FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Quarterly Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of 1934 For the Quarter Ended: October 1, 2005 Commission File No: 0-6933 CAMBEX CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 04-244-2959 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 115 Flanders Road, Westborough, Massachusetts (Address of principal executive offices) 01581 (Zip Code) Registrant's telephone number, including area code: (508) 983-1200 Indicate by "X" 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 the number of shares outstanding of each of the issuer's classes of stock, As of the latest practicable date. Class Outstanding as of October 1, 2005 Preferred 155,463 shares Common 22,453,017 shares Part I.					FINANCIAL INFORMATION Item 1. Financial Statements CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS OCTOBER 1, 2005 AND DECEMBER 31, 2004 ASSETS OCTOBER 1, DECEMBER 31, 2005 2004 (unaudited) (audited) CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 326,162 $ 313,770 ACCOUNTS RECEIVABLE, Less Reserves of $29,000 181,415 297,705 INVENTORIES 161,979 152,262 PREPAID EXPENSES 58,086 76,301 TOTAL CURRENT ASSETS $ 727,642 $ 840,038 PROPERTY AND EQUIPMENT, at cost: MACHINERY AND EQUIPMENT $ 422,468 $ 416,468 FURNITURE AND FIXTURES 14,186 14,186 $ 436,654 $ 430,654 LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION 431,154 430,654 NET PROPERTY AND EQUIPMENT $ 5,500 $ - TOTAL ASSETS $ 733,142 $ 840,038 2 CONSOLIDATED BALANCE SHEETS OCTOBER 1, 2005 AND DECEMBER 31, 2004 LIABILITIES AND STOCKHOLDERS' INVESTMENT OCTOBER 1, DECEMBER 31, 2005 2004 (unaudited) (audited) CURRENT LIABILITIES: LOAN AGREEMENT $ 799,467 $ 791,923 NOTES PAYABLE 479,643 724,643 ACCOUNTS PAYABLE 151,879 275,263 OBLIGATIONS FOR TRADE-IN MEMORY - 240,000 OTHER LIABILITIES 1,337,688 1,369,019 ACCRUED EXPENSES 1,629,373 1,763,028 TOTAL CURRENT LIABILITIES $ 4,398,050 $ 5,163,876 STOCKHOLDERS' INVESTMENT: PREFERRED STOCK, $ 1.00 PAR VALUE PER SHARE AUTHORIZED - 3,000,000 SHARES SERIES A - ISSUED - 98,223 shares $ 98,223 $ 98,223 SERIES B - ISSUED - 57,240 shares in 2005 and 147,240 shares in 2004 57,240 147,240 COMMON STOCK, $ .10 PAR VALUE PER SHARE AUTHORIZED - 25,000,000 SHARES ISSUED - 23,998,275 shares in 2005 and 19,865,609 shares in 2004 2,399,828 1,986,561 CAPITAL IN EXCESS OF PAR VALUE 20,607,561 20,498,545 RETAINED EARNINGS (DEFICIT) (25,938,789) (26,165,436) LESS - COST OF SHARES OF COMMON STOCK HELD IN TREASURY - 1,545,258 (888,971) (888,971) TOTAL STOCKHOLDERS' INVESTMENT $ (3,664,908) $ (4,323,838) TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 733,142 $ 840,038 3 CAMBEX CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED OCTOBER 1, 2005 AND OCTOBER 2, 2004 For the Quarter Ended For the Nine Months Ended October 1, October 2, October 1, October 2, 2005 2004 2005 2004 REVENUES $ 426,378 $ 853,437 $1,942,635 $ 2,437,456 COST OF SALES 86,824 162,246 342,606 827,391 Gross profit $ 339,554 $ 691,191 $1,600,029 $ 1,610,065 OPERATING EXPENSES: Research and development $ 209,644 $ 176,810 $ 640,529 $ 517,485 Selling 90,970 102,165 294,043 402,763 General and administrative 106,819 119,349 355,808 377,924 Total operating expenses $ 407,433 $ 398,324 $1,290,380 $ 1,298,172 OPERATING INCOME (LOSS) $ (67,879)$ 292,867 $ 309,649 $ 311,893 OTHER INCOME (EXPENSE): Gain on sale of customer information and rights - - - 792,628 Loss on discontinuance of subsidiary's operations - - - ( 275,161) Other (28,800) (41,334) (83,002) ( 147,829) Total other income(expense) $ (28,800)$ (41,334)$ (83,002)$ 369,638 INCOME BEFORE INCOME TAXES $ (96,679)$ 251,533 $ 226,647 $ 681,531 Provision for income taxes - - - - NET INCOME $ (96,679)$ 251,533 $ 226,647 $ 681,531 INCOME PER COMMON SHARE $ 0.00 $ 0.01 $ 0.01 $ 0.04 Weighted Average Common Shares Outstanding 21,530,000 18,320,000 20,084,000 18,320,000 Weighted Average Common and Common Equivalent Shares Outstanding 21,530,000 18,320,000 20,084,000 18,320,000 4 CAMBEX CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' INVESTMENT Common Stock Capital in Accumulated Retained Cost of $.10 Excess of Other Earnings Shares Par Value Par Value Comprehensive (Deficit) Held in Income Treasury BALANCE AT JANUARY 1, 2004 $1,986,561 $20,498,545$100,528 $(27,410,609)$(888,971) ADD: Net income $ - $ - $ - $ 681,531 $ - BALANCE AT OCTOBER 2, 2004 $1,986,561 $20,498,545$100,528 $(26,729,078)$(888,971) BALANCE AT JANUARY 1, 2005 $1,986,561 $20,498,545$ - $(26,165,436)$(888,971) ADD: Net income $ - $ - $ - $ 226,647 $ - Conversion of Preferred Stock to Common Stock 93,272 (3,272) - - - Dividends 31,806 (31,806) - - - Conversion of Notes Payable and interest to Common Stock 176,356 88,177 - - - Conversion of Accrued Expenses to Common Stock 111,833 55,917 - - - BALANCE AT OCTOBER 1, 2005 $2,399,828 $20,607,561$ - $(25,938,789)$(888,971) Series A Series B Preferred Stock Preferred Stock $1.00 Par Value $1.00 Par Value BALANCE AT JANUARY 1, 2004 $ 98,223 $ 147,240 ADD: BALANCE AT OCTOBER 2, 2004 $ 98,223 $ 147,240 BALANCE AT JANUARY 1, 2005 $ 98,223 $ 147,240 ADD: Conversion of Preferred Stock to Common Stock - (90,000) BALANCE AT OCTOBER 1, 2005 $ 98,223 $ 57,240 5 CAMBEX CORPORATION AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE MONTHS ENDED OCTOBER 1, 2005 AND OCTOBER 2, 2004 	 Nine Months Ended October 1, October 2, 2005 2004 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 226,647 $ 681,531 Adjustments to reconcile net income to net cash provided by(used in) operating activities: Depreciation $ 500 $ 866 Amortization of prepaid expenses 6,800 12,381 Obligations for trade-in memory ( 240,000) - Gain on sale of customer information and rights - ( 792,628) Loss on discontinuance of subsidiary's operations - 275,161 Changes in operating assets and liabilities: Accounts receivable 116,290 636,848 Inventory ( 9,717) ( 37,681) Prepaid expenses 11,415 ( 15,945) Accounts payable ( 123,384) ( 59,443) Accrued expenses 98,628 16,725 Other liabilities ( 31,331) ( 91,833) Total adjustments $( 170,799)$( 55,549) Net cash provided by(used in) operating activities $ 55,848 $ 625,982 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of equipment, net $( 6,000)$ - Proceeds from sale of customer information and rights - 70,000 Net cash provided by(used in)investing activities $( 6,000)$ 70,000 CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments)under line of credit $ - $( 525,520) Net borrowings (repayments)under loan agreement 7,544 ( 115,351) Repayments of notes payable ( 45,000) ( 45,026) Net cash provided by (used in) financing activities $( 37,456)$( 685,897) Net increase (decrease) in cash and cash equivalents $ 12,392 $ 10,085 Cash and cash equivalents at beginning of period 313,770 268,807 Cash and cash equivalents at end of period $ 326,162 $ 278,892 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 50 $ 37,238 Income Taxes - - Non-cash financing and investing activities: Sale of customer information and rights $ - $ 980,000 Conversion of note payable and interest to Common Stock 264,533 - Conversion of accrued expenses to Common Stock 167,750 - 6 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Notes & Comments: (1)Significant Accounting Policies The accompanying consolidated financial statements include our accounts and our wholly-owned subsidiaries. As of December 31, 2004, all remaining subsidiaries are inactive. All material intercompany transactions and balances have been eliminated in consolidation. The condensed financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. The information furnished includes all adjustments and accruals consisting only of normal recurring accrual adjustments which are, in our opinion, necessary for a fair presentation of results for the interim period. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in our latest annual report on Form 10-KSB. Inventories, which include raw materials, labor and manufacturing overhead are stated at the lower of cost (first-in, first-out) or market and consist of the following: October 1, December 31, 2005 2004 Raw materials $ 108,714 $ 119,301 Work-in-process 15,247 28,274 Finished goods 38,018 4,687 $ 161,979 $ 152,262 (2) Income and Dividends Per Share Per share amounts are based on the weighted average number of shares outstanding during each period plus applicable common stock equivalents. There were no material differences for per share amounts assuming full dilution in either period. 