##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended March 31, 2007
 OR
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission file number 0-16569
 CAM COMMERCE SOLUTIONS, INC.
 (Exact name of registrant as specified in its Charter)
 Delaware
    
    95-3866450(State or other jurisdiction
    
    (IRS Employerof incorporation or organization)
    
    Identification No.)17075 Newhope StreetFountain Valley, California
    
    92708(Address of principal
    
    (Zip code)Executive offices)
 (714) 241-9241
  þ o
  o o þ
 o þ




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##### 



CAM COMMERCE SOLUTIONS, INC.
 INDEX
 Page NumberPART I  Financial InformationItem 1
    
    Financial Statements:a)
    
    Condensed Balance Sheets at March 31, 2007 (Unaudited) and
September 30, 2006
    
    
    3b)
    
    Unaudited Condensed Statements of Income for the three
months ended March 31, 2007 and 2006
    
    
    4c)
    
    Unaudited Condensed Statements of Income for the six
months ended March 31, 2007 and 2006
    
    
    5d)
    
    Unaudited Condensed Statements of Cash Flows for the
six months ended March 31, 2007 and 2006
    
    
    6e)
    
    Notes to Unaudited Condensed Financial Statements
    
    
    7-13Item 2
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    14-22Item 3
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 4
    
    Controls and Procedures
    
    
    23PART II  Other InformationItem 1
    
    Legal Proceedings
    
    
    24Item 1A
    
    Risk Factors
    
    
    24Item 2
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    24Item 3
    
    Defaults Upon Senior Securities
    
    
    24Item 4
    
    Submission of Matters to a Vote of Security Holders
    
    
    24Item 5
    
    Other Information
    
    
    24Item 6
    
    Exhibits
    
    
    24-25Signatures
    
    
    26EXHIBIT 31.(A)EXHIBIT 31.(B)EXHIBIT 32
  2




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##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 CAM COMMERCE SOLUTIONS, INC.
 
 CONDENSED BALANCE SHEETS
 (In thousands, except share and per share data)
 MARCH 31, 2007
    
    
    SEPTEMBER 30, 2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    17,167
    
    
    $
    15,196Marketable available-for-sale securities
    
    
    8,181
    
    
    
    8,457Accounts receivable, net
    
    
    2,198
    
    
    
    1,936Inventories
    
    
    308
    
    
    
    391Deferred income taxes
    
    
    887
    
    
    
    991Other current assets
    
    
    233
    
    
    
    138Total current assets
    
    
    28,974
    
    
    
    27,109Deferred income taxes
    
    
    37
    
    
    
    56Property and equipment, net
    
    
    408
    
    
    
    484Intangible assets, net
    
    
    463
    
    
    
    445Other assets
    
    
    128
    
    
    
    51Total assets
    
    $
    30,010
    
    
    $
    28,145LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    370
    
    
    $
    301Accrued compensation and related expenses
    
    
    1,250
    
    
    
    1,255Deferred service revenue and customer deposits
    
    
    1,736
    
    
    
    1,499Cash dividends payable
    
    
    726
    
    
    
    594Other accrued liabilities
    
    
    110
    
    
    
    103Total current liabilities
    
    
    4,192
    
    
    
    3,752CommitmentsStockholders equity:Common stock, $0.001 par value; 12,000,000 shares
authorized, 4,033,000 shares issued and
outstanding at March 31, 2007 and 3,961,000 at
September 30, 2006
    
    
    4
    
    
    
    4Capital in excess of par value
    
    
    22,594
    
    
    
    21,634Accumulated other comprehensive income (loss)
    
    
    6
    
    
    
    (6
    )Retained earnings
    
    
    3,214
    
    
    
    2,761Total stockholders equity
    
    
    25,818
    
    
    
    24,393Total liabilities and stockholders equity
    
    $
    30,010
    
    
    $
    28,145
  3




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CAM COMMERCE SOLUTIONS, INC.
 
