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Clarus Announces First Quarter 2010 Results

STAMFORD, Conn., May 10, 2010 (BUSINESS WIRE) -- Clarus Corporation (OTC:CLRS) today announced financial results for the quarter ended March 31, 2010. Clarus reported no revenues for the quarters ended March 31, 2010 and 2009, respectively. Net loss for the first quarter of 2010 was $2,355,000 or $0.14 per diluted share compared to a net loss of $601,000 or $0.04 per diluted share during the comparable period of 2009. The increase in net loss was primarily due to transaction costs of $1,509,000 related to asset redeployment activities, a $389,000 reduction in interest income from declining interest rates on our cash, cash equivalents and marketable securities, partially offset by a $134,000 decline in operating expenses due to a reduction in employee salaries and bonus expense and non-cash equity compensation compared to the prior year quarter. The weighted average investment yield for our investments for the quarter ended March 31, 2010 was 0.11% compared to 1.94% for the quarter ended March 31, 2009.

The current earnings rate as of April 23, 2010, is 0.12%.

The Company noted that in a separate release this morning it announced the planned acquisitions of Black Diamond Equipment and Gregory Mountain Products.

As of March 31, 2010, Clarus' cash, cash equivalents and marketable securities were $80.6 million compared to $82.4 million as of December 31, 2009. Our cash, cash equivalents and marketable securities of $80.6 million at March 31, 2010, divided by 17.4 million shares of common stock outstanding equals $4.63 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 $230.6 million, $1.3 million and $56,000, respectively, after application of the limitation under Section 382 of the Internal Revenue Code.

FORWARD-LOOKING STATEMENTS 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 "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 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

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

March 31, December 31,

2010

2009

----------------- -----------------

(unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 56,938 $ 58,363

Marketable securities 23,691 24,059

Interest receivable

3 6

Prepaids and other current assets

80 667

-------- -------- Total current assets 80,712 83,095

PROPERTY AND EQUIPMENT, NET 637 696

-------- --------

TOTAL ASSETS $ 81,349 $ 83,791

===== ======== ===== ========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

$ 1,500 $ 1,713

Accounts payable and accrued liabilities

----- -------- ----- -------- Total current liabilities 1,500 1,713

Deferred rent 458 446

-------- -------- Total liabilities 1,958 2,159

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 and 17,441,747 shares issued and 17,366,747 and

17,366,747 outstanding in 2010 and 2009, respectively

2

2

Additional paid-in-capital 371,112 370,994

Accumulated deficit (291,723 ) (289,368 )

Treasury stock, at cost

(2 ) (2 )

Accumulated other comprehensive gain

2 6

-------- -------- Total stockholders' equity 79,391 81,632

-------- --------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 81,349 $ 83,791

===== ======== ===== ========

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

THREE MONTHS ENDED

MARCH 31,

2010 2009

--------------- ---------------

OPERATING EXPENSES:

General and administrative $ 789 $ 923

Depreciation 79 89

Transaction costs 1,509 -

------ ------

Total operating expenses 2,377 1,012

OPERATING LOSS (2,377 ) (1,012 ) INTEREST INCOME 22 411

------ ------ NET LOSS $ (2,355 ) $ (601 )

===== ====== = ===== ====== =

Loss per common share:

Basic $ (0.14 ) $ (0.04 )

Diluted $ (0.14 ) $ (0.04 )

Weighted average common shares outstanding:

Basic 16,867 16,867

Diluted 16,867 16,867

CLARUS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS

(UNAUDITED)

(IN THOUSANDS)

THREE MONTHS ENDED

MARCH 31,

2010 2009

--------------- ---------------

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss $ (2,355 ) $ (601 ) Adjustments to reconcile net loss to net cash used in operating

activities:

Depreciation on property and equipment

79 89

Amortization of equity compensation plans

118 139

Amortization of discount on securities, net

(11 ) (324 )

Changes in operating assets and liabilities:

Decrease/(increase) in interest receivable, prepaids and other

other current assets

590 (47 )

Decrease in accounts payable and accrued liabilities

(213 ) (195 )

Increase in deferred rent

12 (1 )

------ ------ -

NET CASH USED IN OPERATING ACTIVITIES (1,780 ) (940 )

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of marketable securities (9,140 ) -

Proceeds from maturity of marketable securities

9,515 37,915

Purchase of equipment

(20 ) (3 )

------ - ------ -

NET CASH PROVIDED BY INVESTING ACTIVITIES

355 37,912

CASH FLOWS FROM FINANCING ACTIVITIES:

- -

------ ------

NET CASH PROVIDED BY FINANCING ACTIVITIES

- -

CHANGE IN CASH AND CASH EQUIVALENTS (1,425 ) 36,972 CASH AND CASH EQUIVALENTS, beginning of period 58,363 19,342

------ ------ CASH AND CASH EQUIVALENTS, end of period $ 56,938 $ 56,314

===== ====== ===== ======

SUPPLEMENTAL DISCLOSURE:

Cash paid for franchise and property taxes $

250 $ 70 SOURCE: Clarus Corporation CONTACT: Clarus Corporation Warren B. Kanders, 203-428-2000 Executive Chairman of the Board of Directors wbkanders@claruscorp.com Copyright Business Wire 2010 -0- KEYWORD: United States

North America

Connecticut INDUSTRY KEYWORD: Professional Services

Banking

Finance SUBJECT CODE: Earnings