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Dow Jones Newswires -- July 12, 1999
DJ Clarus Corp. Up 23% As Co. Kicks Off New Ad
Campaign
By Christina Cheddar
NEW YORK (Dow Jones)--Clarus Corp. (CLRS) shares rose 25% Monday, the same
day it launched an advertising campaign to promote its WebPurchasing alliance with
Microsoft Corp. (MSFT) and Mastercard International Ltd. (X.MST).
The ad campaign is the second phase of an effort to promote the program, which
provides end-to-end, Web-based corporate purchasing technology to buyers and
suppliers, said Nancy O'Donnell, Clarus' director of Investor Relations.
The new campaign features the Atlanta provider of Web-based applications more
prominently than did its predecessor. The advertisement will run in The Wall Street
Journal, the New York Times, American Banker and USA Today, said O'Donnell.
O'Donnell also said the recent initial public offerings of its competitors Ariba Inc. (ARBA),
of Sunnyvale, Calif., and Commerce One Inc. (CMRC), of Walnut Creek, Calif., have
spotlighted the growth possibilities for Internet-procurement firms.
In the first quarter, between 40% to 50% of Clarus' $3.7 million of software-license-fee
revenue came from its electronic-procurement products, O'Donnell said. The first quarter
was the first full reporting quarter since Clarus acquired the e-procurement business.
Clarus shares recently traded at 8 5/16, up 1 13/16 or 27.9% on Nasdaq-volume of
665,100, which compared to average volume of 49,000. The gains added to a 18.9%
gain Friday.
Clarus' move ran counter to most Internet stocks, which were generally lower Monday.
U.S. Bancorp Piper Jaffray analyst Thomas Berquist said some investors believe Clarus'
electronic procurement operations are roughly the same size as Commerce One's
business.
He noted Commerce One's current market capitalization is $1.3 billion, while Clarus has
a capitalization of about $72 million. At 6% of Commerce One's capitalization, some
investors may see Clarus as undervalued, said Berquist. |
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