7 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Notes & Comments (Continued): (3) Short Term Borrowings We have a loan and security agreement with B.A. Associates, Inc. which is a corporation owned by a son-in-law of Joseph F. Kruy, our Chairman, President and Chief Executive Officer under which we may borrow up to $1,100,000. The outstanding balance due to B.A. Associates, Inc. was $799,467 and $791,923 at October 1, 2005 and December 31, 2004, respectively. Notes payable of $479,643 and $724,643 at October 1, 2005 and December 31, 2004, respectively, include $275,000 and $475,000, respectively, of advances payable which are due on demand. The advances payable include $275,000 and $375,000, respectively, from related parties. The balances of $204,643 and $249,643 as of October 1, 2005 and December 31, 2004, respectively, include $54,643 and $99,643, respectively, of accounts payable converted to notes payable and include $150,000 of series 1 bridge financing notes issued in 2000. (4) Preferred Stock We are authorized to issue up to 3,000,000 shares of preferred stock, $1.00 par value per share, of which 155,463 shares are issued and outstanding as of October 1, 2005. Of the 155,463 preferred shares outstanding, 98,223 shares are Series A Convertible Preferred shares and 57,240 shares are Series B Convertible Preferred shares. Both the Series A and Series B Convertible Preferred shares have a dividend rate of 12%, when and if declared by the Company's Board of Directors. Holders of shares of both Series A and Series B Preferred stock are not entitled to any voting rights for any shares of Series A or Series B Preferred stock which they hold. The holders of the Series B Convertible Preferred stock were granted registration rights for the underlying common stock into which the Preferred is convertible. Both the Series A and Series B Preferred Stock are convertible into shares of common stock, at any time at the holder's option. The holder's of the 98,223 shares of Series A Preferred Stock could convert their preferred shares into 982,230 shares of common stock. In 2005, 90,000 shares of Series B Preferred Stock and dividends were converted into 1,250,779 shares of common stock, including 318,052 shares relating to dividends. Upon an optional conversion, dividends accrued at the rate of 12% are payable in shares of common stock. As of October 1, 2005, if the holders of the remaining 57,240 shares of Series B Preferred stock had converted their shares, they would have been entitled to 824,567 shares of our common stock, including 231,353 common shares related to dividends. (5)Purchase Agreement On January 30, 2004, Super PC Memory, Inc., a wholly-owned subsidiary of Cambex Corporation, entered into an agreement with Silicon Mountain Memory 8 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Notes & Comments (Continued): (5)Purchase Agreement (continued) Incorporated, a privately-held company, pursuant to which Silicon Mountain Memory Incorporated purchased a portion of Super PC Memory's customer information and rights to do business with said customers with respect to Wintel products. Sales to said customers with respect to Wintel products was a substantial portion of our revenues in 2003 and 2002. These sales were sales with lower gross margins. The total purchase price is $1,050,000 subject to allocation as to cash or note payments, the exact amount and terms of payment is dependent upon the revenues generated by Silicon Mountain Memory from Super PC Memory customers. The first payment of $35,000 was received at closing. According to terms of the agreement, beginning on May 15, 2004, and on or before the 15th of each month, Silicon Mountain Memory will make a payment to Super PC Memory based upon gross profit for the preceding month according to the following formula: if the gross profit is less than $100,000, the payment will be 25% of gross profit; if the gross profit is between $100,000 and $140,000, the payment will be $35,000; and if the gross profit is in excess of $140,000, the payment will be 35% of gross profit. A payment of $35,000 was received in May. The Company recorded other income of $792,628 from this transaction during the quarter ended April 4, 2004. (6)Discontinuance of Super PC Memory, Inc. Operations On May 21, 2004, the Company's Super PC Memory, Inc. subsidiary discontinued its operations and executed an Assignment for the Benefit of Creditors. The purpose of the Assignment is to provide an orderly liquidation of Super PC's assets and distribution of the proceeds to Super PC's creditors. Super PC's assets primarily consist of inventory, receivables, fixed