EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT
Nigel Ekern
Chief Administrative Officer
Clarus Corporation
(203) 428-2000
nekern@claruscorp.com
CLARUS ANNOUNCES 2004 RESULTS
STAMFORD, CONNECTICUT -- MARCH 15, 2005 -- Clarus Corporation (OTC:CLRS) today
announced financial results for the quarter and fiscal year ended December 31,
2004. Clarus reported no revenues for the fourth quarter of 2004 and recognized
$1.1 million of deferred software service fees during the fiscal year ended
December 31, 2004, compared to $27,000 and $0.1 million during the comparable
periods of 2003. Net loss for the fourth quarter of 2004 was $0.9 million or
$0.06 per diluted share compared to a net loss of $0.2 million or $0.01 per
diluted share during the comparable period of 2003. Net loss for the fiscal year
ended December 31, 2004 was $2.9 million or $0.18 per diluted share compared to
a net loss of $4.3 million or $0.27 per diluted share during the comparable
period of 2003.
As of December 31, 2004, Clarus' cash, cash equivalents and marketable
securities were $83.5 million (or $5.00 gross cash per share) compared to $88.7
million as of December 31, 2003. Gross cash per share at December 31, 2004
equals cash, cash equivalents and marketable securities of $83.5 million divided
by 16.7 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 not aware of any
comparable GAAP measure.
Net operating loss carryforwards at December 31, 2004 increased significantly
due to the write off for tax purposes of significant investments in foreign
subsidiaries in Ireland and the United Kingdom, whose losses had previously been
reflected in our financial statements for prior periods. Clarus estimates that
it has available net operating loss, capital loss, research and experimentation
credit and alternative minimum tax credit carryforwards for U.S. federal income
tax purposes of approximately $212.8 million, $15.2 million, $1.3 million and
$53,000, respectively, which expire in varying amounts beginning in the year
2009 to the extent not limited under Section 382 of the Internal Revenue Code.
Nigel Ekern, Clarus' Chief Administrative Officer stated, "We continue our
efforts to identify and evaluate suitable acquisition and merger opportunities
as part of our strategy to redeploy our cash and utilize our NOL's, to the
extent available. Separately, we are pleased with the progress we have made in
managing administrative and professional expenses in connection with the
continued administration of the public company as well as costs and expenses
associated with identifying, evaluating and negotiating potential redeployment
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.
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 "Factors That May Affect Our
Future Results" 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
DECEMBER 31, 2004 AND 2003
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
ASSETS
2004 2003
--------- ---------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS ............................................................... $ 48,377 $ 15,045
MARKETABLE SECURITIES ................................................................... 35,119 73,685
INTEREST RECEIVABLE ..................................................................... 350 507
PREPAIDS AND OTHER CURRENT ASSETS ....................................................... 182 132
--------- ---------
TOTAL CURRENT ASSETS ................................................................. 84,028 89,369
--------- ---------
PROPERTY AND EQUIPMENT, NET ................................................................. 2,367 38
--------- ---------
OTHER ASSETS:
DEPOSITS AND OTHER LONG-TERM ASSETS ..................................................... 42 38
--------- ---------
TOTAL ASSETS ......................................................................... $ 86,437 $ 89,445
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES ................................................ $ 1,468 $ 1,520
DEFERRED REVENUE ........................................................................ -- 1,106
--------- ---------
TOTAL CURRENT LIABILITIES ............................................................ 1,468 2,626
--------- ---------
DEFERRED RENT ........................................................................... 115 --
--------- ---------
TOTAL LIABILITIES .................................................................... 1,583 2,626
--------- ---------
STOCKHOLDERS' EQUITY:
PREFERRED STOCK, $.0001 PAR VALUE; 5,000,000 SHARES AUTHORIZED; NONE ISSUED ............. -- --
COMMON STOCK, $.0001 PAR VALUE; 100,000,000 SHARES AUTHORIZED;
16,734,947 AND 16,649,048 SHARES ISSUED AND 16,659,947 AND 16,574,048 OUTSTANDING IN
2004 AND 2003, RESPECTIVELY ........................................................ 2 2
ADDITIONAL PAID-IN CAPITAL .............................................................. 368,385 367,031
ACCUMULATED DEFICIT ..................................................................... (279,656) (276,767)
LESS TREASURY STOCK, 75,000 SHARES AT COST .............................................. (2) (2)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ........................................... (130) (17)
