EX-99.1 3 file002.txt PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT Nigel Ekern Chief Administrative Officer Clarus Corporation (203) 302-2000 nekern@claruscorp.com --------------------- CLARUS ANNOUNCES SECOND QUARTER 2003 RESULTS GREENWICH, CONNECTICUT--AUGUST 18, 2003--Clarus Corporation (Nasdaq: CLRS) today announced financial results for the quarter and six months ended June 30, 2003. Clarus reported revenues of $78,000 for the first six months of 2003 from the recognition of deferred software service fees compared to $6.5 million during the comparable period of 2002. Net loss for the first six months of 2003 was $3.4 million or $0.22 per share fully diluted compared to a net loss of $27.0 million or $1.73 per share fully diluted during the comparable period of 2002. As of June 30, 2003, Clarus' balance of cash and marketable securities was $89.1 million (or $5.41 per share fully diluted) compared to $95.1 million as of December 31, 2002. Clarus has, to the extent available, approximately $180 million of net operating loss, capital loss and other tax credit carryforwards to offset taxable income that Clarus may recognize in the future. Nigel Ekern, Clarus' Chief Administrative Officer stated, "We were pleased that our shareholders last month voted to amend our Certificate of Incorporation to enhance our ability to protect the value of our NOL's through restrictions on the acquisitions of Clarus' common shares in excess of 5%. We continue to seek acquisition targets as part of our strategy to redeploy our cash and utilize our NOL's, to the extent available. Operationally, we continue to monitor carefully our administrative costs and overhead expenses in advance of a redeployment of our cash. Our ongoing expenses include diligence and transaction-related expenses in connection with our evaluation of potential acquisitions as well as legal and compliance costs related to our status as a public company." Clarus does not currently intend to hold conference calls to discuss quarterly earnings releases unless and until the Company consummates an acquisition in connection with its redeployment strategy. At such time, the Company plans to resume holding quarterly conference calls to review earnings and Clarus' 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 planned effort to redeploy our assets to enhance stockholder value, the preservation 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 "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 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)
JUNE 30, DECEMBER 31, 2003 2002 ------------------- ------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $52,041 $42,225 Marketable securities 37,079 52,885 Accounts receivable, less allowance for doubtful accounts of $0 and $586 in 2003 and 2002, respectively -- 467 Prepaids and other current assets 1,010 1,262 Assets held for sale -- 48 ------------------- ------------------- Total current assets 90,130 96,887 PROPERTY AND EQUIPMENT, NET 4 809 OTHER ASSETS: Deposits and other long-term assets 60 68 ------------------- ------------------- TOTAL ASSETS $90,194 $97,764 =================== =================== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $1,948 $1,936 Deferred revenue 1,169 1,248 Current portion of long-term debt -- 5,000 Liabilities to be assumed -- 220 ------------------- ------------------- Total current liabilities 3,117 8,404 LONG-TERM LIABILITIES: -- -- Other long-term liabilities -- -- ------------------- ------------------- Total liabilities 3,117 8,404 STOCKHOLDERS' EQUITY: Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued -- -- Common stock, $.0001 par value; 100,000,000 shares authorized; 16,546,038 and 15,762,707 shares issued and 16,471,038 and 15,687,707 outstanding in 2003 and 2002, respectively 2 2 Additional paid-in capital 365,987 361,715 Accumulated deficit (275,888) (272,436) Treasury stock, at cost (2) (2) Accumulated other comprehensive income 98 146 Deferred compensation (3,120) (65) ------------------- ------------------- Total stockholders' equity 87,077 89,360 ------------------- ------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $90,194 $97,764 =================== ===================
Press Release CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ---------------------- ------------------------- 2003 2002 2003 2002 ---- ---- ---- ---- REVENUES: License fees $ -- $ 1,013 $ -- $ 2,486 Services fees 25 1,531 78 3,999 ---------------------- ------------------------ Total revenues 25 2,544 78 6,485 COST OF REVENUES: License fees -- 3 -- 17 Services fees -- 1,881 -- 3,819 ---------------------- ------------------------ Total cost of revenues -- 1,884 -- 3,836 OPERATING EXPENSES: Research and development -- 2,553 -- 5,812 Sales and marketing -- 3,032 -- 6,678 General and administrative 1,522 3,594 3,831 5,099 Provision for doubtful accounts -- 1 -- 3 Intangible impairment loss -- 10,360 -- 10,360 Depreciation and amortization -- 2,326 761 3,673 ---------------------- ------------------------ Total operating expenses 1,522 21,866 4,592 30,995 OPERATING LOSS (1,497) (21,206) (4, 514) (28,346) OTHER INCOME/(EXPENSE) 75 6 380 12 INTEREST INCOME 390 685 748 1,418 INTEREST EXPENSE (10) (56) (66) (112) ---------------------- ------------------------ NET LOSS $ (1,042) $(20,571) $ (3,452) $ (27,028) ====================== ======================== Loss per common share: Basic $(0.07) $(1.32) $(0.22) $(1.73) Diluted $(0.07) $(1.32) $(0.22) $(1.73) Weighted average shares outstanding: Basic 15,884 15,588 15,812 15,580 Diluted 15,884 15,588 15,812 15,580
Press Release CLARUS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
SIX MONTHS ENDED JUNE 30, ----------------------------- 2003 2002 ---------- ------------ OPERATING ACTIVITIES: Net loss $(3,452) $(27,028) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization on property and equipment 761 2,433 Impairment of intangible assets -- 10,360 Gain on sale of investments -- (15) Amortization of intangible assets -- 455 Non Cash other (70) -- Noncash sales and marketing expense -- 450 Noncash general and administrative expense 86 -- Provision for doubtful accounts (67) 3 Loss/(Gain) on sale of assets 37 785 Changes in operating assets and liabilities: Accounts receivable 534 1,564 Prepaid and other current assets 252 876 Assets held for Sale 48 -- Deposits and other long-term assets 8 (104) Accounts payable and accrued liabilities 12 1,649 Deferred revenue (79) (5,227) Liabilities to be assumed (220) -- Other long-term liabilities -- (7) ---------- ------------ NET CASH USED IN OPERATING ACTIVITIES (2,150) (13,806) INVESTING ACTIVITIES: Purchase of marketable securities (109,823) (20,282) Proceeds from sale of marketable securities 125,629 2,628 Proceeds from maturity of marketable securities -- 14,140 Proceeds from sale of investments -- 200 Proceeds from sale of equipment 11 27 Purchases of property and equipment (4) (76) ---------- ------------ NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 15,813 (3,363) FINANCING ACTIVITIES: Proceeds from the exercises of stock options 1,201 136 Pre-payment of debt (5,000) -- Proceeds from issuance of common stock related to employee stock purchase plan -- 78 ---------- ------------ NET CASH PROVIDED BY FINANCING ACTIVITIES (3,799) 214 ---------- ------------ Effect of exchange rate change on cash (48) 3 CHANGE IN CASH AND CASH EQUIVALENTS 9,816 (16,952) CASH AND CASH EQUIVALENTS, Beginning of Period 42,225 55,628 CASH AND CASH EQUIVALENTS, End of Period $52,041 $38,676 ========== ============ SUPPLEMENTAL CASH FLOW DISCLOSURE: ---------- ------------ Cash paid for interest $0 $56 ========== ============
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