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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(X) Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended December 31, 2003

OR

(  ) 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 Employer      
|of incorporation or organization) |  | Identification No.)
|                                  |  |                    
|17075 Newhope Street              |  | 92708              
|Fountain Valley, California       |  |                    
|                                  |  |                    
|(Address of principal             |  | (Zip code)         
|Executive offices)                |  |                    

(714) 241-9241

(Registrants telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes (X) No (  )

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes (  ) No (X)

As of January 20, 2004 there were 3,380,720 shares of common stock outstanding.

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TABLE OF CONTENTS



|                              |                                                                                               |                                                   |  |  |  |  |  | 
|----------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------------- |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION
|                              | Item 1. Financial Statements                                                                 
|                              |                                                                                               | UNAUDITED CONDENSED BALANCE SHEETS               
|                              |                                                                                               | UNAUDITED CONDENSED STATEMENTS OF OPERATIONS     
|                              |                                                                                               | UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS     
|                              |                                                                                               | NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
|                              | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                              | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           
|                              | ITEM 4. CONTROLS AND PROCEDURES                                                              
|PART II  OTHER INFORMATION   
|                              | Item 1 Legal Proceedings                                                                     
|                              | Item 2 Changes in Securities                                                                 
|                              | Item 3 Defaults upon Senior Securities                                                       
|                              | Item 4 Submission of Matters to a Vote of Security Holders                                   
|                              | Item 5 Other Information                                                                     
|                              | Item 6 Exhibits and Reports on Form 8-K                                                      
|SIGNATURES                   
|EXHIBIT INDEX                
|EXHIBIT 31(A)                
|EXHIBIT 31(B)                
|EXHIBIT 32                   



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CAM COMMERCE SOLUTIONS, INC.

INDEX

|                             |  |                                                                                       |    |   |       |                                                                                                    |  |  |     |             |  | 
|---------------------------- |  | ------------------------------------------------------------------------------------- | -- | - | ----- | -------------------------------------------------------------------------------------------------- |  |  | --- | ----------- |  | 
|                             |  |                                                                                       |    |   |       |                                                                                                    |  |  |     | Page Number
|PART I Financial Information |  |                                                                                       |    |  
|Item 1                       |  | Financial Statements:                                                                 |    |   |       |                                                                                                   
|                             |  |                                                                                       | a  | ) |       | Unaudited Condensed Balance Sheets at December 31, 2003 and September 30, 2003                     |  |  | 3   |            
|                             |  |                                                                                       | b  | ) |       | Unaudited Condensed Statements of Operations for the three months ended December 31, 2003 and 2002 |  |  | 4   |            
|                             |  |                                                                                       | c  | ) |       | Unaudited Condensed Statements of Cash Flows for the three months ended December 31, 2003 and 2002 |  |  | 5   |            
|                             |  |                                                                                       | d  | ) |       | Notes to Unaudited Condensed Financial Statements                                                  |  |  | 6-9 |            
|Item 2                       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |    |   | 10-15 |                                                                                                   
|Item 3                       |  | Quantitative and Qualitative Disclosures About Market Risk                            |    |   | 16    |                                                                                                   
|Item 4                       |  | Controls and Procedures                                                               |    |   | 16    |                                                                                                   
|PART II Other Information    |  |                                                                                       |    |  
|Item 1                       |  | Legal Proceedings. None                                                               |    |   | 17    |                                                                                                   
|Item 2                       |  | Changes in Securities and Use of Proceeds. None                                       |    |   | 17    |                                                                                                   
|Item 3                       |  | Defaults Upon Senior Securities. None                                                 |    |   | 17    |                                                                                                   
|Item 4                       |  | Submission of Matters to a Vote of Security Holders. None                             |    |   | 17    |                                                                                                   
|Item 5                       |  | Other Information. None                                                               |    |   | 17    |                                                                                                   
|Item 6                       |  | Exhibits and Reports on Form 8-K                                                      |    |   | 17    |                                                                                                   
|Signature Page               |  |                                                                                       | 18 |  

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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements




CAM COMMERCE SOLUTIONS, INC.

UNAUDITED CONDENSED BALANCE SHEETS

(In thousands)

|                                           |                             |                                                |                            |        |                   |        |                    |        |        |        | 
|------------------------------------------ | --------------------------- | ---------------------------------------------- | -------------------------- | ------ | ----------------- | ------ | ------------------ | ------ | ------ | ------ | 
|                                           |                             |                                                |                            |        | DECEMBER 31, 2003 |        | SEPTEMBER 30, 2003
|ASSETS                                     |                             |                                                |                            |        |                   |        |                    |       
|                                           | Current assets:             |                                                |                            |        |                   |        |                    |        |       
|                                           |                             | Cash and cash equivalents                      |                            | $      | 11,809            |        |                    | $      | 10,889 |       
|                                           |                             | Marketable available-for-sale securities       |                            |        | 1,529             |        |                    |        | 1,541  |       
|                                           |                             | Accounts receivable, net                       |                            |        | 1,381             |        |                    |        | 1,214  |       
|                                           |                             | Inventories                                    |                            |        | 207               |        |                    |        | 272    |       
|                                           |                             | Other current assets                           |                            |        | 141               |        |                    |        | 102    |       
|                                           |                             |                                                |                            |        |                   |        |                    |       
|                                           |                             |                                                | Total current assets       |        |                   | 15,067 |                    |        |        | 14,018 | 
|                                           | Property and equipment, net |                                                |                            | 653    |                   |        |                    | 710    |       
|                                           | Intangible assets, net      |                                                |                            | 863    |                   |        |                    | 908    |       
|                                           | Other assets                |                                                |                            | 282    |                   |        |                    | 305    |       
|                                           |                             |                                                |                            |        |                   |        |                    |       
|                                           | Total assets                |                                                | $                          | 16,865 |                   |        | $                  | 15,941 |       
|                                           |                             |                                                |                            |        |                   |        |                    |       
|LIABILITIES AND STOCKHOLDERS EQUITY       |                             |                                                |                            |        |                   |        |                    |       
|                                           | Current liabilities:        |                                                |                            |        |                   |        |                    |        |       
|                                           |                             | Accounts payable                               |                            | $      | 551               |        |                    | $      | 518    |       
|                                           |                             | Accrued compensation and related expenses      |                            |        | 783               |        |                    |        | 687    |       
|                                           |                             | Deferred service revenue and customer deposits |                            |        | 1,636             |        |                    |        | 1,455  |       
|                                           |                             | Other accrued liabilities                      |                            |        | 224               |        |                    |        | 263    |       
|                                           |                             |                                                |                            |        |                   |        |                    |       
|                                           |                             |                                                | Total current liabilities  |        |                   | 3,194  |                    |        |        | 2,923  | 
|                                           | Stockholders equity:       |                                                |                            |        |                   |        |                    |        |       
|                                           |                             | Common stock                                   |                            |        | 3                 |        |                    |        | 3      |       
|                                           |                             | Paid-in capital in excess of par value         |                            |        | 14,555            |        |                    |        | 14,271 |       
|                                           |                             | Accumulated other comprehensive income         |                            |        | 17                |        |                    |        | 23     |       
|                                           |                             | Accumulated deficit                            |                            |        | (904              | )      |                    |        | (1,279 | )     
|                                           |                             |                                                |                            |        |                   |        |                    |       
|                                           |                             |                                                | Total stockholders equity |        |                   | 13,671 |                    |        |        | 13,018 | 
|                                           |                             |                                                |                            |        |                   |        |                    |       
|Total liabilities and stockholders equity |                             | $                                              | 16,865                     |        |                   | $      | 15,941             |       
|                                           |                             |                                                |                            |        |                   |        |                    |       

