CAM Data Systems 1st Quarter Net Profit Rises 41% on 18% Increase in Sales.Business Editors and High-Tech Writers FOUNTAIN VALLEY Fountain Valley, city (1990 pop. 53,691), Orange co., S Calif.; inc. 1957. Chiefly residential, Fountain Valley also has diverse manufactures, including apparel, computer equipment, semiconductors, and medical equipment. A U.S. navy helicopter facility is there. , Calif.--(BUSINESS WIRE)--Jan. 19, 2000 CAM cam, mechanical device cam, mechanical device for converting a rotating motion into a reciprocating, or back-and-forth, motion, or for changing a simple motion into a complex one. Data (Nasdaq:CADA CADA Canadian Automobile Dealers Association CADA Capitol Area Development Authority CADA Canadian Alliance of Dance Artists CADA Central Area Development Association CADA California Association of Directors of Activities (Santa Cruz, CA) ) Wednesday announced that earnings for its first quarter ended Dec. 31, 1999 rose 41% to $220,000 from $156,000 for the same quarter in 1998, while fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of grew to $.08 from $.07. Revenues for the three months ended Dec. 31, 1999, rose 18% to $6.6 million from $5.6 million. "As anticipated our growth rate slowed in the first quarter due to the busy holiday season for retailers, yet we still showed respectable growth," stated Geoff Knapp, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CAM Data Systems Inc. "While our results over the past year have been very strong, they have very little to do with the real opportunities ahead of us as we re-position the company to be a total infrastructure provider for the e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. and system needs of the small to medium size retailer and business. We expect this initiative to translate into both revenue and earnings growth by the end of 2000. "We believe that the entire retail market will automate To turn a set of manual steps into an operation that goes by itself. See automation. in new ways that take into account new business practices made possible by the proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the . Local retailers will have new ways to serve their customers, which will give them advantages over pure Internet retailers and many large, traditional retailers. "Our technology makes this possible. Retailers are beginning to realize that existing point of sale and back office systems cannot be adapted properly to accommodate these changes and will have to be replaced. This provides us a unique opportunity to capture market share and to profit from this in ways not possible in the past. "Our Retail STAR, point of sale and back office retailing system and our new i.STAR Internet storefront option for Retail STAR are designed to meet the needs of this changing retail market and at this time we believe we have 'first mover mover /mov·er/ (moo´ver) that which produces motion. prime mover a muscle that acts directly to bring about a desired movement. advantage.' We have compelling 'business to business' opportunities as well to help retailers with new channels to manage and dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. hard to sell inventory. "Thus, our goal for this next year is to build our already large customer base as fast as possible and to capture mindshare and marketshare in our target markets. We will do this by enhancing and increasing our marketing programs, distribution channels, product development and possibly through acquisition as well. Some of this has been and is already under way. "We will measure our success this next year more on the success of these efforts than on actual financial results. If we are successful in expanding our customer base our new business model, which emphasizes recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. transaction based revenue, has the potential to substantially increase our net profit margins and revenues the following year and beyond. "We have developed exciting new products, which the market both wants and needs. Through comprehensive strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. we have made the decision that gaining market share at this critical time should benefit the company and its shareholders far more in the long run than earnings and revenue growth over the next couple quarters." About CAM Data Systems CAM Data Systems Inc. provides total commerce solutions for traditional as well as web retailers that are based on the company's open architecture software products for managing inventory, point of sale, sales transaction processing Updating the appropriate database records as soon as a transaction (order, payment, etc.) is entered into the computer. It may also imply that confirmations are sent at the same time. Transaction processing systems are the backbone of an organization because they update constantly. and accounting. These solutions often include hardware, installation, training, service and consulting provided by the company. Visit CAM Data at www.camdata.com Important Information The statements made in this news release could be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on expectations that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially include the following: economic conditions; competitive factors and pricing pressures; changes in product mix; technological developments affecting the company's operations, market, products; and other factors discussed in the company's filings with the Securities and Exchange Commission.
CAM DATA SYSTEMS INC.
CONDENSED STATEMENT OF INCOME
(all figures in thousands except per share data)
(Unaudited)
Three Months Ended
December 31 December 31
1999 1998
REVENUES
Net system revenues $ 5,477 $ 4,463
Net service revenues 1,162 1,154
Total net revenues 6,639 5,617
COSTS AND EXPENSES
Costs of system revenues 2,935 2,746
Costs of service revenues 622 546
Total costs of revenues 3,557 3,292
Selling, general and
administrative expenses 2,445 1,847
Research and development expense 346 245
Interest income (48) (27)
Total costs and expenses 6,300 5,357
Income before provision for taxes 339 260
Provision for income taxes 119 104
Net income $ 220 $ 156
Basic net income per share $ .10 $ .07
Diluted net income per share $ .08 $ .07
Shares used in computing
basic net income per share 2,309 2,139
Shares used in computing
diluted net income per share 2,711 2,289
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