(FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported pre-tax income for the quarter ended September 30, 2005 rose 60% to $1,038,000 as compared to $649,000 for the same period of last year. Revenues increased to $6.6 million for the three months ended September 30, 2005, compared to $6.3 million for the three months ended September 30, 2004. Net income for the three month period ended September 30, 2005 increased 7% to $719,000 or $0.18 per share, compared to $670,000 or $0.16 per share for the same quarter last year.

Revenues for the fiscal year ended September 30, 2005 increased to $24.9 million, compared to $23.6 million for fiscal year 2004. Pre-tax income climbed 20% to $2.8 million compared to $2.3 million last year. Net income for fiscal year ended September 30, 2005 declined to $1.8 million or $0.44 per share, compared to $2.2 million or $0.57 per share for fiscal year 2004, as a result of a higher provision for federal income tax. In 2004, the Company did not have federal income tax provision due to use of net loss carry forwards. Also as previously disclosed in the third quarter, the results for fiscal 2004 included $170,000 in additional revenue and $126,000 in additional net income, related to a change in the accounting estimate for payment processing revenues from the Company's X-Charge revenues, which was recorded in third quarter ended June 30, 2004.

Cash Increase

As of September 30, 2005, cash and marketable securities rose to $21 million or $5.48 per outstanding share, compared to $17.7 million or $4.71 per outstanding share at the beginning of the year. The company remains debt free.

Declared Cash Dividends

The company further announced that per the company’s previously stated earnings based dividend policy, the Board of Directors has declared a dividend of $0.14 per share for the quarter results. The dividend will be payable on January 12, 2006 to shareholders of record as of January 3, 2006. The Company had approximately 3,848,000 shares outstanding on November 7, 2005.

X-Charge Performance

“Overall, we had another very good year,” stated Geoff Knapp, Chairman and CEO of CAM Commerce Solutions. “Our X-Charge payment processing revenue continued to experience strong growth and drove our record profit for the year. We are building a large recurring X-Charge revenue base, and our total X-Charge fiscal 2005 revenues increased 78% compared to fiscal 2004. The performance on the system sales side did not meet our expectations and we are working to improve this amid tough market conditions.

In the 4th quarter we installed 879 new X-Charge processing accounts, with September being a record month with 342 new accounts. This is a 65% increase over the same period last year when we installed 534 new X-Charge processing accounts. All of the growth came from our reseller channel. For fiscal year 2005 we installed 3,072 new accounts, which was an increase of 83% over fiscal year 2004 when we installed 1,683 new accounts. We had approximately 5,500 accounts processing with us at the end of the year, representing roughly $1.7 billion in annual processing volume. Due to our unique business model the overall quality of the accounts in our portfolio has proven to be far superior to industry norms. Our account base as a group has a substantially higher than average processing volume, lower risk of loss and lower drop (churn) rate than the average industry portfolio of processing accounts. We believe this puts our payment processing portfolio at the upper levels on the quality scale.” Mr. Knapp further stated “As we move into 2006, over 50% of our revenues is now recurring in nature from payment processing and service, and our success is less dependent upon strong system sales. Nearly all of our growth is coming from the X-Charge payment processing portion of our business, which also offers us our highest margins. System sales remain challenging and the business is subject to seasonal fluctuations, with our March quarter looking like our seasonally most challenging in all areas. The December quarter should benefit from seasonally higher X-Charge revenues due to the holiday season but is also a challenging quarter for system sales for the same reason. Overall, it is my expectation that results will improve again in 2006.”

Read the rest of the release here: CAM Commerce Solutions 4th Quarter & Year End Financial Results Press Release

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