Company Reports 66% Increase in Revenue and 102% Net Income Growth
over Q1 2007 DAYTON, Ohio, May 15 /PRNewswire-FirstCall/ --
Advant-e Corporation (OTC:AVEE) (BULLETIN BOARD: AVEE) , a provider
of Internet-based Electronic Data Interchange and electronic
document management software and services today announced financial
and operating results for the quarter ending March 31, 2008. For
the first quarter of 2008 the Company reported revenues of
$2,345,234, a 66% increase over revenues of $1,416,323 in the first
quarter of 2007. The increase is attributable primarily to revenue
from products and services sold by Merkur Group, Inc. which was
acquired on July 2, 2007, and continued growth of the Company's
internet-based EDI services. Net income for the first quarter of
2008 was $264,910, or $.04 per share, a 102% increase over net
income of $131,145, or $.02 per share, for the same period in 2007.
First Quarter Highlights -- Edict Systems Revenue Growth and
Automotive Industry Expansion -- Edict Systems revenue grew 14%
over the same period last year with Automotive related Web EDI
services increasing to $148,467, a 39% increase over the same
period in 2007. Grocery Web EDI revenue increased 16% in the
quarter. -- Merkur Group Revenue Growth -- Merkur reported revenue
for the quarter of $736,081 -- a 49% increase over its average
quarterly revenue for 2007 of $493,436. The revenue increase is
primarily attributed to a large software sale to one customer for
inbound invoice scanning and integration into PeopleSoft. Jason K.
Wadzinski, Chairman and Chief Executive Officer, remarked, "While
our first quarter results showed some weakness last year, our first
quarter results this year have been helped by Merkur having an
excellent quarter, and an increase in automotive-related activity
and continued growth with GroceryEC.com by Edict Systems. During
the remainder of this year we will be increasing our expenditures
throughout the company in support of our revenue growth
initiatives. Our financial position is strong and we are very
excited about our opportunities going forward for both operating
entities." 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 CONDENSED STATEMENTS OF
INCOME (Unaudited) Three Months Ended March 31, 2008 2007 Revenue
$2,345,234 1,416,323 Cost of revenue 920,846 508,568 Gross margin
1,424,388 907,755 Marketing, general and administrative expenses
1,006,002 713,478 Operating income 418,386 194,277 Other income,
net 5,204 22,668 Income before income taxes 423,590 216,945 Income
tax expense 158,680 85,800 Net income $264,910 131,145 Basic and
diluted earnings per share $0.04 0.02 Weighted average shares
outstanding 6,815,015 6,478,714 ADVANT-E CORPORATION AND
SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS March 31, 2008
December 31, (Unaudited) 2007 Assets Current Assets: Cash and cash
equivalents $2,661,648 2,039,447 Short-term investments 285,882
292,151 Accounts receivable, net 936,604 805,241 Prepaid software
maintenance costs 209,529 183,618 Prepaid expenses and deposits
120,663 68,930 Deferred income taxes 161,136 40,057 Total current
assets 4,375,462 3,429,444 Software development costs, net 173,792
194,238 Property and equipment, net 468,445 433,658 Goodwill
1,474,615 1,450,368 Other intangible assets, net 477,466 498,644
Total assets $6,969,780 6,006,352 Liabilities and Shareholders'
Equity Current liabilities: Accounts payable $536,305 211,738
Accrued salaries and other expenses 325,245 273,210 Income taxes
payable 197,283 112,700 Deferred revenue 802,367 645,093 Total
current liabilities 1,861,200 1,242,741 Deferred income taxes
368,917 288,858 Total liabilities 2,230,117 1,531,599 Shareholders'
equity: Common stock, $.001 par value; 20,000,000 shares
authorized; 6,875,015 share issued; 6,815,015 shares outstanding
6,875 6,875 Paid-in capital 2,210,200 2,210,200 Retained earnings
2,597,588 2,332,678 Treasury stock at cost, 60,000 shares (75,000)
(75,000) Total shareholders' equity 4,739,663 4,474,753 Total
liabilities and shareholders' equity $6,969,780 6,006,352 ADVANT-E
CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF
CASH FLOWS (Unaudited) Three Months Ended March 31, 2008 2007 Cash
flows from operating activities: Net income $264,910 131,145
Adjustments to reconcile net income to net cash flows from
operating activities: Depreciation 63,399 48,487 Amortization of
software development costs 20,446 18,088 Amortization of other
intangible assets 21,178 --- Deferred income taxes (41,020) 21,033
Purchases of trading securities (80,477) (74,483) Proceeds from
sales of trading securities 78,007 79,679 Net unrealized losses on
trading securities 14,078 --- Net realized gains on sales of
securities (5,339) (6,608) Increase (decrease) in cash arising from
changes in assets and liabilities: Accounts receivable (131,363)
28,691 Prepaid software maintenance costs (25,911) --- Prepaid
expenses and deposits (51,733) (28,131) Accounts payable 324,567
12,513 Accrued salaries and other expenses 52,035 (32,011) Income
taxes payable 60,336 (40,233) Deferred revenue 157,274 3,498 Net
cash flows from operating activities 720,387 161,668 Cash flows
from investing activities: Purchases of property and equipment
(98,186) (42,800) Software development costs --- (15,363) Net cash
flows from investing activities (98,186) (58,163) Net increase in
cash and cash equivalents 622,201 103,505 Cash and cash
equivalents, beginning of period 2,039,447 2,209,782 Cash and cash
equivalents, end of period $2,661,648 $2,313,287 Supplemental
disclosures of cash flow items: Income taxes paid $138,100 $105,000
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, or Web site:
http://www.advant-e.com/
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