FOR IMMEDIATE RELEASE
CONTACT
Nigel Ekern
Chief Administrative Officer
Clarus Corporation
(203) 302-2000
nekern@claruscorp.com
- ---------------------
CLARUS ANNOUNCES SECOND QUARTER 2003 RESULTS
GREENWICH, CONNECTICUT--AUGUST 18, 2003--Clarus Corporation (Nasdaq: CLRS) today
announced financial results for the quarter and six months ended June 30, 2003.
Clarus reported revenues of $78,000 for the first six months of 2003 from the
recognition of deferred software service fees compared to $6.5 million during
the comparable period of 2002. Net loss for the first six months of 2003 was
$3.4 million or $0.22 per share fully diluted compared to a net loss of $27.0
million or $1.73 per share fully diluted during the comparable period of 2002.
As of June 30, 2003, Clarus' balance of cash and marketable securities was $89.1
million (or $5.41 per share fully diluted) compared to $95.1 million as of
December 31, 2002. Clarus has, to the extent available, approximately $180
million of net operating loss, capital loss and other tax credit carryforwards
to offset taxable income that Clarus may recognize in the future.
Nigel Ekern, Clarus' Chief Administrative Officer stated, "We were pleased that
our shareholders last month voted to amend our Certificate of Incorporation to
enhance our ability to protect the value of our NOL's through restrictions on
the acquisitions of Clarus' common shares in excess of 5%. We continue to seek
acquisition targets as part of our strategy to redeploy our cash and utilize our
NOL's, to the extent available. Operationally, we continue to monitor carefully
our administrative costs and overhead expenses in advance of a redeployment of
our cash. Our ongoing expenses include diligence and transaction-related
expenses in connection with our evaluation of potential acquisitions as well as
legal and compliance costs related to our status as a public company."
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 planned effort to redeploy our assets to enhance stockholder
value, the preservation 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 statement 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 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,
2003 2002
------------------- -------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $52,041 $42,225
Marketable securities 37,079 52,885
Accounts receivable, less allowance for doubtful accounts
of $0 and $586 in 2003 and 2002, respectively -- 467
Prepaids and other current assets 1,010 1,262
Assets held for sale -- 48
------------------- -------------------
Total current assets 90,130 96,887
PROPERTY AND EQUIPMENT, NET 4 809
OTHER ASSETS:
Deposits and other long-term assets 60 68
------------------- -------------------
TOTAL ASSETS $90,194 $97,764
=================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $1,948 $1,936
Deferred revenue 1,169 1,248
Current portion of long-term debt -- 5,000
Liabilities to be assumed -- 220
------------------- -------------------
Total current liabilities 3,117 8,404
LONG-TERM LIABILITIES: -- --
Other long-term liabilities -- --
------------------- -------------------
Total liabilities 3,117 8,404
STOCKHOLDERS' EQUITY:
Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued -- --
Common stock, $.0001 par value; 100,000,000 shares authorized;
16,546,038 and 15,762,707 shares issued and 16,471,038 and 15,687,707
outstanding in 2003 and 2002, respectively 2 2
Additional paid-in capital 365,987 361,715
Accumulated deficit (275,888) (272,436)
Treasury stock, at cost (2) (2)
Accumulated other comprehensive income 98 146
Deferred compensation (3,120) (65)
------------------- -------------------
Total stockholders' equity 87,077 89,360
------------------- -------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $90,194 $97,764
=================== ===================
Press Release
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
---------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
REVENUES:
License fees $ -- $ 1,013 $ -- $ 2,486
Services fees 25 1,531 78 3,999
---------------------- ------------------------
Total revenues 25 2,544 78 6,485
COST OF REVENUES:
License fees -- 3 -- 17
Services fees -- 1,881 -- 3,819
---------------------- ------------------------
Total cost of revenues -- 1,884 -- 3,836
OPERATING EXPENSES:
Research and development -- 2,553 -- 5,812
Sales and marketing -- 3,032 -- 6,678
General and administrative 1,522 3,594 3,831 5,099
Provision for doubtful accounts -- 1 -- 3
Intangible impairment loss -- 10,360 -- 10,360
Depreciation and amortization -- 2,326 761 3,673
---------------------- ------------------------
Total operating expenses 1,522 21,866 4,592 30,995
OPERATING LOSS (1,497) (21,206) (4, 514) (28,346)
OTHER INCOME/(EXPENSE) 75 6 380 12
INTEREST INCOME 390 685 748 1,418
INTEREST EXPENSE (10) (56) (66) (112)
---------------------- ------------------------
NET LOSS $ (1,042) $(20,571) $ (3,452) $ (27,028)
====================== ========================
Loss per common share:
Basic $(0.07) $(1.32) $(0.22) $(1.73)
Diluted $(0.07) $(1.32) $(0.22) $(1.73)
Weighted average shares outstanding:
Basic 15,884 15,588 15,812 15,580
Diluted 15,884 15,588 15,812 15,580
Press Release
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
SIX MONTHS
ENDED JUNE 30,
-----------------------------
2003 2002
---------- ------------
OPERATING ACTIVITIES:
Net loss $(3,452) $(27,028)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization on property and equipment 761 2,433
Impairment of intangible assets -- 10,360
Gain on sale of investments -- (15)
Amortization of intangible assets -- 455
Non Cash other (70) --
Noncash sales and marketing expense -- 450
Noncash general and administrative expense 86 --
Provision for doubtful accounts (67) 3
Loss/(Gain) on sale of assets 37 785
Changes in operating assets and liabilities:
Accounts receivable 534 1,564
Prepaid and other current assets 252 876
Assets held for Sale 48 --
Deposits and other long-term assets 8 (104)
Accounts payable and accrued liabilities 12 1,649
Deferred revenue (79) (5,227)
Liabilities to be assumed (220) --
Other long-term liabilities -- (7)
---------- ------------
NET CASH USED IN OPERATING ACTIVITIES (2,150) (13,806)
INVESTING ACTIVITIES:
Purchase of marketable securities (109,823) (20,282)
Proceeds from sale of marketable securities 125,629 2,628
Proceeds from maturity of marketable securities -- 14,140
Proceeds from sale of investments -- 200
Proceeds from sale of equipment 11 27
Purchases of property and equipment (4) (76)
---------- ------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 15,813 (3,363)
FINANCING ACTIVITIES:
Proceeds from the exercises of stock options 1,201 136
Pre-payment of debt (5,000) --
Proceeds from issuance of common stock related to employee
stock purchase plan -- 78
---------- ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES (3,799) 214
---------- ------------
Effect of exchange rate change on cash (48) 3
CHANGE IN CASH AND CASH EQUIVALENTS 9,816 (16,952)
CASH AND CASH EQUIVALENTS, Beginning of Period 42,225 55,628
CASH AND CASH EQUIVALENTS, End of Period $52,041 $38,676
========== ============
SUPPLEMENTAL CASH FLOW DISCLOSURE:
---------- ------------
Cash paid for interest $0 $56
========== ============
Press Release