##### 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 June 30, 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
(State or other jurisdiction 
of incorporation or organization)
    
    95-3866450
(IRS Employer
Identification No.)17075 Newhope Street 
Fountain Valley, California
    
    92708(Address of principal
    
    (Zip code)Executive offices)
 (714) 241-9241
  þ o
  o o þ
 o þ




---



##### 



CAM COMMERCE SOLUTIONS, INC.
 INDEX
 Page NumberPART I  Financial InformationItem 1
    
    Financial Statements:a)
    
    Condensed Balance Sheets at June 30, 2007 (Unaudited) and
September 30, 2006
    
    
    3b)
    
    Unaudited Condensed Statements of Income for the three
months ended June 30, 2007 and 2006
    
    
    4c)
    
    Unaudited Condensed Statements of Income for the nine
months ended June 30, 2007 and 2006
    
    
    5d)
    
    Unaudited Condensed Statements of Cash Flows for the
nine months ended June 30, 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
    
    
    25Signatures
    
    
    26EXHIBIT 31(a)EXHIBIT 31(b)EXHIBIT 32
  2




---



##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 CAM COMMERCE SOLUTIONS, INC.
 
 CONDENSED BALANCE SHEETS
 (In thousands, except per share data)
 JUNE 30, 2007
    
    
    SEPTEMBER 30, 2006(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    18,314
    
    
    $
    15,196Marketable
available-for-sale
securities
    
    
    8,169
    
    
    
    8,457Accounts receivable, net
    
    
    2,604
    
    
    
    1,936Inventories
    
    
    243
    
    
    
    391Deferred income taxes
    
    
    633
    
    
    
    991Other current assets
    
    
    198
    
    
    
    138Total current assets
    
    
    30,161
    
    
    
    27,109Deferred income taxes
    
    
    31
    
    
    
    56Property and equipment, net
    
    
    569
    
    
    
    484Intangible assets, net
    
    
    536
    
    
    
    445Other assets
    
    
    64
    
    
    
    51Total assets
    
    $
    31,361
    
    
    $
    28,145LIABILITIES AND
STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    355
    
    
    $
    301Accrued compensation and related expenses
    
    
    1,655
    
    
    
    1,255Deferred service revenue and customer deposits
    
    
    1,659
    
    
    
    1,499Cash dividends payable
    
    
    814
    
    
    
    594Other accrued liabilities
    
    
    126
    
    
    
    103Total current liabilities
    
    
    4,609
    
    
    
    3,752CommitmentsStockholders equity:Common stock, $0.001 par value; 12,000,000
shares authorized, 4,067,000 shares issued
and outstanding at June 30, 2007 and
3,961,000 at September 30, 2006
    
    
    4
    
    
    
    4Capital in excess of par value
    
    
    23,072
    
    
    
    21,634Accumulated other comprehensive income (loss)
    
    
    9
    
    
    
    (6
    )Retained earnings
    
    
    3,667
    
    
    
    2,761Total stockholders equity
    
    
    26,752
    
    
    
    24,393Total liabilities and stockholders equity
    
    $
    31,361
    
    
    $
    28,145
  3




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 UNAUDITED CONDENSED STATEMENTS OF INCOME
 (In thousands, except per share data)
 THREE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006REVENUESNet payment processing revenues
    
    $
    4,322
    
    
    $
    2,792Net hardware, software and installation revenues
    
    
    2,755
    
    
    
    2,651Net service revenues
    
    
    1,421
    
    
    
    1,327Total net revenues
    
    
    8,498
    
    
    
    6,770COSTS AND EXPENSESCost of payment processing revenues
    
    
    191
    
    
    
    129Cost of hardware, software and installation
revenues (1)
    
    
    1,287
    
    
    
    1,395Cost of service revenues (1)
    
    
    643
    
    
    
    633Total cost of revenues
    
    
    2,121
    
    
    
    2,157Selling, general and administrative expenses
(1) (2)
    
    
    4,288
    
    
    
    3,351Research and development expenses (1)
    
    
    398
    
    
    
    385Interest income
    
    
    (329
    )
    
    
    (250
    )Total costs and expenses
    
    
    6,478
    
    
    
    5,643Income before provision for income taxes
    
    
    2,020
    
    
    
