Thursday, March 22, 2012
Advant-e Corporation Announces
Financial Results for 2011
Company Reports Record Revenue and Net Income; Revenue increased 3%
and Net income increased 8% compared to 2010
Beavercreek, Ohio, March 22, 2012 -- Advant-e Corporation (OTCBB: ADVC) today announced financial and operating results for the year ending December 31, 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.

The Company reported revenue in 2011 of $9,588,535 compared to revenue of $9,302,611 in 2010, and reported net income for 2011 of $1,711,380, or $.026 per share, compared to $1,585,339, or $.024 per share, in 2010.

Consolidated revenue set a record, and increased by 3% over 2010. Revenue for Edict Systems, which grew for the eleventh consecutive year, increased by 6% primarily from growth in Web EDI services in Grocery/Retail and Automotive, and in EnterpriseEC. Revenue from Merkur Group decreased by 12% as Merkur continues to face challenges in their targeted markets.

Consolidated net income set a record and increased by 8% over 2010. 2011 was the ninth consecutive year that the Company has reported a net profit. Net income from Edict Systems increased by 13%, and Merkur Group contributed net income of $170,392.

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, "We had a successful 2011 as we reported record revenue and record net income. We paid a $.02 per share special cash dividend and ended the year with a strong cash position with no outstanding bank or other long-term debt. We substantially exceeded our goal of 20% pre-tax profitability by achieving 27%. The Company moved to a new facility which provides additional space and infrastructure improvements. Edict Systems continued to convert Web EDI customers to our new platform, for which we have received favorable customer feedback."

"Our goal for 2012 is to increase top-line revenue growth while maintaining acceptable profitability," continued Mr. Wadzinski. "We will continue our efforts to grow in the industries in which we have a presence as well as focus on new opportunities."


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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

December 31, 2011 and 2010
2011 2010
Assets
Current assets
      Cash and equivalent assets $3,459,402 2,963,172
       Accounts receivable, net 784,239 743,020
       Prepaid software maintenance costs 190,429 174,013
       Prepaid expenses and deposits 107,871 99,234
       Prepaid income taxes 1,910 ---
       Deferred income taxes 207,336 153,643
       Total current assets 4,751,187 4,133,082
Software development costs, net 262,102 308,832
Property and equipment, net 171,199 228,121
Goodwill 1,474,615 1,474,615
Other tangible assets, net 159,796 244,508
Total Assets $6,818,899 6,389,158
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Liabilities and Shareholders' Equity 2011 2010
Current liabilities
       Accounts payable $112,402 79,986
       Income taxes payable --- 33,619
       Accrued salaries and other expenses 205,334 180,311
       Deferred revenue 748,828 673,810
       Total current liabilities 1,066,564 967,726
Deferred income taxes 198,456 244,481
Total Liabilities 1,265,020 1,212,207
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Shareholders' Equity 2011 2010
       Common stock, $.001 par value; 100,000,000 shares        authorized; 66,722,590 shares issued and outstanding 66,723 66,723
       Paid-in capital 1,936,257 1,936,257
       Retained Earnings 3,550,899 3,173,971
         Total Shareholders' equity 5,553,879 5,176,951
Total liabilities and Shareholders' equity $6,818,899 6,389,158

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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
For the years ended December 31, 2011 and 2010
2011 2010
Revenue $9,588,535 9,302,611
Cost of revenue 3,778,885 3,660,685
Gross Margin 5,809,650 5,641,926
Marketing, general and administrative expenses 3,216,048 3,237,337
Operating income 2,593,602 2,404,589
Other income (expense), net 2,530 1,582
Income before income taxes 2,596,132 2,406,171
Income tax expense 884,752 820,832
Net income $1,711,380 1,585,339
Earnings per share - basic and diluted 0.026 0.024
Weighted average shares outstanding
basic and diluted
66,722,590 66,722,590

 

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.