DAYTON, Ohio, Monday May 15, 2006-- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending March 31, 2006
For the first quarter of 2006 the Company reported revenues of $1,262,169, a 21% increase over revenues of $1,039,488 in the first quarter of 2005. The increase in revenue demonstrates the growing support in the marketplace for the Company's principal products - web-based electronic data interchange subscription sevices (Web EDI) and electronic business transaction network services (EnterpriseEC™).
Net income for the quarter was $167,706, or $.03 per share, a 60% increase over net income of $105,109, or $.02 per share, for the same period in 2005.
“We are pleased to report in the first quarter of 2006 continued growth in revenue and earnings and a pre-tax profit margin of 22%,” said Jason K. Wadzinski, Chairman and Chief Executive Officer. “Revenue again reached a record level and net income increased by 60% over last year. We are continuing to focus our efforts and resources on accelerating revenue growth by systematically increasing our investment in infrastructure, new product development, personnel, and new sales and marketing initiatives.”
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
March 31,
2006 2005
Revenue $ 1,262,169 990,077
Cost of revenue 407,868 389,044
Gross margin 854,301 650,444
Marketing, general and
administrative expenses 595,855 475,335
Operating income 258,446 175,109
Other income (expense) 16,975 ---
Income before taxes 275,421 175,109
Income tax expense 107,715 70,000
Net income $ 167,706 105,109
Basic earnings per share $ 0.03 0 .02
Diluted earnings per share $ 0.03 0 .02
Weighted average shares
outstanding 6,403,174 6,268,250
Weighted average shares
outstanding, assuming
dilution 6,426,009 6,268,250
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
March 31, December 31,
2006 2005
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 1,672,125 1,763,435
Short-term investments 243,928 225,902
Accounts receivable, net 400,356 351,482
Prepaid expenses and deposit 21,840 25,128
Total current assets 2,338,249 2,365,947
Software development costs, net 190,368 160,656
Property and equipment, net 245,000 262,523
Total assets $ 2,773,617 2 ,789,126
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $ 64,532 4,838
Accrued salaries and other expenses 132,306 115,510
Income taxes payable 77,644 375,652
Deferred income taxes 44,883 26,000
Deferred revenue 103,599 76,173
Total current liabilities 422,964 638,173
Deferred income taxes 158,621 136,000
Total liabilities 581,585 774,173
Shareholders' equity
Common stock, $.001 par value; 20,000,000
shares authorized; 6,403,714 outstanding 6,403 6,403
Paid-in capital 1,551,606 1,551,606
Accumulated other comprehensive income 14,988 5,615
Retained earnings 619,035 451,329
Total shareholders' equity 2,192,032 2,014,953
Total liabilities and shareholders'
equity $ 2,773,617 2 ,789,126
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended
March 31
2006 2005
Cash flows from operating activities:
Net income $ 167,706 469,323
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 29,553 23,383
Amortization of software development costs 32,383 66,397
Loss on disposal of assets 24,221 ---
Net realized losses on available
for-sale investments ( 4,241) ---
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable ( 48,874) (4,692)
Prepaid expenses 3,288 ( 4,613)
Accounts payable 19,694 18,327
Accrued salaries, interest and other
expenses 16,796 50,453
Income taxes payable (298,008) 72,000
Deferred revenue 27,426 (39,537)
Net cash flows from operating activities 5,667 258,827
Cash flows from investing activities:
Purchases of available-for-sale investments (35,545) ---
Proceeds from sale of available-for-sale
investments 36,914 ---
Purchases of equipment (28,697) (17,227)
Software development costs (69,649) (16,313)
Net cash flows from investing activities (96,977) (33,540)
Cash flows from financing activities:
Issuance of common stock --- 60,250
Net cash flows from financing activities --- 60,250
Net increase (decrease) in cash and cash equivalents (91,310) 285,537
Cash and cash equivalents, beginning of period 1,763,435 944,892
Cash and cash equivalents, end of period $1,672,125 1,230,429
Supplemental disclosures of cash flow items:
Income taxes paid $ 370,000
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.