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Advant-e Corporation Announces First Quarter 2004 Results
Company Reports 29% Increase in Revenue over Q1 2003; Net Income of $.02 per share vs. ($.01)


DAYTON, Ohio, April 29, 2004
-- Advant-e Corporation (OTC Bulletin Board: ADVC), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending March 31, 2004.

For the first quarter of 2004 the Company reported revenues of $838,635, a 29% increase over revenues of $649,378 in the first quarter of 2003. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services.

Net income for the quarter was $114,241, or $.02 per share, compared to a net loss of $69,824, or ($.01) per share for the same period in 2003.

Jason K. Wadzinski, President and CEO of Advant-e, stated, "We set a goal last year of achieving 20% pre-tax profitability. We first achieved this goal in the fourth quarter of 2003 and I am pleased that we exceeded this goal again in the first quarter of 2004. In addition, over the past three quarters we eliminated our notes payable and significantly improved our balance sheet. I believe we are building a strong foundation allowing us to invest in enhancing our current offerings as well as focus on new industry initiatives."

During the nine-month period ended on March 31, 2004 the Company eliminated all of its outstanding notes payable. Most of the holders of the Company's convertible subordinated notes converted principal and interest of $628,040 into 583,915 shares of the Company's common stock, and the Company paid in full the remaining notes payable and accrued interest totaling $424,609.

Also during the nine-month period ended on March 31, 2004, the Company reported net income totaling $405,219 and net cash flows from operating activities totaling $579,983. As a result, at March 31, 2004 the Company's balance sheet reflects substantial improvement, most notably cash of $336,934, net working capital of $591,033, total shareholders' equity of $991,561, and notes payable of zero.

 

ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

                                                        Three Months Ended
                                                             March 31,
                                                          2004       2003
                                                          ----       ----

Revenue                                              $   838,635    649,378
Cost of revenue                                          294,217    303,812
                                                       ---------  ---------
Gross margin                                             544,418    345,566

Marketing, general and administrative expenses           352,597    374,111
                                                       ---------  ---------
Operating income (loss)                                  191,821  (  28,545)

Interest                                                   2,180     53,286
                                                       ---------  ---------
Income (loss) before taxes                               189,641  (  81,831)

Income taxes (benefit)                                    75,400  (  12,007)
                                                       ---------   --------
Net income (loss)                                    $   114,241  (  69,824)
                                                       =========   ========
Basic earnings (loss) per common share               $      0.02      (0.01)
                                                            ====       ====
Diluted earnings (loss) per common share             $      0.02      (0.01)
                                                            ====       ====
Weighted average common shares outstanding             6,244,917  5,661,002
                                                       =========  =========
Weighted average common shares outstanding, assuming 
  dilution                                             6,542,186  5,661,002
                                                       =========  =========

 ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

                                                 March 31,  December 31,
                                                   2004        2003
                                                   ----        ----
Assets

Current Assets
  Cash and cash equivalents                    $   336,394    216,448
  Accounts receivable, net                         219,303    215,895
  Prepaid expenses and deposit                      14,141     16,187
  Deferred income taxes                            241,000    266,400
                                                 ---------  ---------
Total current assets                               810,838    714,930
                                                 ---------  ---------

Software development costs, net                    444,785    481,678

Property and equipment, net                        161,743    168,687
                                                 ---------  ---------
    Total assets                               $ 1,417,366  1,365,295
                                                 =========  =========

Liabilities and Shareholders' Equity 

Current liabilities
  Accounts payable                             $    35,641     72,172
  Accrued salaries and other expenses              120,123     71,867
  Deferred revenue                                  64,041     90,931
  Notes payable                                          -     94,965
                                                 ---------  ---------
Total current liabilities                          219,805    329,935
                                                 ---------  ---------
Long-term liabilities
  Deferred income taxes                            206,000    156,000
                                                 ---------  ---------
    Total liabilities                              425,805    485,935
                                                 ---------  ---------
Shareholders' equity
  Common stock, $.001 par value; 20,000,000
    shares authorized; 6,244,917 outstanding         6,245      6,245                          
  Paid-in capital                                1,489,387  1,491,427
  Accumulated deficit                             (504,071)  (618,312)
                                                 ---------  ---------
    Total shareholders' equity                     991,561    879,360
                                                 ---------  ---------
    Total liabilities and shareholders' equity $ 1,417,366  1,365,295 
                                                 =========  =========


ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

                                                       Three Months Ended
                                                           March 31,
                                                        2004      2003
                                                        ----      ----
Cash flows from operating activities 
  Net income (loss)                                  $ 114,241 ( 69,824)
  Adjustments to reconcile net income (loss)
    to net cash provided by operating activities:
      Depreciation                                      12,816     9,336
      Amortization of software development costs        80,252    68,264
      Deferred income taxes (benefit)                   75,400  ( 12,007)
      Amortization of note discount resulting 
        from valuation of warrants and beneficial
        conversion features                                  -    21,793
      Increase (decrease) in cash arising from
      changes in assets and liabilities:
        Accounts receivable                           (  3,408)    8,327
        Prepaid expenses                                 2,046  ( 14,558)
        Accounts payable                              ( 36,531)   56,504
        Accrued salaries, interest and other expenses   48,256    58,657
        Deferred revenue                              ( 26,890) ( 17,983)
                                                       -------   -------
Net cash provided by operating activities              266,182   108,509
                                                       -------   -------

Cash flows from investing activities
  Purchases of equipment                              (  5,872) ( 13,940)
  Software development costs                          ( 43,359) ( 41,900)
                                                       -------   -------
Net cash used in investing activities                 ( 49,231) ( 55,840)
                                                       -------   -------

Cash flows from financing activities
  Payments on notes payable                           ( 94,965) (  3,412)
  Payments of direct costs of securities offering     (  2,040)        -
                                                       -------  --------
Net cash used in financing activities                 ( 97,005) (  3,412)
                                                       -------   -------
Net increase in cash and cash equivalents              119,946    49,257

Cash and cash equivalents, beginning of period         216,448    98,740
                                                       -------  --------
Cash and cash equivalents, end of period             $ 336,394   147,997
                                                       =======  ========
Supplemental disclosures of cash flow information
  Interest paid                                      $   3,014     4,115


About Advant-e

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®, an Internet-based Trading Community Connectivity, Management, and Integration solution, and within specific industries via web-based EDI services including www.GroceryEC.com, www.RetailEC.com, www.AutomotiveEC.com, www.CPGSupplier.com, and www.WebEDI.com.

Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.

Copyright © 2000-2009 Advant-e Corporation
All Rights Reserved
Phone: (800) 443-3428
Fax: (937) 429-4309
Please send comments on this page to info@edictsystems.com


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.