CADA Cam Commerce Solutions (MM)

Net Income Up 30% and New X-Charge Installs Increased by 65% FOUNTAIN VALLEY, Calif., Feb. 7 /PRNewswire-FirstCall/ -- CAM Commerce Solutions, Inc. (NASDAQ:CADA) reported net income for the three months ended December 31, 2006 increased 30% to $968,000, or $0.23 per fully diluted share, as compared to $742,000, or $0.18 per fully diluted share, for the same period of the prior fiscal year. Revenues for the three months ended December 31, 2006 increased to $7.2 million, compared to $7.0 million for the three months ended December 31, 2005. Record 1st Quarter Pre-Tax Income and Pre-Tax Profit Margin Achieved Pre-tax income for the first quarter ended December 31, 2006 was $1.5 million, which was a company record and up 25% from the three months ended December 31, 2005. Pre-tax profit margins for the quarter ended December 31, 2006 were also a record 21%, compared to 17% for the same period of the prior fiscal year. The higher pre-tax profit margins are primarily the result of a continuing change in revenue mix to higher margin, recurring X-Charge payment processing revenues, which represented 48% of total company revenues in the first quarter ended December 31, 2006, as compared to 37% in the same period of the prior fiscal year. Total recurring revenues, which includes payment processing and service revenues, were 68% of total revenues in the quarter ended December 31, 2006, as compared to 56% for the same period of the prior fiscal year. X-Charge Performance - Record New Installations During the quarter ended December 31, 2006, the company installed a record 1,521 new X-Charge payment processing accounts, which is a 65% increase over the 922 X-Charge installations during the same period of the prior fiscal year. As of December 31, 2006, the company had more than 9,000 merchant accounts generating X-Charge revenues. The company's payment processing portfolio currently represents between $2.5 and $3 billion in annual payment processing volume. As of December 31, 2006, the company's X-Charge reseller base increased to 285 resellers who had earned residual income from their X-Charge payment processing accounts during the quarter. Cash Dividend In keeping with the company's previously stated policy to pay out approximately 75% or more of net income as a dividend to shareholders each quarter, the Board of Directors has declared a dividend of $0.18 per outstanding share for fiscal 2007 first quarter results, to be paid on April 16, 2007 to shareholders of record on April 4, 2007. This is a 29% increase in the dividend, or $0.04 per share, over the same quarter of the prior fiscal year. Even with quarterly pay out of dividends, the company's cash and cash equivalents plus marketable securities increased $817,000 to $24.5 million, or $6.10 per outstanding share, at December 31, 2006, compared to $23.7 million, or $5.97 per outstanding share, at September 30, 2006. Calculation of Cash and Marketable Securities Per Share DECEMBER 31, 2006 SEPTEMBER 30, 2006 Cash and cash equivalents $16,369,000 $15,196,000 Marketable available-for-sale securities 8,101,000 8,457,000 Total cash and marketable securities (numerator) $24,470,000 $23,653,000 Shares outstanding (denominator) 4,013,000 3,961,000 Cash and marketable securities per share $6.10 $5.97 "While we are very happy with our continued progress with X-Charge payment processing revenues, our systems business continued to show disappointing results with system revenues coming in lower than expected," said Geoff Knapp, CEO. "However, the decrease in point-of-sale software sales over the same quarter of last fiscal year was only 2% and actually up slightly over the past three quarters, while hardware sales declined 29% in the comparable quarter, accounting for the largest part of the shortfall. Hardware sales carry our lowest margins. While the systems business remains a challenge, the X-Charge business looks very strong and shows no signs of slowing down. We are closely monitoring our revenue and cost structure on the system side of the business and working hard to improve system revenues." Conference Call The company will be holding a conference call to discuss the quarterly results. The conference call will take place at 4:30 p.m. Eastern Time, on Wednesday, February 7, 2007. Anyone interested in participating should call 888-243-1152, if calling within the United States, or 973-582-2868, if calling internationally. There will be a playback available until February 14, 2007. To listen to the playback, please call 877-519-4471, if calling within the United States, or 973-341-3080, if calling internationally. Please use pin number 8375029 for the replay. The company will also