DEFERRED COMPENSATION ................................................................... (3,745) (3,428)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY ........................................................... 84,854 86,819
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ........................................... $ 86,437 $ 89,445
========= =========
CLARUS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
THREE MONTHS YEARS ENDED
ENDED DECEMBER 31, DECEMBER 31,
-------------------- --------------------
2004 2003 2004 2003
-------- -------- -------- --------
REVENUES:
License fees ....................... $ -- $ -- $ 1,106 $ --
Services fees ...................... -- 27 -- 130
-------- -------- -------- --------
Total revenues .................... -- 27 1,106 130
COST OF REVENUES:
License fees ....................... -- -- -- --
Services fees ...................... -- -- -- --
-------- -------- -------- --------
Total cost of revenues ............ -- -- -- --
OPERATING EXPENSES:
General and administrative ......... 1,066 725 3,395 4,986
Provision for doubtful accounts .... -- -- -- 18
Transaction expenses ............... 175 -- 1,636 --
Loss on sale or disposal of assets . -- 36 -- 36
Depreciation and amortization ...... 86 -- 186 762
-------- -------- -------- --------
Total operating expenses .......... 1,327 761 5,217 5,802
OPERATING LOSS ...................... (1,327) (734) (4,111) (5,672)
OTHER INCOME ........................ 2 267 19 169
INTEREST INCOME ..................... 402 262 1,203 1,238
INTEREST EXPENSE .................... -- -- -- (66)
-------- -------- -------- --------
NET LOSS ........................... $ (923) $ (205) $ (2,889) $ (4,331)
======== ======== ======== ========
Net loss per common share:
Basic ............................. $ (0.06) $ (0.01) $ (0.18) $ (0.27)
Diluted ........................... $ (0.06) $ (0.01) $ (0.18) $ (0.27)
Weighted average shares outstanding:
Basic ............................. 16,123 16,021 16,092 15,905
Diluted ........................... 16,123 16,021 16,092 15,905
CLARUS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2004 AND 2003
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
2004 2003
--------- ---------
OPERATING ACTIVITIES:
Net loss .................................................................. $ (2,889) $ (4,331)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property and equipment ................. 186 762
Amortization of premium and discount on securities, net ................. 982 --
Gain on sale of marketable securities and other ......................... (17) --
Provision for doubtful accounts ......................................... -- 18
Amortization of deferred employee compensation plans .................... 583 287
Loss on sale or disposal of property and equipment ...................... -- 36
Changes in operating assets and liabilities:
Accounts receivable ................................................... -- 449
Interest receivable, prepaids and other current assets ................ 107 623
Assets held for sale .................................................. -- 48
Deposits and other long-term assets ................................... (4) 30
Accounts payable and accrued liabilities .............................. (52) (416)
Deferred revenue ...................................................... (1,106) (142)
Deferred rent ......................................................... 115 --
Liabilities to be assumed ............................................. -- (220)
--------- ---------
Net cash (used in) operating activities .............................. (2,095) (2,856)
--------- ---------
INVESTING ACTIVITIES:
Purchase of marketable securities ....................................... (59,754) (117,881)
Proceeds from the sale and maturity of marketable securities ............ 97,242 96,918
Purchase of property and equipment ...................................... (2,515) (38)
Proceeds from sale of property and equipment ............................ -- 11
--------- ---------
Net cash provided by (used in) investing activities .................. 34,973 (20,990)
FINANCING ACTIVITIES:
Proceeds from the exercise of stock options ............................. 454 1,656
Proceeds from issuance of common stock related to employee stock
purchase plans .................................................... -- 10
Repayment of long-term debt ............................................. -- (5,000)
--------- ---------
Net cash provided by (used in) financing activities .................. 454 (3,334)
--------- ---------
Effect of exchange rate change on cash .................................... -- --
CHANGE IN CASH AND CASH EQUIVALENTS ....................................... 33,332 (27,180)
CASH AND CASH EQUIVALENTS, beginning of year .............................. 15,045 42,225
--------- ---------
CASH AND CASH EQUIVALENTS, end of year .................................... $ 48,377 $ 15,045
========= =========
NONCASH TRANSACTIONS:
Grant of Restricted Stock ................................................. $ 50 $ 2,680