Thursday, August 9, 2012
Advant-e Corporation Announces
Second Quarter 2012 Results
Quarterly Revenue Increased by 8% and Net Income Increased by 29%
Compared to the Second Quarter of 2011
DAYTON, Ohio, August 9, 2012 -- Advant-e Corporation (OTCQB: ADVC) today announced financial and operating results for the second quarter of 2012. The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group.

Revenue in the second quarter of 2012 of $2,546,251 increased by 8% over revenue of $2,359,624 in the second quarter of 2011. Revenue from Edict Systems increased by 9% and revenue from Merkur Group increased by 3% compared to the second quarter in 2011.

Net income in the second quarter of 2012 was $504,505, or $.008 per share, compared to net income of $392,460, or $.006 per share, in the same period in 2011. Net income for Edict Systems increased by 24% and net income for Merkur Group increased by 58%.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "I am pleased to announce a record quarter for revenue and net income. This quarter marks nine years of consecutive quarterly net income."

"Edict Systems continued to show steady growth in its targeted markets," continued Mr. Wadzinski. "Merkur Group reported improved net income due to our efforts at controlling costs as we continued to focus on growing revenue in this segment."


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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three months ended (June 30th) Six months ended (June 30th)
2012 2011 2012 2011
Revenue $2,546,251 2,359,624 5,011,689 4,660,044
Cost of revenue 983,383 976,919 2,007,120 1,894,811
Gross Margin 1,562,868 1,382,705 3,004,569 2,765,233
Marketing, general and administrative expenses 798,363 787,593 1,653,335 1,587,050
Operating income 764,505 595,112 1,351,234 1,178,183
Other income, net 630 914 1,440 2,041
Income before income taxes 765,135 596,026 1,352,674 1,180,224
Income tax expense 260,630 203,566 460,962 402,677
Net income $504,505 392,460 891,712 777,547
Earnings per share - basic and diluted $.008 .006 .013 .012
Weighted average shares outstanding
basic and diluted
66,722,590 66,722,590 66,722,590 66,722,590
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

June 30th, 2012 (unaudited) December 31, 2011
Assets
Current assets
      Cash and equivalent assets $4,577,425 3,459,402
       Accounts receivable, net 759,465 784,239
       Prepaid software maintenance costs 207,683 190,429
       Prepaid expenses and deposits 87,582 107,871
       Prepaid income taxes --- 1,910
       Deferred income taxes 228,565 207,336
       Total current assets 5,860,720 4,751,187
Software development costs, net 203,857 262,102
Property and equipment, net 168,973 171,199
Goodwill 1,474,615 1,474,615
Other tangible assets, net 117,440 159,796
Total Assets $7,825,605 6,818,899
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Liabilities and Shareholders' Equity June 30th, 2012 (unaudited) December 31, 2011
Current liabilities
       Accounts payable $112,956 112,402
       Income tax payable 25,436 ---
       Accrued salaries and other expenses 225,389 205,334
       Deferred revenue 852,932 748,828
       Total current liabilities 1,216,713 1,066,564
Deferred income taxes 163,301 198,456
Total Liabilities 1,380,014 1,265,020
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Shareholders' Equity June 30th, 2011 (unaudited) December 31, 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 4,442,611 3,550,899
         Total Shareholders' equity 6,445,591 5,553,879
Total liabilities and Shareholders' equity $7,825,605 6,818,899
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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30,
2012 2011
Cash flows from operating activities:
       Net Income $891,712 777,547
       Adjustments to reconcile net income to net cash flows        from operating activities:    
       Depreciation 56,515 79,875
       Amortization of software development costs 58,245 29,122
       Amortization of other intangible assets 42,356 42,357
       Deferred income taxes (56,384) (62,265)
       Increase (decrease) in cash and cash equivalents arising        from changes in assets and liabilities:    
              Accounts receivable 24,774 26,564
              Prepaid software maintenance costs (17,254) (29,468)
              Prepaid expenses and deposits 20,289 (80,004)
              Prepaid income taxes 1,910 ---
              Accounts payable 554 39,279
              Income taxes payable 25,436 (25,058)
              Accrued salaries and other expenses 20,055 210,372
              Deferred revenue 104,104 99,252
              Net cash flows from operating activities 1,172,312 1,107,573
Cash flows from operating activities:    
       Purchases of property and equipment (54,289) (14,587)
       Software development costs --- (40,636)
              Net cash flows from investing activities (54,289) (55,223)
Cash flows from financing activities:    
       Dividends paid --- (667,226)
              Net increase in cash and cash equivalents 1,118,023 385,124
Cash and cash equivalents, beginning of period 3,459,402 2,963,172
Cash and cash equivalents, end of period $4,577,425 3,348,296
Supplemental disclosures of cash flow items:    
       Income taxes paid 490,000 490,000
       Non-cash transactions:    
              Declared dividends payable no later than December               31, 2011 --- 667,226
 

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.