 UNAUDITED CONDENSED STATEMENTS OF INCOME
 (In thousands, except per share data)
 THREE MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006REVENUESNet payment processing revenues
    
    $
    3,342
    
    
    $
    2,324Net hardware, software and installation revenues
    
    
    2,576
    
    
    
    2,848Net service revenues
    
    
    1,429
    
    
    
    1,311Total net revenues
    
    
    7,347
    
    
    
    6,483COSTS AND EXPENSESCost of payment processing revenues
    
    
    181
    
    
    
    126Cost of hardware, software and installation
revenues (1)
    
    
    1,234
    
    
    
    1,508Cost of service revenues (1)
    
    
    639
    
    
    
    607Total cost of revenues
    
    
    2,054
    
    
    
    2,241Selling, general and administrative expenses
(1) (2)
    
    
    3,840
    
    
    
    3,387Research and development expenses (1)
    
    
    397
    
    
    
    400Interest income
    
    
    (310
    )
    
    
    (223
    )Total costs and expenses
    
    
    5,981
    
    
    
    5,805Income before provision for income taxes
    
    
    1,366
    
    
    
    678Provision for income taxes
    
    
    512
    
    
    
    261Net income
    
    $
    854
    
    
    $
    417Basic net income per share
    
    $
    0.21
    
    
    $
    0.11Diluted net income per share
    
    $
    0.20
    
    
    $
    0.10Shares used in computing basic net income per share
    
    
    4,022
    
    
    
    3,890Shares used in computing diluted net income per
share
    
    
    4,220
    
    
    
    4,169Cash dividends declared per common share
    
    $
    0.18
    
    
    $
    0.14(1) Includes share-based employee compensation expense as follows:Cost of hardware, software and installation revenues
    
    $
    3
    
    
    $
    4Cost of service revenues
    
    
    5
    
    
    
    5Selling, general and administrative expenses
    
    
    21
    
    
    
    21Research and development expenses
    
    
    7
    
    
    
    8
 
 (2) Includes $42 and $40 for the three months ended March 31, 2007 and 2006,
respectively, for building rent to a related party, Geoff Knapp, 
    officer and director of CAM
Commerce.  4




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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 UNAUDITED CONDENSED STATEMENTS OF INCOME
 (In thousands, except per share data)
 SIX MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006REVENUESNet payment processing revenues
    
    $
    6,807
    
    
    $
    4,902Net hardware, software and installation revenues
    
    
    4,861
    
    
    
    5,912Net service revenues
    
    
    2,851
    
    
    
    2,655Total net revenues
    
    
    14,519
    
    
    
    13,469COSTS AND EXPENSESCost of payment processing revenues
    
    
    311
    
    
    
    244Cost of hardware, software and installation
revenues (1)
    
    
    2,418
    
    
    
    3,173Cost of service revenues (1)
    
    
    1,276
    
    
    
    1,201Total cost of revenues
    
    
    4,005
    
    
    
    4,618Selling, general and administrative expenses
(1) (2)
    
    
    7,503
    
    
    
    6,659Research and development expenses (1)
    
    
    780
    
    
    
    763Interest income
    
    
    (615
    )
    
    
    (429
    )Total costs and expenses
    
    
    11,673
    
    
    
    11,611Income before provision for income taxes
    
    
    2,846
    
    
    
    1,858Provision for income taxes
    
    
    1,024
    
    
    
    699Net income
    
    $
    1,822
    
    
    $
    1,159Basic net income per share
    
    $
    0.46
    
    
    $
    0.30Diluted net income per share
    
    $
    0.43
    
    
    $
    0.28Shares used in computing basic net income per share
    
    
    4,001
    
    
    
    3,869Shares used in computing diluted net income per
share
    
    
    4,206
    
    
    
    4,133Cash dividends declared per common share
    
    $
    0.34
    
    
    $
    0.28(1) Includes share-based employee compensation expense as follows:Cost of hardware, software and installation revenues
    
    $
    6
    
    
    $
    8Cost of service revenues
    
    
    10
    
    
    
    10Selling, general and administrative expenses
    
    
    44
    
    
    
    46Research and development expenses
    
    
    14
    
    
    
    16
 
 (2)
    
    Includes $84 and $81 for the six months ended March 31, 2007 and 2006, respectively,
for building rent to a related party, Geoff Knapp, officer and director of CAM Commerce.  5




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CAM COMMERCE SOLUTIONS, INC.
 
 UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
 (In thousands)
 SIX MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006Operating activities:Net income
    
    $
    1,822
    
    
    $
    1,159Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and
amortization
    
    
    325
    
    
    
    342Provision for doubtful accounts
    
    
    9
    
    
    
    (31
    )Change in deferred income taxes
    
    
    120
    
    
    
    135Share-based compensation
    
    
    74
    
    
    
    80Excess tax benefits from share-based payment
arrangements
    
    
    (496
    )
    
    
    (457
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (271
    )
    
    
    (86
    )Inventories
    
    
    83
    
    
    
    13Other assets
    
    
    (172
    )
    
    
    (3
    )Accounts payable
    
    
    69
    
    
    
    (33
    )Accrued compensation and related expenses
    
    
    (5
    )
    
    
    (43
    )Deferred service revenue and customer
deposits
    
    
    237
    
    
    
    103Other accrued liabilities
    
    
    503
    
    
    
    342Cash provided by operating activities
    
    
    2,298
    
    
    
    1,521Cash flows from investing activities:Purchase of property and equipment
    
    
    (108
    )
    
    
    (119
    )Capitalized software development costs
    
    
    (159
    )
    
    
    (141
    )Purchase of marketable securities
    
    
    (1,744
    )
    
    
    (2,269
    )Proceeds from maturity of marketable securities
    
    
    2,035
    
    
    
    750Cash provided by (used in) investing activities
    
    
    24
    
    
    
    (1,779
    )Cash flows from financing activities:Proceeds from exercise of stock options
    
    
    390
    
    
    
    402Excess tax benefits from share-based payment
arrangements
    
    
    496
    
    
    
    457Dividends paid on common stock
    
    
    (1,237
    )
    
    
    (926
    )Cash used in financing activities
    
    
    (351
    )
    
    
    (67
    )Net increase (decrease) in cash and cash
equivalents
    
    
    1,971
    
    
    
    (325
    )Cash and cash equivalents at beginning of period
    
    
    15,196
    
    
    
    15,763Cash and cash equivalents at end of period
    
    $
    17,167
    
    
    $
    15,438
  6




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CAM COMMERCE SOLUTIONS, INC.
 
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
 ORGANIZATION AND BUSINESS
  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Presentation of Condensed Financial Statements
  Cash Equivalents
  Marketable Securities
  Accounts Receivable and Allowance For Doubtful Accounts
   7




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CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
 Concentrations of Credit Risk
  Inventories
  Comprehensive Income
  THREE MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006Net income
    
    $
    854
    
    
    $
    417Unrealized gain on marketable
available-for- sale securities, net of
tax
    
    
    6
    
    
    
    4Comprehensive income
    
    $
    860
    
    
    $
    421
 SIX MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006Net income
    
    $
    1,822
    
    
    $
    1,159Unrealized gain on marketable
available-for-sale securities, net of
tax
    
    
    12
    
    
    
    5Comprehensive income
    
    $
    1,834
    
    
    $
    1,164
 Revenue Recognition Policy
   8




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CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
  Segments
  Recently Issued Accounting Announcements
   9




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CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
     Intangible Assets
     Use of Estimates
  10




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CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
  Advertising
  Shipping and Handling
  Net Income Per Share
   THREE MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006Numerator:Net income for basic and diluted net
income per share
    
    $
    854
    
    
    $
    417Denominator:Weighted-average shares outstanding
    
    
    4,022
    
    
    
    3,890Denominator for basic net income per
share:Weighted-average shares
    
    
    4,022
    
    
    
    3,890Effect of dilutive securities:Stock options
    
    
    198
    
    
    
    279Denominator for diluted net income per
share:Weighted average shares and
assumed conversions
    
    
    4,220
    
    
    
    4,169Basic net income per share
    
    $
    0.21
    
    
    $
    0.11Diluted net income per share
    
    $
    0.20
    
    
    $
    0.10
 11




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CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
 SIX MONTHS ENDEDMARCH 31, 2007
    
    
    MARCH 31, 2006Numerator:Net income for basic and diluted net
income per share
    
    $
    1,822
    
    
    $
    1,159Denominator:Weighted-average shares outstanding
    
    
    4,001
    
    
    
