Monday, May 14, 2007

Advant-e Corporation Announces First Quarter 2007 Results

Company Reports 12% Increase in Revenue over Q1 2006 and 15th Consecutive Profitable Quarter

DAYTON, Ohio, May 14, 2007 --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, 2007.

For the first quarter of 2007 the Company reported revenues of $1,416,323, a 12% increase over revenues of $1,262,169 in the first quarter of 2006. The increase in revenue is attributable primarily to continued growth of the Company's Web EDI services along with growth of EnterpriseEC®, the Company's electronic trading community connectivity and integration service.

Net income for the quarter was $131,145, or $.02 per share, a 22% decline over net incom of $167,706, or $.03 per share for the same period in 2006. The decline in net income is attributable primarily to less-than-anticipated revenue growth insufficient to offset higher technical and sales personnel costs, marketing expenses, and reduced capitalized software development costs.

Jason K. Wadzinski, Chariman and Chief Executive Officer, remarked, "The first quarter of 2007 marks the 15th consecutive quarter that the Company reported positive earnings. Our revenue growth rate, however, is less than our recent historical growth rates when comparing each quarter in 2004 through 2006 to the comparable quarter of the prior year. Our strategy of extending outside of our strong grocery industry presence is wroking, but at a slower rate than anticipated. We are re-evaluating our sales and marketing initiatives so that in the 2nd half of 2007 we can accelerate our revenue growth while maintaining an acceptable level of profitability."

 

                       ADVANT-E CORPORATION AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                      
                     
                                    
                                                         Three Months Ended         
                                                              March 31,            
									 
                                                          2007        2006        
 
    Revenue                                           $1,416,323   1,262,169   
    Cost of revenue                                      508,568     407,868   
 
    Gross margin                                         907,755     854,301   
    Marketing, general and
     administrative expenses                             713,478     595,855   
 
    Operating income                                     194,277     258,446   
    Other income, net                                     22,668      16,975      
 
    Income before taxes                                  216,945     275,421   
    Income tax expense                                    85,800     107,715     
 
    Net income                                          $131,145     167,706     
 
    Basic earnings per share                               $0.02        0.03        
 
    Diluted earnings per share                             $0.02        0.03        

    Weighted average shares
     outstanding                                       6,478,714   6,403,174   

    Weighted average shares
     outstanding, assuming
     dilution                                          6,478,714   6,426,009   



                     ADVANT-E CORPORATION AND SUBSIDIARY
                         CONSOLIDATED BALANCE SHEETS


                                                   March 31,2007   December 31,
                                                    (unaudited)       2006

    Assets

    Current assets:
      Cash and cash equivalents                     $2,313,287     2,209,782
      Short-term investments                           275,846       274,434
      Accounts receivable, net                         448,948       477,639
      Prepaid expenses and deposit                      56,470        28,339

    Total current assets                             3,094,551     2,990,194
    Software development costs, net                    244,896       247,621
    Property and equipment, net                        381,010       386,697

        Total assets                                 3,720,457     3,624,512

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable                                  79,449        66,936
      Accrued salaries and other expenses              125,791       157,802
      Income taxes payable                              69,409       109,642
      Deferred income taxes                             74,430        53,119
      Deferred revenue                                 116,344       112,846

    Total current liabilities                          465,423       500,345
    Deferred income taxes                              165,506       165,784

        Total liabilities                              630,929       666,129

    Shareholders' equity:
      Common stock, $.001 par value; 20,000,000 shares
       authorized; 6,478,714 outstanding at December 31,
       2006 and 6,403,714 outstanding at
       December 31, 2005                                 6,478         6,478
      Paid-in capital                                1,641,906     1,641,906
      Retained earnings                              1,441,144     1,309,999

        Total shareholders' equity                   3,089,528     2,958,383

        Total liabilities and shareholders' equity  $3,720,457     3,624,512



                     ADVANT-E CORPORATION AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)


                                                         Three Months Ended
							     March 31,
                                                          2007        2006

    Cash flows from operating activities:
      Net income                                        $131,145     167,706
      Adjustments to reconcile net income to net
       cash flows from operating activities:
        Depreciation                                      48,487      29,553
        Amortization of software development costs        18,088      32,383
        Loss on disposal of assets                           ---      24,221
        Deferred income taxes                             21,033      35,723
        Purchases of trading securities                 (74,483)         ---
        Proceeds from sale of trading securities          79,679         ---
        Net realized gains on trading investments        (6,608)     (4,421) 
      Increase (decrease) in cash arising from changes
       in assets and liabilities:
        Accounts receivable                               28,691    (48,874)
        Prepaid expenses                                (28,131)       3,228
        Accounts payable                                  12,513      19,614
        Accrued salaries and other expenses             (32,011)      16,796
        Income taxes payable                            (40,223)    298,008)
        Deferred revenue                                   3,498      27,426

        Net cash flows from operating activities         161,668       5,667

    Cash flows from investing activities:
        Purchases of available-for-sale securities           ---     (35,545)
        Proceeds from sale of available-for-sale
         securities                                          ---      36,914
        Purchases of equipment                           (42,800)    (28,697)
        Software development costs                       (15,363)    (69,649)

    Net cash flows from investing activities             (58,163)    (96,977)

    Net increase (decrease)
	in cash and cash equivalents                      103,505    (91,310)
    Cash and cash equivalents, beginning of period      2,209,782   1,763,435

    Cash and cash equivalents, end of period           $2,313,287   1,672,125

    Supplemental disclosures of cash flow items:
        Income taxes paid                                $105,000     370,000

The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any or its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.

About Advant-e

Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC®, an Internet-based Electronic Business Transaction Network, and within specific vertical industries via web-based "vortals" including www.GroceryEC.com , www.RetailEC.com , www.CPGSupplier.com , www.LogisticsEC.com , and www.MfgEC.com .