Clarus Announces First Quarter 2006 Results
May 09 2006 - 5:02PM
PR Newswire (US)
STAMFORD, Conn., May 9 /PRNewswire-FirstCall/ -- Clarus Corporation
(OTC:CLRS.PK) today announced financial results for the quarter
ended March 31, 2006. Clarus reported no revenues for the quarters
ended March 31, 2006 and 2005, respectively. Net loss for the first
quarter of 2006 was $1.4 million or $0.08 per diluted share
compared to a net loss of $390,000 or $0.02 per diluted share
during the comparable period of 2005. As of March 31, 2006, Clarus'
cash, cash equivalents and marketable securities were $83.7 million
(or $4.89 gross cash per share) compared to $84.9 million as of
December 31, 2005. Gross cash per share at March 31, 2006 equals
cash, cash equivalents and marketable securities of $83.7 million
divided by 17.1 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 unaware of any comparable
GAAP measure. The results of operations for the quarter ending
March 31, 2006 includes a charge of approximately $1.3 million for
transaction expenses arising out of negotiations related to an
acquisition process that terminated in January 2006 without Clarus
consummating the acquisition. Transaction expenses represent the
costs incurred during due diligence and negotiation of potential
acquisitions such as legal, accounting and other professional fees
and related expenses. 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 $221.8 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. The Company also has a capital loss carryforward of
$15.2 million which expires in varying amounts beginning in the
year 2007. Nigel Ekern, Clarus' Chief Administrative Officer
stated, "We are pleased with the progress that we have made in
managing administrative and professional expenses in connection
with the continued administration of the public company and
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." Clarus does
not currently intend to hold conference calls to discuss quarterly
earnings releases unless and until it consummates an acquisition in
connection with its redeployment strategy. At such time, Clarus
plans to resume holding quarterly conference calls to review
earnings and 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 and
marketable securities 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 a
http://www.sec.gov/. CLARUS CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER
SHARE AMOUNTS) MARCH 31, DECEMBER 31, 2006 2005 --------- ---------
ASSETS CURRENT ASSETS: Cash and cash equivalents $3,294 $23,270
Marketable securities 80,368 61,601 Interest receivable 342 320
Prepaids and other current assets 135 135 --------- --------- Total
current assets 84,139 85,326 PROPERTY AND EQUIPMENT, NET 1,910
1,996 OTHER ASSETS: Deposits and other long-term assets -- 956
--------- --------- TOTAL ASSETS $ 86,049 $88,278 =========
========= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES:
Accounts payable and accrued liabilities $484 $1,461 ---------
--------- Total current liabilities 484 1,461 Deferred rent 227 208
--------- --------- Total liabilities 711 1,669 --------- ---------
STOCKHOLDERS' EQUITY: Preferred stock, $.0001 par value; 5,000,000
shares authorized; none issued -- -- Common stock, $.0001 par
value; 100,000,000 shares authorized; 17,188,622 and 17,187,170
shares issued and 17,113,622 and 17,112,170 outstanding in 2005 and
2004, respectively 2 2 Additional paid-in capital 367,719 370,704
Accumulated deficit (282,329) (280,947) Treasury stock, at cost (2)
(2) Accumulated other comprehensive income (52) (88) Deferred
compensation -- (3,060) --------- --------- Total stockholders'
equity 85,338 86,609 --------- --------- TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $86,049 $88,278 ========= ========= CLARUS
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS
ENDED MARCH 31, -------------------------- 2006 2005 -----------
----------- REVENUES: $-- $-- ----------- ----------- Total
revenues -- -- OPERATING EXPENSES: General and administrative 881
786 Transaction expenses 1,280 -- Depreciation and amortization 88
85 ----------- ----------- Total operating expenses 2,249 871
OPERATING LOSS (2,249) (871) OTHER EXPENSE (1) -- INTEREST INCOME
868 481 ----------- ----------- NET LOSS $(1,382) $(390)
=========== =========== Loss per common share: Basic $ (0.08)
$(0.02) Diluted $ (0.08) $(0.02) Weighted average shares
outstanding Basic 16,612 16,242 Diluted 16,612 16,242 CLARUS
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) THREE MONTHS ENDED
MARCH 31, -------------------------- 2006 2005 -----------
----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(1,382)
$(390) Adjustments to reconcile net loss to net cash used in
operating activities: Depreciation and amortization on property and
equipment 88 85 Amortization of deferred employee compensation 75
15 Amortization of premium and discount on securities, net (406) 42
Changes in operating assets and liabilities: Interest receivable,
prepaids and other current assets (22) 75 Accounts payable and
accrued liabilities (977) (22) Deferred rent 19 37 Deposits and
other long-term assets 956 1 ----------- ---------- NET CASH USED
IN OPERATING ACTIVITIES (1,649) (157) CASH FLOWS FROM INVESTING
ACTIVITIES: Purchase of marketable securities (40,290) (12,372)
Proceeds from maturity of marketable securities 21,965 10,520
Additions to property and equipment (2) (8) ----------- ----------
NET CASH USED IN INVESTING ACTIVITIES (18,327) (1,860) CASH FLOWS
FROM FINANCING ACTIVITIES: Proceeds from the exercises of stock
options -- 628 ----------- ---------- NET CASH PROVIDED BY
FINANCING ACTIVITIES -- 628 ----------- ---------- CHANGE IN CASH
AND CASH EQUIVALENTS (19,976) (1,389) CASH AND CASH EQUIVALENTS,
beginning of period 23,270 48,377 ----------- ---------- CASH AND
CASH EQUIVALENTS, end of period $ 3,294 $46,988 ===========
=========== SUPPLEMENTAL DISCLOSURE: Deferred compensation $-- $525
Cash paid for taxes $ 206 $135 DATASOURCE: Clarus Corporation
CONTACT: Nigel Ekern, Chief Administrative Officer of Clarus
Corporation, +1-203-428-2000, or Web site:
http://www.claruscorp.com/ Company News On-Call:
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