    3,869Denominator for basic net income per
share:Weighted-average shares
    
    
    4,001
    
    
    
    3,869Effect of dilutive securities:Stock options
    
    
    205
    
    
    
    264Denominator for diluted net income per
share:Weighted average shares and
assumed conversions
    
    
    4,206
    
    
    
    4,133Basic net income per share
    
    $
    0.46
    
    
    $
    0.30Diluted net income per share
    
    $
    0.43
    
    
    $
    0.28
 Dividends Declared
  Declaration Date
    
    Per Share Dividend
    
    Record Date
    
    Total Amount
    
    Payment DateNovember 15, 2006
    
    $
    0.16
    
    
    January 5, 2007
    
    $
    643
    
    
    January 16, 2007February 7, 2007
    
    $
    0.18
    
    
    April 4, 2007
    
    $
    726
    
    
    April 16, 2007
 Share-Based Compensation
   (
 12




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CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2007
 (In thousands, except per share data)
     WEIGHTEDWEIGHTED
    
    AVERAGEAVERAGE
    
    REMAINING
    
    AGGREGATENUMBER
    
    EXERCISE
    
    CONTRACTUAL
    
    INTRINSICOF OPTIONS
    
    PRICE
    
    TERM (IN YEARS)
    
    VALUEOptions outstanding
at March 31, 2007
    
    
    432
    
    
    $
    6.68
    
    
    
    4.5
    
    
    $
    8,649Options expected to
vest at March 31,
2007
    
    
    423
    
    
    $
    6.58
    
    
    
    4.5
    
    
    $
    8,513Options exercisable
at March 31, 2007
    
    
    405
    
    
    $
    6.36
    
    
    
    4.3
    
    
    $
    8,239
 13




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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
(All dollar amounts in thousands)
 CAUTIONARY STATEMENT
   OVERVIEW
   OFF BALANCE SHEET ARRANGEMENTS
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  14




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CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
   Revenue Recognition
   Receivables
   Inventory
  15




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CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
  Capitalized Software
  Impairment of Intangible Assets
  Deferred Taxes
  16




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CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
 RESULTS OF OPERATIONS
  Three months ended March 31,
    
    
    Variance2007
    
    
    2006
    
    
    Amount
    
    
    %Net payment processing revenues
    
    $
    3,342
    
    
    $
    2,324
    
    
    $
    1,018
    
    
    
    44
    %Net hardware, software and installation
revenues
    
    
    2,576
    
    
    
    2,848
    
    
    
    (272
    )
    
    
    (10
    %)Net service revenues
    
    
    1,429
    
    
    
    1,311
    
    
    
    118
    
    
    
    9
    %Total net revenues
    
    
    7,347
    
    
    
    6,483
    
    
    
    864
    
    
    
    13
    %Cost of payment processing revenues
    
    
    181
    
    
    
    126
    
    
    
    55
    
    
    
    44
    %Cost of hardware, software and
installation revenues
    
    
    1,234
    
    
    
    1,508
    
    
    
    (274
    )
    
    
    (18
    %)Cost of service revenues
    
    
    639
    
    
    
    607
    
    
    
    32
    
    
    
    5
    %Total cost of revenues
    
    
    2,054
    
    
    
    2,241
    
    
    
    (187
    )
    
    
    (8
    %)Selling, general and administrative
expenses
    
    
    3,840
    
    
    
    3,387
    
    
    
    453
    
    
    
    13
    %Research and development expenses
    
    
    397
    
    
    
    400
    
    
    
    (3
    )
    
    
    (1
    %)Interest income
    
    
    (310
    )
    
    
    (223
    )
    
    
    87
    
    
    
    39
    %Total costs and expenses
    
    
    5,981
    
    
    
    5,805
    
    
    
    176
    
    
    
    3
    %Income before provision for income taxes
    
    
    1,366
    
    
    
    678
    
    
    
    688
    
    
    
    101
    %Provision for income taxes
    
    
    512
    
    
    
    261
    
    
    
    251
    
    
    