See accompanying notes.

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CAM COMMERCE SOLUTIONS, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

|                                                             |                                                      |                          |       |                    |       |                   |       |       |       | 
|------------------------------------------------------------ | ---------------------------------------------------- | ------------------------ | ----- | ------------------ | ----- | ----------------- | ----- | ----- | ----- | 
|                                                             |                                                      |                          |       | THREE MONTHS ENDED
|                                                             |                                                      |                          |       |                   
|                                                             |                                                      |                          |       | DECEMBER 31, 2003  |       | DECEMBER 31, 2002
|REVENUES                                                     |                                                      |                          |       |                    |       |                   |       |      
|                                                             | Net hardware, software and installation revenues     |                          | $     | 3,237              |       |                   | $     | 3,220 |      
|                                                             | Net service revenues                                 |                          |       | 2,063              |       |                   |       | 1,660 |      
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|                                                             |                                                      | Total net revenues       |       |                    | 5,300 |                   |       |       | 4,880 | 
|COSTS AND EXPENSES                                           |                                                      |                          |       |                    |       |                   |       |      
|                                                             | Cost of hardware, software and installation
revenues |                          |       | 1,653              |       |                   |       | 1,589 |      
|                                                             | Cost of service revenues                             |                          |       | 534                |       |                   |       | 521   |      
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|                                                             |                                                      | Total cost of revenues   |       |                    | 2,187 |                   |       |       | 2,110 | 
|                                                             | Selling, general and administrative expenses         |                          |       | 2,421              |       |                   |       | 2,602 |      
|                                                             | Research and development expenses                    |                          |       | 369                |       |                   |       | 426   |      
|                                                             | Interest income                                      |                          |       | (81                | )     |                   |       | (74   | )    
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|                                                             |                                                      | Total costs and expenses |       |                    | 4,896 |                   |       |       | 5,064 | 
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|Income (loss) before provision for income taxes              |                                                      |                          | 404   |                    |       |                   | (184  | )    
|Provision for income taxes                                   |                                                      |                          | 29    |                    |       |                   |      |      
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|Net income (loss)                                            |                                                      | $                        | 375   |                    |       | $                 | (184  | )    
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|Basic net income (loss) per share                            |                                                      | $                        | 0.11  |                    |       | $                 | (0.06 | )    
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|Diluted net income (loss) per share                          |                                                      | $                        | 0.10  |                    |       | $                 | (0.06 | )    
|                                                             |                                                      |                          |       |                    |       |                   |       |      
|Shares used in computing basic net income (loss)
per share   |                                                      |                          | 3,284 |                    |       |                   | 3,109 |      
|Shares used in computing diluted net income (loss)
per share |                                                      |                          | 3,615 |                    |       |                   | 3,109 |      

See accompanying notes.

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CAM COMMERCE SOLUTIONS, INC.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

