Friday, August 6th, 2010
Advant-e Corporation Announces
Second Quarter 2010 Results
Company Reports Record Net Income for the Second Quarter of 2010; Revenue Growth of 6% over Q2 2009

DAYTON, Ohio, August 6, 2010 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the second quarter of 2010.  The Company provides Internet-based Electronic Data Interchange services through Edict Systems, Inc. and sells electronic document management software and services through Merkur Group, Inc.  Edict Systems and Merkur Group are wholly owned subsidiaries of Advant-e Corporation.

For the second quarter of 2010 the Company reported revenue of $2,343,816, a 6% increase compared to revenue of $2,200,958 in the second quarter of 2009. Revenue from Edict Systems increased by 8% and revenue from Merkur Group increased by 2%. 
Net income for the second quarter of 2010 was $399,840, or $.006 per share, a 28% increase compared to net income of $311,263, or $.005 per share, for the same period in 2009.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “I am pleased to announce that we reported a record quarterly net income, which is our 28th consecutive profitable quarter.”

“Both Edict Systems and Merkur Group performed well.  Edict Systems showed year over year growth in the grocery and automotive industries and Merkur Group increased revenue by 54% over the first quarter of this year”, continued Mr. Wadzinski.  “I remain cautiously optimistic about our performance for the remainder of 2010 because our pipeline of opportunities is strengthening and we will continue to focus on cost control.”

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,

 

2010
2009
2010
2009

Revenue               

$2,343,816
2,200,958
4,537,637
4,356,250

Cost of revenue   

921,566
930,171
1,855,550
1,829,830

Gross margin        

1,422,250
1,270,787
2,682,087
2,526,420

Marketing, general and administrative expenses           

815,838
837,504
1,674,941
1,724,789

Operating income

606,412
433,283
1,007,146
801,631

Other income, net

1,205
25,484
2,004
5,834

Income before income taxes              

607,617
458,767
1,009,150
807,465

Income tax expense             

207,777
147,504
345,034
261,526

Net income           

$399,840
311,263
664,116
545,939

Earnings per share – basic and diluted           

$.006
.005
.010
.008

Weighted average shares outstanding – basic and diluted             

66,722,590
66,890,260
66,722,590
67,006,980

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, 2010
(Unaudited)
December 31,2009

Assets

 

 

Current Assets:

 

 

Cash and cash equivalents          

$2,959,670
2,713,996

Accounts receivable, net             

795,345
634,055

Prepaid software maintenance costs          

191,517
162,507

Prepaid expenses and deposits   

47,165
75,519

Prepaid income taxes     

39,798

Deferred income taxes   

160,903
139,144

Total current assets 

4,154,600
3,765,019

Software development costs, net     

227,091
149,956

Property and equipment, net             

271,132
312,821

Goodwill               

1,474,615
1,474,615

Other intangible assets, net              

286,864
329,220

Total assets         

$6,414,302
6,031,631

Liabilities and Shareholders’ Equity

Current liabilities:

Accounts payable         

$122,942
115,546

Dividend payable

667,226
1,334,452

Accrued salaries and other expenses         

385,085
146,699

Income taxes payable

50,341

Deferred revenue           

680,302
582,298

Total current liabilities             

1,905,896
2,178,995

Deferred income taxes        

252,678
261,024

Total liabilities     

2,158,574
2,440,019

Shareholders’ equity:

Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued and outstanding at June 30, 2010; 66,951,010 shares issued and 66,722,590 shares outstanding at December 31, 2009

66,723
66,951

Paid-in capital           

1,936,257
1,964,221

Retained earnings    

2,252,748
1,588,632

Treasury stock at cost, 228,420 shares at December 31, 2009           

(28,192)

Total shareholders’ equity

4,255,728
3,591,612

Total liabilities and shareholders’ equity        

$6,414,302
6,031,631

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended
June 30,
2010
2009
Cash flows from operating activities:
   
Net income
$664,116
545,939
Adjustments to reconcile net income to net cash flows from operating activities:       
Depreciation   
110,020
125,716
Amortization of software development costs           
30,669
40,892
Amortization of other intangible assets     
42,356
42,356
Loss on disposal of property and equipment
800
Deferred income taxes   
(30,105)
(74,778)
Purchases of trading securities   
(87,591)
Proceeds from sales of trading securities  
123,056
Net unrealized gain on trading securities  
(24,158)
Net realized loss on sales of securities      
24,082
Increase (decrease) in cash arising from changes in assets and liabilities:          
Accounts receivable          
(161,290)
(111,470)
Prepaid software maintenance costs               
(29,010)
(20,210)
Prepaid expenses and deposits        
28,354
15,258
Prepaid income taxes          
39,798
(2,709)
Accounts payable              
7,396
(49,749)
Accrued salaries and other expenses              
238,386
64,163
Income taxes payable         
50,341
Deferred revenue
98,004
30,153
Net cash flows from operating activities         
1,089,835
640,950
Cash flows from investing activities:
   
Purchases of property and equipment  
(69,131)
(9,569)
Software development costs
(107,804)
Net cash flows from investing activities
(176,935)
(9,569)
Cash flows from financing activities:
Purchase of treasury shares   
(42,190)
Dividends paid
(667,226)
Net cash flows from financing activities
(667,226)
(42,190)
Net increase in cash and cash equivalents     
245,674
589,191
Cash and cash equivalents, beginning of period          
2,713,996
2,090,005
Cash and cash equivalents, end of period      
$2,959,670
2,679,196
Supplemental disclosures of cash flow items:
Income taxes paid     
$285,000
339,013
Non-cash transaction: retirement of shares         
28,192
623
 

About Advant-e
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted 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 www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The company's email is [email protected].

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.