FOUNTAIN VALLEY, CA reported net income increased 60% for the
three months ended March 31, 2008 to $1,366,000, or $0.32 per fully
diluted share, compared to $854,000, or $0.20 per fully diluted
share, for the same quarter of fiscal 2007. Revenues for the
quarter increased 23% to $9.0 million, compared to $7.3 million for
the same quarter of last year.
Net income increased 68% for the six months ended March 31, 2008
to $3.1 million, or $0.71 per fully diluted share, compared to $1.8
million, or $0.43 per fully diluted share, for the same period of
fiscal 2007. Revenues for the six months ended March 31, 2008
increased 30% to $18.9 million, compared to $14.5 million for the
six months ended March 31, 2007.
Net income for the three and six months ended March 31, 2008
included a tax benefit of $244,000 due to the reversal of an
uncertain tax position liability. The reversal was the result of a
favorable audit settlement with the Internal Revenue Service
concerning R&D credits.
Pre-tax profit margins for the March quarter rose to a 2nd
quarter record 20%, making it the 12th consecutive quarter of year
over year profit margin increase.
X-Charge Performance
During the quarter, the Company installed a record 1,802 new
X-Charge payment processing accounts. As of March 31, 2008, the
company had approximately 15,000 merchant accounts generating
X-Charge revenues. The company's payment processing portfolio
currently represents over $4 billion in annual credit card payment
processing volume. X-Charge payment processing revenues increased
62% for the three months ended March 31, 2008 to $5.4 million from
$3.3 million for the same quarter last year.
Dividend Declared
The Company continues its "earnings based" dividend plan to pay
out 75% or more of net profit each quarter in the form of a
shareholder dividend. The Board of Directors has declared a
quarterly cash dividend of $0.31 per outstanding share based on
this quarter's results, to be paid on July 14, 2008 to shareholders
of record on July 3, 2008. This represents a 55% increase in the
dividend over the $0.20 per share previously paid based on the
quarter ended March 31, 2007 results. This quarter represents the
12th consecutive dividend issued for the quarterly results, with
each quarterly dividend representing a significant increase over
the same quarter of the prior year.
"The March quarter is typically our seasonally slowest quarter
of the year with the highest expense, so the meaningful comparison
for our revenue and earnings performance should be on a year over
year basis rather than a sequential basis," said Geoff Knapp, CEO.
"We continued our trend of substantially improving earnings based
on our success with our X-Charge payment processing business. We
installed a record number of new payment processing accounts during
the quarter, with the increase really starting in March where over
700 new accounts were installed. This is a result of the new sales
people we hired at the end of last year coming up to speed,
combined with the continued addition of new resellers. Our net
profit margins also continued to show improvement on a year over
year comparison basis as a result of the continuing change in our
revenue mix to higher margin, recurring revenues provided by our
X-Charge business.
"While our X-Charge business performance was stellar, the POS
system business showed some signs of weakness in the quarter with
revenues down 17% from the same quarter last year. In general, the
March quarter can be a seasonally challenging quarter for systems
business, but we saw delayed decisions in March that may or may not
be related to overall economic weakness. Sales activity was at
normal or above levels going into the current quarter, so we will
have to wait and see if the March quarter system sales results were
the type of normal deviation we can see in the systems business or
whether there is some longer term underlying weakness in our
market. We have taken steps to cut back on above normal sales and
marketing expenditures incurred during the quarter to improve
profitability going forward. It is important to note that while we
are of course seeking improved performance in the systems revenues,
it is our X-Charge revenues that will be the primary driver of our
success going forward. Our recurring revenue in the quarter, which
is the combination of our X-Charge and service revenue, rose to a
quarterly record 76% of total revenue in the quarter."
Conference Call
The company will be holding a conference call to discuss the
quarterly results. The conference call will take place at 1:30 p.m.
