FOR IMMEDIATE RELEASE
CONTACT
Nigel Ekern
Chief Administrative Officer
Clarus Corporation
(203) 302-2000
nekern@claruscorp.com
CLARUS ANNOUNCES 2003 RESULTS
GREENWICH, CONNECTICUT--MARCH 10, 2004-- Clarus Corporation (Nasdaq: CLRS) today
announced financial results for the quarter and fiscal year ended December 31,
2003. Clarus reported revenues of $27,000 for the fourth quarter of 2003 and
$130,000 for the fiscal year ended December 31, 2003 from the recognition of
deferred software service fees, compared to $1.0 million and $9.0 million during
the comparable periods of 2002. Net loss for the fourth quarter of 2003 was
$205,000 or $0.01 per diluted share compared to a net loss of $6.8 million or
$0.43 per diluted share during the comparable period of 2002. Net loss for the
fiscal year ended December 31, 2003 was $4.3 million or $0.27 per diluted share
compared to a net loss of $37.8 million or $2.42 per diluted share during the
comparable period of 2002. As of December 31, 2003, Clarus' cash, cash
equivalents and marketable securities were $88.7 million (or $5.34 gross cash
per share(1)) compared to $95.1 million as of December 31, 2002. Clarus
currently has available approximately $134.0 million of net operating losses,
capital losses and other U.S. and foreign tax credit carryforwards to offset
taxable income that Clarus may recognize in the future, subject to limitations
of applicable tax laws.
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 so
far in controlling Clarus' cash expenditure rate and managing administrative and
professional expenses."
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.
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(1) Gross cash per share at December 31, 2003 equals cash, cash equivalents and
marketable securities of $88.7 million divided by 16.6 million common shares
outstanding. The Company has provided this Non-GAAP measure because it believes
that it is useful to investors assessing the extent of the Company's assets
available for redeployment. The Company is not aware 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 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 "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
DECEMBER 31, 2003 AND 2002
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
ASSETS
2003 2002
---- ----
CURRENT ASSETS:
Cash and cash equivalents................................................................... $ 15,045 $ 42,225
Marketable securities....................................................................... 73,685 52,885
Accounts receivable, less allowance for doubtful accounts of $0 and $586 in
2003 and 2002, respectively.............................................................. -- 467
Interest receivable......................................................................... 507 573
Prepaids and other current assets........................................................... 132 689
Assets held for sale........................................................................ -- 48
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Total current assets..................................................................... 89,369 96,887
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PROPERTY AND EQUIPMENT, NET .................................................................... 38 809
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OTHER ASSETS:
Deposits and other long-term assets ........................................................ 38 68
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Total assets............................................................................. $ 89,445 $ 97,764
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities.................................................... $ 1,520 $ 1,936
Deferred revenue............................................................................ 1,106 1,248
Current portion of long-term debt........................................................... -- 5,000
Liabilities to be assumed related to assets held for sale................................... -- 220
-------- --------
Total current liabilities................................................................ 2,626 8,404
-------- --------
Total liabilities........................................................................ 2,626 8,404
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STOCKHOLDERS' EQUITY:
Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued................. -- --
Common stock, $.0001 par value; 100,000,000 shares authorized;
16,649,048 and 15,762,707 shares issued and 16,574,048 and 15,687,707 outstanding in
2003 and 2002, respectively............................................................. 2 2
Additional paid-in capital.................................................................. 367,031 361,715
Accumulated deficit......................................................................... (276,767) (272,436)
Less treasury stock, 75,000 shares at cost.................................................. (2) (2)
Accumulated other comprehensive income (loss)............................................... (17) 146
Deferred compensation....................................................................... (3,428) (65)
-------- --------
Total stockholders' equity............................................................... 86,819 89,360
-------- --------
Total liabilities and stockholders' equity............................................... $ 89,445 $ 97,764
======== ========
CLARUS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
THREE MONTHS YEARS ENDED
ENDED DECEMBER 31, DECEMBER 31,
-------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
REVENUES:
License fees...................................................... $ -- $ 159 $ -- $ 2,808
Services fees..................................................... 27 874 130 6,226
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Total revenues................................................... 27 1,033 130 9,034
COST OF REVENUES:
License fees...................................................... -- 5 -- 26
Services fees..................................................... -- 689 -- 5,498
-------------------------- -------------------------
