Company Reports 11% Increase in Revenue and 5% Net Income Growth
over Q2 2006 DAYTON, Ohio, Aug. 9 /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 June 30, 2007. For the
second quarter of 2007 the Company reported revenues of $1,481,150,
an 11% increase over revenues of $1,333,758 in the second quarter
of 2006. The increase in revenue is attributable primarily to
continued growth of the Company's Web EDI services along with
growth of EnterpriseEC(R), the Company's electronic trading
community connectivity and integration service. Net income for the
second quarter of 2007 was $241,573, or $.04 per share, a 5%
increase over net income of $230,855, or $.03 per share for the
same period in 2006. Net income increased 84% over the first
quarter of 2007. Jason K. Wadzinski, Chairman and Chief Executive
Officer, remarked, "While our primary focus is on growing our
top-line revenue, we are also committed to maintaining what we
consider an appropriate level of profitability. Our net income
increase over last quarter puts us back in an acceptable range and
we will continue to monitor our expenses to make sure they are in
line with our goals and objectives." The Company also announced
that its Board of Directors has authorized a share repurchase
program for up to $750,000 in fair market value of Advant-e common
stock. The shares may be purchased from time to time through June
30, 2008 on the open market or in privately negotiated
transactions. 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 SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF
INCOME (Unaudited) Three Months Ended Six Months Ended June 30,
June 30, 2007 2006 2007 2006 Revenue $1,481,150 1,333,758 2,897,473
2,595,927 Cost of revenue 482,776 369,661 991,344 777,529 Gross
margin 998,374 964,097 1,906,129 1,818,398 Marketing, general and
administrative expenses 641,471 614,066 1,354,949 1,209,921
Operating income 356,903 350,031 551,180 608,477 Other income, net
32,587 15,414 55,255 32,389 Income before taxes 389,490 365,445
606,435 640,866 Income tax expense 147,917 134,590 233,717 242,305
Net income $241,573 230,855 372,718 398,561 Basic earnings per
share $0.04 0.03 0.06 0.06 Diluted earnings per share $0.04 0.03
0.06 0.06 Weighted average shares outstanding 6,478,714 6,403,174
6,478,714 6,403,174 Weighted average shares outstanding, assuming
dilution 6,478,714 6,434,196 6,478,714 6,428,439 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, December 31, 2007 2006 (Unaudited) Assets Current Assets:
Cash and cash equivalents $2,639,780 2,209,782 Short-term
investments 275,726 274,434 Accounts receivable, net 432,193
477,639 Prepaid expenses and deposit 32,758 28,339 Total current
assets 3,380,457 2,990,194 Software development costs, net 235,130
247,621 Property and equipment, net 379,428 386,697 Total assets
$3,995,015 3,624,512 Liabilities and Shareholders' Equity Current
liabilities: Accounts payable $59,642 66,936 Accrued salaries and
other expenses 177,455 157,802 Income taxes payable 110,066 109,642
Deferred income taxes 50,039 53,119 Deferred revenue 116,116
112,846 Total current liabilities 513,318 500,345 Deferred income
taxes 150,596 165,784 Total liabilities 663,914 666,129
Shareholders' equity: Common stock, $.001 par value; 20,000,000
shares authorized; 6,478,714 issued and outstanding 6,478 6,478
Paid-in capital 1,641,906 1,641,906 Retained earnings 1,682,717
1,309,999 Total shareholders' equity 3,331,101 2,958,383 Total
liabilities and shareholders' equity $3,995,015 3,624,512 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF
CASH FLOWS (Unaudited) Six Months Ended June 30, 2007 2006 Cash
flows from operating activities: Net income $372,718 398,561
Adjustments to reconcile net income to net cash flows from
operating activities: Depreciation 100,219 61,746 Amortization of
software development costs 27,854 63,088 Loss on disposal of assets
- 24,221 Deferred income taxes (18,268) 63,678 Purchases of trading
securities (107,507) - Proceeds from sales of trading securities
125,968 - Net unrealized gain on trading securities (6,376) - Net
realized gain on sale of securities (13,377) (9,005) Increase
(decrease) in cash arising from changes in assets and liabilities:
Accounts receivable 45,446 (81,003) Prepaid expenses (4,419)
(15,217) Accounts payable (7,294) 16,171 Accrued salaries and other
expenses 19,653 52,461 Income taxes payable 424 (359,833) Deferred
revenue 3,270 17,962 Net cash flows from operating activities
538,311 232,830 Cash flows from investing activities: Purchases of
available-for-sale securities - (56,943) Proceeds from sale of
available-for-sale securities - 59,242 Purchases of property and
equipment (92,950) (154,468) Software development costs (15,363)
(137,049) Net cash flows from investing activities (108,313)
(289,218) Net increase (decrease) in cash and cash equivalents
429,998 (56,388) Cash and cash equivalents, beginning of period
2,209,782 1,763,435 Cash and cash equivalents, end of period
$2,639,780 1,707,047 Supplemental disclosures of cash flow items:
Income taxes paid $251,561 559,000 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, Web site: http://www.advant-e.com/
http://www.edictsystems.com/ http://www.merkurgroup.com/
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