FOR IMMEDIATE RELEASE

CLARUS ANNOUNCES THIRD QUARTER 2009 RESULTS

STAMFORD, CONNECTICUT – November 2, 2009 — Clarus Corporation (OTC:CLRS.PK) today announced financial results for the three and nine months ended September 30, 2009.  Clarus reported no revenues for the quarters ended September 30, 2009 and 2008, respectively.  Net loss for the third quarter of 2009 was $850,000 or $0.05 per diluted share compared to a net loss of $715,000 or $0.04 per diluted share during the comparable period of 2008.  The increase in net loss was primarily due to a $478,000 reduction in interest income from declining interest rates on our cash, cash equivalents and marketable securities, partially offset by a $375,000 decline in operating expenses due to a reduction in employment compensation and benefits, non-cash equity compensation expense, consulting fees, travel expenses and other professional fees offset by increases in franchise and property taxes, insurance and investment management fees, compared to the prior year quarter.  The Company also incurred $32,000 in transaction related expenses for the period ended September 30, 2009.  The average investment yield on a weighted average basis for our investments for the quarter ended September 30, 2009 was 0.26% compared to 2.51% for the quarter ended September 30, 2008.  The current earnings rate as of October 27, 2009, is .19%.

For the nine months ended September 30, 2009, Clarus reported net loss of $2,372,000 or $0.14 per diluted share compared to a net loss of $1,915,000 or $0.11 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 $1,251,000 due to lower interest rates on our cash, cash equivalents and marketable securities partially offset by a $826,000 decline in operating expenses.  The decrease in general and administrative expense for the nine months ended September 30, 2009 was primarily attributable to decreases in employment compensation and benefits, non-cash equity compensation expense, consulting fees, travel expenses, other professional fees and investment management fees offset by increases in public company filing expenses and transaction expenses.  For the nine months ended September 30, 2009, our investment yield was 1.05% compared to 2.98% in the comparable period of 2008.

As of September 30, 2009, Clarus' cash, cash equivalents and marketable securities were $83.8 million compared to $86.0 million as of December 31, 2008.  Our cash, cash equivalents and marketable securities of $83.8 million at September 30, 2009 divided by 17.4 million shares of common stock outstanding equals $4.82 per share.

Clarus believes 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 $227.8 million, $1.3 million and $56,000, respectively, which expire in varying amounts beginning in the fourth quarter of 2009, after application of the limitation under Section 382 of the Internal Revenue Code.

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 planned effort to redeploy our assets and use our substantial cash, cash equivalents and marketable securities to enhance stockholder value and the occurrence of events which could limit our ability to utilize our substantial 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

 
CLARUS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

   
SEPTEMBER 30,
    
DECEMBER 31,
  
   
2009
    
2008
  
   
(unaudited)
        
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 58,856     $ 19,342  
Marketable securities
     24,921       66,670  
Interest receivable
     10       24  
Prepaids and other current assets
     178       109  
                 
Total current assets
     83,965       86,145  
                 
PROPERTY AND EQUIPMENT, NET
     776       1,032  
                 
TOTAL ASSETS
   $ 84,741     $ 87,177  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Accounts payable and accrued liabilities
   $ 319     $ 383  
                 
Total current liabilities
     319       383  
                 
LONG-TERM LIABILITIES:
                
Deferred rent
     434       410  
                 
Total liabilities
     753       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
     370,875       370,504  
Accumulated deficit
     (286,895 )     (284,523 )
Treasury stock, at cost
     (2 )     (2 )
Accumulated other comprehensive income
     8       403  
Total stockholders' equity
     83,988       86,384  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 84,741     $ 87,177  

 
 
 

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


   
THREE MONTHS
    
NINE MONTHS
  
   
ENDED SEPTEMBER 30,
    
ENDED SEPTEMBER 30,
  
                         
   
2009
    
2008
    
2009
    
2008
  
                         
REVENUES:
   $ —     $ —     $ —     $ —  
                                 
Total revenues
     —       —       —       —  
                                 
OPERATING EXPENSES:
                                
General and administrative
     791       1,160       2,744       3,563  
Transaction expenses
     32       —       32       —  
Depreciation
     83       89       260       267  
                                 
Total operating expenses
     906       1,249       3,036       3,830  
                                 
OPERATING LOSS
     (906 )     (1,249 )     (3,036 )     (3,830 )
INTEREST INCOME
     56       534       664       1,915  
                                 
NET LOSS
   $ (850 )   $ (715 )   $ (2,372 )   $ (1,915 )
                                 
Loss per common share:
                                
Basic
   $ (0.05 )   $ (0.04 )   $ (0.14 )   $ (0.11 )
Diluted
   $ (0.05 )   $ (0.04 )   $ (0.14 )   $ (0.11 )
                                 
Weighted average shares outstanding:
                                
Basic
     16,867       16,867       16,867       16,867  
Diluted
     16,867       16,867       16,867       16,867  

 
 
 

CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
   
NINE MONTHS
  
   
ENDED SEPTEMBER 30,
  
   
2009
    
2008
  
             
OPERATING ACTIVITIES:
            
Net loss
   $ (2,372 )   $ (1,915 )
Adjustments to reconcile net loss to net cash used in Operating activities:
                
Depreciation on property and equipment
     260       266  
Amortization of equity compensation plans
     371       537  
Amortization of discount on securities, net
     (452 )     (1,436 )
Loss on disposal of equipment
     2       —  
Changes in operating assets and liabilities:
                
(Increase)/decrease in interest receivable, prepaids and other current assets
     (55 )     6  
Decrease in accounts payable and accrued liabilities
     (64 )     (56 )
Increase in deferred rent
     24       50  
                 
NET CASH USED IN OPERATING ACTIVITIES
     (2,286 )     (2,548 )
                 
INVESTING ACTIVITIES:
                
Purchases of marketable securities
     (30,892 )     (96,407 )
Proceeds from maturity of marketable securities
     72,698       68,938  
Purchase of property and equipment
     (6 )     (3 )
                 
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
     41,800       (27,472 )
                 
FINANCING ACTIVITIES:
                
                 
Proceeds from the exercises of stock options
     —       —  
      —       —  
NET CASH PROVIDED BY FINANCING ACTIVITIES
                
CHANGE IN CASH AND CASH EQUIVALENTS
     39,514       (30,020 )
                 
CASH AND CASH EQUIVALENTS, Beginning of Period
     19,342       41,886  
                 
CASH AND CASH EQUIVALENTS, End of Period
   $ 58,856     $ 11,866  
                 
SUPPLEMENTAL DISCLOSURE:
                
                 
Cash paid for franchise and property taxes
   $ 306     $ 374