FOR IMMEDIATE RELEASE
CONTACT
Nigel Ekern
Chief Administrative Officer
Clarus Corporation
(203) 302-2000
nekern@claruscorp.com
CLARUS ANNOUNCES FIRST QUARTER 2004 RESULTS
GREENWICH, CONNECTICUT -- MAY 6, 2004 -- Clarus Corporation (Nasdaq: CLRS) today
announced financial results for the quarter ended March 31, 2004. Clarus
reported no revenues for the first quarter of 2004, compared to $53,000 from the
recognition of deferred software service fees during the comparable period of
2003. Net loss for the first quarter of 2004 was $471,000 or $0.03 per diluted
share compared to a net loss of $2.4 million or $0.15 per diluted share during
the comparable period of 2003. As of March 31, 2004, Clarus' cash, cash
equivalents and marketable securities were $87.5 million (or $5.27 gross cash
per share(1)) compared to $88.7 million as of December 31, 2003.
Clarus 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 $113.7 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 previously 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, "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. We believe that the transaction environment has improved and
Clarus should benefit from that in its efforts to complete the asset
redeployment."
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 March 31, 2004 equals cash, cash equivalents and
marketable securities of $87.5 million divided 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 the Clarus' assets available
for redeployment. Clarus 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
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
MARCH 31, DECEMBER 31,
2004 2003
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 38,667 $ 15,045
Marketable securities 48,800 73,685
Accrued interest receivable 602 507
Prepaids and other current assets 381 132
--------- ---------
Total current assets 88,450 89,369
PROPERTY AND EQUIPMENT, NET 538 38
OTHER ASSETS:
Deposits and other long-term assets 38 38
--------- ---------
TOTAL ASSETS $ 89,026 $ 89,445
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 1,217 $ 1,520
Deferred revenue 1,106 1,106
--------- ---------
Total current liabilities 2,323 2,626
--------- ---------
Total liabilities 2,323 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 368,452 367,031
Accumulated deficit (277,238) (276,767)
Treasury stock, at cost (2) (2)
Accumulated other comprehensive income 41 (17)
Deferred compensation (4,552) (3,428)
--------- ---------
Total stockholders' equity 86,703 86,819
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 89,026 $ 89,445
========= =========
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31,
-------------------------
2004 2003
-------- --------
REVENUES:
Services fees $ -- $ 53
-------- --------
Total revenues -- 53
OPERATING EXPENSES:
General and administrative 723 1,891
Provision for doubtful accounts -- 67
Depreciation and amortization -- 761
-------- --------
Total operating expenses 723 2,719
OPERATING LOSS (723) (2,666)
OTHER INCOME/(EXPENSE) 17 (48)
INTEREST INCOME 235 358
INTEREST EXPENSE -- (56)
-------- --------
NET LOSS $ (471) $ (2,412)
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Loss per common share:
Basic $ (0.03) $ (0.15)
Diluted $ (0.03) $ (0.15)
Weighted average shares outstanding
Basic 16,081 15,739
Diluted 16,081 15,739
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31,
-------------------------
2004 2003
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (471) $ (2,412)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization on property and equipment -- 761
Amortization of deferred employee compensation 246 4
Amortization of premiums on purchases of marketable securities 369 --
Provision for doubtful accounts -- (67)
Loss/(Gain) on sale of marketable securities (17) 48
Changes in operating assets and liabilities:
Accounts receivable -- 534
Interest receivable, prepaid and other current assets (344) 394
Assets held for sale -- 48
Accounts payable and accrued liabilities (303) 224
Deferred revenue -- (53)
Liabilities to be assumed -- (220)
-------- --------
NET CASH (USED IN) OPERATING ACTIVITIES (520) (739)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities (39,829) (35,765)
Proceeds from maturity of marketable securities 13,176 43,629
Proceeds from sale of marketable securities 51,244 --
Additions to property and equipment (500) --
-------- --------
NET CASH PROVIDED BY INVESTING ACTIVITIES 24,091 7,864
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the exercises of stock options 51 391
Proceeds from issuance of common stock related to employee stock purchase
plan -- 10
-------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 51 401
-------- --------
Effect of exchange rate change on cash -- (86)
CHANGE IN CASH AND CASH EQUIVALENTS 23,622 7,440
CASH AND CASH EQUIVALENTS, beginning of period 15,045 42,225
-------- --------
CASH AND CASH EQUIVALENTS, end of period $ 38,667 $ 49,665
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SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for interest
$ -- $ 56
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NON CASH TRANSACTION
Issuance of Restricted Stock $ 50 $ --
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