    1,127Provision for income taxes
    
    
    753
    
    
    
    441Net income
    
    $
    1,267
    
    
    $
    686Basic net income per share
    
    $
    0.31
    
    
    $
    0.17Diluted net income per share
    
    $
    0.30
    
    
    $
    0.16Shares used in computing basic net income per share
    
    
    4,050
    
    
    
    3,932Shares used in computing diluted net income per
share
    
    
    4,241
    
    
    
    4,180Cash dividends declared per common share
    
    $
    0.20
    
    
    $
    0.14(1) Includes share-based employee
compensation expense as follows:Cost of hardware, software and installation revenues
    
    $
    3
    
    
    $
    4Cost of service revenues
    
    
    5
    
    
    
    6Selling, general and administrative expenses
    
    
    21
    
    
    
    26Research and development expenses
    
    
    7
    
    
    
    10(2) Includes $73 and $41 for the three months ended June 30, 2007 and 2006,
respectively, for building rent to a related party, Geoff Knapp, officer and director of CAM
Commerce.
  4




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 UNAUDITED CONDENSED STATEMENTS OF INCOME
 (In thousands, except per share data)
 NINE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006REVENUESNet payment processing revenues
    
    $
    11,129
    
    
    $
    7,694Net hardware, software and installation revenues
    
    
    7,616
    
    
    
    8,563Net service revenues
    
    
    4,272
    
    
    
    3,982Total net revenues
    
    
    23,017
    
    
    
    20,239COSTS AND EXPENSESCost of payment processing revenues
    
    
    502
    
    
    
    373Cost of hardware, software and installation
revenues (1)
    
    
    3,705
    
    
    
    4,568Cost of service revenues (1)
    
    
    1,919
    
    
    
    1,834Total cost of revenues
    
    
    6,126
    
    
    
    6,775Selling, general and administrative expenses
(1) (2)
    
    
    11,791
    
    
    
    10,010Research and development expenses (1)
    
    
    1,178
    
    
    
    1,148Interest income
    
    
    (944
    )
    
    
    (679
    )Total costs and expenses
    
    
    18,151
    
    
    
    17,254Income before provision for income taxes
    
    
    4,866
    
    
    
    2,985Provision for income taxes
    
    
    1,777
    
    
    
    1,140Net income
    
    $
    3,089
    
    
    $
    1,845Basic net income per share
    
    $
    0.77
    
    
    $
    0.47Diluted net income per share
    
    $
    0.73
    
    
    $
    0.44Shares used in computing basic net income per share
    
    
    4,017
    
    
    
    3,890Shares used in computing diluted net income per
share
    
    
    4,217
    
    
    
    4,148Cash dividends declared per common share
    
    $
    0.54
    
    
    $
    0.42(1) Includes share-based employee compensation expense as follows:Cost of hardware, software and installation revenues
    
    $
    9
    
    
    $
    12Cost of service revenues
    
    
    15
    
    
    
    16Selling, general and administrative expenses
    
    
    65
    
    
    
    72Research and development expenses
    
    
    21
    
    
    
    26(2)Includes $157 and $122 for the nine months ended June 30, 2007 and 2006,
respectively, for building rent to a related party, Geoff Knapp, officer and director of CAM
Commerce.
  5




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
 (In thousands)
 NINE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006Operating activities:Net income
    
    $
    3,089
    
    
    $
    1,845Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    471
    
    
    
    498Provision for doubtful accounts
    
    
    (18
    )
    
    
    13Change in deferred income taxes
    
    
    358
    
    
    
    398Share-based compensation
    
    
    110
    
    
    
    126Excess tax benefits from share-based payment
arrangements
    
    
    (795
    )
    
    
    (642
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (650
    )
    
    
    (24
    )Inventories
    
    
    148
    
    
    
    50Other assets
    
    
    (73
    )
    
    
    (48
    )Accounts payable
    
    
    54
    
    
    
    (203
    )Accrued compensation and related expenses
    
    
    400
    
    
    
    37Deferred service revenue and customer
deposits
    
    
    160
    
    
    
    (130
    )Other accrued liabilities
    
    
    840
    
    
    
    507Cash provided by operating activities
    
    
    4,094
    
    
    