|                                                                               |                                              |                                                |        |                    |      |                   |       |     |     |  
|------------------------------------------------------------------------------ | -------------------------------------------- | ---------------------------------------------- | ------ | ------------------ | ---- | ----------------- | ----- | --- | --- | -
|                                                                               |                                              |                                                |        | THREE MONTHS ENDED
|                                                                               |                                              |                                                |        |                   
|                                                                               |                                              |                                                |        | DECEMBER 31, 2003  |      | DECEMBER 31, 2002
|Operating activities:                                                          |                                              |                                                |        |                    |      |                   |       |    
|Net income (loss)                                                              |                                              | $                                              | 375    |                    |      | $                 | (184  | )  
|Adjustments to reconcile net income (loss) to net
cash provided by operations: |                                              |                                                |        |                    |      |                   |       |    
|                                                                               | Depreciation and amortization                |                                                |        | 221                |      |                   |       | 273 |    
|                                                                               | Provision for doubtful accounts              |                                                |        |                   |      |                   |       | 50  |    
|                                                                               | Changes in operating assets and liabilities: |                                                |        |                    |      |                   |       |     |    
|                                                                               |                                              | Accounts receivable                            |        |                    | (167 | )                 |       |     | 183 |  
|                                                                               |                                              | Inventories                                    |        |                    | 65   |                   |       |     | 26  |  
|                                                                               |                                              | Other assets                                   |        |                    | (16  | )                 |       |     | (60 | )
|                                                                               |                                              | Accounts payable                               |        |                    | 33   |                   |       |     | 5   |  
|                                                                               |                                              | Accrued compensation and related expenses      |        |                    | 96   |                   |       |     | 59  |  
|                                                                               |                                              | Deferred service revenue and customer deposits |        |                    | 181  |                   |       |     | 181 |  
|                                                                               |                                              | Other accrued liabilities                      |        |                    | (39  | )                 |       |     | (63 | )
|                                                                               |                                              |                                                |        |                    |      |                   |       |    
|Cash provided by operating activities                                          |                                              |                                                | 749    |                    |      |                   | 470   |    
|Investing activities:                                                          |                                              |                                                |        |                    |      |                   |       |    
|                                                                               | Purchase of property and equipment           |                                                |        | (37                | )    |                   |       | (77 | )  
|                                                                               | Capitalized software development costs       |                                                |        | (82                | )    |                   |       | (72 | )  
|                                                                               | Change in marketable securities              |                                                |        | 6                  |      |                   |       |    |    
|                                                                               |                                              |                                                |        |                    |      |                   |       |    
|Cash used in investing activities                                              |                                              |                                                | (113   | )                  |      |                   | (149  | )  
|Financing activities:                                                          |                                              |                                                |        |                    |      |                   |       |    
|                                                                               | Proceeds from exercise of stock options      |                                                |        | 284                |      |                   |       |    |    
|                                                                               |                                              |                                                |        |                    |      |                   |       |    
|Cash provided by financing activities                                          |                                              |                                                | 284    |                    |      |                   |      |    
|                                                                               |                                              |                                                |        |                    |      |                   |       |    
|Net increase in cash and cash equivalents                                      |                                              |                                                | 920    |                    |      |                   | 321   |    
|Cash and cash equivalents at beginning of period                               |                                              |                                                | 10,889 |                    |      |                   | 9,093 |    
|                                                                               |                                              |                                                |        |                    |      |                   |       |    
|Cash and cash equivalents at end of period                                     |                                              | $                                              | 11,809 |                    |      | $                 | 9,414 |    
|                                                                               |                                              |                                                |        |                    |      |                   |       |    

See accompanying notes.

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CAM COMMERCE SOLUTIONS, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

DECEMBER 31, 2003

(In thousands, except per share data)

ORGANIZATION AND BUSINESS

CAM Commerce Solutions Inc., (the Company), was incorporated in California in
1983, and reincorporated in Delaware in 1987. The Companys principal business
is to provide total commerce solutions for small-to-medium size, traditional
and Web retailers. These solutions are based on the Companys open
architecture software products for managing inventory, point of sale, sales
transaction processing, accounting, and payment processing. In addition to
software, these solutions often include hardware, installation, training,
service and credit card processing services provided by the Company. Sales,
service, research, and development are located in California and Nevada, while
the Companys customers are located throughout the United States.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Presentation of Condensed Financial Statements

The accompanying financial statements of the Company for the three months ended
December 31, 2003 and 2002 are unaudited. In the opinion of management, all
adjustments necessary for a fair presentation of such financial statements have
been included. Such adjustments consisted only of normal recurring items.
Interim results are not necessarily indicative of results for a full year. The
condensed financial statements and notes are presented as permitted by Form
10-Q and, therefore, should be read in conjunction with the Companys Annual
Report on Form 10-K for the year ended September 30, 2003.

Cash Equivalents

Cash equivalents represent highly liquid investments with original maturities
of three months or less.

Marketable Securities

All investment securities are considered to be available-for-sale and are
carried at fair value. Management determines the classification at the time of
purchase and re-evaluates its appropriateness at each balance sheet date. The
Companys marketable securities at December 31, 2003 and September 30, 2003
consist of debt instruments that bear interest at various rates and mature in
fiscal year 2004. The gross unrealized gains on securities available-for-sale
at December 31, 2003 and September 30, 2003 were $17 and $23, respectively.
There were no realized gains (losses) for the three months ended December 31,
2003 and 2002.

Concentrations of Credit Risk

The Company sells its products primarily to small-to-medium size retailers.
Credit is extended based on an evaluation of the customers financial
condition, and collateral is generally not required. Credit losses have
traditionally been minimal and such losses have been within managements
expectations.

Inventories

Inventories are stated at the lower of cost or market determined on a first-in,
first-out basis, or net realizable value. Inventories are composed of finished
goods, which include electronic point of sale hardware and computer equipment
used in the sale and service of the Companys products.

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CAM COMMERCE SOLUTIONS, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

DECEMBER 31, 2003

(In thousands, except per share data)

Comprehensive Income (Loss)

The following table presents the calculation of comprehensive income (loss):

|                                                                               |  |                    |     |                   |  |   |      |  
|------------------------------------------------------------------------------ |  | ------------------ | --- | ----------------- |  | - | ---- | -
|                                                                               |  | THREE MONTHS ENDED
|                                                                               |  |                   
|                                                                               |  | DECEMBER 31, 2003  |     | DECEMBER 31, 2002
|Net income (loss)                                                              |  | $                  | 375 |                   |  | $ | (184 | )
|Unrealized gain (loss) on
marketable securities
available for sale, net of tax |  |                    | (6  | )                 |  |   | 7    |  
|                                                                               |  |                    |     |                   |  |   |      |  
|Comprehensive income (loss)                                                    |  | $                  | 369 |                   |  | $ | (177 | )
|                                                                               |  |                    |     |                   |  |   |      |  

Revenue Recognition Policy

The Companys revenue recognition policy is significant because revenue is a
key component of results of operations. In addition, revenue recognition
determines the timing of certain expenses such as commissions. Specific
guidelines are followed to measure revenue, although certain judgments affect
the application of our revenue policy. The Company recognizes revenue in
accordance with Statement of Position 97-2 (SOP 97-2), Software Revenue
Recognition, as amended and interpreted by Statement of Position 98-9,
Modification of SOP 97-2, Software Revenue Recognition with respect to
certain transactions, and Staff Accounting Bulletin No. 101 (SAB 101) Revenue
Recognition in Financial Statements. SAB 101 provides further interpretive
guidance for public companies on the recognition, presentation, and disclosure
of revenue in financial statements.

