DAYTON,
Ohio, Nov. 4 /PRNewswire-FirstCall/ -- Advant-e Corporation
(OTC Bulletin Board: ADVC - News),
a provider of Internet-based business-to-business electronic
commerce services, today announced financial and operating
results for the quarter ending September 30, 2003.
For the third quarter of 2003 the Company reported revenues of $759,865, a 39% increase over revenues of $546,410 in the third quarter in 2002 and a 6% increase over revenues of $715,108 in the second 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.
Operating expenses in the quarter were $624,238 compared to $608,586 in the same period in 2002 and $717,135 in the second quarter of 2003.
Net profit for the quarter was $108,142, or $.02 per share, compared to a net loss of $63,376, or ($.01) per share for the same period in 2002 and a net loss of $5,979, or ($.00) per share for the second quarter of 2003.
For the nine months ending September 30, 2003, revenue was $2,124,351, a 47% increase over revenue of $1,441,097 for the same period in 2002. Net profit for the first nine months of 2003 was $32,339 compared to a net loss of $146,233 in the first nine months of 2002.
Jason K. Wadzinski, President and CEO of Advant-e, stated, "We are pleased with our third quarter results as our primary goal for the quarter was improving cash flow and achieving profitability. Going forward, we are focusing on our sales and marketing activities and will be expanding our product and service offerings to increase our ability to further assist our customers with connecting, integrating, managing, and expanding their eBusiness trading communities."
During the third quarter, the Company paid accrued interest to holders of its convertible debt in the amount of $129,094 and retired $25,000 of the convertible notes. An additional $24,187 of accrued interest was paid in early October.
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 ---- ---- ---- ---- REVENUES Internet products and services $722,411 478,361 1,987,852 1,205,877 Software and license fees 37,454 68,049 136,499 235,220 -------- ------- --------- --------- Total revenues 759,865 546,410 2,124,351 1,441,097 -------- ------- --------- --------- OPERATING EXPENSES Production 27,191 38,658 86,910 107,543 Salaries and benefits 338,667 281,346 1,108,673 757,057 General and administrative 136,502 132,089 486,032 325,533 Depreciation 13,814 5,889 36,660 20,691 Amortization of software development costs 75,061 53,282 214,942 111,594 Interest 33,003 97,322 139,365 256,302 -------- ------- -------- -------- Total operating expenses 624,238 608,586 2,072,582 1,578,720 ------- ------- --------- --------- INCOME (LOSS) BEFORE TAXES 135,627 ( 62,176) 51,769 ( 137,623) INCOME TAXES 27,485 1,200 19,430 8,610 ------- ------- ------ ------- NET INCOME (LOSS) $ 108,142 ( 63,376) 32,339 ( 146,233) ======= ====== ====== ======= EARNINGS (LOSS) PER SHARE Basic $ 0.02 (0.01) 0.01 (0.03) ==== ==== ==== ==== Diluted 0.02 (0.01) 0.01 (0.03) ==== ==== ==== ==== AVERAGE SHARES OUTSTANDING Basic 5,661,002 5,661,002 5,661,002 5,661,002 ========= ========= ========= ========= Diluted 5,908,532 5,661,002 5,745,797 5,661,002 ========= ========= ========= ========= ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS September 30, December 31, 2003 2002 ---- ---- (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 184,256 98,740 Accounts receivable, net 194,855 157,655 Prepaid expenses 20,362 46,817 Deferred income taxes 21,170 40,600 --------- --------- Total current assets 420,643 343,812 --------- --------- SOFTWARE DEVELOPMENT COSTS, net of accumulated amortization of $509,708 at September 30, 2003 and $294,767 at December 31, 2002 530,771 634,956 PROPERTY AND EQUIPMENT, net of accumulated depreciation of $140,120 at September 30, 2003 and $103,460 at December 31, 2002 163,110 171,589 OTHER ASSETS Deferred income taxes 79,046 79,046 Deposits 6,583 6,583 --------- --------- 85,629 85,629 --------- --------- Total assets $ 1,200,153 1,235,986 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 59,963 158,320 Accrued interest 74,206 118,025 Other accrued expenses 93,255 49,600 Deferred revenue 114,236 93,893 Bank note payable 8,521 14,097 Convertible subordinated notes payable, net 750,000 729,621 8% demand notes payable to shareholder 45,000 45,000 --------- --------- Total current liabilities 1,145,181 1,208,556 --------- --------- LONG-TERM LIABILITIES Bank note payable, less current maturities - 4,797 --------- --------- Total liabilities 1,145,181 1,213,353 --------- --------- SHAREHOLDERS' EQUITY 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 (801,148) (833,487) --------- --------- Total shareholders' equity 54,972 22,633 --------- --------- Total liabilities and shareholders' equity $ 1,200,153 1,235,986 ========= ========= ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, 2003 2002 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 32,339 (146,233) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 36,660 20,691 Amortization of software development costs 214,942 111,594 Deferred income taxes 19,430 8,610 Amortization of note discount resulting from valuation of warrants and beneficial conversion features 45,379 180,680 Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable (37,200) (73,682) Prepaid expenses 26,455 18,256 Accounts payable (98,357) 12,415 Accrued interest (43,819) 62,708 Other accrued expenses 43,655 43,982 Deferred revenue 20,343 (15,677) Deposits - ( 6,584) ------- ------- Net cash provided by operating activities 259,827 216,760 ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of equipment ( 28,181) ( 69,742) Software development costs (110,757) (276,901) ------- ------- Net cash used in investing activities (138,938) (346,643) ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from convertible subordinated notes - 250,000 Payments on convertible subordinated notes ( 25,000) - Payments on bank loans ( 10,373) (58,115) ------ -------- Net cash provided by (used in) financing activities ( 35,373) 191,885 ------ ------- NET INCREASE IN CASH AND CASH EQUIVALENTS 85,516 62,002 Cash and cash equivalents, beginning of period 98,740 180,679 ------- -------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 184,256 242,681 ======= ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW ITEMS Interest paid $ 137,804 12,759 Non-cash transactions Fair value of warrants issued with convertible subordinated notes - 27,500 Value of beneficial conversion feature of convertible subordinated notes - 52,000
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.