    2,427Cash flows from investing activities:Purchase of property and equipment
    
    
    (347
    )
    
    
    (166
    )Capitalized software development costs
    
    
    (300
    )
    
    
    (219
    )Purchase of marketable securities
    
    
    (3,014
    )
    
    
    (3,967
    )Proceeds from maturity of marketable securities
    
    
    3,320
    
    
    
    2,799Cash used in investing activities
    
    
    (341
    )
    
    
    (1,553
    )Cash flows from financing activities:Proceeds from exercise of stock options
    
    
    533
    
    
    
    514Excess tax benefits from share-based payment
arrangements
    
    
    795
    
    
    
    642Dividends paid on common stock
    
    
    (1,963
    )
    
    
    (1,475
    )Cash used in financing activities
    
    
    (635
    )
    
    
    (319
    )Net increase in cash and cash equivalents
    
    
    3,118
    
    
    
    555Cash and cash equivalents at beginning of period
    
    
    15,196
    
    
    
    15,763Cash and cash equivalents at end of period
    
    $
    18,314
    
    
    $
    16,318
  6




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 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




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2007
 (In thousands, except per share data)
 Concentrations of Credit Risk
  Inventories
  Comprehensive Income
  THREE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006Net income
    
    $
    1,267
    
    
    $
    686Unrealized gain on marketable
available-for- sale securities, net of
tax
    
    
    3
    
    
    
    1Comprehensive income
    
    $
    1,270
    
    
    $
    687
 NINE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006Net income
    
    $
    3,089
    
    
    $
    1,845Unrealized gain on marketable
available-for-sale securities, net of tax
    
    
    15
    
    
    
    6Comprehensive income
    
    $
    3,104
    
    
    $
    1,851
 Revenue Recognition Policy
   8




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2007
 (In thousands, except per share data)
  Segments
  Recently Issued Accounting Announcements
   9




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2007
 (In thousands, except per share data)
     Intangible Assets
     Use of Estimates
  10




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2007
 (In thousands, except per share data)
  Advertising
  Shipping and Handling
  Net Income Per Share
   THREE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006Numerator:Net income for basic and diluted net
income per share
    
    $
    1,267
    
    
    $
    686Denominator:Weighted-average shares outstanding
    
    
    4,050
    
    
    
    3,932Denominator for basic net income per
share:Weighted-average shares
    
    
    4,050
    
    
    
    3,932Effect of dilutive securities:Stock options
    
    
    191
    
    
    
    248Denominator for diluted net income per
share:Weighted average shares and assumed
conversions
    
    
    4,241
    
    
    
    4,180Basic net income per share
    
    $
    0.31
    
    
    $
    0.17Diluted net income per share
    
    $
    0.30
    
    
    $
    0.16
 11




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2007
 (In thousands, except per share data)
 NINE MONTHS ENDEDJUNE 30, 2007
    
    
    JUNE 30, 2006Numerator:Net income for basic and diluted net
income per share
    
    $
    3,089
    
    
    $
    1,845Denominator:Weighted-average shares outstanding
    
    
    4,017
    
    
    
    3,890Denominator for basic net income per
share:Weighted-average shares
    
    
    4,017
    
    
    
    3,890Effect of dilutive securities:Stock options
    
    
    200
    
    
    
    258Denominator for diluted net income per
share:Weighted average shares and assumed
conversions
    
    
    4,217
    
    
    
    4,148Basic net income per share
    
    $
    0.77
    
    
    $
    0.47Diluted net income per share
    
    $
    0.73
    
    
    $
    0.44
 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, 2007May 2, 2007
    
    $
    0.20
    
    
    July 6, 2007
    
    $
    814
    
    
    July 16, 2007
 Share-Based Compensation
   12




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
 JUNE 30, 2007
 (In thousands, except per share data)
 (
    WEIGHTEDWEIGHTED
    
    AVERAGENUMBER
    
    AVERAGE
    
    REMAINING
    
    AGGREGATEOF
    
    EXERCISE
    
    CONTRACTUAL
    
    INTRINSICOPTIONS
    
    PRICE
    
    TERM (IN YEARS)
    
    VALUEOptions outstanding
at June 30, 2007
    
    
    398
    
    
    $
    6.90
    
    
    
