CADA Cam Commerce Solutions (MM)

CAM Reports 1st Quarter Results Pre-tax Earnings Rise 67% on 16% Revenue Increase FOUNTAIN VALLEY, Calif., Feb. 1 /PRNewswire-FirstCall/ -- CAM Commerce Solutions, Inc. (NASDAQ:CADA) reported a 16% increase in revenues of $6.2 million for the three months ended December 31, 2004, compared to $5.3 million for the same period of the prior year. Pre-tax income for the three months ended December 31, 2004 increased 67% to $673,000, compared to $404,000 for the quarter ended December 31, 2003. Net income for the three months ended December 31, 2004 was $402,000 or $0.10 per fully diluted share, compared to $375,000 or $0.10 per fully diluted share for the quarter ended December 31, 2003. In the first quarter of fiscal 2003, the Company did not incur any federal income tax provision due to the use of net operating loss carryforwards, while the fiscal 2004 results reflect the impact of a tax provision at federal statutory tax rates. In addition, the number of shares used in the computations of basic and diluted net income per share is higher this year than last year primarily due to a higher share price, and stock options and warrants that were exercised over the past year, resulting in no change in earnings per share on slightly better net income for 2005. "In the first quarter we saw essentially flat system sales, while our payment processing 'X-Charge' revenue increased 104% over the same quarter last year," said Geoff Knapp, CEO. "I feel good about our progress with X-Charge and I am positive on the outlook for the foreseeable future. I am also looking forward to a significant new release of both our Retail STAR and CAM-32 systems this quarter that will provide some new functionality that has the potential to expand our market opportunities for system sales. In the first quarter we achieved a record pre-tax profit margin of approximately 11%, which is primarily the result of the continuing trend of a higher mix of our revenues being X-Charge related." About CAM Commerce Solutions CAM Commerce Solutions provides total commerce solutions for traditional and web retailers that are based on the company's open architecture software products for inventory management, point of sale, sales transaction processing, accounting, and payment processing. These solutions often include hardware, installation, training, service, and payment processing services provided by the company. 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 expressly 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 STATEMENT OF OPERATIONS (In thousands, except per share data) (Unaudited) THREE MONTHS ENDED DECEMBER 31 DECEMBER 31 2004 2003 REVENUES Net hardware, software and installation revenues $3,348 $3,237 Net service revenues 1,405 1,379 Net payment processing revenues 1,397 684 Total net revenues 6,150 5,300 COSTS AND EXPENSES Cost of hardware, software and installation revenues 1,684 1,641 Cost of service revenues 512 508 Cost of payment processing revenues 142 38 Total cost of revenues 2,338 2,187 Selling, general and administrative expenses 2,881 2,421 Research and development expenses 367 369 Total costs and operating expenses 5,586 4,977 Operating income 564 323 Interest income 109 81 Income before provision for income taxes 673 404 Provision for income taxes 271 29 Net income $402 $375 Basic net income per share $0.11 $0.11 Diluted net income per share $0.10 $0.10 Shares used in computing basic net income per share 3,787 3,284 Shares used in computing diluted net income per share 4,065 3,615 CAM COMMERCE SOLUTIONS, INC. CONDENSED BALANCE SHEETS (In thousands, except per share data) DECEMBER 31 SEPTEMBER 30 2004 2004 (Unaudited) ASSETS Current assets: Cash and cash equivalents $16,245 $16,591 Marketable available-for-sale securities 1,800 1,109 Accounts receivable, net 2,247 1,919 Inventories 257 361 Deferred income taxes 1,629 1,629 Other current assets 109 137 Total current assets 22,287 21,746 Deferred income taxes 780 780 Property and equipment, net 621 639 Intangible assets, net 625 679 Other assets 66 80 Total assets $24,379 $23,924 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $481 $550 Accrued compensation and related expenses 886 1,093 Deferred service revenue and customer deposits 1,664 1,628 Other accrued liabilities 239 357 Total current liabilities 3,270 3,628 Stockholders' equity: Common stock, $.001 par value; 12,000 shares authorized, 3,798 shares issued and outstanding at December 31, 2004 and 3,754 at September 30, 2004 4 4 Capital in excess of par value 19,748 19,328 Accumulated other comprehensive income (7) 2 Retained earnings 1,364 962 Total stockholders' equity 21,109 20,296 Total liabilities and stockholders' equity $24,379 $23,924 DATASOURCE: CAM Commerce Solutions, Inc. CONTACT: Mathew Hayden of Hayden Communications, Inc., +1-858-456-4533, for CAM Commerce Solutions, Inc. Web site: http://www.camcommerce.com/

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