assets and a Purchase Agreement for the sale of Super PC's customer base relating to Wintel Products and rights to do business with said customers. The Company recorded a loss of $275,161 during the quarter ended April 4, 2004 on this transaction. The Assignee is Maximum Asset Recovery Services, Inc., a Los Angeles, California based financial consulting and management firm. Maximum Asset Recovery Services, Inc has no relationship to Super PC Memory, Cambex Corporation or any of their affiliates. The Company acquired Super PC Memory in March 2002. Super PC Memory incurred substantial operating losses in fiscal year 2003 and the first quarter of fiscal year 2004. Due to unfavorable memory market conditions, Super PC's cost structure could not be supported by the revenues and gross profit Super PC could generate. Consequently, Super PC Memory executed an Assignment for the Benefit of Creditors. Cambex Corporation and its other subsidiaries are unaffected by the Super PC Memory action. However, the Assignment significantly reduced the Company's revenues. On the other hand, it also reduced its operating costs and positively impacted its cash flow. 9 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Notes & Comments (Continued): (7)Revenues and Obligations for trade-in memory The revenues for the quarter ended July 2, 2005 include $240,000 of revenue which had been deferred until the obligations for trade-in memory were satisfied in this period. Without such deferred revenue, the revenue for the second quarter of 2005 would have been $568,463. 10 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 2. Management's Discussion and Analysis or Plan of Operation The statements contained in "Management Discussion and Analysis or Plan of Operation" and elsewhere throughout this Report on Form 10-QSB that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those reflected in the forward-looking statements. These forward-looking statements reflect management's analysis, judgment, belief or expectation only as of the date hereof. We undertake no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof or to publicly release the results of any revisions to such forward-looking statements that may be made to reflect events or circumstances after the date hereof. In addition to the disclosure contained herein, readers should carefully review any disclosure of risks and uncertainties contained in other documents we file or have filed from time to time with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. We are a designer and supplier of data storage products and solutions. Our products include memory for computing systems and fibre channel connectivity and storage products used to build storage area networks (SANs). We design, manufacture, and market memory products that enhance the performance and reliability of computing systems and networking devices. We have been selling memory products to our customers since 1970. A processor's memory is used to hold temporary instructions and data needed to execute tasks. This enables the computer's CPU to access instructions and data quickly. After upgrading a processor's memory, the computer will process data faster, because it will need to access its slower secondary storage (i.e., the disk drive) less frequently. We provide memory upgrade solutions for all the major servers and workstations manufactured by IBM, Sun and Hewlett-Packard. Adding additional memory is both application transparent and the most cost-effective solution for eliminating many system performance bottlenecks. We develop and offer fibre channel host bus adapters and hubs, high availability software, fibre channel disk storage arrays and management software for the deployment of SAN solutions. SANs enhance and simplify the centralized management and sharing of data storage resources while providing improved availability, scalability, performance, and disaster recovery. SANs have been enabled by the emergence of fibre channel, a new generation of server to storage communications technology. By reselling fibre channel hardware and software products from leading manufacturers, together with our internally developed products, we are able to offer customers a complete interoperable SAN solution. 