have an updated investor presentation posted on its website at http://www.camcommerece.com/. About CAM Commerce Solutions CAM Commerce Solutions designs, develops, markets, installs and services highly integrated retailing and payment processing solutions for small to medium size traditional and eCommerce businesses based on the company's open architecture software. These integrated solutions include credit and debit card processing, inventory management, point of sale, accounting, Internet sales, gift card and customer loyalty programs, and extensive management reporting. Payment processing services are provided on a transaction based business model. You can visit CAM Commerce Solutions at http://www.camcommerce.com/. Important Information Certain statements made in this release, including those relating to the expectations of profitability and economic climates, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Words such as "will," "should," "believe," "expect," "anticipate," "outlook," "forecast," "optimistic," "feel," "potential," "continue," "intends," "goal," "plans," "estimates," "may," "seeks," "would," "future," "bright," "projected," and other similar expressions that predict or indicate future events or trends, or that are not statements of historical matters, identify forward-looking statements. Expectations concerning financial results for future quarters are not actual results and are based upon preliminary estimates, as well as certain assumptions management believes to be reasonable at this time. Investors should not rely upon forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from management's expectations, and the company does not undertake any duty to update forward-looking statements which speak only as of the date of this release. The performance of any one month or quarter may not be indicative of future performance, particularly given prevailing market and economic uncertainties. In addition to the factors set forth elsewhere in this release, the economic, competitive, technological, and other factors identified in CAM Commerce Solutions' filings with the Securities and Exchange Commission could affect the forward looking statements contained in this release. CAM COMMERCE SOLUTIONS, INC. CONDENSED STATEMENTS OF INCOME (In thousands, except per share data) THREE MONTHS ENDED DECEMBER 31 DECEMBER 31 2006 2005 (Unaudited) (Unaudited) REVENUES Net payment processing revenues $3,465 $2,578 Net hardware, software and installation revenues 2,285 3,064 Net service revenues 1,422 1,344 Total net revenues 7,172 6,986 COSTS AND EXPENSES Cost of payment processing revenues 130 118 Cost of hardware, software and installation revenues 1,184 1,665 Cost of service revenues 637 594 Total cost of revenues 1,951 2,377 Selling, general and administrative expenses 3,663 3,272 Research and development expenses 383 363 Interest income (305) (206) Total costs and expenses 5,692 5,806 Income before provisions for income taxes 1,480 1,180 Provisions for income taxes 512 438 Net income $968 $742 Basic net income per share $0.24 $0.19 Diluted net income per share $0.23 $0.18 Shares used in computing basic net income per share 3,980 3,849 Shares used in computing diluted net income per share 4,191 4,096 CAM COMMERCE SOLUTIONS, INC. CONDENSED BALANCE SHEETS (In thousands, except per share data) DECEMBER 31 SEPTEMBER 30 2006 2006 (Unaudited) ASSETS Current assets: Cash and cash equivalents $16,369 $15,196 Marketable available-for-sale securities 8,101 8,457 Accounts receivable, net 2,183 1,936 Inventories 351 391 Deferred income taxes 1,000 991 Other current assets 187 138 Total current assets 28,191 27,109 Deferred income taxes 49 56 Property and equipment, net 424 484 Intangible assets, net 453 445 Other assets 70 51 Total assets $29,187 $28,145 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $207 $301 Accrued compensation and related expenses 1,008 1,255 Deferred service revenue and customer deposits 1,866 1,499 Cash dividends payable 643 594 Other accrued liabilities 83 103 Total current liabilities 3,807 3,752 Stockholders' equity: Common stock, $.001 par value; 12,000 shares authorized, 4,013 shares issued and outstanding at December 31, 2006 and 3,961 at September 30, 2006 4 4 Capital in excess of par value 22,290 21,634 Accumulated other comprehensive loss -- (6) Retained earnings 3,086 2,761 Total stockholders' equity 25,380 24,393 Total liabilities and stockholders' equity $29,187 $28,145 DATASOURCE: CAM Commerce Solutions, Inc. CONTACT: Mathew Hayden, President of Hayden Communications, Inc., +1-858-704-5065, for CAM Commerce Solutions, Inc. Web site: http://www.camcommerce.com/

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