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"We Make Better Retailers..." |
CAM Commerce Solutions, Inc.
17075 Newhope Street
CAM Releases 3rd Quarter Results
Returns to Profitability July 24, 2002
Contact: Mathew Hayden, President (FOUNTAIN VALLEY, CA) CAM Commerce Solutions (NASDAQ: CADA) announced that revenues for the three months ended June 30, 2002 increased 8% to $5.4 million compared to $5.0 million for the same quarter in 2001. Also, during the 3rd quarter, the Company realized a $715,000 gain, recorded in other income, on the previously announced sale of the Company’s Access Retail Management division (Access) for $800,000 in cash. Revenues for the nine months ended June 30, 2002 were $15.0 million compared to $15.2 million for the same period in 2001. Earnings for the three months ended June 30, 2002 were $752,000 or $.23 per share compared to a loss of $(2.3) million or $(.77) per share for the same period in 2001. The prior year loss includes a pretax asset impairment charge of $1.9 million for the write-down of certain intangible assets. Excluding the gain on the sale of Access of $715,000, the Company earned a profit for the three month period ended June 30, 2002 of $37,000 or $.01 per share. For the nine month period ended June 30, 2002, the Company earned a profit of $233,000 or $0.07 per share, which includes a tax benefit of $375,000 related to a recent tax law revision. Excluding the gain on the Access sale, the Company showed a loss for the nine months ended June 30, 2002 of $(482,000) or $(.16) per share. As of June 30, 2002, the Company had $10.2 million in cash and marketable securities, or $3.32 per share based on shares outstanding at June 30, 2002. The Company’s backlog remained consistent with the prior quarter. “We are very pleased with the progress we made this quarter." stated Geoff Knapp, CEO of CAM Commerce Solutions. "This quarter’s results appear to show that the strategies we have undertaken are working. Our recurring revenues have increased, our product mix has improved, overall margins are up and our expense structure has improved. This has resulted in a profit, albeit a small one. While market conditions have not improved in any meaningful way we have still been able to improve the performance of our Company. We have weathered the economic conditions of the past two years very well and are now in a position to move forward. We are a strong Company, both financially and as an organization. We have the best group of product and service offerings in the Company’s history. This includes our new eBay Integrated Auction Management software called A-Trade that we launched very successfully at the eBay Live show in late June. We are in the process of launching our new reseller channel and, as previously announced, we are beginning a powerful new strategic relationship with RMSA as a result of the deal we made with PBI (Private Business, Inc.). This included the sale of our Access division, which also served to strengthen our already strong balance sheet. Market conditions are still difficult, but I am encouraged by the progress we are making and I firmly believe we can succeed in the long run regardless of whether the market improves.” About CAM Commerce SolutionsCAM 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 www.camcommerce.com. Important InformationThe 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,” “plans,” “estimates,” “may,” “seeks,” “would,” “future,” “bright,” 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 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 BALANCE SHEETS (In thousands, except per share data)
CAM COMMERCE SOLUTIONS, INC.
CONDENSED BALANCE SHEETS (In thousands, except per share data)
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