Company Reports 26% Increase in Revenue and 12% Increase in Net
Income over Q2 2004 DAYTON, Ohio, Aug. 8 /PRNewswire-FirstCall/ --
Advant-e Corporation (OTC:AVEE) (BULLETIN BOARD: AVEE) , a provider
of Internet-based business-to-business electronic commerce
services, today announced financial and operating results for the
quarter ending June 30, 2005. For the second quarter of 2005 the
Company reported revenues of $1,076,385, a 26% increase over
revenues of $851,982 in the second quarter of 2004. The increase in
revenue was the direct result of continued growth of the Company's
web-based electronic data interchange subscription services for
small and medium-size businesses (Web EDI) and the Company's
electronic business transaction network service (EnterpriseEC(TM)).
Net income for the quarter was $120,270, or $.02 per share,
compared to $107,343, or $.02 per share for the same period in
2004. "These results mark our eighth consecutive profitable quarter
and reflect our steady and continued growth, " said Jason K.
Wadzinski, Chairman and Chief Executive Officer. "Our sales reached
record numbers and our net income in the second quarter increased
by 14% over the first quarter and by 12% over the net income for
the second quarter of 2004. Our increase in revenue is exceeding
the additional investments in our sales and marketing efforts,
infrastructure improvements and additional personnel costs." "While
revenue increased steadily from GroceryEC.com, our industry leading
web EDI solution, we've experienced excellent growth in the
automotive and retail web EDI segments which now account for
approximately 10% of our total revenue." For the six months ending
June 30, 2005 the Company reported revenues of $2,115,873, a 25%
increase over revenues of $1,690,617 in the same period in 2004.
Net income for the period in 2005 was $225,379, or $.04 per share,
compared to net income of $221,584, or $.04 per share in the 2004
period ($.03 per share on a diluted basis). About Advant-e
Corporation Advant-e, via its wholly owned and sole operating
subsidiary Edict Systems, Inc., is a provider of
Business-to-Business electronic commerce software and
Internet-based applications specializing in Electronic Data
Interchange (EDI) and XML-based solutions for recurring
transactions. Advant-e specializes in horizontal transaction
services via EnterpriseEC(R), an Internet-based Electronic Business
Transaction Network, and within specific vertical industries via
web-based "vortals" including http://www.groceryec.com/,
http://www.retailec.com/, http://www.automotiveec.com/,
http://www.mfgec.com/ and http://www.cpgsupplier.com/. In addition
to Internet and web-based e-commerce solutions, Edict Systems also
provides e-commerce integration and bar coding applications.
Additional information about Advant-e Corporation can be found at
http://www.advant-e.com/ and http://www.edictsystems.com/ or by
contacting investor relations at (937) 429-4288. The company's
email is . ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six
Months Ended June 30, June 30, 2005 2004 2005 2004 Revenue
$1,076,385 851,982 2,115,873 1,690,617 Cost of revenue 374,335
310,264 763,379 604,481 Gross margin 702,050 541,718 1,352,494
1,086,136 Marketing, general and administrative expenses 501,680
361,375 977,015 716,152 Income before taxes 200,370 180,343 375,479
369,984 Income tax expense 80,100 73,000 150,100 148,400 Net income
$120,270 107,343 225,379 221,584 Basic earnings per common share
$0.02 0.02 0.04 0.04 Diluted earnings per common share $0.02 0.02
0.04 0.03 Weighted average common shares outstanding 6,294,917
6,244,917 6,281,657 6,244,917 Weighted average common shares
outstanding, assuming dilution 6,294,917 6,722,654 6,281,657
6,627,694 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED BALANCE SHEETS June 30, 2005 December 31, (Unaudited)
2004 Assets Current Assets Cash and cash equivalents $1,412,245
944,892 Accounts receivable, net 303,116 290,394 Prepaid expenses
and deposit 32,710 26,420 Total current assets 1,748,071 1,261,706
Software development costs, net 208,479 298,809 Property and
equipment, net 294,934 271,604 Total assets $2,251,484 1,832,119
Liabilities and Shareholders' Equity Current liabilities Accounts
payable $109,210 39,681 Accrued salaries and other expenses 106,545
99,810 Income taxes payable 174,100 26,000 Deferred revenue 84,160
142,788 Total current liabilities 474,015 308,279 Long-term
liabilities Deferred income taxes 159,000 191,000 Total liabilities
633,015 499,279 Shareholders' equity Common stock, $.001 par value;
20,000,000 shares authorized; 6,294,917 outstanding at June 30,
2005 and 6,244,917 outstanding at December 31, 2004 6,295 6,245
Paid-in capital 1,535,784 1,475,584 Retained earnings (deficit)
76,390 (148,989) Total shareholders' equity 1,618,469 1,332,840
Total liabilities and shareholders' equity $2,251,484 1,832,119
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2005
2004 Cash flows from operating activities: Net income $225,379
221,584 Adjustments to reconcile net income to net cash flows from
operating activities: Depreciation 51,389 34,099 Amortization of
software development costs 134,639 164,014 Deferred income taxes
(32,000) 148,400 Increase (decrease) in cash arising from changes
in assets and liabilities: Accounts receivable (12,722) (28,533)
Prepaid expenses (6,290) 6,825 Accounts payable 69,529 32,803
Accrued salaries, interest and other expenses 6,735 16,359 Income
taxes payable 148,100 -- Deferred revenue (58,628) 31,348 Net cash
flows from operating activities 526,131 626,899 Cash flows from
investing activities: Purchases of equipment (74,719) (126,614)
Software development costs (44,309) (84,245) Net cash flows from
investing activities (119,028) (210,859) Cash flows from financing
activities: Issuance of common stock 60,250 -- Payments on notes --
(94,965) Payments of direct costs of securities registration --
(7,945) Net cash flows from financing activities 60,250 (102,910)
Net increase in cash and cash equivalents 467,353 313,130 Cash and
cash equivalents, beginning of period 944,892 216,448 Cash and cash
equivalents, end of period $1,412,245 529,578 Supplemental
disclosures of cash flow items: Interest paid $-- 3,014 The
information in this news release includes certain forward looking
statements that are based upon assumptions that in the future may
prove not to have been accurate and are subject to significant
risks and uncertainties, including statements to the future
financial performance of the company. Although the company believes
that the expectations reflected on its forward looking statements
are reasonable, it can give no assurance that such expectations or
any or its forward-looking statements will prove to be correct.
Factors that could cause results to differ include, but are not
limited to, successful performance of internal plans, product
development and acceptance, the impact of competitive services and
pricing, or general economic risks and uncertainties. DATASOURCE:
Advant-e Corporation CONTACT: Investor Relations of Advant-e
Corporation, +1-937-429-4288, or Web site: http://www.advant-e.com/
http://www.edictsystems.com/ http://www.groceryec.com/
http://www.retailec.com/ http://www.automotiveec.com/
http://www.mfgec.com/ http://www.cpgsupplier.com/
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