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"We Make Better Retailers..." |
CAM Commerce Solutions, Inc.
17075 Newhope Street
CAM Reports 4th Quarter & Year End Results
September Quarter Earnings up 143% on 21% Revenue Increase. November 15, 2004
Contact: Mathew Hayden, President (FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) today reported revenues of $6.3 million for the three months ended September 30, 2004, compared to $5.2 million for the fourth quarter of fiscal 2003, an increase of 21%. Net income for the three months ended September 30, 2004 rose substantially to $670,000 or $0.16 per fully diluted share, compared to $276,000 or $0.08 per share for the quarter ended September 30, 2003. Revenues for the fiscal year ended September 30, 2004 increased 17% to $23.6 million, compared to $20.1 million for fiscal year 2003. Net income for the year rose to $2.2 million or $0.57 per fully diluted share, compared to a loss of $134,000 or ($0.04) per share for fiscal year 2003. The results for fiscal 2004 included $170,000 in additional revenue and $126,000 in net income, related to a change in the accounting estimate for payment processing revenues from the Company's X-Charge business, which was recorded in third quarter ended June 30, 2004. If the change in accounting estimate had not occurred, revenues and net income for fiscal 2004 would have been $23.5 million and $2.1 million or $0.54 per fully diluted share, respectively. The change in accounting estimate resulted from the Company’s ability to better estimate the payment processing revenues based on the accumulation of sufficient historical information required to analyze trends and formulate a reasonable estimate. Prior to the change in accounting estimate, payment processing revenues were recognized on a cash basis due to the lack of historical information available to make a reliable estimate. As of September 30, 2004, cash and marketable securities rose to $17.7 million or $4.71 per outstanding share, compared to $12.4 million or $3.82 per outstanding share at the beginning of the year. The company remains debt free. The operating results included income tax provision for the State of California based on California’s suspension of the use of net operating loss carryforwards. The Company did not pay Federal income taxes during the September quarter, or fiscal year due to the use of net operating loss carryforwards. The Company expects to have both federal and state income tax provision in fiscal 2005. “This past year was the most gratifying and rewarding in our history,” stated Geoff Knapp, Chairman and CEO of CAM Commerce Solutions. We succeeded on all levels and the financial results speak for themselves. Our traditional systems business saw revenue growth of approximately 10%, while our X-Charge payment processing revenues grew 132% over the prior year. The increase in higher margin, recurring revenues resulted in an overall gross margin increase of 4% over the prior year. While SG&A expenses rose 6%, most of the increase is attributable to higher sales commissions paid on higher system and X-Charge revenues. We exceeded all of our financial goals for the year, and more importantly we have proven that we have built a business model which works well and that we can build on for the foreseeable future.” Mr. Knapp further stated, “Not only were our financial results excellent this past year, we also released significant new versions of nearly all our software products that will be very meaningful for our customers in helping them to be better retailers. This puts us in an enviable position in the market as we move into 2005 with the goal of leveraging what we have built into increased market share and continually improving financial performance.” Calculation of Cash and Marketable Securities Per Share
Calculation of the Effect of Change in Accounting Estimate
About CAM Commerce SolutionsCAM Commerce Solutions, Inc. provides total commerce solutions for traditional and web open architecture software products for inventory management, point of sale, sales transaction processing. These solutions often include hardware, installation, training, service, and payment 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 forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation “will,” “should,” “believe,” “expect,” “anticipate,” “outlook,” “forecast,” “optimistic,” “feel,” “goal,” “plans,” “estimates,” “may,” “seeks,” “would,” “future,” “bright,” “projected”, and indicate future events or trends, or that are not statements of historical matters, identify forward- concerning financial results for future quarters are not actual results and are based upon preliminary assumptions management believes to be reasonable at this time. Investors should not rely upon they are subject to a variety of risks, uncertainties, and other factors that could cause actual expectations, and the company expressly does not undertake any duty to update forward-looking date of this news release. The performance of any one month or quarter may not be indicative given prevailing market and economic uncertainties. In addition to the factors set forth elsewhere competitive, technological, and other factors identified in CAM Commerce Solutions’ filings Commission could affect the forward looking statements contained in this news release.
CAM COMMERCE SOLUTIONS, INC.
CONDENSED STATEMENT 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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