Thursday, August 9, 2007

Advant-e Corporation Announces Second Quarter 2007 Results and Share Repurchase Program

Company Reports 11% Increase in Revenue and 5% Net Income Growth Over Q2 2006

DAYTON, Ohio, August 9, 2007 -- Advant-e Corporation (OTC Bulletin Board: ADVC), a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced financial and operating results for the quarter ending June 30, 2007.

For the second quarter of 2007 the Company reported revenues of $1,481,150, an 11% increase over revenues of $1,333,758 in the second 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 second quarter of 2007 was $241,573, or $.04 per share, a 5% increase over net income of $230,855, or $.03 per share for the same period in 2006. Net income increased 84% over the first quarter of 2007.

Jason K. Wadzinski, Chairman and Chief Executive Officer, remarked, “While our primary focus is on growing our top-line revenue, we are also committed to maintaining what we consider an appropriate level of profitability. Our net income increase over last quarter puts us back in an acceptable range and we will continue to monitor our expenses to make sure they are in line with our goals and objectives.”

The Company also announced that its Board of Directors has authorized a share repurchase program for up to $750,000 in fair market value of Advant-e common stock. The shares may be purchased from time to time through June 30, 2008 on the open market or in privately negotiated transactions.

 

 

 
                     ADVANT-E CORPORATION AND SUBSIDIARY
           CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

                                Three Months Ended        Nine Months Ended
                                     June 30,                 June 30,
                                  2007       2006         2007         2006

    Revenue                  $ 1,481,150    1,333,758    2,897,473    2,595,927
    Cost of revenue              482,776      369,661      991,344      777,529

    Gross margin                 998,374    964,097      1,906,129    1,818,398
    Marketing, general and
     administrative expenses     641,471    614,066      1,354,949    1,209,921

    Operating income             356,903    350,031        551,180      608,477
    Other income (expense)        32,587     15,414         55,255       32,389

    Income before taxes          389,490    365,445        606,435      640,866
    Income tax expense           147,917    134,590        233,717      242,305

    Net income                 $ 241,573    230,855        372,718      398,561

    Basic earnings per share      $ 0.04       0.03           0.06         0.06

    Diluted earnings per share    $ 0.04       0.03           0.06         0.06

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

    Weighted average shares
     outstanding, assuming
     dilution                  6,478,714  6,434,196      6,478,714    6,428,439



                     ADVANT-E CORPORATION AND SUBSIDIARY
                    CONSOLIDATED CONDENSED BALANCE SHEETS

                                                    June 30,        December 31,
                                                      2007              2006
                                                   (Unaudited)
    Assets

    Current Assets
       Cash and cash equivalents                   $ 2,639,780       2,209,782
       Short-term investments                          275,726         274,434  
       Accounts receivable, net                        432,193         477,639
       Prepaid expenses and deposit                     32,758          28,339

    Total current assets                             3,380,457       2,990,194

    Software development costs, net                    235,130         247,621

    Property and equipment, net                        379,428         386,697

          Total assets                             $ 3,995,015       3,624,512

    Liabilities and Shareholders' Equity

    Current liabilities
       Accounts payable                               $ 59,642          66,936
       Accrued salaries and other expenses             177,455         157,802
       Income taxes payable                            110,066         109,642
       Deferred income taxes                            50,039          53,119 
       Deferred revenue                                116,116         112,846

    Total current liabilities                          513,318         500,345

    Deferred income taxes                              150,596         165,784

          Total liabilities                            663,914         666,129

    
	Shareholders' equity
       Common stock, $.001 par value; 20,000,000
        shares authorized; 6,478,714 issued and
		outstanding                                      6,478           6,478
                                                         
       Paid-in capital                               1,641,906       1,641,906
       Retained earnings (deficit)                   1,682,717       1,309,999

          Total shareholders' equity                 3,331,101       2,958,383

          Total liabilities and shareholders'
           equity                                  $ 3,995,015       3,624,512




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

                                                          Six Months Ended
                                                              June 30,
                                                         2007          2006
    Cash flows from operating activities:
       Net income                                     $ 372,718       398,561
       Adjustments to reconcile net income to net
        cash flows from operating activities:
          Depreciation                                  100,219        61,746
          Amortization of software development costs     27,854        63,088
          Loss on disposal of assests                       ---        24,221
          Deferred income taxes                         (18,268)       63,678
		  Purchases of trading securities               (107,507)         ---
		  Proceeds from sales of trading securities      125,968          ---
		  Net unrealized gain on sale of securities       (6,376)         ---
		  Net realized gain on sale of securities        (13,377)      (9,005)
		  Icrease(decrease) in cash arising from
		  changes in assets and liabilites                                                             
            Accounts receivable                          45,466        (7,529)
            Prepaid expenses                             (4,419)      (15,217)
            Accounts payable                             (7,294)       16,171    
            Accrued salaries, interest and other
             expenses                                    19,653        52,461
            Income taxes payable                            424      (359,833)
            Deferred revenue                              3,270        17,962
            Net cash flows from operating activities    538,311       232,830

    Cash flows from investing activities:
       Purchases of available-for-sale securities           ---       (56,943)
       Proceeds from sale of available-for-sale
        securities                                          ---        59,242
       Purchases of property and equipment              (92,950)     (154,464)
       Software development costs                       (15,363)     (137,049)
            Net cash flows from investing activities   (108,313)     (289,218)

    Net increase (decrease) in cash and cash
	equivalents                                         429,998       (56,388)     
    Cash and cash equivalents, beginning of period    2,209,782     1,763,435                 
    Cash and cash equivalentes, end of period         2,639,780     1,707,047
    Supplemental disclosures of cash flow items:
		Income taxes paid                               251,561       559,000

 

                   
                   
                   
                   

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 uncertaintie

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 .