STAMFORD, Conn., Nov. 9 /PRNewswire-FirstCall/ -- Clarus
Corporation (Pink Sheets: CLRS.PK) today announced financial
results for the three and nine months ended September 30, 2007.
Clarus reported no revenues for the quarters ended September 30,
2007 and 2006, respectively. Net income for the third quarter of
2007 decreased $63,000 to $36,000 or $0.00 per diluted share
compared to net income of $99,000 or $0.01 per diluted share during
the comparable period of 2006. The decrease in net income was
primarily a result of a $111,000 increase in general and
administrative costs partially offset by a reduction in transaction
expenses of $25,000 and an increase of $26,000 in interest income
due to higher interest rates on our cash, cash equivalents and
marketable securities. For the nine months ended September 30,
2007, Clarus reported net income of $319,000 or $0.02 per diluted
share compared to a net loss of $1,307,000 or $(0.08) per diluted
share for the same period in 2006. The increase in net income was
primarily a result of a decrease in transaction expense of
$1,405,000 and an increase of $320,000 in interest income due to
higher interest rates on our cash, cash equivalents and marketable
securities partially offset by an increase of $87,000 in general
and administrative costs. The increase in general and
administrative expense for the three and nine months ended
September 30, 2007, was primarily attributable to increases in
employment compensation and benefits, rent and legal fees offset by
decreases in investment custody fees, accounting fees, stock
administrative fees and other professional fees. Prior year
transaction expenses relate to an acquisition process that
terminated without Clarus consummating the acquisition and include
the costs incurred during due diligence and negotiation of
potential acquisitions such as legal, accounting and other
professional fees and related expenses. As of September 30, 2007,
Clarus' cash, cash equivalents and marketable securities were $85.8
million, (or $4.99 gross cash per share) compared to $84.4 million
as of December 31, 2006. Gross cash per share at September 30, 2007
equals cash, cash equivalents and marketable securities of $85.8
million divided by 17.2 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, research and experimentation credit and alternative minimum
tax credit carryforwards for U.S. federal income tax purposes of
approximately $222.8 million, $1.3 million and $53,000,
respectively, which expire in varying amounts between 2009 and
2026, after application of the limitation under Section 382 of the
Internal Revenue Code. Of the approximately $222.8 million of net
operating loss carryforwards available to offset taxable income,
approximately $206.4 million does not expire until 2020 or later,
subject to compliance with Section 382 of the Internal Revenue
Code. The Company also has a capital loss carryforward of $14.0
million which expires in varying amounts in 2007 and 2008. 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, cash equivalent assets and
marketable securities 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 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 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 "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
our web site at http://www.claruscorp.com/ or the SEC's web site at
http://www.sec.gov/. CLARUS CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
SEPTEMBER 30, DECEMBER 31, 2007 2006 -------------- ------------
(unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents
$20,722 $1,731 Marketable securities 65,093 82,634 Interest
receivable 3 402 Prepaids and other current assets 211 207
-------------- ------------ Total current assets 86,029 84,974
PROPERTY AND EQUIPMENT, NET 1,474 1,699 -------------- ------------
TOTAL ASSETS $87,503 $86,673 ============== ============
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts
payable and accrued liabilities $547 $680 --------------
------------ Total current liabilities 547 680 LONG-TERM
LIABILITIES: Deferred rent 327 277 -------------- ------------
Total liabilities 874 957 -------------- ------------ STOCKHOLDERS'
EQUITY: Preferred stock, $.0001 par value; 5,000,000 shares
authorized; none issued -- -- Common stock, $.0001 par value;
100,000,000 shares authorized; 17,241,747 and 17,188,622 shares
issued and 17,166,747 and 17,113,622 outstanding in 2007 and 2006,
respectively 2 2 Additional paid-in capital 368,514 367,945
Accumulated deficit (281,919) (282,238) Treasury stock, at cost (2)
(2) Accumulated other comprehensive income 34 9 --------------
------------ Total stockholders' equity 86,629 85,716
-------------- ------------ TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $87,503 $86,673 ============== ============ CLARUS
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS
NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
--------------------- --------------------- 2007 2006 2007 2006
---- ---- ---- ---- REVENUES: $-- $-- $-- $-- ---------------------
--------------------- Total revenues -- -- -- -- OPERATING
EXPENSES: General and administrative 961 850 2,644 2,557
Transaction expenses -- 25 8 1,413 Depreciation 89 86 270 259
--------------------- --------------------- Total operating
expenses 1,050 961 2,922 4,229 OPERATING LOSS (1,050) (961) (2,922)
(4,229) OTHER EXPENSE -- -- (1) -- INTEREST INCOME 1,086 1,060
3,242 2,922 --------------------- --------------------- NET INCOME
(LOSS) $36 $99 $319 $(1,307) =====================
===================== Income (loss) per common share: Basic $ 0.00
$0.01 $0.02 $(0.08) Diluted $ 0.00 $0.01 $0.02 $(0.08) Weighted
average shares outstanding: Basic 16,667 16,614 16,649 16,613
Diluted 17,079 16,744 17,074 16,613 CLARUS CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS,
EXCEPT SHARE AMOUNTS) NINE MONTHS ENDED SEPTEMBER 30,
--------------------- 2007 2006 -------- -------- OPERATING
ACTIVITIES: Net income (loss) $319 $(1,307) Adjustments to
reconcile net income (loss) to net cash used in operating
activities: Depreciation on property and equipment 270 259
Amortization of deferred employee compensation 201 221 Amortization
of discount on securities, net (2,252) (1,719) Changes in operating
assets and liabilities: Decrease (increase) in interest receivable,
prepaids and other current assets 395 (132) Decrease in accounts
payable and accrued liabilities (133) (969) Increase in deferred
rent 50 52 Decrease in deposits and other long-term assets -- 956
-------- -------- NET CASH USED IN OPERATING ACTIVITIES (1,150)
(2,639) INVESTING ACTIVITIES: Purchases of marketable securities
(105,793) (117,824) Proceeds from sale of marketable securities --
-- Proceeds from maturity of marketable securities 125,611 98,563
Sale of property and equipment 2 -- Additions to property and
equipment (47) (8) --------- -------- NET CASH PROVIDED BY (USED
IN) INVESTING ACTIVITIES 19,773 (19,269) FINANCING ACTIVITIES:
Proceeds from the exercises of stock options 368 -- ---------
-------- NET CASH PROVIDED BY FINANCING ACTIVITIES 368 -- ---------
-------- CHANGE IN CASH AND CASH EQUIVALENTS 18,991 (21,908) CASH
AND CASH EQUIVALENTS, Beginning of Period 1,731 23,270 ---------
-------- CASH AND CASH EQUIVALENTS, End of Period $20,722 $1,362
========= ======== SUPPLEMENTAL DISCLOSURE: Cash paid for franchise
and property taxes $ 387 $ 456 DATASOURCE: Clarus Corporation
CONTACT: Philip A. Baratelli, Chief Financial 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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