Company Reports 33% Increase in Revenue, 19% Increase in Net Income
over Prior Year DAYTON, Ohio, March 6 /PRNewswire-FirstCall/ --
Advant-e Corporation (OTC:AVEE) (BULLETIN BOARD: AVEE) , a provider
of Internet-based Electronic Data Interchange services and
electronic document management software and services today
announced financial and operating results for the year ending
December 31, 2007. The Company reported record revenues for 2007 of
$7,162,329, a 33% increase over revenues of $5,403,632 for 2006.
The increase is attributable to continued growth of the Company's
internet-based EDI services and revenue from products and services
sold by Merkur Group, Inc. which was acquired on July 2, 2007. Net
income for 2007 was a record $1,022,679 or $.15 per share compared
to $858,670 or $.13 per share in 2006. Highlights of 2007 financial
and operating results include: -- Revenue Increased for the seventh
consecutive year -- Net Income Exceeded $1 million for first time
and increased by 19% -- Merkur Group Inc. Acquisition -- On July 2,
2007 the Company acquired Merkur Group Inc. which contributed
$1,086,724 to revenue in 2007 and net income of $58,300 before
deducting non-cash charges pertaining to amortization of intangible
assets of $27,108. -- Continued Automotive related Web EDI Revenue
Acceleration -- Automotive and manufacturing Web EDI revenue
increased by 25% and comprised 8% of Edict Systems revenue in 2007
compared to 7% in 2006. Commenting on the year-end results, Mr.
Jason K. Wadzinski, CEO of Advant- e stated, "In 2007 we continued
executing on our strategy of expanding the industries we support
while enhancing our service offerings. The acquisition of Merkur
Group has contributed to our overall performance by adding over $1
million in revenue in 2007 while contributing to the bottom line.
Our cash flow is strong and we are looking forward to continuing
our progress going forward." About Advant-e Corporation Advant-e,
via its wholly owned subsidiaries Edict Systems, Inc. and Merkur
Group, Inc is a provider of internet-based Electronic Data
Interchange (EDI) and electronic document management software and
services. The Company helps businesses automate manual,
paper-intensive processes via expanded use of EDI or by integrating
directly with ERP/MRP systems. Additional information about
Advant-e Corporation can be found at http://www.advant-e.com/,
http://www.edictsystems.com/, and http://www.merkurgroup.com/, or
by contacting investor relations at (937) 429-4288. The company's
email is . ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS At December 31, 2007 and 2006 2007 2006 Assets
Current assets: Cash and cash equivalents $2,039,447 2,209,782
Short-term investments 292,151 274,434 Accounts receivable, net
805,241 477,639 Prepaid software maintenance costs 183,618 ---
Prepaid expenses and deposits 68,930 28,339 Deferred income taxes
40,057 --- Total current assets 3,429,444 2,990,194 Software
development costs, net 194,238 247,621 Property and equipment, net
433,658 386,697 Goodwill 1,450,368 --- Other intangible assets, net
498,644 --- Total assets $6,006,352 3,624,512 Liabilities and
Shareholders' Equity Current liabilities: Accounts payable $211,738
66,936 Accrued salaries and other expenses 273,210 157,802 Income
taxes payable 112,700 109,642 Deferred revenue 645,093 112,846
Deferred income taxes --- 53,119 Total current liabilities
1,242,741 500,345 Deferred income taxes 288,858 165,784 Total
liabilities 1,531,599 666,129 Shareholders' equity: Common stock,
$.001 par value; 20,000,000 shares authorized; 6,875,015 shares
issued and 6,815,015 shares outstanding at December 31, 2007 and
6,478,714 outstanding at December 31, 2006 6,875 6,478 Paid-in
capital 2,210,200 1,641,906 Retained earnings 2,332,678 1,309,999
Treasury stock at cost, 60,000 shares at December 31, 2007 (75,000)
--- Total shareholders' equity 4,474,753 2,958,383 Total
liabilities and shareholders' equity $6,006,352 3,624,512 ADVANT-E
CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME For
the years ended December 31, 2007 and 2006 2007 2006 Revenue
$7,162,329 5,403,632 Cost of revenue 2,498,850 1,677,937 Gross
margin 4,663,479 3,725,695 Marketing, general and administrative
expenses 3,147,344 2,453,883 Operating income 1,516,135 1,271,812
Other income, net 77,431 87,862 Income before taxes 1,593,566
1,359,674 Income tax expense 570,887 501,004 Net income $1,022,679
858,670 Basic earnings per share $0.15 0.13 Diluted earnings per
hare $0.15 0.13 Weighted average shares outstanding 6,655,808
6,408,516 Weighted average shares outstanding, assuming dilution
6,655,808 6,434,615 ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December
31, 2007 and 2006 2007 2006 Cash flows from operating activities:
Net income $1,022,679 858,670 Adjustments to reconcile net income
to net cash flows from operating activities: Depreciation 228,614
153,113 Amortization of software development costs 68,746 124,498
Amortization of other intangible assets 42,356 --- Loss on disposal
of assets --- 41,922 Deferred income taxes (69,732) 60,703
Purchases of trading securities (187,218) (31,541) Proceeds from
sale of trading securities 183,694 28,393 Net realized gain on
sales of securities (2,438) (9,701) Net unrealized gain on trading
securities (11,755) (27,218) Increase (decrease) in cash arising
from changes in assets and liabilities: Accounts receivable
(12,192) (126,157) Prepaid software maintenance costs (11,306) ---
Prepaid expenses and deposits (2,182) (3,211) Accounts payable
(41,084) 22,098 Accrued salaries and other expenses 49,712 42,292
Income taxes payable 833 (266,010) Deferred revenue 61,721 36,673
Net cash flows from operating activities 1,320,448 904,524 Cash
flows from investing activities: Purchases of available-for-sale
securities --- (107,966) Proceeds from sale of available-for-sale
securities --- 90,086 Purchases of property and equipment (242,125)
(311,654) Software development costs (15,363) (219,018) Purchase of
Merkur Group, Inc. (998,295) --- Net cash flows from investing
activities (1,255,783) (548,552) Cash flows from financing
activities: Net payments on bank line of credit (160,000) ---
Issuance of common stock --- 90,375 Purchase of treasury shares
(75,000) --- Net cash flows from financing activities (235,000)
90,375 Net increase (decrease) in cash and cash equivalents
(170,335) 446,347 Cash and cash equivalents, beginning of year
2,209,782 1,763,435 Cash and cash equivalents, end of year
$2,039,447 2,209,782 Supplemental disclosures of cash flow items:
Income taxes paid $637,561 706,311 Non cash transactions Issuance
of common shares in connection with purchase of Merkur Group, Inc.
568,692 --- 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 of 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, Web site:
http://www.advant-e.com/ http://www.edictsystems.com/
http://www.merkurgroup.com/
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