    4.5
    
    
    $
    8,520Options expected to
vest at June 30,
2007
    
    
    391
    
    
    $
    6.81
    
    
    
    4.5
    
    
    $
    8,416Options exercisable
at June 30, 2007
    
    
    378
    
    
    $
    6.62
    
    
    
    4.4
    
    
    $
    8,202
 13




---



##### 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




---



##### Table of Contents



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




---



##### Table of Contents



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




---



##### Table of Contents



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 June 30,
    
    
    Variance2007
    
    
    2006
    
    
    Amount
    
    
    %Net payment processing revenues
    
    $
    4,322
    
    
    $
    2,792
    
    
    $
    1,530
    
    
    
    55
    %Net hardware, software and installation
revenues
    
    
    2,755
    
    
    
    2,651
    
    
    
    104
    
    
    
    4
    %Net service revenues
    
    
    1,421
    
    
    
    1,327
    
    
    
    94
    
    
    
    7
    %Total net revenues
    
    
    8,498
    
    
    
    6,770
    
    
    
    1,728
    
    
    
    26
    %Cost of payment processing revenues
    
    
    191
    
    
    
    129
    
    
    
    62
    
    
    
    48
    %Cost of hardware, software and
installation revenues
    
    
    1,287
    
    
    
    1,395
    
    
    
    (108
    )
    
    
    (8
    %)Cost of service revenues
    
    
    643
    
    
    
    633
    
    
    
    10
    
    
    
    2
    %Total cost of revenues
    
    
    2,121
    
    
    
    2,157
    
    
    
    (36
    )
    
    
    (2
    %)Selling, general and administrative
expenses
    
    
    4,288
    
    
    
    3,351
    
    
    
    937
    
    
    
    28
    %Research and development expenses
    
    
    398
    
    
    
    385
    
    
    
    13
    
    
    
    3
    %Interest income
    
    
    (329
    )
    
    
    (250
    )
    
    
    79
    
    
    
    32
    %Total costs and expenses
    
    
    6,478
    
    
    
    5,643
    
    
    
    835
    
    
    
    15
    %Income before provision for income taxes
    
    
    2,020
    
    
    
    1,127
    
    
    
    893
    
    
    
    79
    %Provision for income taxes
    
    
    753
    
    
    
    441
    
    
    
    312
    
    
    
    71
    %Net income
    
    $
    1,267
    
    
    $
    686
    
    
    $
    581
    
    
    
    85
    %Gross profit on net payment processing
revenues
    
    $
    4,131
    
    
    $
    2,663
    
    
    $
    1,468
    
    
    
    55
    %Gross profit on net hardware, software and
installation revenues
    
    
    1,468
    
    
    
    1,256
    
    
    
    212
    
    
    
    17
    %Gross profit on net service revenues
    
    
    778
    
    
    
    694
    
    
    
    84
    
    
    
    12
    %Total gross profit
    
    $
    6,377
    
    
    $
    4,613
    
    
    $
    1,764
    
    
    
    38
    %Gross margin on net payment processing
revenues
    
    
    96
    %
    
    
    95
    %Gross margin on net hardware, software and
installation revenues
    
    
    53
    %
    
    
    47
    %Gross margin on net service revenues
    
    
    55
    %
    
    
    52
    %Gross margin on total net revenues
    
    
    75
    %
    
    
    68
    %
 17




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 (All dollar amounts in thousands)
 Nine months ended June 30,
    
    
    Variance2007
    
    
    2006
    
    
    Amount
    
    
    %Net payment processing revenues
    
    $
    11,129
    
    
    $
    7,694
    
    
    $
    3,435
    
    
    
    45
    %Net hardware, software and installation
revenues
    
    
    7,616
    
    
    
    8,563
    
    
    
    (947
    )
    
    
    (11
    %)Net service revenues
    
    
    4,272
    
    
    
    3,982
    
    
    
    290
    
    
    
    7
    %Total net revenues
    
    
    23,017
    
    
    
    20,239
    
    
    
    2,778
    
    
    
    14
    %Cost of payment processing revenues
    
    
    502
    
    
    
    373
    
    
    
    129
    
    
    
    35
    %Cost of hardware, software and
installation revenues
    
    
    3,705
    
    
    