11 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 2. Management's Discussion and Analysis or Plan of Operation (continued) Comparison of the quarter ended October 1, 2005 and the quarter ended October 2, 2004 Our revenues were $426,378 for the quarter ended October 1, 2005 and $853,437 for the quarter ended October 2, 2004. Gross profit rate was 80% of sales for the three months ended October 1, 2005 and 81% for the three months ended October 2, 2004. Gross profit for the quarter ended October 1, 2005 included a $41,000 reversal of previously accrued third party charges. Operating expenses for the three months ended October 1, 2005 increased by 2% in comparison to operating expenses for the comparable three months of the prior year. Research and development expenses for the three months ended October 1, 2005 increased 19% compared to the amount of these expenses for the same three months in the prior year due to increases in personnel and additional product development costs. Selling expenses for the three months ended October 1, 2005 decreased by 11% compared to the amount of these expenses in the third quarter of fiscal 2004 due to the reversal in the quarter ended October 1, 2005 of $30,000 of contract services accrued prior to the current quarter. General and administrative expenses decreased by 10% compared to the amount of these expenses in the third quarter of fiscal 2004 due to decreases in personnel and related expenses. Other income(expense) for the quarter ended October 1, 2005 consists of $28,800 of interest expense. Other income(expense) for the quarter ended October 2, 2004 consists of $41,334 of interest expense. Net loss for the third quarter of fiscal 2005 was $97,000, or $0.00 per share, as compared with net income of $252,000, or $0.01 per share, for the third quarter of fiscal 2004. 12 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 2. Management's Discussion and Analysis or Plan of Operation (continued) Inflation We did not experience any material adverse effects in the third quarter of 2005 or in the third quarter of 2004 due to general inflation. Liquidity and Capital Resources During the nine months ended October 1, 2005, net cash provided by operating activities was $55,848. Net cash used in investing activities was $6,000. Net cash used in financing activities was $37,456, relating primarily to repayments of notes payable. We have a loan and security agreement with B.A. Associates, Inc. which is a corporation owned by a son-in-law of Joseph F. Kruy, our Chairman, President and Chief Executive Officer under which we may borrow up to $1,100,000. The outstanding balance due to B.A. Associates, Inc. was $799,467 at October 1, 2005. We also have notes payable of $479,643 at October 1, 2005, including $275,000 of advances payable from related parties, which are due on demand. The notes payable balance of $204,643 includes $150,000 of series 1 bridge financing note and $54,643 of accounts payable converted to notes payable. Our cash was $326,000 and $314,000 at October 1, 2005 and December 31, 2004, respectively. Working capital was a deficit of $3,670,000 and $4,324,000 at October 1, 2005 and at December 31, 2004, respectively. During the nine months ended October 1, 2005, we expended $6,000 for capital equipment. During fiscal 2005, we expect to acquire less than $100,000 of capital equipment. Our profitability and liquidity depends upon being able to maintain adequate revenue and gross profit levels. Management has also been working to secure additional capital. There is no assurance that such capital will be raised. 13 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 3. Controls and Procedures Our principal executive officer and principal financial officer, Joseph F. Kruy, has evaluated the effectiveness of our disclosure controls and procedures and concluded that there are no significant deficiencies in the design or operation of internal controls which could adversely affect our ability to record, process, summarize and report financial data and has determined that there are no material weaknesses in internal controls. There were no significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation. 14 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Part II.			