DAYTON, Ohio, Aug. 8 /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 June 30, 2005.
For the second quarter of 2005 the Company reported revenues of $1,076,385, a 26% increase over revenues of $851,982 in the second quarter of 2004. The increase in revenue was the direct result of continued growth of the Company's web-based electronic data interchange subscription services for small and medium-size businesses (Web EDI) and the Company's electronic business transaction network service (EnterpriseEC(TM)).
Net income for the quarter was $120,270, or $.02 per share, compared to $107,343, or $.02 per share for the same period in 2004.
"These results mark our eighth consecutive profitable quarter and reflect our steady and continued growth, " said Jason K. Wadzinski, Chairman and Chief Executive Officer. "Our sales reached record numbers and our net income in the second quarter increased by 14% over the first quarter and by 12% over the net income for the second quarter of 2004. Our increase in revenue is exceeding the additional investments in our sales and marketing efforts, infrastructure improvements and additional personnel costs."
"While revenue increased steadily from GroceryEC.com, our industry leading web EDI solution, we've experienced excellent growth in the automotive and retail web EDI segments which now account for approximately 10% of our total revenue."
For the six months ending June 30, 2005 the Company reported revenues of $2,115,873, a 25% increase over revenues of $1,690,617 in the same period in 2004. Net income for the period in 2005 was $225,379, or $.04 per share, compared to net income of $221,584, or $.04 per share in the 2004 period ($.03 per share on a diluted basis)
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Revenue $1,076,385 851,982 2,115,873 1,690,617 Cost of revenue 374,335 310,264 763,379 604,481 Gross margin 702,050 541,718 1,352,494 1,086,136 Marketing, general and administrative expenses 501,680 361,375 977,015 716,152 Income before taxes 200,370 180,343 375,479 369,984 Income tax expense 80,100 73,000 150,100 148,400 Net income $120,270 107,343 225,379 221,584 Basic earnings per common share $0.02 0.02 0.04 0.04 Diluted earnings per common share $0.02 0.02 0.04 0.03 Weighted average common shares outstanding 6,294,917 6,244,917 6,281,657 6,244,917 Weighted average common shares outstanding, assuming dilution 6,294,917 6,722,654 6,281,657 6,627,694 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS June 30, 2005 December 31, (Unaudited) 2004 Assets Current Assets Cash and cash equivalents $1,412,245 944,892 Accounts receivable, net 303,116 290,394 Prepaid expenses and deposit 32,710 26,420 Total current assets 1,748,071 1,261,706 Software development costs, net 208,479 298,809 Property and equipment, net 294,934 271,604 Total assets $2,251,484 1,832,119 Liabilities and Shareholders' Equity Current liabilities Accounts payable $109,210 39,681 Accrued salaries and other expenses 106,545 99,810 Income taxes payable 174,100 26,000 Deferred revenue 84,160 142,788 Total current liabilities 474,015 308,279 Long-term liabilities Deferred income taxes 159,000 191,000 Total liabilities 633,015 499,279 Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,294,917 outstanding at June 30, 2005 and 6,244,917 outstanding at December 31, 2004 6,295 6,245 Paid-in capital 1,535,784 1,475,584 Retained earnings (deficit) 76,390 (148,989) Total shareholders' equity 1,618,469 1,332,840 Total liabilities and shareholders' equity $2,251,484 1,832,119 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2005 2004 Cash flows from operating activities: Net income $225,379 221,584 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 51,389 34,099 Amortization of software development costs 134,639 164,014 Deferred income taxes (32,000) 148,400 Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable (12,722) (28,533) Prepaid expenses (6,290) 6,825 Accounts payable 69,529 32,803 Accrued salaries, interest and other expenses 6,735 16,359 Income taxes payable 148,100 -- Deferred revenue (58,628) 31,348 Net cash flows from operating activities 526,131 626,899 Cash flows from investing activities: Purchases of equipment (74,719) (126,614) Software development costs (44,309) (84,245) Net cash flows from investing activities (119,028) (210,859) Cash flows from financing activities: Issuance of common stock 60,250 -- Payments on notes -- (94,965) Payments of direct costs of securities registration -- (7,945) Net cash flows from financing activities 60,250 (102,910) Net increase in cash and cash equivalents 467,353 313,130 Cash and cash equivalents, beginning of period 944,892 216,448 Cash and cash equivalents, end of period $1,412,245 529,578 Supplemental disclosures of cash flow items: Interest paid $-- 3,014
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.