    4,568
    
    
    
    (863
    )
    
    
    (19
    %)Cost of service revenues
    
    
    1,919
    
    
    
    1,834
    
    
    
    85
    
    
    
    5
    %Total cost of revenues
    
    
    6,126
    
    
    
    6,775
    
    
    
    (649
    )
    
    
    (10
    %)Selling, general and administrative
expenses
    
    
    11,791
    
    
    
    10,010
    
    
    
    1,781
    
    
    
    18
    %Research and development expenses
    
    
    1,178
    
    
    
    1,148
    
    
    
    30
    
    
    
    3
    %Interest income
    
    
    (944
    )
    
    
    (679
    )
    
    
    265
    
    
    
    39
    %Total costs and expenses
    
    
    18,151
    
    
    
    17,254
    
    
    
    897
    
    
    
    5
    %Income before provision for income taxes
    
    
    4,866
    
    
    
    2,985
    
    
    
    1,881
    
    
    
    63
    %Provision for income taxes
    
    
    1,777
    
    
    
    1,140
    
    
    
    637
    
    
    
    56
    %Net income
    
    $
    3,089
    
    
    $
    1,845
    
    
    $
    1,244
    
    
    
    67
    %Gross profit on net payment processing
revenues
    
    $
    10,627
    
    
    $
    7,321
    
    
    $
    3,306
    
    
    
    45
    %Gross profit on net hardware, software and
installation revenues
    
    
    3,911
    
    
    
    3,995
    
    
    
    (84
    )
    
    
    (2
    %)Gross profit on net service revenues
    
    
    2,353
    
    
    
    2,148
    
    
    
    205
    
    
    
    10
    %Total gross profit
    
    $
    16,891
    
    
    $
    13,464
    
    
    $
    3,427
    
    
    
    25
    %Gross margin on net payment processing
revenues
    
    
    95
    %
    
    
    95
    %Gross margin on net hardware, software and
installation revenues
    
    
    51
    %
    
    
    47
    %Gross margin on net service revenues
    
    
    55
    %
    
    
    54
    %Gross margin on total net revenues
    
    
    73
    %
    
    
    67
    %
 18




---



##### 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
  19




---



##### 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
  20




---



##### 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, 2007May 2, 2007
    
    $
    0.20
    
    
    July 6, 2007
    
    $
    814
    
    
    July 16, 2007
   Inflation
  Contracts and Commitments
  21




---



##### 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
    
    
    
    
    
    
    
    
    
    MORE THAN 5TOTAL
    
    YEAR
    
    1-3 YEARS
    
    3-5 YEARS
    
    YEARSLong-term debt
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Capital lease obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Operating leases
    
    $
    4,530
    
    
    $
    191
    
    
    $
    2,039
    
    
    $
    1,030
    
    
    $
    1,270Purchase obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Other long-term obligations
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
 FORWARD LOOKING STATEMENTS
   22




---



##### Table of Contents



CAM COMMERCE SOLUTIONS, INC.
 
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 (All dollar amounts in thousands)
  Interest Rate Risk
  Credit Risk
  Foreign Exchange Rate Risk
  
 ITEM 4. CONTROLS AND PROCEDURES
  23




---



##### 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
   VOTESFor
    
    WithheldGeoffrey D. Knapp
    
    
    3,247,565
    
    
    
    98,041Walter Straub
    
    
    3,246,465
    
    
    
    99,141David Frosh
    
    
    3,249,006
    
    
    
    96,600Donald Clark
    
    
    3,250,006
    
    
    
    95,600
   VOTESFor
    
    Against
    
    Abstain3,099,817
    
    
    244,900
    
    
    
    888
 
 Item 5 Other Information
  24




---



##### Table of Contents



Item 6 Exhibits
                 25




---



##### Table of Contents



SIGNATURES
  CAM COMMERCE SOLUTIONS, INC.
 Date:  August 8, 2007
    By
    /s/ Geoffrey D. KnappGeoffrey D. KnappChief Executive OfficerDate:  August 8, 2007
    By
    /s/ Paul Caceres Jr.Paul Caceres Jr.Chief Financial and  Accounting Officer 26




---



##### Table of Contents



27