CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

July 29, 2003

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

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported revenues of $5.2 million for the three months ended June 30, 2003, compared to $5.4 million for the third quarter of fiscal 2002. Net income for the three months ended June 30, 2003 was $86,000 or $.03 per share, compared to $752,000 or $.23 per share for the quarter ended June 30, 2002. Net income in 2002 included a $715,000 gain from the sale of the Company’s Access Retail Management (Access) consulting business.

Revenues for the nine months ended June 30, 2003 remained flat at $15 million compared to the same period of fiscal 2002. Net loss for the nine month period ended June 30, 2003 was $(410,000) or $(0.13) per share, compared to a profit of $233,000 or $0.07 per share for the nine months ended June 30, 2002. The net income for fiscal 2002 included an income tax benefit of $375,000 and a $715,000 gain from the sale of Access. Fiscal 2002 included consulting revenues generated from the Access consulting business that was sold in May 2002. The Access consulting revenues included in fiscal 2002 were $120,000 and $465,000 for the three and nine months ended June 30, 2002. As of June 30, 2003, the Company had $11.1 million in cash and marketable securities, or $3.48 per share based on shares outstanding at June 30, 2003, compared to $10.6 million at September 30, 2002, or $3.41 per share based on shares outstanding at September 30, 2002.

"During the June quarter our revenue mix continued to trend towards higher margin revenues allowing us to achieve better operating results than the same quarter of last year on slightly lower revenues as we continue to see a difficult market for system sales," stated Geoff Knapp, CEO of CAM Commerce Solutions. "Our X-Charge payment processing revenues more than doubled again over the same quarter last year and we continue to see consistent new sign-ups. We are focused on expanding this very successful part of our business. In June, we also eliminated $600,000 in annual costs and expenses, which is in addition to the $300,000 in annual expense reductions we made at the end of last quarter. With cash and marketable securities now over $11 million, an improved expense structure and a continuing trend toward higher margin recurring revenues, I feel very good about our direction and our future."

Calculation of Cash and Marketable Securities Per Share

	JUNE 30 2003	JUNE 30 2002
Cash and cash equivalents	$9,553,000	$9,093,000
Marketable available-for-sale securities	1,543,000	1,519,000
Total cash and marketable securities (numerator)	$11,096,000	$10,612,000
Shares outstanding (denominator)	3,186,000	3,109,000
Cash and marketable securities per share	$3.48	$3.41

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 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,” “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.

	THREE MONTHS ENDED		NINE MONTHS ENDED
	JUNE 30 2003	JUNE 30 2002	JUNE 30 2003	JUNE 30 2002
REVENUES
Net hardware, software and installation revenues	$3,413	$3,724	$9,803	$10,137
Net service revenues	1,751	1,659	5,160	4,860
Total net revenues	5,164	5,406	14,963	14,997
COSTS AND EXPENSES
Cost of hardware, software and installation revenues	1,610	1,792	4,838	5,178
Cost of service revenues	556	663	1,629	2,109
Total cost of revenues	2,166	2,455	6,467	7,287
Selling, general and administrative expenses	2,494	2,586	7,760	7,525
Research and development expenses	485	365	1,350	1,227
Total costs and operating expenses	5,145	5,406	15,577	16,039
Operating income (loss)	19	(23)	(614)	(1,042)
Gain on disposal of assets	-	715	-	715
Interest income	72	60	209	185
Income (loss) before provision for income taxes	91	752	(405)	(142)
Provision (benefit) for income taxes	5	-	5	(375)
Net income (loss)	$86	$752	$(410)	$233
Basic net income (loss) per share	$0.03	$0.25	$(0.13)	$0.08
Diluted net income (loss) per share	$0.03	$0.23	$(0.13)	$0.07
Shares used in computing basic net income (loss) per share	3,134	3,062	3,117	3,049
Shares used in computing diluted net income (loss) per share	3,257	3,221	3,117	3,204

	JUNE 30 2003	JUNE 30 2002
ASSETS
Current assets:
Cash and cash equivalents	$9,553	$9,093
Marketable available-for-sale securities	1,543	1,519
Accounts receivable, net	1,657	1,842
Inventories	315	324
Other current assets	116	146
Total current assets	13,184	12,924
Property and equipment, net	774	972
Intangible assets, net	939	1,177
Other assets	321	338
Total assets	$15,218	$15,411
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$431	$563
Accrued compensation and related expenses	669/td>	547
Deferred service revenue and customer deposits	1,403	1,295
Other accrued liabilities	185	235
Total current liabilities	2,688	2,640
Long-term liabilities:
Notes payable	9	13
Total liabilities	2,697	2,653
Stockholders' equity:
Common stock, $.001 par value; 12,000
shares authorized, 3,186 shares issued and
outstanding at June 30, 2003 and 3,109 at
September 30, 2002	3	3
Paid-in capital	14,041	13,886
Accumulated other comprehensive income	32	14
Retained earnings (accumulated deficit)	(1,555)	(1,145)
Total stockholders' equity	12,521	12,758
Total liabilities and stockholders' equity	$15,218	$15,411

Back to Investor Relations