Company Reports 12% Increase in Revenue over Q1 2006 and 15th
Consecutive Profitable Quarter DAYTON, Ohio, May 14
/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 March 31, 2007. For the
first quarter of 2007 the Company reported revenues of $1,416,323,
a 12% increase over revenues of $1,262,169 in the first 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
quarter was $131,145, or $.02 per share, a 22% decline over net
income of $167,706, or $.03 per share for the same period in 2006.
The decline in net income is attributable primarily to
less-than-anticipated revenue growth insufficient to offset higher
technical and sales personnel costs, marketing expenses, and
reduced capitalized software development costs. Jason K. Wadzinski,
Chairman and Chief Executive Officer, remarked, "The first quarter
of 2007 marks the 15th consecutive quarter that the Company
reported positive earnings. Our revenue growth rate, however, is
less than our recent historical growth rates when comparing each
quarter in 2004 through 2006 to the comparable quarter of the prior
year. Our strategy of extending outside of our strong grocery
industry presence is working, but at a slower rate than
anticipated. We are re-evaluating our sales and marketing
initiatives so that in the 2nd half of 2007 we can accelerate our
revenue growth while maintaining an acceptable level of
profitability." 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 Trading Community
Connectivity and Management Solution, and within specific
industries via web-based EDI services 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 March 31, 2007 2006 Revenue
$1,416,323 1,262,169 Cost of revenue 508,568 407,868 Gross margin
907,755 854,301 Marketing, general and administrative expenses
713,478 595,855 Operating income 194,277 258,446 Other income, net
22,668 16,975 Income before taxes 216,945 275,421 Income tax
expense 85,800 107,715 Net income $131,145 $167,706 Basic earnings
per share $0.02 0.03 Diluted earnings per share $0.02 0.03 Weighted
average shares outstanding 6,478,714 6,403,174 Weighted average
shares outstanding, assuming dilution 6,478,714 6,426,009 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS
March 31, 2007 December 31, (Unaudited) 2006 Assets Current Assets:
Cash and cash equivalents $2,313,287 2,209,782 Short-term
investments 275,846 274,434 Accounts receivable, net 448,948
477,639 Prepaid expenses and deposit 56,470 28,339 Total current
assets 3,094,551 2,990,194 Software development costs, net 244,896
247,621 Property and equipment, net 381,010 386,697 Total assets
$3,720,457 3,624,512 Liabilities and Shareholders' Equity Current
liabilities: Accounts payable $79,449 66,936 Accrued salaries and
other expenses 125,791 157,802 Income taxes payable 69,409 109,642
Deferred income taxes 74,430 53,119 Deferred revenue 116,344
112,846 Total current liabilities 465,423 500,345 Deferred income
taxes 165,506 165,784 Total liabilities 630,929 666,129
Shareholders' equity: Common stock, $.001 par value; 20,000,000
shares authorized; 6,478,714 outstanding 6,478 6,478 Paid-in
capital 1,641,906 1,641,906 Retained earnings 1,441,144 1,309,999
Total shareholders' equity 3,089,528 2,958,383 Total liabilities
and shareholders' equity $3,720,457 3,624,512 ADVANT-E CORPORATION
AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) Three Months Ended March 31, 2007 2006 Cash flows from
operating activities: Net income $131,145 167,706 Adjustments to
reconcile net income to net cash flows from operating activities:
Depreciation 48,487 29,553 Amortization of software development
costs 18,088 32,383 Loss on disposal of assets ---- 24,221 Deferred
income taxes 21,033 35,723 Purchases of trading securities (74,483)
---- Proceeds from sales of trading securities 79,679 ---- Net
realized gains on sales of securities (6,608) (4,241) Increase
(decrease) in cash arising from changes in assets and liabilities:
Accounts receivable 28,691 (48,874) Prepaid expenses (28,131) 3,288
Accounts payable 12,513 19,694 Accrued salaries and other expenses
(32,011) 16,796 Income taxes payable (40,233) (298,008) Deferred
revenue 3,498 27,426 Net cash flows from operating activities
161,668 5,667 Cash flows from investing activities: Purchases of
available-for-sale securities ---- (35,545) Proceeds from sale of
available-for-sale securities ---- 36,914 Purchases of equipment
(42,800) (28,697) Software development costs (15,363) (69,649) Net
cash flows from investing activities (58,163) (96,977) Net increase
(decrease) in cash and cash equivalents 103,505 (91,310) Cash and
cash equivalents, beginning of period 2,209,782 1,763,435 Cash and
cash equivalents, end of period $2,313,287 1,672,125 Supplemental
disclosures of cash flow items: Income taxes paid $105,000 370,000
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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