OTHER INFORMATION Item 1. Legal Proceedings The Company is a party to litigation and claims arising in the normal course of its business. Barring unforeseen circumstances, management does not expect the results of these actions to have a material adverse effect on the Company's business or financial condition. Item 2. Change 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 INDEX The following exhibits are filed herewith or incorporated by reference herein. Exhibit 3.1	Restated Articles of Organization of Cambex Corporation (included as Exhibit 3.1 to the Company's Registration Statement on Form SB-2, declared effective with the Commission on November 7, 2000, Reg. No. 333-43294, and incorporated herein by reference). 15 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 6. Exhibit Index (continued) 3.2	Restated By-laws of Cambex Corporation (included as Exhibit 3.2 to the Company's Registration Statement on Form SB-2, declared effective with the Commission on November 7, 2000, Reg. No. 333-43294, and incorporated herein by reference). 3.3 Series A Preferred Stock Certificate of Designations (included as Exhibit 10.37 to the Company's Quarterly Report on Form 10-QSB for the quarter ended June 30, 2002 and incorporated herein by reference). 3.4 Series B Preferred Stock Certificate of Designations (included as Exhibit 10.39 to the Company's Quarterly Report on Form 10-QSB for the quarter ended June 30, 2002 and incorporated herein by reference). 4.1	Specimen Stock Certificate (included as Exhibit 4.1 to the Company's Registration Statement on Form SB-2, declared effective with the Commission on November 7, 2000, Reg. No. 333-43294, and incorporated herein by reference). 4.2	Registration Rights Agreement among the Company and the Purchasers identified therein (the "Sovereign Purchasers") dated as of January 18, 2000 (included as Exhibit 4.1 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 4.3	Registration Rights Agreement between the Company and Thumberland Limited dated as of July 14, 2000 (included as Exhibit 4.3 to the Company's Registration Statement on Form SB-2, declared effective with the Commission on November 7, 2000, Reg. No. 333-43294, and incorporated herein by reference). 10.1	Employment Agreement between Joseph F. Kruy and the Company, dated as of November 18, 1994 (included as Exhibit 10.1 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.2	Incentive Bonus Plan (included as Exhibit 10.2 to the Company's Registration Statement on Form SB-2, declared effective with the Commission on November 7, 2000, Reg. No. 333-43294, and incorporated herein by reference). 10.3	1987 Combination Stock Option Plan (included as Exhibit 10.8 to the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 1987, and incorporated herein by reference). 16 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 6. Exhibit Index (continued) 10.4	2000 Equity Incentive Plan (included as Exhibit 10.12 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1999, and incorporated herein by reference). 10.5	Series 1 Bridge Note Purchase Agreement among the Company and the Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit 10.7 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.6	Escrow Agreement among the Company, the Sovereign Purchasers and Suntrust Bank, Atlanta dated as of January 6, 2000 (included as Exhibit 10.8 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.7	Placement Agent Agreement between the Company and Sovereign Capital Advisors, LLC ("Sovereign Advisors") dated as of January 18, 2000 (included as Exhibit 10.9 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.8	Guaranty Agreement among Joseph F. Kruy, the Company and the Sovereign Purchasers dated as of January 18, 2000. (included as Exhibit 10.10 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.9	Guaranty Agreement among CyberFin Corporation, the Company and the Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit 10.11 to the Company's Amendment to Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.10	Stock Pledge Agreement by Joseph F. Kruy in favor of the Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit 10.12 to the Company's Amendment to the Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.11	Stock Pledge Agreement by CyberFin Corporation in favor of the Sovereign Purchasers dated as of January 18, 2000 (included as Exhibit 10.13 to the Company's Amendment to the Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 17 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 6. Exhibit Index (continued) 10.12	Series 1 Bridge Financing Note in favor of Arab Commerce Bank Ltd. dated as of February 9, 2000 (included as Exhibit 10.22 to the Company's Amendment to the Quarterly Report on Form 10-Q/A for the quarter ended April 1, 2000, and incorporated herein by reference). 