Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT
Nigel Ekern
Chief Administrative Officer
Clarus Corporation
(203) 302-2000
nekern@claruscorp.com
CLARUS ANNOUNCES THIRD QUARTER 2003 RESULTS
GREENWICH, CONNECTICUT--NOVEMBER 11, 2003--Clarus Corporation (Nasdaq: CLRS)
today announced financial results for the quarter and nine months ended
September 30, 2003. Clarus reported revenues of $104,000 for the first nine
months of 2003 from the recognition of deferred software service fees compared
to $8.0 million during the comparable period of 2002. Net loss for the first
nine months of 2003 was $4.1 million or $0.26 per diluted share compared to a
net loss of $31.0 million or $1.99 per diluted share during the comparable
period of 2002. As of September 30, 2003, Clarus' cash, cash equivalents and
marketable securities were $88.6 million (or $5.37 gross cash per share(1))
compared to $95.1 million as of December 31, 2002. Clarus currently has
approximately $128 million of net operating losses, capital losses and other
U.S. and foreign tax credit carryforwards to offset taxable income that Clarus
may recognize in the future, subject to limitations of applicable tax laws.
Nigel Ekern, Clarus' Chief Administrative Officer stated, "We are seeking to
identify and continue to actively evaluate suitable acquisition and merger
opportunities as part of our strategy to redeploy our cash and utilize our
NOL's, to the extent available. We have seen a pick up in deal activity over the
last couple months and are encouraged by these signs that companies are becoming
more willing to engage in M&A transactions."
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.
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(1) Gross cash per share at September 30, 2003 equals cash, cash equivalents and
marketable securities of $88.6 million divided by 16.5 million common shares
outstanding.
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 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
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
SEPTEMBER 30, DECEMBER 31,
2003 2002
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $10,894 $42,225
Marketable securities 77,702 52,885
Accounts receivable, less allowance for doubtful accounts
of $0 and $586 in 2003 and 2002, respectively -- 467
Prepaids and other current assets 980 1,262
Assets held for sale -- 48
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Total current assets 89,576 96,887
PROPERTY AND EQUIPMENT, NET 4 809
OTHER ASSETS:
Deposits and other long-term assets 37 68
--------- -----------
TOTAL ASSETS $89,617 $97,764
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $1,875 $1,936
Deferred revenue 1,132 1,248
Current portion of long-term debt -- 5,000
Liabilities to be assumed -- 220
--------- -----------
Total current liabilities 3,007 8,404
LONG-TERM LIABILITIES: -- --
Other long-term liabilities -- --
--------- -----------
Total liabilities 3,007 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;
16,564,358 and 15,762,707 shares issued and 16,489,358 and 15,687,707
outstanding in 2003 and 2002, respectively 2 2
Additional paid-in capital 366,393 361,715
Accumulated deficit (276,562) (272,436)
Treasury stock, at cost (2) (2)
Accumulated other comprehensive income 98 146
Deferred compensation (3,319) (65)
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Total stockholders' equity 86,610 89,360
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $89,617 $97,764
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CLARUS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
--------------------- -----------------------
2003 2002 2003 2002
---- ---- ---- ----
REVENUES:
License fees $ -- $ 162 $ -- $ 2,649
Services fees 25 1,354 104 5,352
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Total revenues 25 1,516 104 8,001
COST OF REVENUES:
License fees -- 5 -- 21
Services fees -- 990 -- 4,809
---------------------- -----------------------
Total cost of revenues -- 995 -- 4,830
OPERATING EXPENSES:
Research and development -- 1,255 -- 6,437
Sales and marketing -- 1,020 -- 7,699
General and administrative 848 2,090 4,363 7,973
Intangible impairment loss -- -- -- 10,360
Provision for doubtful accounts (48) (300) 18 (297)
Depreciation and amortization -- 971 762 3,859
---------------------- -----------------------
Total operating expenses 800 5,036 5,143 36,031
OPERATING LOSS (775) (4,515) (5,039) (32,860)
OTHER INCOME/(EXPENSE) (125) 14 3 26
INTEREST INCOME 228 568 976 1,986
INTEREST EXPENSE -- (56) (66) (169)
---------------------- -----------------------
NET LOSS $ (672) $ (3,989) $ (4,126) $ (31,017)
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Loss per common share:
Basic $ (0.04) $ (0.26) $ (0.26) $ (1.99)
Diluted $ (0.04) $ (0.26) $ (0.26) $ (1.99)
Weighted average shares outstanding:
Basic 15,975 15,630 15,867 15,597
Diluted 15,975 15,630 15,867 15,597
CLARUS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
NINE MONTHS
ENDED SEPTEMBER 30,
------------------------
2003 2002
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(4,126) $(31,017)
Adjustments to reconcile net loss to net cash used in operating
activities:
Depreciation and amortization on property and equipment 762 3,404
Loss/(Gain) on sale of marketable securities 125 (15)
Impairment of intangible assets -- 10,360
Amortization of intangible assets -- 455
Noncash sales and marketing expense -- 450
Noncash general and administrative expense 182 --
Provision for doubtful accounts 18 (297)
Loss/(Gain) on disposal of property & equipment 36 918
Changes in operating assets and liabilities:
Accounts receivable 449 1,900
Prepaid and other current assets 282 984
Assets held for sale 48 --
Deposits and other long-term assets 31 443
Accounts payable and accrued liabilities (61) (1,306)
Deferred revenue (116) (4,923)
Liabilities to be assumed (220) --
Other long-term liabilities -- (9)
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NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES (2,590) (18,653)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities (100,915) (97,690)
Proceeds from sale of marketable securities 14,025 4,228
Proceeds from maturity of marketable securities 61,899 73,717
Proceeds from sale of investments -- 200
Proceeds from sale of property & equipment 11 83
Purchases of property and equipment (4) (182)
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NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES (24,984) (19,644)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the exercises of stock options 1,243 268
Repayment of debt (5,000) --
Proceeds from issuance of common stock related to employee
stock purchase plan -- 119
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NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES (3,757) 387
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Effect of exchange rate change on cash -- 27
DECREASE IN CASH AND CASH EQUIVALENTS (31,331) (37,883)
CASH AND CASH EQUIVALENTS, Beginning of Period 42,225 55,628
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CASH AND CASH EQUIVALENTS, End of Period $ 10,894 $17,745
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SUPPLEMENTAL CASH FLOW DISCLOSURE:
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Cash paid for interest $ -- $113
Significant Non-Cash Transaction: Grant of restricted stock to
Warren B. Kanders on April 12, 2003 $ 2,680 $ --
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