Clarus Announces Third Quarter 2004 Results STAMFORD, Conn., Nov. 5
/PRNewswire-FirstCall/ -- Clarus Corporation (OTC:CLRS.OB)
(BULLETIN BOARD: CLRS.OB) today announced financial results for the
quarter ended September 30, 2004. Clarus reported revenues for the
third quarter of 2004 from the recognition of deferred software
service fees of $1.1 million, which were paid in 2001, compared to
$25,000 of revenues during the comparable period of 2003. Net loss
for the third quarter of 2004 was $532,000 or $0.03 per diluted
share compared to a net loss of $672,000 or $0.04 per diluted share
during the comparable period of 2003. The results for third quarter
include a charge of $1.5 million for expenses arising out of
negotiations relating to a previously announced acquisition that
terminated in September 2004 without the consummation of the
acquisition. As of September 30, 2004, Clarus' cash, cash
equivalents and marketable securities were $84.7 million (or $5.10
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 $116.1 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.
Nigel Ekern, Clarus' Chief Administrative Officer stated, "While we
are disappointed that we were unable to reach a definitive
agreement regarding the previously announced acquisition that we
had been working on, 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." 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 September 30, 2004 is obtained by dividing cash, cash
equivalents and marketable securities of $84.7 million 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 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) SEPTEMBER 30, DECEMBER 31, 2004 2003 --------------
--------------- ASSETS CURRENT ASSETS: Cash and cash equivalents
$46,299 $15,045 Marketable securities 38,356 73,685 Interest
receivable 262 507 Prepaids and other current assets 372 132
------------ -------------- Total current assets 85,289 89,369
PROPERTY AND EQUIPMENT, NET 2,456 38 OTHER ASSETS: Deposits and
other long-term assets 40 38 ------------ ------------- TOTAL
ASSETS $87,785 $89,445 ============ ============= LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and
accrued liabilities $2,455 $1,520 Deferred revenue -- 1,106
------------ ------------- Total current liabilities 2,455 2,626
LONG-TERM LIABILITIES: Other long-term liabilities 78 --
------------ ------------- Total liabilities 2,533 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 367,857 367,031 Accumulated deficit
(278,733) (276,767) Treasury stock, at cost (2) (2) Accumulated
other comprehensive loss (95) (17) Deferred compensation (3,777)
(3,428) ------------ ------------- Total stockholders' equity
85,252 86,819 ------------ ------------- TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $87,785 $89,445 ============ =============
CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS
NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
---------------------- ---------------------- 2004 2003 2004 2003
---- ---- ---- ---- REVENUES: Services fees $1,106 $25 $1,106 $104
----------------------- ---------------------- Total revenues 1,106
25 1,106 104 COST OF REVENUES: Services fees -- -- -- --
----------------------- ---------------------- Total cost of
revenues -- -- -- -- OPERATING EXPENSES: General and administrative
404 848 2,329 4,363 Transaction expenses 1,461 -- 1,461 --
Provision for doubtful accounts -- (48) -- 18 Depreciation and
amortization 86 -- 100 762 -----------------------
---------------------- Total operating expenses 1,951 800 3,890
5,143 OPERATING LOSS (845) (775) (2,784) (5,039) OTHER INCOME
(LOSS) -- (125) 17 3 INTEREST INCOME 313 228 801 976 INTEREST
EXPENSE -- -- -- (66) -----------------------
---------------------- NET LOSS $(532) $(672) $(1,966) $(4,126)
======================= ====================== Loss per common
share: Basic $(0.03) $(0.04) $(0.12) $(0.26) Diluted $(0.03)
$(0.04) $(0.12) $(0.26) Weighted average shares outstanding: Basic
16,082 15,975 16,082 15,867 Diluted 16,082 15,975 16,082 15,867
CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) NINE MONTHS ENDED
SEPTEMBER 30, ------------------------ 2004 2003 ---------
--------- OPERATING ACTIVITIES: Net loss $(1,966) $(4,126)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization on property and equipment
100 762 Amortization of deferred employee compensation 426 --
Non-cash general and administrative expense -- 182 Amortization of
premium on purchase of marketable securities 857 -- (Gain) Loss on
sale of marketable securities (17) 125 Loss/(Gain) on disposal of
property & equipment -- 36 Provision for doubtful accounts --
18 Changes in operating assets and liabilities: Accounts receivable
-- 449 Prepaids and other current assets 5 282 Assets held for sale
-- 48 Deposits and other long-term assets (2) 31 Accounts payable
and accrued liabilities 935 (61) Deferred revenue (1,106) (116)
Liabilities to be assumed -- (220) Other long-term liabilities 78
-- ------ ------- NET CASH USED IN OPERATING ACTIVITIES (690)
(2,590) INVESTING ACTIVITIES: Purchases of marketable securities
(55,091) (100,915) Proceeds from sale of marketable securities
51,244 14,025 Proceeds from maturity of marketable securities
38,258 61,899 Proceeds from sale of equipment -- 11 Purchases of
property and equipment (2,518) (4) ------- ------- NET CASH
PROVIDED BY (USED IN) INVESTING ACTIVITIES 31,893 (24,984)
FINANCING ACTIVITIES: Proceeds from the exercises of stock options
51 1,243 Repayment of debt -- (5,000) ------- ------- NET CASH
PROVIDED BY (USED IN) FINANCING ACTIVITIES 51 (3,757) -------
------- CHANGE IN CASH AND CASH EQUIVALENTS 31,254 (31,331) CASH
AND CASH EQUIVALENTS, Beginning of Period 15,045 42,225 -------
-------- CASH AND CASH EQUIVALENTS, End of Period $46,299 $10,894
======== ======== SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING,
INVESTING, AND FINANCING ACTIVITIES: NON-CASH TRANSACTIONS Issuance
of Restricted Stock $50 $2,680 ======= ======= 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:
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