CADA Cam Commerce Solutions (MM)

CAM Reports 4th Quarter & Year End Results September Quarter Earnings Up 143% on 21% Revenue Increase FOUNTAIN VALLEY, Calif., Nov. 15 /PRNewswire-FirstCall/ -- CAM Commerce Solutions, Inc. (NASDAQ:CADA) today reported revenues of $6.3 million for the three months ended September 30, 2004, compared to $5.2 million for the fourth quarter of fiscal 2003, an increase of 21%. Net income for the three months ended September 30, 2004 rose substantially to $670,000 or $0.16 per fully diluted share, compared to $276,000 or $0.08 per share for the quarter ended September 30, 2003. Revenues for the fiscal year ended September 30, 2004 increased 17% to $23.6 million, compared to $20.1 million for fiscal year 2003. Net income for the year rose to $2.2 million or $0.57 per fully diluted share, compared to a loss of $134,000 or ($0.04) per share for fiscal year 2003. The results for fiscal 2004 included $170,000 in additional revenue and $126,000 in net income, related to a change in the accounting estimate for payment processing revenues from the Company's X-Charge business, which was recorded in third quarter ended June 30, 2004. If the change in accounting estimate had not occurred, revenues and net income for fiscal 2004 would have been $23.5 million and $2.1 million or $0.54 per fully diluted share, respectively. The change in accounting estimate resulted from the Company's ability to better estimate the payment processing revenues based on the accumulation of sufficient historical information required to analyze trends and formulate a reasonable estimate. Prior to the change in accounting estimate, payment processing revenues were recognized on a cash basis due to the lack of historical information available to make a reliable estimate. As of September 30, 2004, cash and marketable securities rose to $17.7 million or $4.71 per outstanding share, compared to $12.4 million or $3.82 per outstanding share at the beginning of the year. The company remains debt free. The operating results included income tax provision for the State of California based on California's suspension of the use of net operating loss carryforwards. The Company did not pay Federal income taxes during the September quarter, or fiscal year due to the use of net operating loss carryforwards. The Company expects to have both federal and state income tax provision in fiscal 2005. "This past year was the most gratifying and rewarding in our history," stated Geoff Knapp, Chairman and CEO of CAM Commerce Solutions. "We succeeded on all levels and the financial results speak for themselves. Our traditional systems business saw revenue growth of approximately 10%, while our X-Charge payment processing revenues grew 132% over the prior year. The increase in higher margin, recurring revenues resulted in an overall gross margin increase of 4% over the prior year. While SG&A expenses rose 6%, most of the increase is attributable to higher sales commissions paid on higher system and X-Charge revenues. We exceeded all of our financial goals for the year, and more importantly we have proven that we have built a business model which works well and that we can build on for the foreseeable future." Mr. Knapp further stated, "Not only were our financial results excellent this past year, we also released significant new versions of nearly all our software products that will be very meaningful for our customers in helping them to be better retailers. This puts us in an enviable position in the market as we move into 2005 with the goal of leveraging what we have built into increased market share and continually improving financial performance." Calculation of Cash and Marketable Securities Per Share SEPTEMBER 30 SEPTEMBER 30 2004 2003 Cash and cash equivalents $16,591,000 $10,889,000 Marketable available-for-sale securities 1,109,000 1,541,000 Total cash and marketable securities (numerator) $17,700,000 $12,430,000 Shares outstanding (denominator) 3,754,000 3,253,000 Cash and marketable securities per share $4.71 $3.82 Calculation of the Effect of Change in Accounting Estimate TWELVE MONTHS SEPTEMBER 30, 2004 Revenues $23,634,000 Effect of change in accounting estimate (170,000) Revenues without change in accounting estimate $23,464,000 Net income $2,241,000 Effect of change in accounting estimate (126,000) Net income without change in accounting estimate $2,115,000 Diluted net income per share $0.57 Diluted net income per share without change in accounting estimate $0.54 Shares used in computing diluted net income per share 3,937,000 About CAM Commerce Solutions CAM Commerce Solutions, Inc. 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 The statements made in this news 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 our expectations, and the company expressly does not undertake any duty to update forward-looking statements which speak only as of the date of this news 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 news release. CAM COMMERCE SOLUTIONS, INC. CONDENSED STATEMENT OF OPERATIONS (In thousands, except per share data) THREE MONTHS ENDED TWELVE MONTHS ENDED SEPT. 30 SEPT. 30 SEPT. 30 SEPT. 30 2004 2003 2004 2003 REVENUES Net hardware, software and installation revenues $3,788 $3,269 $14,420 $13,072 Net service revenues 1,405 1,390 5,541 5,474 Net payment processing revenues 1,069 507 3,673 1,583 Total net revenues 6,262 5,166 23,634 20,129 COSTS AND EXPENSES Cost of hardware, software and installation revenues 1,787 1,614 7,015 6,452 Cost of service revenues 514 497 2,035 2,045 Cost of payment processing revenues 90 38 224 119 Total cost of revenues 2,391 2,149 9,274 8,616 Selling, general and administrative expenses 2,961 2,495 10,872 10,255 Research and development expenses 372 298 1,508 1,648 Total costs and operating expenses 5,724 4,942 21,654 20,519 Operating income (loss) 538 224 1,980 (390) Interest income 111 71 361 280 Income (loss) before provision for income taxes 649 295 2,341 (110) Provision (benefit) for income taxes (21) 19 100 24 Net income (loss) $670 $276 $2,241 $(134) Basic net income (loss) per share $0.18 $0.09 $0.63 $(0.04) Diluted net income (loss) per share $0.16 $0.08 $0.57 $(0.04) Shares used in computing basic net income (loss) per share 3,745 3,220 3,543 3,143 Shares used in computing diluted net income (loss) per share 4,197 3,440 3,937 3,143 CAM COMMERCE SOLUTIONS, INC. CONDENSED BALANCE SHEETS(In thousands, except per share data) SEPTEMBER 30 SEPTEMBER 30 2004 2003 ASSETS Current assets: Cash and cash equivalents $16,591 $10,889 Marketable available-for-sale securities 1,109 1,541 Accounts receivable, net 1,919 1,214 Inventories 361 272 Other current assets 137 102 Total current assets 20,117 14,018 Property and equipment, net 639 710 Intangible assets, net 679 908 Other assets 80 305 Total assets $21,515 $15,941 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $550 $518 Accrued compensation and related expenses 1,093 687 Deferred service revenue and customer deposits 1,628 1,455 Other accrued liabilities 357 263 Total current liabilities 3,628 2,923 Stockholders' equity: Common stock, $.001 par value; 12,000 shares authorized, 3,754 shares issued and outstanding at September 30, 2004 and 3,253 at September 30, 2003 4 3 Paid-in capital 16,919 14,271 Accumulated other comprehensive income 2 23 Retained earnings (accumulated deficit) 962 (1,279) Total stockholders' equity 17,887 13,018 Total liabilities and stockholders' equity $21,515 $15,941 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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