EX-99.1 2 v156499_ex99-1.htm Unassociated Document

CLARUS ANNOUNCES SECOND QUARTER 2009 RESULTS

STAMFORD, CONNECTICUT – August 6, 2009 -- Clarus Corporation (OTC:CLRS) today announced financial results for the three and six months ended June 30, 2009.  Clarus reported no revenues for the quarters ended June 30, 2009 and 2008, respectively.  Net loss for the second quarter of 2009 was $921,000 or $0.05 per diluted share compared to a net loss of $783,000 or $0.05 per diluted share during the comparable period of 2008.  The increase in net loss was primarily due to a $362,000 reduction in interest income from declining interest rates on our cash, cash equivalents and marketable securities, partially offset by a $223,000 decline in operating expenses due to a reduction in employment compensation and benefits, professional fees, investment management fees, and travel expenses offset by increases in franchise and property taxes and non-cash equity compensation, compared to the prior year quarter.  The weighted average investment yield for our investments for the quarter ended June 30, 2009 was 0.94% compared to 2.60% for the quarter ended June 30, 2008.  The current earnings rate as of July 27, 2009, is 0.27%.

For the six months ended June 30, 2009, Clarus reported net loss of $1,520,000 or $0.09 per diluted share compared to a net loss of $1,200,000 or $0.07 per diluted share for the same period in 2008.  The increase in net loss was primarily a result of a decrease in interest income of $773,000 due to lower interest rates on our cash, cash equivalents and marketable securities partially offset by a $451,000 decline in operating expenses, which included $209,000 of non-cash equity compensation expense.  For the six months ended June 30, 2009, our investment yield was 1.44% compared to 3.20% in the comparable period of 2008.  The decrease in general and administrative expense for the six months ended June 30, 2009, was primarily attributable to decreases in non-cash equity compensation expense, employment compensation and benefits, investment management fees and other professional fees.

As of June 30, 2009, Clarus' cash, cash equivalents and marketable securities were $84.3 million compared to $86.0 million as of December 31, 2008.  Our cash, cash equivalents and marketable securities of $84.3 million at June 30, 2009 divided by 17.4 million shares of common stock outstanding equals $4.84 per share.

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 $226.8 million, $1.3 million and $56,000, respectively, which expire in varying amounts beginning in the year 2009, after application of the limitation under Section 382 of the Internal Revenue Code.

Warren B. Kanders, Executive Chairman of Clarus, stated, “We are actively reviewing a variety of opportunities and ideas in which to redeploy Clarus’ cash assets.  The current economic and business environment, while tentative, should allow us to achieve our objectives while securing a business platform which may provide organic and acquisition growth.  Additionally, we have taken a number of steps to reduce our cash operating expenses.”

CONFERENCE CALL SCHEDULED FOR AUGUST 6, 2009, AT 5:00 PM (EASTERN)

To access the conference call, please call 866-939-3921 or 678-302-3550 on Thursday, August 6, 2009 at least 10-15 minutes before the call is scheduled to begin.  There will be a question/answer session at the end of the conference call.
 
To accommodate our audiences in earlier time zones or anyone unable to listen, there will be an archived replay of the conference call.  The replay will be available shortly after the conclusion of the conference call and can be accessed on the Company’s website www.claruscorp.com.

FORWARD-LOOKING STATEMENTS

This press release includes “forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may use words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions to identify forward-looking statements. These forward-looking and other statements, which are not historical facts, are based largely upon our current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by such forward-looking statements. These risks and uncertainties include, among others, our inability to execute successfully our planned effort to redeploy our assets to enhance stockholder value and  the unavailability of our net operating loss carry forward as well as other factors described in the “Risk Factors” section of the Company's filings with the Securities and Exchange Commission, including the Company's latest annual report on Form 10-K and most recently filed Forms 8-K and 10-Q, which may be obtained at our web site at www.claruscorp.com or the Securities and Exchange Commission’s web site at www.sec.gov.
 
