DAYTON, Ohio, Monday May 15, 2006-- 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 March 31, 2006
For the first quarter of 2006 the Company reported revenues of $1,262,169, a 21% increase over revenues of $1,039,488 in the first quarter of 2005. The increase in revenue demonstrates the growing support in the marketplace for the Company's principal products - web-based electronic data interchange subscription sevices (Web EDI) and electronic business transaction network services (EnterpriseEC™).
Net income for the quarter was $167,706, or $.03 per share, a 60% increase over net income of $105,109, or $.02 per share, for the same period in 2005.
“We are pleased to report in the first quarter of 2006 continued growth in revenue and earnings and a pre-tax profit margin of 22%,” said Jason K. Wadzinski, Chairman and Chief Executive Officer. “Revenue again reached a record level and net income increased by 60% over last year. We are continuing to focus our efforts and resources on accelerating revenue growth by systematically increasing our investment in infrastructure, new product development, personnel, and new sales and marketing initiatives.”
ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended March 31, 2006 2005 Revenue $ 1,262,169 990,077 Cost of revenue 407,868 389,044 Gross margin 854,301 650,444 Marketing, general and administrative expenses 595,855 475,335 Operating income 258,446 175,109 Other income (expense) 16,975 --- Income before taxes 275,421 175,109 Income tax expense 107,715 70,000 Net income $ 167,706 105,109 Basic earnings per share $ 0.03 0 .02 Diluted earnings per share $ 0.03 0 .02 Weighted average shares outstanding 6,403,174 6,268,250 Weighted average shares outstanding, assuming dilution 6,426,009 6,268,250 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS March 31, December 31, 2006 2005 (Unaudited) Assets Current Assets Cash and cash equivalents $ 1,672,125 1,763,435 Short-term investments 243,928 225,902 Accounts receivable, net 400,356 351,482 Prepaid expenses and deposit 21,840 25,128 Total current assets 2,338,249 2,365,947 Software development costs, net 190,368 160,656 Property and equipment, net 245,000 262,523 Total assets $ 2,773,617 2 ,789,126 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 64,532 4,838 Accrued salaries and other expenses 132,306 115,510 Income taxes payable 77,644 375,652 Deferred income taxes 44,883 26,000 Deferred revenue 103,599 76,173 Total current liabilities 422,964 638,173 Deferred income taxes 158,621 136,000 Total liabilities 581,585 774,173 Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,403,714 outstanding 6,403 6,403 Paid-in capital 1,551,606 1,551,606 Accumulated other comprehensive income 14,988 5,615 Retained earnings 619,035 451,329 Total shareholders' equity 2,192,032 2,014,953 Total liabilities and shareholders' equity $ 2,773,617 2 ,789,126 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31 2006 2005 Cash flows from operating activities: Net income $ 167,706 469,323 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 29,553 23,383 Amortization of software development costs 32,383 66,397 Loss on disposal of assets 24,221 --- Net realized losses on available for-sale investments ( 4,241) --- Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable ( 48,874) (4,692) Prepaid expenses 3,288 ( 4,613) Accounts payable 19,694 18,327 Accrued salaries, interest and other expenses 16,796 50,453 Income taxes payable (298,008) 72,000 Deferred revenue 27,426 (39,537) Net cash flows from operating activities 5,667 258,827 Cash flows from investing activities: Purchases of available-for-sale investments (35,545) --- Proceeds from sale of available-for-sale investments 36,914 --- Purchases of equipment (28,697) (17,227) Software development costs (69,649) (16,313) Net cash flows from investing activities (96,977) (33,540) Cash flows from financing activities: Issuance of common stock --- 60,250 Net cash flows from financing activities --- 60,250 Net increase (decrease) in cash and cash equivalents (91,310) 285,537 Cash and cash equivalents, beginning of period 1,763,435 944,892 Cash and cash equivalents, end of period $1,672,125 1,230,429 Supplemental disclosures of cash flow items: Income taxes paid $ 370,000
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.