Friday, May 12th, 2011
Advant-e Corporation Announces First Quarter 2011 Results; $.02 Per Share Special Cash Dividend
Company Reports 5% Revenue Increase and 46% Net Income Increase over First Quarter of 2010; Declares Special Cash Dividend of $.02 per share, payable in Installments of $.01 per share no later than June 30, 2011 and December 31, 2011

DAYTON, Ohio, May 12, 2011 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the first quarter of 2011.  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.

Revenue in the first quarter of 2011 was $2,300,420, a 5% increase, compared to revenue of $2,193,821 in the first quarter of 2010. Revenue from Edict Systems increased 2% and revenue from Merkur Group increased 22%. 

Net income in the first quarter of 2011 was $385,087, or $.006 per share, compared to net income of $264,279, or $.004 per share, in the same period in 2010.  Both Edict Systems and Merkur Group contributed to the increase in net income.
The Company announced a special cash dividend of $.02 per share, payable in two installments of $.01 each no later than June 30, 2011 and December 31, 2011.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “This quarter marks our 31st consecutive profitable quarter.  Our net income increased by 46% despite a nominal increase in revenue.  We will continue to direct our efforts toward increasing revenue in our core grocery and automotive industries, where we have a considerable presence, and to develop business opportunities in the health care and manufacturing sectors.”  

“I am pleased to announce that the Company’s Board of Directors has declared a $.02 per share special cash dividend,” continued Mr. Wadzinski.  “We are in a position to pay this dividend based on the Company’s earnings, cash flow and solid cash position.  This dividend rewards our shareholders, many of whom are long-term investors in the Company, and enables them to utilize current favorable Federal income tax rates.”

ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS

March 31, 2011
(Unaudited)

December 31,
2010

Assets

   

Current Assets:

   

Cash and cash equivalents

$3,657,598

2,963,172

Accounts receivable, net

789,026

743,020

Prepaid software maintenance costs

201,740

174,013

Prepaid expenses and deposits

90,534

99,234

Deferred income taxes

170,608

153,643

   

Total current assets

4,909,506

4,133,082

Software development costs, net

349,468

308,832

Property and equipment, net

192,279

228,121

Goodwill

1,474,615

1,474,615

Other intangible assets, net

223,330

244,508

   

Total assets

$7,149,198

6,389,158

   

Liabilities and Shareholders’ Equity

   

Current liabilities:

   

Accounts payable

$135,636

79,986

Accrued salaries and other expenses

273,643

180,311

Income taxes payable
203,116 33,619

Deferred revenue

733,705

673,810

Total current liabilities

1,346,100

967,726

Deferred income taxes

241,060

244,481

   

Total liabilities

1,587,160

1,212,207

   

Shareholders’ equity:

   

Common stock, $.001 par value; 100,000,000 shares authorized; 66,951,010 shares issued and 66,722,590 shares outstanding

66,723

66,723

Paid-in capital

1,936,257

1,936,257

Retained earnings

3,559,058

3,173,971

Total shareholders’ equity

5,562,038

5,176,951

   

Total liabilities and shareholders’ equity

$7,149,198

6,389,158

   
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three Months Ended
March 31,

2011

2010

Revenue

$2,300,420

$2,193,821

Cost of revenue

917,892

933,984

   

Gross margin

1,382,528

1,259,837

Marketing, general and administrative expenses

799457

859,101

   

Operating income

583,198

400,736

Other income (expense), net

1,127

800

   

Income before income taxes

584,198

401,536

Income tax expense

199,111

137,257

   

Net income

385,087

264,279

   

Earnings per share – basic and diluted

0.006

0.004

   

Weighted average shares outstanding – basic and diluted

66,722,590

66,722,590

     


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

Three Months Ended
March 31,

2011

2010

Cash flows from operating activities:

   

Net income

$385,087

264,279

Adjustments to reconcile net income to net cash flows from operating activities:

   

Depreciation

42,078

55,480

Amortization of software development costs

---

20,446

Amortization of other intangible assets

21,178

21,178

Loss on disposal of property and equipment
--- 800

Deferred income taxes

(20,386)

(23,381)

Purchases of trading securities

---

(43,949)

Proceeds from sales of trading securities

---

49,828

Net unrealized loss on trading securities

---

4,667

Net realized loss on sale of trading securities

---

18,401

Increase (decrease) in cash arising from changes in assets and liabilities, net of effects of acquisition:

   

Accounts receivable

(46,006)

(138,769)

Prepaid software maintenance costs

(27,727)

(35,128)

Prepaid expenses and deposits

8,700

(3,469)

Prepaid income taxes

---

39,798

Accounts payable

55,650

38,541

Accrued salaries and other expenses

93,332

158,243

Income taxes payable

169,497

120,840

Deferred revenue

59,895

115,458

Net cash flows from operating activities

741,298

634,316

   

Cash flows from investing activities:

   

Purchases of property and equipment

(6,236)

(49,053)

Software Development Cost

(40,636)

(58,609)

Net cash flows from investing activities

(46,872)

(107,662)

   
Cash flows from financing activities:
   
Net increase in cash and cash equivalents
694,426 526,654
   
Cash and cash equivalents, beginning of period
2,963,172
2,713,996
Cash and cash equivalents, end of period
3,657,598
3,240,650
   
Supplemental disclosures of cash flow items:
   
Income taxes paid
50,000
---
 

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.