    96
    %Net income
    
    $
    854
    
    
    $
    417
    
    
    $
    437
    
    
    
    105
    %Gross profit on net payment processing
revenues
    
    $
    3,161
    
    
    $
    2,198
    
    
    $
    963
    
    
    
    44
    %Gross profit on net hardware, software
and installation revenues
    
    
    1,342
    
    
    
    1,340
    
    
    
    2
    
    
    
    0
    %Gross profit on net service revenues
    
    
    790
    
    
    
    704
    
    
    
    86
    
    
    
    12
    %Total gross profit
    
    $
    5,293
    
    
    $
    4,242
    
    
    $
    1,051
    
    
    
    25
    %Gross margin on net payment processing
revenues
    
    
    95
    %
    
    
    95
    %Gross margin on net hardware, software
and installation revenues
    
    
    52
    %
    
    
    47
    %Gross margin on net service revenues
    
    
    55
    %
    
    
    54
    %Gross margin on total net revenues
    
    
    72
    %
    
    
    65
    %
 17




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CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
 Six months ended March 31,
    
    
    Variance2007
    
    
    2006
    
    
    Amount
    
    
    %Net payment processing revenues
    
    $
    6,807
    
    
    $
    4,902
    
    
    $
    1,905
    
    
    
    39
    %Net hardware, software and installation
revenues
    
    
    4,861
    
    
    
    5,912
    
    
    
    (1,051
    )
    
    
    (18
    %)Net service revenues
    
    
    2,851
    
    
    
    2,655
    
    
    
    196
    
    
    
    7
    %Total net revenues
    
    
    14,519
    
    
    
    13,469
    
    
    
    1,050
    
    
    
    8
    %Cost of payment processing revenues
    
    
    311
    
    
    
    244
    
    
    
    67
    
    
    
    27
    %Cost of hardware, software and
installation revenues
    
    
    2,418
    
    
    
    3,173
    
    
    
    (755
    )
    
    
    (24
    %)Cost of service revenues
    
    
    1,276
    
    
    
    1,201
    
    
    
    75
    
    
    
    6
    %Total cost of revenues
    
    
    4,005
    
    
    
    4,618
    
    
    
    (613
    )
    
    
    (13
    %)Selling, general and administrative
expenses
    
    
    7,503
    
    
    
    6,659
    
    
    
    844
    
    
    
    13
    %Research and development expenses
    
    
    780
    
    
    
    763
    
    
    
    17
    
    
    
    2
    %Interest income
    
    
    (615
    )
    
    
    (429
    )
    
    
    186
    
    
    
    43
    %Total costs and expenses
    
    
    11,673
    
    
    
    11,611
    
    
    
    62
    
    
    
    1
    %Income before provision for income taxes
    
    
    2,846
    
    
    
    1,858
    
    
    
    988
    
    
    
    53
    %Provision for income taxes
    
    
    1,024
    
    
    
    699
    
    
    
    325
    
    
    
    46
    %Net income
    
    $
    1,822
    
    
    $
    1,159
    
    
    $
    663
    
    
    
    57
    %Gross profit on net payment processing
revenues
    
    $
    6,496
    
    
    $
    4,658
    
    
    $
    1,838
    
    
    
    39
    %Gross profit on net hardware, software
and installation revenues
    
    
    2,443
    
    
    
    2,739
    
    
    
    (296
    )
    
    
    (11
    %)Gross profit on net service revenues
    
    
    1,575
    
    
    
    1,454
    
    
    
    121
    
    
    
    8
    %Total gross profit
    
    $
    10,514
    
    
    $
    8,851
    
    
    $
    1,663
    
    
    
    19
    %Gross margin on net payment processing
revenues
    
    
    95
    %
    
    
    95
    %Gross margin on net hardware, software
and installation revenues
    
    
    50
    %
    
    
    46
    %Gross margin on net service revenues
    
    
    55
    %
    
    
    55
    %Gross margin on total net revenues
    
    
    72
    %
    
    
    66
    %
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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands, except in reference to the number of X-Charge accounts)
 Significant Trends
    Revenues
     Gross Margin
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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
  Selling, General and Administrative Expenses
  Research and Development Expenses
  Income Taxes
  Net Income
  LIQUIDITY AND CAPITAL RESOURCES
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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
   Declaration Date
    