The Company derives revenue from the sale of computer hardware, licensing of
computer software, post contract support (PCS), installation and training
services, and payment processing services. System revenue from hardware sales
and software licensing is recognized when a system purchase agreement has been
signed, the hardware and software has been shipped, there are no uncertainties
surrounding product acceptance, the pricing is fixed and determinable, and
collection is considered probable. If a sales transaction contains an
undelivered element, the vendor-specific objective evidence (VSOE) of fair
value of the undelivered element is deferred and the revenue recognized once
the element is delivered. The undelivered elements are primarily installation
and training services. Revenue related to these services are deferred and
recognized when the services have been provided. VSOE of fair value for
installation and training services are based upon standard rates charged since
those services are always sold separately. Installation and training services
are separately priced, are generally available from other suppliers and not
essential to the functionality of the software products. Payments for our
hardware and software are typically due with an initial deposit payment upon
signing the system purchase agreement, with the balance due upon delivery,
although established relationship customers in good credit standing receive
thirty day payment terms. VSOE of fair value for PCS is the price the customer
is required to pay since it is sold separately. PCS services are billed on a
monthly basis and recorded as revenue in the applicable month, or on an annual
basis with the revenue being deferred and recognized ratably over the support
period. Payment processing revenue is recognized in the period the service is
performed and is paid to the Company on a monthly basis. If an arrangement
includes multiple elements, the fees are allocated to the various elements
based upon VSOE of fair value, as described above.

Recently Issued Accounting Announcements

In January 2003, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities.
FIN 46 requires that if an entity has a controlling financial interest in a
variable interest entity, the assets, liabilities and results of activities of
the variable interest entity should be included in the consolidated financial
statements of the entity. FIN 46 is effective

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CAM COMMERCE SOLUTIONS, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

DECEMBER 31, 2003

(In thousands, except per share data)

immediately for all new variable interest entities created or acquired after
January 31, 2003. For variable interest entities created or acquired prior to
February 1, 2003, the provisions of FIN 46 must be applied for the first
interim or annual period beginning after December 15, 2003. The Company does
not believe that the adoption of FIN 46 will have a material impact on its
results of operations or financial position.

Intangible Assets

The Company capitalizes costs incurred to develop new marketable software and
enhance the Companys existing systems software. Costs incurred in creating
the software are charged to expense when incurred as research and development
until technological feasibility has been established through the development of
a detailed program design. Once technological feasibility has been
established, software production costs are capitalized and reported at the
lower of amortized cost or net realizable value.

License agreements, capitalized software costs, and goodwill are amortized on
the straight-line method over estimated useful lives ranging from three to five
years. Amortization of capitalized software costs commence when the products
are available for general release to customers.

Reclassifications

Certain reclassifications have been made to the fiscal 2003 financial
statements to conform to the fiscal 2004 presentation.

Use of Estimates

The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires the Company to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and reported amounts of net
revenue and expenses during the reporting period. The Company regularly
evaluates estimates and assumptions related to allowances for doubtful
accounts, goodwill and intangible asset valuations, deferred income tax asset
valuation allowances, and other contingencies. The estimates and assumptions
are based on historical experience and on various other factors that are
believed to be reasonable under the circumstances, the results of which form
the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. To the extent
there are material differences between our estimates and the actual results,
our future results of operations will be affected.

Shipping and Handling

Shipping and handling fees and costs are included in the statement of
operations under the line items titled Net hardware, software and installation
revenues and Cost of hardware, software and installation revenues.

Net Income (Loss) Per Share

Basic net income (loss) per share is based upon the weighted average number of
common shares outstanding for each period presented. Diluted net income (loss)
per share is based upon the weighted average number of common shares and common
equivalent shares outstanding for each period presented. Common equivalent
shares include stock options and warrants assuming conversion under the
treasury stock method. Common equivalent shares are excluded from diluted
income (loss) per share if their effect is anti-dilutive. There were 6 options
and 350 warrants outstanding at December 31, 2003 and 1,069 options and 350
warrants outstanding at December 31, 2002 that were excluded from the
computation because their effect is anti-dilutive. The computations of basic
and diluted net income (loss) per share for the three month periods ended
December 31, 2003 and 2002 is as follows:

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CAM COMMERCE SOLUTIONS, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

DECEMBER 31, 2003

(In thousands, except per share data)

|                                                                    |                                                 |   |                    |       |                  |   |       |       | 
|------------------------------------------------------------------- | ----------------------------------------------- | - | ------------------ | ----- | ---------------- | - | ----- | ----- | 
|                                                                    |                                                 |   | THREE MONTHS ENDED
|                                                                    |                                                 |   |                   
|                                                                    |                                                 |   | DECEMBER 31, 2003  |       | DECEMBER 31,2002
|Numerator:                                                          |                                                 |   |                    |       |                  |   |       |      
|Net income (loss) for basic and diluted net
income (loss) per share |                                                 | $ | 375                |       |                  | $ | (184  | )    
|                                                                    |                                                 |   |                    |       |                  |   |       |      
|Denominator:                                                        |                                                 |   |                    |       |                  |   |       |      
|Weighted-average shares outstanding                                 |                                                 |   | 3,284              |       |                  |   | 3,109 |      
|                                                                    |                                                 |   |                    |       |                  |   |       |      
|Denominator for basic net income (loss) per share:                  |                                                 |   |                    |       |                  |   |       |      
|                                                                    | Weighted-average shares                         |   |                    | 3,284 |                  |   |       | 3,109 | 
|Effect of dilutive securities:                                      |                                                 |   |                    |       |                  |   |       |      
|Stock options                                                       |                                                 |   | 331                |       |                  |   |      |      
|                                                                    |                                                 |   |                    |       |                  |   |       |      
|Denominator for diluted net income (loss) per
share:                |                                                 |   |                    |       |                  |   |       |      
|                                                                    | Weighted average shares and assumed conversions |   |                    | 3,615 |                  |   |       | 3,109 | 
|                                                                    |                                                 |   |                    |       |                  |   |       |      
|Basic net income (loss) per share                                   |                                                 | $ | 0.11               |       |                  | $ | (0.06 | )    
|                                                                    |                                                 |   |                    |       |                  |   |       |      
|Diluted net income (loss) per share                                 |                                                 | $ | 0.10               |       |                  | $ | (0.06 | )    
|                                                                    |                                                 |   |                    |       |                  |   |       |      