For more information, contact:

Philip A. Baratelli
Chief Financial Officer
Clarus Corporation
(203) 428-2000
pbaratelli@claruscorp.com

 
 
 


CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
 
   
JUNE 30,
    
DECEMBER 31,
  
   
2009
    
2008
  
   
(unaudited)
        
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 65,676     $ 19,342  
Marketable securities
     18,614       66,670  
Interest receivable
     23       24  
Prepaids and other current assets
     179       109  
                 
Total current assets
     84,492       86,145  
                 
PROPERTY AND EQUIPMENT, NET
     860       1,032  
                 
TOTAL ASSETS
   $ 85,352     $ 87,177  
                 
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable and accrued liabilities
   $ 125     $ 383  
                 
Total current liabilities
     125       383  
                 
LONG-TERM LIABILITIES:
                
Deferred rent
     421       410  
                 
                 
Total liabilities
     546       793  
                 
                 
                 
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 shares issued and 17,366,747 outstanding in
                
2009 and 2008, respectively
     2       2  
Additional paid-in capital
     370,847       370,504  
Accumulated deficit
     (286,045 )     (284,523 )
Treasury stock, at cost
     (2 )     (2 )
Accumulated other comprehensive income
     4       403  
                 
Total stockholders' equity
     84,806       86,384  
                 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 85,352     $ 87,177  

 
2
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

   
THREE MONTHS
    
SIX MONTHS
  
   
ENDED JUNE 30,
    
ENDED JUNE 30,
  
   
2009
    
2008
    
2009
    
2008
  
REVENUES:
   $ -     $ -     $ -     $ -  
Total revenues
     -       -        -       -  
                                 
                                 
OPERATING EXPENSES:
                                
General and administrative
     1,030       1,253       1,953       2,403  
Depreciation
     88       89       177       178  
Total operating expenses
     1,118       1,342       2,130       2,581  
                                 
OPERATING LOSS
     (1,118 )     (1,342 )     (2,130 )     (2,581 )
INTEREST INCOME
     197       559       608       1,381  
NET LOSS
   $ (921 )   $ (783 )   $ (1,522 )   $ (1,200 )
                                 
Loss per common share:
                                
Basic
   $ (0.05 )   $ (0.05 )   $ (0.09 )   $ (0.07 )
Diluted
   $ (0.05 )   $ (0.05 )   $ (0.09 )   $ (0.07 )
                                 
Weighted average shares outstanding:
                                
Basic
     16,867       16,867       16,867       16,867  
Diluted
     16,867       16,867       16,867       16,867  
 
 
3
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
 
   
SIX MONTHS
  
   
ENDED JUNE 30,
  
   
2009
    
2008
  
                                                                   
            
OPERATING ACTIVITIES:
            
Net loss
   $ (1,522 )   $ (1,200 )
Adjustments to reconcile net loss to net cash used in
                
Operating activities:
                
Depreciation on property and equipment
     177       178  
Amortization of equity compensation plans
     343       397  
Amortization of discount on securities, net
     (436 )     (976 )
Loss on disposal of equipment                                              
      1       -  
Changes in operating assets and liabilities:
                
Increase in interest receivable, prepaids and
                
other current assets
     (69 )     (6 )
Decrease in accounts payable and accrued liabilities
     (258 )     (190 )
Increase in deferred rent
     11       34  
                                                                       
                
NET CASH USED IN OPERATING ACTIVITIES
     (1,753 )     (1,763 )
                 
INVESTING ACTIVITIES:
                
Purchases of marketable securities
     (18,605 )     (76,293 )
Proceeds from maturity of marketable securities
     66,698       53,100  
Purchase of property and equipment
     (6 )     (1 )
                                                                       
                
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
     48,087       (23,194 )
                 
FINANCING ACTIVITIES:
                
 
               
Proceeds from the exercises of stock options
     -       -  
                                                                   
                
NET CASH PROVIDED BY FINANCING ACTIVITIES
     -       -  
                                                                    
                
CHANGE IN CASH AND CASH EQUIVALENTS
     46,334       (24,957 )
                 
CASH AND CASH EQUIVALENTS, Beginning of Period
     19,342       41,886  
                                                              
                
CASH AND CASH EQUIVALENTS, End of Period
   $ 65,676     $ 16,929  
                                                                   
                
                 
SUPPLEMENTAL DISCLOSURE:
                
                 
                 
Cash paid for franchise and property taxes
   $ 220     $ 327