    Per Share Dividend
    
    Record Date
    
    Total Amount
    
    Payment DateNovember 15, 2006
    
    $
    0.16
    
    
    January 5, 2007
    
    $
    643
    
    
    January 16, 2007February 7, 2007
    
    $
    0.18
    
    
    April 4, 2007
    
    $
    726
    
    
    April 16, 2007
   Inflation
  Contracts and Commitments
  21




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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
  PAYMENTS DUE BY PERIODLESS THAN 1
    
    
    
    
    
    3-5
    
    MORE THAN 5TOTAL
    
    YEAR
    
    1-3 YEARS
    
    YEARS
    
    YEARSLong-term debt
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Capital lease obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Operating leases
    
    $
    4,668
    
    
    $
    380
    
    
    $
    1,987
    
    
    $
    1,030
    
    
    $
    1,271Purchase obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Other long-term
obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
 FORWARD LOOKING STATEMENTS
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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  Interest Rate Risk
  Credit Risk
  Foreign Exchange Rate Risk
  
 ITEM 4. CONTROLS AND PROCEDURES
  23




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##### Table of Contents



PART II . OTHER INFORMATION
 
 Item 1 Legal Proceedings
  
 Item 1A Risk Factors
  
 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3 Defaults upon Senior Securities
  
 Item 4 Submission of Matters to a Vote of Security Holders
  
 Item 5 Other Information
  
 Item 6 Exhibits
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##### Table of Contents



25




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##### Table of Contents



SIGNATURES
  CAM COMMERCE SOLUTIONS, INC.
 Date: May 9, 2007
    
    By
    
    /s/ Geoffrey D. KnappGeoffrey D. KnappChief Executive OfficerDate: May 9, 2007
    
    By
    
    /s/ Paul Caceres Jr.Paul Caceres Jr.Chief Financial andAccounting Officer
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##### Table of Contents



EXHIBIT INDEX
 Exhibit
    
    Description3(a)
    
    Certification of Incorporation of the Company, as amended (incorporated by reference to
Exhibit 3(a) to the 1988 Annual Report on Form 10-K filed on January 12, 1989).3(b)
    
    Bylaws of the Company, as amended (incorporated by reference to Exhibit 3(b) to Form 10-Q for
the period ended March 31, 2004, filed on May 13, 2004).10(a)
    
    1993 Stock Option Plan (incorporated by reference to the exhibits on Form S-8 Registration
Statement filed on June 21, 1993).10(b)
    
    Employment Agreement and Change in Control Agreement for Geoffrey D. Knapp, amended on
December 20, 2006, (incorporated by reference to the Form 8-K, filed on December 20, 2006).10(c)
    
    Employment Agreement and Change in Control Agreement for Paul Caceres, amended on December
20, 2006, (incorporated by reference to the Form 8-K, filed on December 20, 2006).10(d)
    
    Amendment to 1993 Stock Option Plan (incorporated by reference to the exhibits on Form S-8
Registration Statement filed on June 26, 1998).10(e)
    
    2000 Stock Option Plan (incorporated by reference to Exhibit 10(i) to the 2000 Annual Report
on Form 10-K filed on December 21, 2000).10(f)
    
    Fountain Valley Office Lease Agreement (incorporated by reference to Exhibit 10(j) to the
2001 Annual Report on Form 10-K filed on December 20, 2001)10(g)
    
    Indemnity Agreements (incorporated by reference to Form 8-K, filed on November 18, 2004)10(h)
    
    Form of the Stock Option Agreement for the 2000 Plan (incorporated by reference to Exhibit
10(h) to the 2004 Annual Report on Form 10-K filed on December 21, 2004)10(i)
    
    Fountain Valley Office Lease Extension Agreement Letter, dated May 26, 2005 (incorporated by
reference to Exhibit 10(i) to Form 10-Q filed on August 12, 2005)10(j)
    
    Henderson, Nevada Office Lease Agreement (incorporated by reference to Form 8-K filed on
December 19, 2006)31(a)
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act31(b)
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act32
    
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
  27