Stock Option Plans

The Company follows the disclosure-only provisions of Statement of Financial
Accounting Standards (SFAS) No. 123, Accounting for Stock-Based Compensation
(SFAS No. 123), as amended by SFAS No. 148, Accounting for Stock-Based
Compensation  Transition and Disclosure, and, accordingly, accounts for its
stock-based compensation plans using the intrinsic value method under
Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees and related interpretations. The following table illustrates the
effect on net income (loss) and income (loss) per share had compensation
expense for the employee stock-based plans been recorded based on the fair
value method under SFAS No. 123:

|                                                                                                                             |  |                    |      |                   |  |   |       |  
|---------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ---- | ----------------- |  | - | ----- | -
|                                                                                                                             |  | THREE MONTHS ENDED
|                                                                                                                             |  |                   
|                                                                                                                             |  | DECEMBER 31, 2003  |      | DECEMBER 31, 2002
|Net income (loss), as reported                                                                                               |  | $                  | 375  |                   |  | $ | (184  | )
|Deduct: total stock-based
employee compensation
expense determined under fair
value based method, net of
related tax effects |  |                    | (60  | )                 |  |   | (61   | )
|                                                                                                                             |  |                    |      |                   |  |   |       |  
|Net income (loss), as adjusted                                                                                               |  | $                  | 315  |                   |  | $ | (245  | )
|                                                                                                                             |  |                    |      |                   |  |   |       |  
|Basic income (loss) per share:                                                                                               |  |                    |      |                   |  |   |       |  
|As reported                                                                                                                  |  | $                  | 0.11 |                   |  | $ | (0.06 | )
|As adjusted                                                                                                                  |  | $                  | 0.10 |                   |  | $ | (0.08 | )
|Diluted income (loss) per share:                                                                                             |  |                    |      |                   |  |   |       |  
|As reported                                                                                                                  |  | $                  | 0.10 |                   |  | $ | (0.06 | )
|As adjusted                                                                                                                  |  | $                  | 0.09 |                   |  | $ | (0.08 | )

9



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##### Table of Contents






Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

CAM COMMERCE SOLUTIONS, INC.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Three Months Ended December 31, 2003 as Compared to Three Months Ended December 31, 2002

(All figures in thousands)

CAUTIONARY STATEMENT

You should read the following discussion and analysis with our Unaudited
Condensed Financial Statements and related Notes thereto contained elsewhere in
this Report. The Company urges you to carefully review and consider the various
disclosures made in this report and in our other reports filed with the
Securities and Exchange Commission.

The section entitled Risk Factors set forth below, and similar discussions in
the Companys other SEC filings, discuss some of the important risk factors
that may affect the business, results of operations and financial condition.
You should carefully consider those risks, in addition to the other information
in this Report and in our other filings with the SEC, before deciding to
purchase, hold or sell our common stock.

RESULTS OF OPERATIONS

The following table summarizes the fluctuation analysis of results of
operations for the three months ended December 31, 2003 versus the three months
ended December 31, 2002.

|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |    |   
|------------------------------------------------------------ | ------------------------ | - | ------------------------------- | ----- | -------- | - | ------ | ----- | - | - | ---- | ---- | - |  | --- | -- | --
|                                                             |                          |   | Three months ended December 31, |       | Variance
|                                                             |                          |   | 2003                            |       | 2002     |   | Amount |       | %
|                                                             |                          |   |                                 |       |          |   |        |       |  
|Net hardware, software and installation
revenues             |                          | $ | 3,237                           |       |          | $ | 3,220  |       |   | $ | 17   |      |   |  | 1   | % 
|Net service revenues                                         |                          |   | 2,063                           |       |          |   | 1,660  |       |   |   | 403  |      |   |  | 24  | % 
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|                                                             | Total net revenues       |   |                                 | 5,300 |          |   |        | 4,880 |   |   |      | 420  |   |  |     | 9  | % 
|Cost
of hardware, software, and installation revenues        |                          |   | 1,653                           |       |          |   | 1,589  |       |   |   | 64   |      |   |  | 4   | % 
|Cost of service revenues                                     |                          |   | 534                             |       |          |   | 521    |       |   |   | 13   |      |   |  | 2   | % 
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|                                                             | Total cost of revenues   |   |                                 | 2,187 |          |   |        | 2,110 |   |   |      | 77   |   |  |     | 4  | % 
|Selling, general and administrative expenses                 |                          |   | 2,421                           |       |          |   | 2,602  |       |   |   | (181 | )    |   |  | (7  | %)
|Research and development expenses                            |                          |   | 369                             |       |          |   | 426    |       |   |   | (57  | )    |   |  | (13 | %)
|Interest income                                              |                          |   | (81                             | )     |          |   | (74    | )     |   |   | 7    |      |   |  | 9   | % 
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|                                                             | Total costs and expenses |   |                                 | 4,896 |          |   |        | 5,064 |   |   |      | (168 | ) |  |     | (3 | %)
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|Income (loss) before provision for income taxes              |                          |   | 404                             |       |          |   | (184   | )     |   |   | 588  |      |   |  | 320 | % 
|Provision for income taxes                                   |                          |   | 29                              |       |          |   |       |       |   |   | 29   |      |   |  |     |   
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|Net income (loss)                                            |                          | $ | 375                             |       |          | $ | (184   | )     |   |   | 559  |      |   |  | 304 | % 
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|Gross profit on hardware, software and
installation revenues |                          | $ | 1,584                           |       |          | $ | 1,631  |       |   |   | (47  | )    |   |  | (3  | %)
|Gross profit on service revenues                             |                          |   | 1,529                           |       |          |   | 1,139  |       |   |   | 390  |      |   |  | 34  | % 
|                                                             |                          |   |                                 |       |          |   |        |       |   |   |      |      |   |  |     |   
|                                                             | Total gross profit       |   | $                               | 3,113 |          |   | $      | 2,770 |   |   |      | 343  |   |  |     | 12 | % 
|Gross margin on hardware, software and
installation revenues |                          |   | 49                              | %     |          |   | 51     | %     |   |   |      |      |   |  |     |   
|Gross margin on service revenues                             |                          |   | 74                              | %     |          |   | 69     | %     |   |   |      |      |   |  |     |   
|Gross margin on total net revenues                           |                          |   | 59                              | %     |          |   | 57     | %     |   |   |      |      |   |  |     |   

