“While CaminoSoft continues to experience solid ongoing demand from OEM and channel partners for the company’s Managed Server HSM software products, which offer storage hardware-agnostic software solutions that address the ever-increasing demand for storage capacity, first quarter results were disappointing – primarily due to efforts to expand the company’s traditional focus on small/medium business (SMB) accounts to include enterprise accounts, developed in conjunction with our industry-leading technology partners. While the number of enterprise opportunities is growing, their organizational scale is generally broader and the cycle time for identification, proposal, evaluation, and implementation is proportionately longer than with SMB accounts,” said Stephen W. Crosson, chief financial officer and chief operating officer.

He noted that Information LifeCycle Management Software remains a growing focus of IT managers seeking solutions to intelligently manage the backup and recovery of information, and the company anticipates its pipeline will translate into enhanced financial performance as fiscal 2006 progresses.

Crosson highlighted the company’s recent recognition by IBM of CaminoSoft’s Information LifeCycle Management Software for IBM’s next-generation data retention Storage DR 550 product, which delivers a central point of control for both regulated data and non-regulated data. The company continues to benefit as a certified partner of EMC and from its licensing and distribution agreement with CA.