10.13 Loan and Security Agreement, as amended, by and between the Company and BA Associates, Inc. (included as Exhibit 10.27 to the Company's Registration Statement on Form SB-2 filed with the Commission on November 29, 2000, Reg. No. 333-50936, and incorporated herein by reference.) 10.14 Fifth Amendment to Loan and Security Agreement, as amended, by and between the Company and B.A. Associates, Inc., dated as of December 27, 2000 (included as Exhibit 10.28 to the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2000 and incorporated herein by reference). 10.15 Form of Warrant Certificate between the Company and B.A. Associates, Inc. (included as Exhibit 10.29 to the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2000 and incorporated herein by reference). 10.16 Sixth Amendment to Loan and Security Agreement, as amended, by and between the Company and B.A. Associates, Inc., dated as of December 27, 2001(included as Exhibit 10.30 to the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2002 and incorporated herein by reference). 10.17 Stock Purchase and Sale Agreement dated as of January 31, 2002 by and among Cambex Corporation, Super PC Memory, Inc., Son T. Pham, Simon Le and Richard G. Schaefer (included as Exhibit 2.1 to the Company's Current Report on Form 8-K dated March 27, 2002, and incorporated herein by reference). 10.18 Amendment to the Stock Purchase and Sale Agreement dated as of July 29, 2002 by and among Cambex Corporation, Super PC Memory, Inc., Son T. Pham, Simon Le and Richard G. Schaefer (included as Exhibit 10.32 to the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and incorporated herein by reference). 10.19 Securities Exchange Agreement dated as of June 28, 2002 by and among the Company and Richard Calvert(included as Exhibit 10.33 to the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and incorporated herein by reference). 18 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 Item 6. Exhibit Index (continued) 10.20 Securities Exchange Agreement dated as of June 28, 2002 by and among the Company and H. Terry Snowday(included as Exhibit 10.34 to the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and incorporated herein by reference). 10.21 Securities Exchange Agreement dated as of June 28, 2002 by and among the Company and The Hankins Family Trust(included as Exhibit 10.35 to the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and incorporated herein by reference). 10.22 Securities Exchange Agreement dated as of June 28, 2002 by and among the Company and Joseph Kruy(included as Exhibit 10.36 to the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and incorporated herein by reference). 10.23 Securities Exchange Agreement dated as of June 28, 2002 by and among the Company and SovCap Equity Partners, Ltd. (included as Exhibit 10.38 to the Company's Quarterly Report on 10QSB for the quarter ended June 30, 2002, and incorporated herein by reference). 10.24 Lease by and between the Company and Bertech Flanders, LLC dated as of April 24, 2003(included as Exhibit 10.33 to the Company's Quarterly Report on 10QSB for the quarter ended March 31, 2003, and incorporated herein by reference). 10.25 Purchase Agreement dated January 30, 2004 by and between Silicon Mountain Memory Incorporated and Super PC Memory, Inc.(included as Exhibit 99.2 to the Company's Current Report on Form 8-K dated January 30, 2004 and incorporated herein by reference). 10.26 General Assignment dated May 21, 2004 by Super PC Memory, Inc. to Maximum Asset Recovery Services, Inc. (included as Exhibit 10.35 to the Company's Quarterly Report on Form 10QSB for the quarter ended April 4, 2004 and incorporated herein by reference). 31.1 Certification as required by section 302 of the Sarbanes-Oxley Act of 2002 32.1 Certification as required by section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code). (b) Reports on Form 8-K None. 19 FORM 10-QSB CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 1, 2005 Commission File: 0-6933 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. CAMBEX CORPORATION By: /s/ Joseph F. Kruy Joseph F. Kruy President and Treasurer Dated: November 14, 2005