10



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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(All figures in thousands)

Net revenuesfor the three months ended December 31, 2003 increased 9% to
$5,300, consisting of a 1% increase in system revenues and a 24% increase in
service revenues, compared to the three months ended December 31, 2002. The
slight increase in system revenues was due to an increase in new system sales.
The increase in service revenues in the three months ended December 31, 2003
was attributed to the increase in X-Charge credit card processing revenue,
which more than doubled over the prior year.

Gross marginfor the three months ended December 31, 2003 was 59%, compared to
57% for the three months ended December 31, 2002. Gross margin on system
revenues decreased to 49% for the three months ended December 31, 2003 compared
to 51% for the three months ended December 31, 2002. The decrease in margin on
system revenues for the three months ended December 31, 2003 was a result of
higher discounts given on sales and lower margin on equipment sales, compared
to the three months ended December 31, 2002. Gross margin for service revenue
was 74% for the three months ended December 31, 2003, compared to 69% for the
same period in 2002. The increase in gross margin for service revenue was
related to the increase in X-Charge recurring credit card processing revenue,
which yielded higher margins due to a lower cost structure.

Selling, general and administrative expensesexpressed as a percentage of net
revenues was 46% for the three months ended December 31, 2003, compared to 53%
for the three months ended December 31, 2002. Selling, general and
administrative expenses decreased 7% for the three months ended December 31,
2003, compared to the three months ended December 31, 2002. The decrease in
selling, general and administrative expenses for the three months ended
December 31, 2003 resulted primarily from the decrease in payroll expense,
legal costs, and lower provision for doubtful accounts.

Research and development expensesexpressed as a percentage of revenues was 7%
for the three months ended December 31, 2003, compared to 9% for the same
period in 2002. Research and development expenses decreased by 13% for the
three months ended December 31, 2003, as compared to the three months ended
December 31, 2002. The decrease was due to lower payroll expense related to a
decrease in headcount and higher capitalization of costs to develop new
marketable software and to enhance existing systems software in 2003. The
Company continues to invest in the enhancements of new features for the
existing software products of Retail Star and CAM32.

Income taxes,provision for income taxes for the three months ended December
31, 2003 was $29, related to estimated tax expense for various states. There
was no provision for income taxes recorded in the three months ended December
31, 2002 due to the loss.

On September 11, 2002, the Governor of California signed into law new tax
legislation that suspends the use of net operating loss carryforwards into tax
years beginning on or after January 1, 2002 and 2003. Should the Company have
taxable income for the year ending September 30, 2004, it may not rely on
California net operating losses generated in prior years to offset taxable
income. This suspension will not apply to tax years beginning in 2004 and
beyond.

LIQUIDITY AND CAPITAL RESOURCES

The Companys cash and cash equivalents plus marketable securities totaled
$13,338 on December 31, 2003 compared to $12,430 on September 30, 2003.
Increase in cash balance at December 31, 2003 resulted from cash provided from
operating activities and proceeds received from the exercise of stock options.
The Company generated $749 from operations, expended $113 for fixed assets and
capitalized software development, and received $284 from the proceeds of stock
options exercised during the three months ended December 31, 2003, compared to
$470 generated from operations, $149 used for fixed assets and capitalized
software development for the three months ended December 31, 2002. There were
no proceeds received from the exercise of stock options for the three months
ended December 31, 2002.

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CAM COMMERCE SOLUTIONS, INC.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(All figures in thousands)

The Company has strong liquidity in its total current assets. At December 31,
2003 cash and cash equivalents plus marketable securities made up 89% of the
Companys total current assets. The Companys current ratio at December 31,
2003 was 4.7. Management believes the Companys existing working capital,
coupled with funds generated from the Companys operations will be sufficient
to fund its presently anticipated working capital requirements for the
foreseeable future.

Inflation has had no significant impact on the Companys operations.

Contracts and Commitments

The following table shows payment obligations for long-term debt, capital
leases, operating leases and purchase obligations for the next five years and
beyond.

|                          |  |                        |       |            |  |             |       |                   |  |   |     |  |  |   |   | 
|------------------------- |  | ---------------------- | ----- | ---------- |  | ----------- | ----- | ----------------- |  | - | --- |  |  | - | - | 
|                          |  | PAYMENTS DUE BY PERIOD
|                          |  | TOTAL                  |       | 1-3 YEARS* |  | 4-5 YEARS** |       | MORE THAN 5 YEARS
|Long-term debt            |  | $                      |      |            |  | $           |      |                   |  | $ |    |  |  | $ |  | 
|Capital lease obligations |  |                        |      |            |  |             |      |                   |  |   |    |  |  |   |  | 
|Operating leases          |  |                        | 1,924 |            |  |             | 1,617 |                   |  |   | 307 |  |  |   |  | 
|Purchase obligations      |  |                        | 160   |            |  |             | 160   |                   |  |   |    |  |  |   |  | 

*Includes payments due from January 1, 2004 to fiscal year ending
September 30, 2006.

