CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

November 15, 2001

Contact: Mathew Hayden, President
Hayden Communications, Inc.
858-704-5065

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions (NASDAQ: CADA) announced that revenues for the three months ended September 30, 2001 increased 25% to $5.5 million compared to $4.4 million for the same quarter in 2000. Net income for the three month period ended September 30, 2001 was $219,000 or $0.07 per share, compared to a $590,000 loss or ($0.20) per share in the same period of 2000. Revenue for the twelve months ended September 30, 2001 was $20.8 million compared to $21.3 million for fiscal year 2000. Net loss for the twelve months ended September 30, 2001 was $3.7 million or ($1.22) per share vs. a $746,000 loss or ($0.28) per share for the same period last year. The loss before income taxes, depreciation and amortization, and a charge of $1.9 million for the write down of certain intangible assets (EBITDA) for the twelve months ended September 30, 2001 was $484,000 compared to $206,000 for the same period for 2000. The company’s cash position as of September 30, 2001 was $9.5 million or $3.13 per share, which was slightly higher than the previous quarter ended June 30, 2001. The company is debt free.

“During the quarter we met our previously stated expectation of achieving profitability by the end of September,” stated Geoff Knapp, CEO of CAM Commerce. “This was achieved primarily through improved sales results and operational efficiencies. Our X-Charge credit card processing software and service continues to grow and is slowly becoming a meaningful contributor to the overall results of the company. We now have over 400 retailers processing credit cards through us with X-Charge and approximately another 100 signed up but not yet processing as they go through the implementation cycle. Monthly sign-ups remain steady.”

Knapp further commented that “while there is good news in the trend established in the 4th quarter, the events of September 11 (9/11) and the resulting effect on the economy have caused a great deal of uncertainty in our outlook. While we were seeing an upward trend prior to 9/11 in new sales activity, things definitely slowed down in the weeks that followed. Lead flow is still solid, our products are stronger than ever as compared to the competition and we continue to be by far the strongest company in our market. However, the small to mid-size retailer is under pressure, with many seeing declines in sales which we all hope is temporary. Regardless of the curves the economy may throw at us, we are highly confident in our strategic plan and direction. We plan to continue to execute on the plan in the coming year and adapt as the conditions warrant.”

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 www.camcommerce.com.

Important Information

Certain 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.

	THREE MONTHS ENDED		TWELVE MONTHS ENDED
	SEPT. 30 2001	SEPT. 30 2000	SEPT. 30 2001	SEPT. 30 2000
REVENUES
Net hardware, software and installation revenues	$4,210	$3,211	$15,293	$16,706
Net service revenues	1,318	1,210	5,464	4,605
Total net revenues	5,528	4,421	20,757	21,311
COSTS AND EXPENSES
Cost of hardware, software and installation revenues	2,037	1,977	7,754	9,425
Cost of service revenues	638	677	2,845	2,528
Total cost of revenues	2,675	2,654	10,599	11,953
Selling, general and administrative expenses	2,331	2,409	10,663	9,149
Research and development expenses	576	479	1,948	1,744
Asset impairment charge	-	-	1,899	-
Interest income	(112)	(175)	(493)	(400)
Total costs and expenses	5,470	5,367	24,616	22,446
Income (loss) before provision (benefit) for income taxes	58	(946)	(3,859)	(1,135)
Benefit for income taxes	(161)	(356)	(161)	(389)
Net income (loss)	$219	$(590)	$(3,698)	$(746)
Basic net income (loss) per share	$0.07	$(0.20)	$(1.22)	$(0.28)
Diluted net income (loss) per share	$0.07	$(0.20)	$(1.22)	$(0.28)
Shares used in computing basic net income (loss) per share	3,022	2,987	3,020	2,644
Shares used in computing diluted net income (loss) per share	3,160	2,987	3,020	2,644

	SEPTEMBER 30 2001 (Unaudited)	SEPTEMBER 30 2000
ASSETS
Current assets:
Cash and cash equivalents	$9,451	$10,444
Accounts receivable, net	2,262	1,782
Inventories	465	696
Other current assets	500	893
Total current assets	12,678	13,815
Property and equipment, net	763	922
Intangible assets, net	1,323	3,262
Other assets	408	297
Total assets	$18,741	$15,941
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$733	$644
Accrued compensation and related expenses	522	477
Income tax payable	15	-
Customer deposits and deferred service revenue	1,084	854
Other accrued liabilities	240	373
Total current liabilities	2,594	2,348
Stockholders' equity:
Common stock, $.001 par value; 12,000
shares authorized, 3,023 shares issued and
outstanding at 2001 and 3,012 at
2000	3	3
Paid-in capital	13,628	13,585
Retained earnings (accumulated deficit)	(1,429)	2,269
Total stockholders' equity	12,202	15,857
Total liabilities and stockholders' equity	$15,172	$18,296

Back to Investor Relations