DAYTON, Ohio, July 24 /PRNewswire-FirstCall/ -- Advant-e
Corporation (OTC Bulletin Board: ADVC - News),
a provider of business-to-business electronic commerce internet-based
solutions and software, today announced financial and operating
results for the quarter ending June 30, 2003.
For the second quarter of 2003 the Company reported revenues of $715,108, a 46% increase over revenues of $491,437 in the second quarter in 2002 and a 10% increase over revenues of $649,378 in the first quarter of 2003. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services.
Expenses in the second quarter of 2003 were $717,135 compared
to $518,071 in the second quarter of 2002 and $731,209 in
the first quarter of 2003.
Net loss for the second quarter of 2003 was $5,979, ($.00) per share, compared to a net loss of $31,449, ($.01) per share, for the second quarter of 2002 and a net loss of $69,824, ($.01) per share, for the first quarter of 2003.
For the six months ending June 30, 2003, revenue was $1,364,486, a 53% increase over revenue of $894,687 for the same period in 2002. Net loss for first six months of 2003 was $75,803 compared to $82,857 in the first six months of 2002.
Jason K. Wadzinski, President and CEO of Advant-e, stated,
"Given current economic conditions, we continue to make
positive progress. Market acceptance and associated revenues
of our internet-based solutions continue to grow while expenses
were down slightly from the previous quarter. Our web-EDI
solutions continue to provide the majority of our revenue,
with GroceryEC.com being the biggest contributor. We are seeing
positive momentum from our other web-EDI solutions as well
as EnterpriseEC, our hosted trading community management and
connectivity service."
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
---- ---- ---- ----
REVENUES
Internet products and
services 655,497 383,507 1,265,441 727,516
Software and license fees 59,611 107,930 99,045 167,171
------- ------- --------- -------
Total revenues 715,108 491,437 1,364,486 894,687
------- ------- --------- -------
OPERATING EXPENSES
Production 31,981 36,327 59,719 68,885
Salaries and benefits 383,541 245,536 770,006 475,711
General and administrative 163,410 123,110 349,530 193,444
Depreciation 13,510 8,100 22,846 14,802
Amortization of software
development costs 71,617 31,168 139,881 58,312
Interest 53,076 73,830 106,362 158,980
------- ------- --------- -------
Total operating expenses 717,135 518,071 1,448,344 970,134
------- ------- --------- -------
LOSS BEFORE TAXES (2,027) (26,634) (83,858) (75,447)
INCOME TAXES (BENEFIT) 3,952 4,815 (8,055) 7,410
----- ----- --------- -------
NET LOSS (5,979) (31,449) (75,803) (82,857)
======= ======= ========= =======
LOSS PER SHARE
Basic and diluted (0.00) (0.01) (0.01) (0.01)
==== ==== ==== ====
AVERAGE SHARES OUTSTANDING
Basic and diluted 5,661,002 5,661,002 5,661,002 5,661,002
========= ========= ========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
June December
30, 2003 31, 2002
---- ----
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 126,887 98,740
Accounts receivable, net 175,267 157,655
Prepaid expenses 37,151 46,817
Deferred income taxes 48,655 40,600
--------- ---------
Total current assets 387,960 343,812
--------- ---------
SOFTWARE DEVELOPMENT COSTS, net of accumulated
amortization of $434,648 at June 30, 2003
and $294,767 at December 31, 2002 578,241 634,956
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $126,305 at June 30, 2003
and $103,460 at December 31, 2002 170,826 171,589
OTHER ASSETS
Deferred income taxes 79,046 79,046
Deposits 6,583 6,583
--------- ---------
85,629 85,629
--------- ---------
Total assets $ 1,222,656 1,235,986
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 134,067 158,320
Accrued interest 167,065 118,025
Other accrued expenses 67,105 49,600
Deferred revenue 77,355 93,893
Bank note payable 12,027 14,097
Convertible subordinated notes payable, net 773,207 729,621
8% demand notes payable to shareholder 45,000 45,000
--------- ---------
Total current liabilities 1,275,826 1,208,556
--------- ---------
LONG-TERM LIABILITIES
Bank note payable, less current maturities - 4,797
--------- ---------
Total liabilities 1,275,826 1,213,353
--------- ---------
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.001 par value; 20,000,000
shares authorized; 5,661,002 issued and
outstanding 5,661 5,661
Paid-in capital 850,459 850,459
Accumulated deficit (909,290) (833,487)
--------- ---------
Total shareholders' equity (deficit) (53,170) 22,633
--------- ---------
Total liabilities and shareholders'
equity (deficit) $ 1,222,656 1,235,986
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended
June 30,
2003 2002
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (75,803) (82,857)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 22,846 14,802
Amortization of software development costs 139,881 58,312
Deferred income taxes (benefit) (8,055) 7,410
Amortization of note discount resulting
from valuation of warrants and beneficial
conversion features 43,586 112,505
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable (17,612) (83,534)
Prepaid expenses 9,666 35,777
Accounts payable (24,253) 50,766
Accrued interest 49,040 41,175
Other accrued expenses 17,505 1,390
Deferred revenue (16,538) 1,789
------- -------
Net cash provided by
operating activities 140,263 157,535
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of equipment (22,083) (11,592)
Software development costs (83,166) (181,917)
------- -------
Net cash used in investing activities (105,249) (193,509)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on bank loans (6,867) (43,592)
------- --------
Net cash used in financing activities (6,867) (43,592)
------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 28,147 (79,566)
Cash and cash equivalents, beginning of period 98,740 180,679
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 126,887 101,113
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ITEMS
Interest paid $ 12,382 5,299
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.