Total cost of revenues........................................... -- 694 -- 5,524
OPERATING EXPENSES:
Research and development.......................................... -- 826 -- 7,263
Sales and marketing............................................... -- 239 -- 7,938
General and administrative........................................ 725 4,601 4,986 12,574
Provision for doubtful accounts .................................. -- (263) 18 (560)
Loss on impairment of goodwill and intangible assets.............. -- -- -- 10,360
Loss on sale or disposal of assets................................ 36 1,748 36 1,748
Depreciation and amortization..................................... -- 384 762 4,243
-------------------------- -------------------------
Total operating expenses......................................... 761 7,535 5,802 43,566
OPERATING LOSS..................................................... (734) (7,196) (5,672) (40,056)
OTHER INCOME....................................................... 267 1 169 27
INTEREST INCOME.................................................... 262 455 1,238 2,441
INTEREST EXPENSE................................................... -- (56) (66) (225)
-------------------------- -------------------------
NET LOSS.......................................................... $ (205) $ (6,796) $ (4,331) $ (37,813)
========================== =========================
Net loss per common share:
Basic............................................................ $ (0.01) $ (0.43) $ (0.27) $ (2.42)
Diluted.......................................................... $ (0.01) $ (0.43) $ (0.27) $ (2.42)
Weighted average shares outstanding:
Basic............................................................ 16,021 15,630 15,905 15,615
Diluted.......................................................... 16,021 15,630 15,905 15,615
CLARUS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2003 AND 2002
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
2003 2002
---- ----
OPERATING ACTIVITIES:
Net loss............................................................................. $ (4,331) $ (37,813)
Adjustments to reconcile net loss to net cash used in operating activities:..........
Depreciation and amortization of property and equipment............................ 762 3,788
Amortization of intangible assets.................................................. -- 455
Loss on impairment of intangible assets............................................ -- 10,360
Gain on sale of marketable securities and other.................................... -- (15)
Provision for doubtful accounts.................................................... 18 (560)
Noncash sales and marketing expense................................................ -- 450
Noncash charge due to modification of stock options................................ -- 500
Amortization of deferred employee compensation plans............................... 287 --
Gain on sale of e-commerce assets to Epicor........................................ -- (514)
Loss on sale or disposal of property and equipment................................. 36 2,262
Changes in operating assets and liabilities:
Accounts receivable.............................................................. 449 2,618
Interest receivable, prepaids and other current assets.......................... 623 1,203
Assets held for sale............................................................. 48 --
Deposits and other long-term assets.............................................. 30 420
Accounts payable and accrued liabilities......................................... (416) (4,539)
Deferred revenue................................................................. (142) (5,738)
Liabilities to be assumed........................................................ (220) --
Other long-term liabilities...................................................... -- (265)
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Net cash (used in) operating activities......................................... (2,856) (27,388)
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INVESTING ACTIVITIES:
Purchase of marketable securities.................................................. (117,881) (123,611)
Proceeds from the sale and maturity of marketable securities....................... 96,918 135,860
Purchase of property and equipment................................................. (38) (182)
Proceeds from sale of investment................................................... -- 200
Proceeds from sale of assets....................................................... -- 1,000
Proceeds from sale of property and equipment....................................... 11 189
--------- ---------
Net cash provided by (used in) investing activities............................. (20,990) 13,456
FINANCING ACTIVITIES:
Proceeds from the exercise of stock options........................................ 1,656 400
Proceeds from issuance of common stock related to employee stock
purchase plans............................................................... 10 119
Repayment of long-term debt........................................................ (5,000) --
--------- ---------
Net cash provided by (used in) financing activities............................. (3,334) 519
--------- ---------
Effect of exchange rate change on cash............................................... -- 10
CHANGE IN CASH AND CASH EQUIVALENTS.................................................. (27,180) (13,403)
CASH AND CASH EQUIVALENTS, beginning of year......................................... 42,225 55,628
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CASH AND CASH EQUIVALENTS, end of year............................................... $ 15,045 $ 42,225
========= =========
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for interest............................................................... $ -- $ 225
========= =========
NONCASH TRANSACTIONS:
Retirement of 7,500 shares related to the termination of a sales and
marketing agreement................................................................ $ -- $ 39
Grant of Restricted Stock............................................................ $ 2,680 $ --