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CAM Commerce Solutions, Inc.
17075 Newhope Street
CAM Reports 2nd Quarter Results
May 2, 2005
Contact: Mathew Hayden, President (FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported a slight increase in revenues to $5.9 million for the three months ended March 31, 2005 compared to $5.8 million for the same quarter of fiscal 2004. Income before income tax provisions for the three months ended March 31, 2005 decreased to $252,000, compared to $512,000 for the same period ended March 31, 2004. Net income for the three months ended March 31, 2005 decreased to $150,000 or $0.04 per fully diluted share, compared to $475,000 or $0.12 per share for the quarter ended March 31, 2004. For the six months ended March 31, 2005, revenue increased 9% to $12.1 million compared to $11.1 million for the same period in fiscal 2004. Earnings before provisions for income taxes for the six month period ended March 31, 2005 improved slightly to $925,000, compared to $916,000 for the same period of last year. Net income for the six months ended March 31, 2005 decreased to $552,000 or $0.14 per fully diluted share, compared to $850,000 or $0.23 per share for the six months ended March 31, 2004. Results for the three and six months ended March 31, 2005 include federal tax provision, whereas for the same periods in fiscal 2004, no federal tax provision was recorded due to the utilization of net operating loss carryforwards. The company's CEO, Geoff Knapp commented, “The quarter ended March 31, 2005 was negatively impacted by lower than expected new system sales and an increase in expense primarily related to the timing of marketing expenditures and the increase in the operational costs of our X-Charge operations as related to the growth we are experiencing in this area of our business. It is too early to say whether or not we are experiencing any type of longer term slow down on the system sales side but we are taking steps to adapt this part of our business to be more flexible. Right now we are treating the shortfall as a sales execution issue and are working to improve in this area. Our X-Charge payment processing revenues continued to show strong growth and provided solid results. For comparison purposes between the quarters ended March 31, 2005 and 2004, the amounts will not be directly comparable due to the change in accounting estimate for X-Charge revenues that occurred in June of last year. The comparison of the six month periods ended March 31, 2005 and 2004 better reflects the growth rate in X-Charge revenues, which increased 81%. Our cash flow remained strong during the quarter. Cash and marketable securities increased $800,000 over last quarter, from $18.0 million to $18.8 million. In summary, we are not happy about the softness we experienced during the quarter in system sales and we are addressing this. At the same time we are very happy with the continued growth of our X-Charge revenues. ” About CAM Commerce SolutionsCAM 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 www.camcommerce.com. Important InformationCertain statements made in this release, including those relating to the expectations of profitability and economic climates, are forwardlooking 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 (Unaudited) (In thousands, except per share data)
CAM COMMERCE SOLUTIONS, INC.
CONDENSED BALANCE SHEETS (In thousands, except per share data)
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