STAMFORD, Conn., Nov. 3 /PRNewswire-FirstCall/ -- Clarus
Corporation (OTC:CLRS) today announced financial results for the
quarter ended September 30, 2005. Clarus reported no operating
revenues for the quarter ended September 30, 2005 compared to $1.1
million for the quarter ended September 30, 2004. Net loss for the
third quarter of 2005 was $127,000 or $0.01 per diluted share
compared to a net loss of $532,000 or $0.03 per diluted share
during the comparable period of 2004. As of September 30, 2005,
Clarus' cash, cash equivalents and marketable securities were $83.3
million (or $4.96 gross cash per share) compared to $83.5 million
as of December 31, 2004. Gross cash per share at September 30, 2005
equals cash, cash equivalents and marketable securities of $83.3
million divided by 16.8 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, capital loss, research and experimentation credit and
alternative minimum tax credit carryforwards for U.S. federal
income tax purposes of approximately $218.3 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. Nigel Ekern, Clarus'
Chief Administrative Officer stated, "We are carefully managing our
administrative and professional expenses in connection with the
continued administration of the public company and 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 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 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 inability to execute successfully our
planned effort to redeploy our assets to enhance stockholder value,
the unavailability of our net operating loss carryforwards, 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 our web site at
http://www.claruscorp.com/ or the SEC's web site a
http://www.sec.gov/. CLARUS CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER
SHARE AMOUNTS) SEPTEMBER 30, DECEMBER 31, 2005 2004
------------------- ------------------ ASSETS CURRENT ASSETS: Cash
and cash equivalents $15,873 $48,377 Marketable securities 67,380
35,119 Accrued interest receivable 235 350 Prepaids and other
current assets 146 182 ------------------- ------------------ Total
current assets 83,634 84,028 PROPERTY AND EQUIPMENT, NET 2,080
2,367 OTHER ASSETS: Deposits and other long-term assets 43 42
------------------- ------------------ TOTAL ASSETS $85,757 $86,437
=================== ================== LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and
accrued liabilities $606 $1,468 -------------------
------------------ Total current liabilities 606 1,468 Deferred
rent 190 115 ------------------- ------------------ Total
liabilities 796 1,583 ------------------- ------------------
STOCKHOLDERS' EQUITY: Preferred stock, $.0001 par value; 5,000,000
shares authorized; none issued -- -- Common stock, $.0001 par
value; 100,000,000 shares authorized; 16,907,170 and 16,734,947
shares issued and 16,832,170 and 16,659,947 outstanding in 2005 and
2004, respectively 2 2 Additional paid-in capital 368,929 368,385
Accumulated deficit (280,689) (279,656) Treasury stock, at cost (2)
(2) Accumulated other comprehensive loss (113) (130) Deferred
compensation (3,166) (3,745) ------------------ ------------------
Total stockholders' equity 84,961 84,854 ------------------
------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$85,757 $86,437 ================== ================== CLARUS
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS
NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
-------------------- -------------------- 2005 2004 2005 2004 ----
---- ---- ---- REVENUES: Services fees $-- $1,106 $-- $1,106
-------------------- -------------------- Total revenues -- 1,106
-- 1,106 OPERATING EXPENSES: General and administrative 714 404
2,501 2,329 Transaction expenses -- 1,461 -- 1,461 Depreciation 83
86 249 100 -------------------- -------------------- Total
operating expenses 797 1,951 2,750 3,890 OPERATING LOSS (797) (845)
(2,750) (2,784) OTHER INCOME 2 -- -- 17 INTEREST INCOME 668 313
1,717 801 -------------------- -------------------- NET LOSS $(127)
$(532) $(1,033) $(1,966) ==================== ====================
Loss per common share: Basic $(0.01) $(0.03) $(0.06) $(0.12)
Diluted $(0.01) $(0.03) $(0.06) $(0.12) Weighted average shares
outstanding: Basic 16,310 16,082 16,283 16,082 Diluted 16,310
16,082 16,283 16,082 CLARUS CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE
AMOUNTS) NINE MONTHS ENDED SEPTEMBER 30, ------------------------
2005 2004 --------- --------- OPERATING ACTIVITIES: Net loss
$(1,033) $(1,966) Adjustments to reconcile net loss to net cash
used in operating activities: Depreciation on property and
equipment 249 100 Amortization of deferred employee compensation
279 426 Amortization of premium and discount on securities, net
(276) 857 Gain on sale of marketable securities -- (17) Changes in
operating assets and liabilities: Accrued interest receivable,
prepaids and other current assets 151 5 Accounts payable and
accrued liabilities (808) 935 Deferred revenue -- (1,106) Deferred
rent 75 78 Deposits and other long-term assets (1) (2) -------
------- NET CASH USED IN OPERATING ACTIVITIES (1,364) (690)
INVESTING ACTIVITIES: Purchases of marketable securities (66,588)
(55,091) Proceeds from sale of marketable securities -- 51,244
Proceeds from maturity of marketable securities 34,620 38,258
Additions to property and equipment (16) (2,518) ------- -------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (31,984) 31,893
FINANCING ACTIVITIES: Proceeds from the exercises of stock options
844 51 -------- -------- NET CASH PROVIDED BY FINANCING ACTIVITIES
844 51 -------- -------- CHANGE IN CASH AND CASH EQUIVALENTS
(32,504) 31,254 CASH AND CASH EQUIVALENTS, Beginning of Period
48,377 15,045 -------- -------- CASH AND CASH EQUIVALENTS, End of
Period $15,873 $46,299 ======== ======== SUPPLEMENTAL DISCLOSURE OF
NON-CASH FINANCING ACTIVITIES: Issuance of Restricted Stock $-- $50
========== ========= DATASOURCE: Clarus Corporation CONTACT: Nigel
Ekern, Chief Administrative Officer of Clarus Corporation,
+1-203-428-2000, Web site: http://www.claruscorp.com/ Company News
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