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.