CLRS Clarus Therapeutics (MM)

STAMFORD, Conn., Aug. 4 /PRNewswire-FirstCall/ -- Clarus Corporation (Pink Sheets: CLRS) today announced financial results for the quarter ended June 30, 2008. Clarus reported no revenues for the quarters ended June 30, 2008 and 2007, respectively. Net loss for the second quarter of 2008 increased $864,000 to $783,000 or $(0.05) per diluted share compared to a net income of $81,000 or $0.00 per diluted share during the comparable period of 2007. The increase in net loss was primarily a result of a $520,000 reduction in interest income due to lower interest rates on our cash, cash equivalents and marketable securities and a $354,000 increase in general and administrative costs, which included $131,000 in non-cash equity compensation expense. For the three months ended June 30, 2008, our investment yield was 2.60% compared to 5.12% in the comparable period of 2007. The increase in general and administrative expense for the three months ended June 30, 2008, was primarily attributable to increases in non-cash equity compensation expense, employment compensation and benefits, investment management fees and other professional fees. For the six months ended June 30, 2008, Clarus reported net loss of $1,200,000 or $(0.07) per diluted share compared to net income of $283,000 or $0.02 per diluted share for the same period in 2007. The increase in net loss was primarily a result of a decrease in interest income of $775,000 due to lower interest rates on our cash, cash equivalents and marketable securities and an increase of $720,000 in general and administrative costs, which included $262,000 of non-cash equity compensation expense. For the six months ended June 30, 2008, our investment yield was 3.20% compared to 5.13% in the comparable period of 2007. Our current yield is 2.34% as of July 15, 2008. The increase in general and administrative expense for the six months ended June 30, 2008, was primarily attributable to increases in non-cash equity compensation expense, employment compensation and benefits, investment management fees and other professional fees. As of June 30, 2008, Clarus' cash, cash equivalents and marketable securities were $86.3 million, (or $4.96 gross cash per share) compared to $87.1 million as of December 31, 2007. Gross cash per share at June 30, 2008 equals cash, cash equivalents and marketable securities of $86.3 million divided by 17.4 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 $224.1 million, $1.3 million and $56,000, 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 $224.1 million of net operating loss carryforwards available to offset taxable income, approximately $207.1 million does not expire until 2020 or later, subject to compliance with Section 382 of the Internal Revenue Code. Clarus also has capital loss carryforwards of $1.6 million which expire in 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) JUNE 30, DECEMBER 31, 2008 2007 (unaudited) ------------ ------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $16,929 $41,886 Marketable securities 69,365 45,223 Interest receivable 9 15 Prepaids and other current assets 187 175 -------- -------- Total current assets 86,490 87,299 PROPERTY AND EQUIPMENT, NET 1,204 1,381 -------- -------- TOTAL ASSETS $87,694 $88,680 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $428 $618 -------- -------- Total current liabilities 428 618 LONG-TERM LIABILITIES: Deferred rent 377 343 -------- -------- Total liabilities 805 961 -------- -------- STOCKHOLDERS' EQUITY: Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued -- -- Common stock, $.0001 par value; 100,000,000 shares authorized; 17,441,747 and 17,226,747 shares issued and 17,366,747 and 17,151,747 outstanding in 2008 and 2007, respectively 2 2 Additional paid-in capital 370,224 369,827 Accumulated deficit (283,321) (282,121) Treasury stock, at cost (2) (2) Accumulated other comprehensive (loss) income (14) 13 -------- -------- Total stockholders' equity 86,889 87,719 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $87,694 $88,680 ========= ========= CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ------------------- ------------------- 2008 2007 2008 2007 ---- ---- ---- ---- REVENUES: $-- $-- $-- $-- ------- ------- ------- ------- Total revenues -- -- -- -- OPERATING EXPENSES: General and administrative 1,253 899 2,403 1,683 Transaction costs -- 8 -- 8 Depreciation 89 91 178 181 ------- ------- ------- ------- Total operating expenses 1,342 998 2,581 1,872 OPERATING LOSS (1,342) (998) (2,581) (1,872) OTHER EXPENSE -- -- -- (1) INTEREST INCOME 559 1,079 1,381 2,156 ------- ------- ------- ------- NET (LOSS) INCOME $ (783) $81 $(1,200) $283 ======= ======= ======== ======== Income (loss) per common share: Basic $(0.05) $ 0.00 $(0.07) $0.02 Diluted $(0.05) $ 0.00 $(0.07) $0.02 Weighted average shares outstanding: Basic 16,867 16,659 16,867 16,640 Diluted 16,867 17,156 16,867 17,078 CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) SIX MONTHS ENDED JUNE 30, -------------------- 2008 2007 -------- -------- OPERATING ACTIVITIES: Net (loss) income $(1,200) $283 Adjustments to reconcile net (loss) income to net cash used in Operating activities: Depreciation on property and equipment 178 181 Amortization of equity compensation plans 397 134 Amortization of discount and premium on securities, net (976) (1,489) Changes in operating assets and liabilities: (Increase) decrease in interest receivable, prepaids and other current assets (6) 210 Decrease in accounts payable and accrued liabilities (190) (209) Increase in deferred rent 34 33 -------- -------- NET CASH USED IN OPERATING ACTIVITIES (1,763) (857) INVESTING ACTIVITIES: Purchases of marketable securities (76,293) (71,195) Proceeds from maturity of marketable securities 53,100 84,236 Sale of property and equipment -- 2 Purchase of property and equipment (1) (39) -------- --------- NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES (23,194) 13,004 FINANCING ACTIVITIES: Proceeds from the exercises of stock options -- 368 ------- --------- NET CASH PROVIDED BY FINANCING ACTIVITIES -- 368 -------- -------- CHANGE IN CASH AND CASH EQUIVALENTS (24,957) 12,515 CASH AND CASH EQUIVALENTS, Beginning of Period 41,886 1,731 -------- --------- CASH AND CASH EQUIVALENTS, End of Period $16,929 $ 14,246 ======== ========= DATASOURCE: Clarus Corporation CONTACT: Philip A. Baratelli, Chief Financial Officer, 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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