Net Earnings Rise 85% on 14% Revenue Increase FOUNTAIN VALLEY,
Calif., Feb. 14 /PRNewswire-FirstCall/ -- CAM Commerce Solutions,
Inc. (NASDAQ:CADA) reported net income for the three months ended
December 31, 2005 increased 85% to $742,000 or $.18 per fully
diluted share, as compared to $402,000 or $.10 per share for the
same quarter in the prior fiscal year. Revenues for the quarter
increased 14% to $7.0 million, compared to $6.2 million for the
comparable quarter of the prior fiscal year, as a result of an 85%
increase in X-Charge payment processing revenues over the same
quarter of last year. Record 1st Quarter Profit Margin and Pre-Tax
Profit Achieved Pre-tax profit margins in the quarter were a record
17%, compared to 11% for the comparable quarter of fiscal 2005.
Pre-tax profit was $1.2 million, which was also a company record.
The higher margins are primarily the result of a continuing change
in revenue mix to higher margin, recurring X-Charge payment
processing revenues, which represented 37% of total company
revenues in the first quarter of fiscal 2006, as compared to 23% in
the first quarter of fiscal 2005. Total recurring revenues (service
plus payment processing) were 56% of total revenues in the quarter.
The results for the three months ended December 31, 2005 included
$42,000 in compensation expense, related to the adoption of
Statement of Financial Accounting Standards No. 123R in this
quarter, for stock options that were previously granted to
employees. Prior to SFAS123R adoption, compensation expense related
to employee stock options was not recorded in the financial
statements but disclosed in the footnotes as required under
previous accounting rules. X-Charge Performance -- Record New
Installations During the quarter, the company installed a record
922 new X-Charge payment processing accounts, as compared to 707
for the same period of last year. As of December 31, 2005, the
company had between 5,500 and 6,000 live payment processing
accounts. The company's payment processing portfolio currently
represents approximately $1.9 billion in annual credit card
transaction volume. The company's X-Charge reseller base grew
during the quarter to 222 resellers who had earned residual income
from their active X-Charge processing accounts during the quarter,
as compared to 132 at the same time last year, an increase of 90
resellers over the past 12 months. The company is actively
marketing to these resellers to bring in new X-Charge processing
accounts. Cash Dividend In keeping with the company's previously
stated policy to pay out approximately 75% of net income as a
dividend to shareholders each quarter, the Board of Directors has
declared a dividend of $.14 per share for fiscal 2006 1st quarter
results, to be paid on April 14, 2006 to shareholders of record on
April 4, 2006. "The December quarter came in as expected with
company profit margins continuing to increase to record levels due
to our X-Charge payment processing revenue," said Geoff Knapp, CEO.
"System sales showed a small decline, but we are optimistic that it
will turn around by the 2nd half of this year if not before. The
leading indicators for this business suggest we have a good chance
of seeing a more positive trend towards the middle of the year.
X-Charge continued to be our winner. We experienced the strong
seasonal uptick in revenues during this quarter as we have expected
and we were also able to install a record number of new X-Charge
payment processing accounts during the quarter." Conference Call
The company will be holding a conference call to discuss the
quarterly results. The conference call will take place at 4:15 p.m.
Eastern Time, on Tuesday, February 14, 2006. Anyone interested in
participating should call 877-502-9272 if calling within the United
States or 913-981-5581 if calling internationally. There will be a
playback available until February 21, 2006. To listen to the
playback, please call 888-203-1112 if calling within the United
States or 719-457-0820 if calling internationally. Please use pin
number 7919874 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, Inc.
CAM Commerce Solutions designs, develops, markets 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 inventory management, point of sale, accounting,
credit and debit card processing, Internet sales, gift card and
customer loyalty programs, and extensive management reporting.
Payment processing services are provided on a transaction based
business model. For more information, 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 STATEMENT OF INCOME
(In thousands, except per share data) (Unaudited) THREE MONTHS
ENDED DECEMBER 31 DECEMBER 31 2005 2004 REVENUES Net hardware,
software and installation revenues $3,064 $3,348 Net service
revenues 1,344 1,405 Net payment processing revenues 2,578 1,397
Total net revenues 6,986 6,150 COSTS AND EXPENSES Cost of hardware,
software and installation revenues 1,665 1,684 Cost of service
revenues 594 539 Cost of payment processing revenues 118 142 Total
cost of revenues 2,377 2,365 Selling, general and administrative
expenses 3,272 2,881 Research and development expenses 363 340
Interest income (206) (109) Total costs and expenses 5,806 5,477
Income before provision for income taxes 1,180 673 Provision for
income taxes 438 271 Net income $742 $402 Basic net income per
share $0.19 $0.11 Diluted net income per share $0.18 $0.10 Shares
used in computing basic net income per share 3,849 3,787 Shares
used in computing diluted net income per share 4,096 4,065 CAM
COMMERCE SOLUTIONS, INC. CONDENSED BALANCE SHEETS (In thousands,
except per share data) DECEMBER 31 SEPTEMBER 30 2005 2005
(Unaudited) ASSETS Current assets: Cash and cash equivalents
$15,380 $15,763 Marketable available-for-sale securities 5,970
5,300 Accounts receivable, net 2,483 1,930 Inventories 290 306
Deferred income taxes 1,188 1,188 Other current assets 172 132
Total current assets 25,483 24,619 Deferred income taxes 373 714
Property and equipment, net 585 610 Intangible assets, net 449 467
Other assets 51 51 Total assets $26,941 $26,461 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $475
$445 Accrued compensation and related expenses 1,009 1,154 Deferred
service revenue and customer deposits 1,853 1,728 Cash dividends
payable 541 385 Other accrued liabilities 149 260 Total current
liabilities 4,027 3,972 Stockholders' equity: Common stock, $.001
par value; 12,000 shares authorized, 3,861 shares issued and
outstanding at December 31, 2005 and 3,846 at September 30, 2005 4
4 Capital in excess of par value 20,375 20,152 Accumulated other
comprehensive loss (17) (18) Retained earnings 2,552 2,351 Total
stockholders' equity 22,914 22,489 Total liabilities and
stockholders' equity $26,941 $26,461 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/
Copyright
Cam Commerce Solutions (MM) (NASDAQ:CADA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cam Commerce Solutions (MM) (NASDAQ:CADA)
Historical Stock Chart
From Jul 2023 to Jul 2024