH USED IN OPERATING ACTIVITIES (438)
(1,649) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of
marketable securities (27,261) (40,290) Proceeds from maturity of
marketable securities 43,040 21,965 Sale of property and equipment
2 -- Purchase of property and equipment (23) (2) ---------
----------- NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
15,758 (18,327) CASH FLOWS FROM FINANCING ACTIVITIES: ---------
----------- NET CASH PROVIDED BY FINANCING ACTIVITIES -- --
--------- ----------- CHANGE IN CASH AND CASH EQUIVALENTS 15,320
(19,976) CASH AND CASH EQUIVALENTS, beginning of period 1,731
23,270 --------- ----------- CASH AND CASH EQUIVALENTS, end of
period $17,051 $ 3,294 ========= =========== SUPPLEMENTAL
DISCLOSURE: Cash paid for franchise and property taxes $ 141 $ 206
CLARUS CORPORATION NET OPERATING LOSS AND CAPITAL LOSS CARRYFORWARD
EXPIRATION DATES* (UNAUDITED) MARCH 31, 2007 Expiration Dates Net
Operating Capital Loss December 31 Loss Amount Amount (000's)
(000's) ---------------- ------------------------------ 2007 $ - $
12,435 2008 - 1,599 2009 2,437 2010 7,417 2011 7,520 2012 5,157
2020 29,533 2021 50,430 2022 115,000 2023 5,712 2024 3,566 2025
1,707 2026 476 ---------------- ------------------------------
Total 228,955 14,034 Section 382 limitation (6,152) -
---------------- ------------------------------ After Limitations
$222,803 $ 14,034 ================= ==============================
*Subject to compliance with Section 382 of the Internal Revenue
Code. DATASOURCE: Clarus Corporation CONTACT: Philip Baratelli,
Chief Financial 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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