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 On-Call: http://www.prnewswire.com/comp/133360.html

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