CAM Reports 2nd Quarter Results

Market Wire, April, 2008

CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported net income increased 60% for the three months ended March 31, 2008 to $1,366,000, or $0.32 per fully diluted share, compared to $854,000, or $0.20 per fully diluted share, for the same quarter of fiscal 2007. Revenues for the quarter increased 23% to $9.0 million, compared to $7.3 million for the same quarter of last year.

Net income increased 68% for the six months ended March 31, 2008 to $3.1 million, or $0.71 per fully diluted share, compared to $1.8 million, or $0.43 per fully diluted share, for the same period of fiscal 2007. Revenues for the six months ended March 31, 2008 increased 30% to $18.9 million, compared to $14.5 million for the six months ended March 31, 2007.

Net income for the three and six months ended March 31, 2008 included a tax benefit of $244,000 due to the reversal of an uncertain tax position liability. The reversal was the result of a favorable audit settlement with the Internal Revenue Service concerning R&D credits.

Pre-tax profit margins for the March quarter rose to a 2nd quarter record 20%, making it the 12th consecutive quarter of year over year profit margin increase.

X-Charge Performance

During the quarter, the Company installed a record 1,802 new X-Charge payment processing accounts. As of March 31, 2008, the company had approximately 15,000 merchant accounts generating X-Charge revenues. The company's payment processing portfolio currently represents over $4 billion in annual credit card payment processing volume. X-Charge payment processing revenues increased 62% for the three months ended March 31, 2008 to $5.4 million from $3.3 million for the same quarter last year.

Dividend Declared

The Company continues its "earnings based" dividend plan to pay out 75% or more of net profit each quarter in the form of a shareholder dividend. The Board of Directors has declared a quarterly cash dividend of $0.31 per outstanding share based on this quarter's results, to be paid on July 14, 2008 to shareholders of record on July 3, 2008. This represents a 55% increase in the dividend over the $0.20 per share previously paid based on the quarter ended March 31, 2007 results. This quarter represents the 12th consecutive dividend issued for the quarterly results, with each quarterly dividend representing a significant increase over the same quarter of the prior year.

"The March quarter is typically our seasonally slowest quarter of the year with the highest expense, so the meaningful comparison for our revenue and earnings performance should be on a year over year basis rather than a sequential basis," said Geoff Knapp, CEO. "We continued our trend of substantially improving earnings based on our success with our X-Charge payment processing business. We installed a record number of new payment processing accounts during the quarter, with the increase really starting in March where over 700 new accounts were installed. This is a result of the new sales people we hired at the end of last year coming up to speed, combined with the continued addition of new resellers. Our net profit margins also continued to show improvement on a year over year comparison basis as a result of the continuing change in our revenue mix to higher margin, recurring revenues provided by our X-Charge business.

"While our X-Charge business performance was stellar, the POS system business showed some signs of weakness in the quarter with revenues down 17% from the same quarter last year. In general, the March quarter can be a seasonally challenging quarter for systems business, but we saw delayed decisions in March that may or may not be related to overall economic weakness. Sales activity was at normal or above levels going into the current quarter, so we will have to wait and see if the March quarter system sales results were the type of normal deviation we can see in the systems business or whether there is some longer term underlying weakness in our market. We have taken steps to cut back on above normal sales and marketing expenditures incurred during the quarter to improve profitability going forward. It is important to note that while we are of course seeking improved performance in the systems revenues, it is our X-Charge revenues that will be the primary driver of our success going forward. Our recurring revenue in the quarter, which is the combination of our X-Charge and service revenue, rose to a quarterly record 76% of total revenue in the quarter."

Conference Call

The company will be holding a conference call to discuss the quarterly results. The conference call will take place at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time), on Wednesday, April 30, 2008. Anyone interested in participating in the conference call should call 800-762-8932, if calling within the United States, or 480-629-9039, if calling internationally. There will be a playback available until May 7, 2008. To listen to the playback, please call 800-406-7325, if calling within the United States, or 303-590-3030, if calling internationally. Please use pin number 3872251 for the replay. The company will also have an updated investor presentation posted on its website at www.camcommerce.com .