Pacific Time (4:30 p.m. Eastern Time), on Wednesday, April 30,
2008. Anyone interested in participating in the conference call
should call 800-762-8932, if calling within the United States, or
480-629-9039, if calling internationally. There will be a playback
available until May 7, 2008. To listen to the playback, please call
800-406-7325, if calling within the United States, or 303-590-3030,
if calling internationally. Please use pin number 3872251 for the
replay. The company will also have an updated investor presentation
posted on its website at www.camcommerce.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 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.
UNAUDITED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ------------------
MARCH 31 MARCH 31 MARCH 31 MARCH 31
2008 2007 2008 2007
-------- -------- -------- --------
REVENUES
Net payment processing revenues $ 5,423 $ 3,342 $ 11,208 $ 6,807
Net hardware, software and
installation revenues 2,144 2,576 4,725 4,861
Net service revenues 1,478 1,429 2,957 2,851
-------- -------- -------- --------
Total net revenues 9,045 7,347 18,890 14,519
COSTS AND EXPENSES
Cost of payment processing
revenues 232 181 471 311
Cost of hardware, software and
installation revenues 1,221 1,234 2,552 2,418
Cost of service revenues 665 639 1,336 1,276
-------- -------- -------- --------
Total cost of revenues 2,118 2,054 4,359 4,005
Selling, general and administrative
expenses 4,928 3,840 9,695 7,503
Research and development expenses 481 397 945 780
Interest income (294) (310) (655) (615)
-------- -------- -------- --------
Total costs and expenses 7,233 5,981 14,344 11,673
-------- -------- -------- --------
Income before provisions for income
taxes 1,812 1,366 4,546 2,846
Provisions for income taxes 446 512 1,486 1,024
-------- -------- -------- --------
Net income $ 1,366 $ 854 $ 3,060 $ 1,822
======== ======== ======== ========
Basic net income per share $ 0.33 $ 0.21 $ 0.74 $ 0.46
======== ======== ======== ========
Diluted net income per share $ 0.32 $ 0.20 $ 0.71 $ 0.43
======== ======== ======== ========
Shares used in computing basic net
income per share 4,124 4,022 4,117 4,001
Shares used in computing diluted
net income per share 4,297 4,220 4,293 4,206
CAM COMMERCE SOLUTIONS, INC.
CONDENSED BALANCE SHEETS
(In thousands, except per share data)
MARCH 31, SEPTEMBER 30,
2008 2007
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 21,460 $ 22,047
Marketable available-for-sale securities 5,794 6,388
Accounts receivable, net 2,793 2,688
Inventories 347 295
Prepaid income taxes 1,885 --
Deferred income taxes 76 625
Other current assets 139 182
------------ ------------
Total current assets 32,494 32,225
Property and equipment, net 770 748
Intangible assets, net 485 544
Other assets 66 72
------------ ------------
Total assets $ 33,815 $ 33,589
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 525 $ 713
Accrued compensation and related expenses 1,588 1,877
Deferred service revenue and customer
deposits 1,537 1,622
Cash dividends payable 1,283 986
Other accrued liabilities 110 372
------------ ------------
Total current liabilities 5,043 5,570
Liability for uncertain tax positions 58 --
------------ ------------
Total liabilities 5,101 5,570
------------ ------------
Stockholders' equity:
Common stock, $.001 par value; 12,000 shares
authorized, 4,134 shares issued and
outstanding at March 31, 2008 and 4,105 at
September 30, 2007 4 4
Capital in excess of par value 24,284 23,702
Accumulated other comprehensive loss (17) (2)
Retained earnings 4,443 4,315
------------ ------------
Total stockholders' equity 28,714 28,019
------------ ------------
Total liabilities and stockholders' equity $ 33,815 $ 33,589
============ ============
Contact: Mathew Hayden President Hayden Communications, Inc.
858-704-5065 CAM Commerce Solutions, Inc. 17075 Newhope Street
Fountain Valley, CA 92708
Cam Commerce Solutions (MM) (NASDAQ:CADA)
Historical Stock Chart
From Apr 2024 to May 2024
Cam Commerce Solutions (MM) (NASDAQ:CADA)
Historical Stock Chart
From May 2023 to May 2024
