Company Reports Net Income for 23rd Consecutive Quarter; Revenue
for Internet-based EDI Services Increased; Software Revenue
Decreased DAYTON, Ohio, May 15 /PRNewswire-FirstCall/ -- Advant-e
Corporation (OTC Bulletin Board: AVEE) today announced financial
and operating results for the first quarter of 2009. The Company
provides Internet-based Electronic Data Interchange services
through Edict Systems, Inc. and sells electronic document
management software and services through Merkur Group, Inc. Edict
Systems and Merkur Group are wholly owned subsidiaries of Advant-e
Corporation. For the first quarter of 2009 the Company reported
revenue of $2,155,291, an 8% decrease compared to revenue of
$2,345,234 in the first quarter of 2008. Revenue from Edict Systems
increased by $111,752, but revenue from Merkur Group fell by
$301,695. Net income for the first quarter of 2009 was $234,677, or
$.03 per share, an 11% decrease compared to net income of $264,910,
or $.04 per share, for the same period in 2008. Jason K. Wadzinski,
Chairman of the Board and Chief Executive Officer, remarked, "As
stated in previous earnings releases, current economic weakness is
having a more pronounced impact on software sales by Merkur Group
than internet-based EDI services provided by Edict Systems.
Although Merkur's results are below our internal targets, the steep
decline in Merkur's revenue year-over-year is mainly due to the
strong sales Merkur reported in the first quarter of 2008." "I
believe that given the current economic conditions, our overall
performance and level of profitability are satisfactory. We are
continuing to focus on our core markets as well as expanding into
new industries and we are investing in the people and resources
deemed appropriate to position the company for increased activity
going forward." About Advant-e Corporation Advant-e, via its wholly
owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a
provider of internet-based hosted Electronic Data Interchange (EDI)
and electronic document management software and services. The
Company helps businesses automate manual, paper-intensive processes
via expanded use of EDI or by integrating directly with ERP/MRP
systems. Additional information about Advant-e Corporation can be
found at http://www.advant-e.com/, http://www.edictsystems.com/,
and http://www.merkurgroup.com/, or by contacting investor
relations at (937) 429-4288. The company's email is . ADVANT-E
CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF
INCOME (Unaudited) Three Months Ended March 31, 2009 2008 Revenue
$2,155,291 2,345,234 Cost of revenue 899,659 920,846 Gross margin
1,255,632 1,424,388 Marketing, general and administrative expenses
887,285 1,006,002 Operating income 368,347 418,386 Other income
(expense), net (19,649) 5,204 Income before income taxes 348,698
423,590 Income tax expense 114,021 158,680 Net income $234,677
264,910 Earnings per share - basic and diluted $0.03 0.04 Weighted
average shares outstanding - basic and diluted 6,711,699 6,815,015
ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED
BALANCE SHEETS March 31, 2009 December 31, (Unaudited) 2008 Assets
Current Assets: Cash and cash equivalents $2,378,330 2,090,005
Short-term investments 203,774 232,721 Accounts receivable, net
828,295 699,095 Prepaid software maintenance costs 172,856 156,027
Prepaid expenses and deposits 79,601 74,361 Prepaid income taxes
--- 16,837 Deferred income taxes 153,700 152,156 Total current
assets 3,816,556 3,421,202 Software development costs, net 92,008
112,453 Property and equipment, net 379,268 434,645 Goodwill
1,474,615 1,474,615 Other intangible assets, net 392,754 413,932
Total assets $6,155,201 5,856,847 Liabilities and Shareholders'
Equity Current liabilities: Accounts payable $209,176 207,374
Accrued salaries and other expenses 245,469 283,360 Income taxes
payable 116,223 --- Deferred revenue 614,635 583,677 Total current
liabilities 1,185,503 1,074,411 Deferred income taxes 292,168
335,663 Total liabilities 1,477,671 1,410,074 Shareholders' equity:
Common stock, $.001 par value; 20,000,000 shares authorized;
6,737,741 shares issued and 6,710,399 shares outstanding at March
31, 2009; 6,738,261 shares issued and 6,713,919 shares outstanding
at December 31, 2008 6,738 6,738 Paid-in capital 2,019,583
2,020,206 Retained earnings 2,690,441 2,455,764 Treasury stock at
cost, 27,342 and 24,342 shares at March 31, 2009 and December 31,
2008, respectively (39,232) (35,935) Total shareholders' equity
4,677,530 4,446,773 Total liabilities and shareholders' equity
$6,155,201 5,856,847 ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three
Months Ended March 31, 2009 2008 Cash flows from operating
activities: Net income $234,677 264,910 Adjustments to reconcile
net income to net cash flows from operating activities:
Depreciation 62,767 63,399 Amortization of software development
costs 20,445 20,446 Amortization of other intangible assets 21,178
21,178 Deferred income taxes (45,039) (41,020) Purchases of trading
securities (43,949) (80,477) Proceeds from sales of trading
securities 49,828 78,007 Net unrealized losses on trading
securities 4,667 14,078 Net realized (gains) losses on sales of
securities 18,401 (5,339) Increase (decrease) in cash arising from
changes in assets and liabilities: Accounts receivable (129,200)
(131,363) Prepaid software maintenance costs (16,829) (25,911)
Prepaid expenses and deposits (5,240) (51,733) Prepaid income taxes
16,837 --- Accounts payable 1,802 324,567 Accrued salaries and
other expenses (37,891) 52,035 Income taxes payable 116,223 60,336
Deferred revenue 30,958 157,274 Net cash flows from operating
activities 299,635 720,387 Cash flows from investing activities:
Purchases of property and equipment (7,390) (98,186) Cash flows
from financing activities: Purchase of treasury shares (3,920) ---
Net increase in cash and cash equivalents 288,325 622,201 Cash and
cash equivalents, beginning of period 2,090,005 2,039,447 Cash and
cash equivalents, end of period $2,378,330 $2,661,648 Supplemental
disclosures of cash flow items: Income taxes paid $26,000 $138,100
Non-cash transaction: retirement of 520 treasury shares 623 --- 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 of 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. DATASOURCE:
Advant-e Corporation CONTACT: Investor Relations of Advant-e
Corporation, +1-937-429-4288, or Web Site: http://www.advant-e.com/
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