**Includes payments due from October 1, 2006 to May 31, 2007.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires the Company to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and reported amounts of net
revenue and expenses during the reporting period. The Company regularly
evaluates estimates and assumptions related to allowances for doubtful
accounts, goodwill and intangible asset valuations, deferred income tax asset
valuation allowances, and other contingencies. The estimates and assumptions
are based on historical experience and on various other factors that are
believed to be reasonable under the circumstances, the results of which form
the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. To the extent
there are material differences between our estimates and the actual results,
our future results of operations will be affected.

We believe the following critical accounting policies require the Company to
make significant judgments and estimates in the preparation of the financial
statements:

Revenue Recognition

The Company derives revenue from the sale of computer hardware, licensing of
computer software, post contract customer support, installation and training
services, and payment processing services. System revenue from hardware sales
and software licensing is recognized when a system purchase agreement has been
signed, the hardware and software has been shipped, there are no uncertainties
surrounding product acceptance, the pricing is fixed and determinable, and
collection is considered probable. If a sales transaction contains an
undelivered element, the vendor-specific objective evidence (VSOE) of fair
value of

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CAM COMMERCE SOLUTIONS, INC.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(All figures in thousands)

the undelivered element is deferred and the revenue recognized once the element
is delivered. The undelivered elements are primarily installation and training
services. Revenue related to these services are deferred and recognized when
the services have been provided. VSOE of fair value for installation and
training services are based upon standard rates charged since those services
are always sold separately. Installation and training services are separately
priced, are generally available from other suppliers and not essential to the
functionality of the software products. Payments for our hardware and software
are typically due with an initial deposit payment upon signing the system
purchase agreement, with the balance due upon delivery, although established
relationship customers in good credit standing receive thirty day payment
terms. VSOE of fair value for PCS is the price the customer is required to pay
since it is sold separately. PCS services are billed on a monthly basis and
recorded as revenue in the applicable month, or on an annual basis with the
revenue being deferred and recognized ratably over the support period. Payment
processing revenue is recognized in the period the service is performed and is
paid to the Company on a monthly basis. If an arrangement includes multiple
elements, the fees are allocated to the various elements based upon VSOE of
fair value, as described above.

Receivables and Inventory

An allowance for doubtful accounts is maintained for estimated losses resulting
from the inability of customers to make required payments. If the financial
condition of the Companys customers were to deteriorate, resulting in an
impairment of their ability to make payments, additional allowances could be
required.

The Company writes down inventory for estimated obsolescence equal to the
difference between the cost of inventory and the estimated realizable value
based upon assumptions about future demand and market conditions. If actual
market conditions are less favorable than those projected by management,
additional inventory write-downs could be required.

Capitalized Software

The Company capitalizes costs incurred to develop new marketable software and
enhance the Companys existing systems software. Costs incurred in creating
the software are charged to expense when incurred as research and development
until technological feasibility has been established through the development of
a detailed program design. Once technological feasibility has been
established, software production costs are capitalized and reported at the
lower of amortized cost or net realizable value.

Impairment of Intangible Assets

The value of our intangible assets could be impacted by future adverse changes
such as (i) any future declines in our operating results, (ii) any failure to
meet our future performance projections, and (iii) an increase in severity of
the recent economic slowdown. The Company evaluates these assets used in
operations on an annual basis or more frequently if indicators of impairment
exist. An annual impairment review will be performed during the fourth quarter
of each year or more frequently if indicators of impairment exist. In the
process of the annual impairment review, the Company will use the income
approach methodology of valuation that includes the discounted cash flow method
as well as other generally accepted valuation methodologies to determine the
fair value of our assets. Significant management judgment is required in the
forecast of future operating results that are used in the discounted cash flow
method of valuation. The estimates used are consistent with the plans and
estimates that the Company uses to manage the business. It is reasonably
possible, however, that certain of our products will not gain or maintain
market acceptance, which could result in estimates of anticipated future net
revenue differing materially from those used to assess the recoverability of
these assets. In that event, revenue and costs forecasts would not be achieved,
and the Company could incur additional impairment charges.

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CAM COMMERCE SOLUTIONS, INC.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(All figures in thousands)

FORWARD LOOKING STATEMENTS

All statements included or incorporated by reference in this Report, other than
statements of historical fact, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Examples of
forward-looking statements include, but are not limited to, statements
concerning projected revenue, expenses, gross profit, gross margin and income,
our accounting estimates, assumptions and judgments, the impact of our adoption
of new rules on accounting for goodwill and other intangible assets, the
effectiveness of our expense and cost control and reduction efforts, the market
acceptance and performance of our products, implications of our lengthy sales
cycle, the competitive nature in our markets, and our future capital
requirements. These forward-looking statements are based on our current
expectation, estimates and projections about our industry, managements
beliefs, and certain assumptions made by us. Forwardlooking statements can
often be identified by words such as anticipates, expects, intends,
plans, predicts, believes, seeks, estimates, may, will, should,
would, potential, continue, feels, outlook, forecast, similar
expressions, and variations or negatives of these words.

In addition, any statements that refer to expectations, projections or other
characterizations of future events or circumstances, including any underlying
assumptions, are forward-looking statements. These statements speak only as of
the date of this Report and are based upon the information available to the
Company at this time. Such information is subject to change. These statements
are not guarantees of future performance and are subject to risks,
uncertainties and assumptions that are difficult to predict. Actual results
could differ materially and adversely from those expressed in any
forwardlooking statements as a result of various factors, some of which are
set forth in Risk Factors, below. The Company undertakes no obligation to
revise or update publicly any forward-looking statement for any reason.

RISK FACTORS

Before deciding to buy, hold or sell our common stock, you should carefully
consider the risks described below, in addition to the other information
contained in this Report and in our other filings with the Securities and
Exchange Commission, including our reports on Forms 10-K and 8-K. The risks and
uncertainties described below are not the only ones we face. Additional risks
and uncertainties not presently known or that are currently deemed immaterial
may also affect our business. If any of these known or unknown risks or
uncertainties actually occur, they could have a material adverse effect on our
business, financial condition and results of operations. In that event, the
market price for our common stock could decline and you may lose all or part of
your investment.



| |  |  | We face intense competition in the retail point of sale industry,
which could reduce our market share
| | - |  | -----------------------------------------------------------------------------------------------------

Intuit and Microsoft both offer competing point of sale software products.
These products were either acquired or licensed from our competitors. Although
we have successfully competed against these products in the past, both Intuit
and Microsoft have significant financial resources to market and modify their
products, and, therefore, we may not be able to continue to successfully
compete against them in the future.



| |  |  | Our stock is thinly traded. Accordingly, you may not be able to
resell your shares of common stock at or above the price you paid for
them.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------

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CAM COMMERCE SOLUTIONS, INC.

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(All figures in thousands)

Our common stock has historically maintained a low trading volume of shares per
day. This trend is likely to continue.



| |  |  | Our operating results have fluctuated significantly from quarter to
quarter in the past and are likely to continue to do so due to a number
of factors which are not within our control, including the intense
competitive pressure on our target customers.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our target customers are small-to-medium size retailers. These target customers
are under intense competitive pressure from large retail chains such as
Wal-Mart and others. These large retailers are gaining market share at the
expense of our target customers and each other. This intense competition
causes some small retailers to go out of business, and others to consolidate
with other small regional retail chains. This results in a shrinking population
of our target customers. This also causes our target customers to be more
cautious about capital spending for their retail business. These factors can
cause substantial fluctuations in our revenues and in our results of
operations. This current trend in the retail industry may exist indefinitely
and could seriously impact our revenue and harm our business, financial
condition and results of operations.

Other factors which may affect quarterly results include:



| | - |  | the availability and pricing of competing products and the resulting effects on sales;                                                                     
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | - |  | the effectiveness of expense and cost control efforts;                                                                                                     
|
| | - |  | the ability to develop and deliver software products to market in a timely manner;                                                                         
|
| | - |  | the rate at which present and future customers adopt the Companys
new products and services in our target markets;                                        
|
| | - |  | the effects of new and emerging technologies;                                                                                                              
|
| | - |  | the ability to retain and hire key executives, management,
technical personnel and other employees that are needed to implement
business and product plans;
|
| | - |  | the level of orders received that can be shipped in a fiscal quarter.                                                                                      

Due to all of the foregoing factors, and the other risks discussed in this
Report, you should not rely on quarter to quarter comparisons of the Companys
operating results as an indication of future performance.

15



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##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.




ITEM 3. QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk refers to the risk that a change in the level of one or more market
factors such as interest rates, foreign currency exchange rates, or equity
prices will result in losses for a certain financial instrument or group of
instruments. The Company is principally exposed to interest rate and credit
risks. It is not exposed to foreign currency exchange rate risk. The Company
does not use derivative instruments.

Interest Rate Risk

The Company maintains a portfolio of cash equivalents with original maturities
of three months or less. Its investment securities portfolio consists solely
of debt instruments all with current maturities in fiscal year 2004. Both
portfolios are for investment, not trading purposes. Fluctuations in interest
rates will have an impact on the market value of these investments. This risk
is managed by investing in short term instruments of high quality credit
issuers and limiting the amount of investment in any one issuer. The Company
has no current or long term debt or outstanding lines of credit.

Credit Risk

The Company is currently exposed to credit risk on credit extended to customers
which are mostly small-to-medium-size retailers. It actively monitors this
risk through a variety of control procedures involving senior management.
Historically, credit losses have been small and within the Companys
expectations.




ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and with the participation of its management,
including its Chief Executive Officer and its Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the Companys disclosure controls and
procedures are effective to ensure that information required to be disclosed by
the Company in the reports that it files or submits under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commissions rules and
forms.

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##### Table of Contents






CAM COMMERCE SOLUTIONS, INC.

PART II  OTHER INFORMATION



















|              |  |                                                                                           
|------------- |  | ------------------------------------------------------------------------------------------
|Item 1        |  | Legal Proceedings. None                                                                   
|              |  |                                                                                           
|Item 2        |  | Changes in Securities. None                                                               
|              |  |                                                                                           
|Item 3        |  | Defaults upon Senior Securities. None                                                     
|              |  |                                                                                           
|Item 4        |  | Submission of Matters to a Vote of Security Holders. None                                 
|              |  |                                                                                           
|Item 5        |  | Other Information. None                                                                   
|              |  |                                                                                           
|Item 6        |  | Exhibits and Reports on Form 8-K                                                          
|              |  |                                                                                           
|(A) Exhibits: |  |                                                                                           
|              |  |                                                                                           
|Exhibit 31(a) |  | Certification of Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act
|              |  |                                                                                           
|Exhibit 31(b) |  | Certification of Chief Financial Officer pursuant to Section
302 of the Sarbanes-Oxley Act
|              |  |                                                                                           
|Exhibit 32    |  | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act                           

(B) Reports on Form 8-K:

Press Release filed on November 12, 2003 (furnished pursuant to Item 12 of Form
8-K)

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##### Table of Contents






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

CAM COMMERCE SOLUTIONS, INC.(Registrant)

|                        |  |                         |  |                      
|----------------------- |  | ----------------------- |  | ---------------------
|Date: February 12, 2004 |  | By                      |  | /S/ Geoffrey D. Knapp
|                        |  |                         |  |                      
|                        |  | Geoffrey D. Knapp      
|                        |  | Chief Executive Officer
|                        |  |                         |  |                      
|Date: February 12, 2004 |  | By                      |  | /S/ Paul Caceres Jr. 
|                        |  |                         |  |                      
|                        |  | Paul Caceres Jr.       
|                        |  | Chief Financial and    
|                        |  | Accounting Officer     

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EXHIBIT INDEX

|              |  |                                                                                           
|------------- |  | ------------------------------------------------------------------------------------------
|Exhibit 31(a) |  | Certification of Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act
|              |  |                                                                                           
|Exhibit 31(b) |  | Certification of Chief Financial Officer pursuant to Section
302 of the Sarbanes-Oxley Act
|              |  |                                                                                           
|Exhibit 32    |  | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act