Company Reports Record Revenue and Net Income DAYTON, Ohio, August
3 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC:AVEE)
(BULLETIN BOARD: AVEE) , a provider of Internet-based
business-to-business electronic commerce services, today announced
financial and operating results for the quarter ending June 30,
2006. For the second quarter of 2006 the Company reported record
revenues of $1,333,758, a 24% increase over revenues of $1,076,385
in the second quarter of 2005. The increase in revenue is
attributable to continued strong demand in grocery and retail as
well as growth in the automotive supply chain sector for the
company's web EDI services. Net income for the quarter was a record
$230,855, or $.03 per share, a 92% increase over net income of
$120,270, or $.02 per share, for the same period in 2005. "The
second quarter of 2006 represents another record for Advant-e
Corporation, both in revenue as well as net income," said Jason K.
Wadzinski, Chairman and Chief Executive Officer. "We continue to
execute our plan of investing in the company's growth. Our capital
spending on infrastructure and new product development for the
first six months of 2006 increased by 145% over 2005 and we are
continuing to increase the Edict Systems staff in support of our
growth initiatives. Our position in the grocery and retail sectors
continues to be strong and our automotive supply chain activities
have increased. Automotive-based revenue has more than doubled in
the first six months of this year over last year. I would like to
take this opportunity to thank our valued customers, the dedicated
and hard-working Edict Systems team, and all our business partners
for another excellent quarter." For the six months ending June 30,
2006 the Company reported revenues of $2,595,927, a 23% increase
over revenues of $2,115,873 in the same period in 2005. Net income
for the period in 2006 was $398,561, or $.06 per share, compared to
net income of $225,379, or $.04 per share in the 2005 period. About
Advant-e Corporation 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(R), an Internet-based Trading Community
Connectivity and Management Solution, and within specific
industries via web-based EDI services including
http://www.groceryec.com/, http://www.retailec.com/,
http://www.automotiveec.com/, http://www.mfgec.com/ and
http://www.cpgsupplier.com/. In addition to Internet and web-based
e-commerce solutions, Edict Systems also provides e-commerce
integration and bar coding applications. Additional information
about Advant-e Corporation can be found at http://www.advant-e.com/
and http://www.edictsystems.com/ or by contacting investor
relations at (937) 429-4288. The company's email is . ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF
INCOME (Unaudited) Three Months Ended Six Months Ended June 30,
June 30, 2006 2005 2006 2005 Revenue $1,333,758 1,076,385 2,595,927
2,115,873 Cost of revenue 369,661 374,335 777,529 763,379 Gross
margin 964,097 702,050 1,818,398 1,352,494 Marketing, general and
administrative expenses 614,066 501,680 1,209,921 977,015 Operating
income 350,031 200,370 608,477 375,479 Other income, net 15,414 ---
32,389 --- Income before taxes 365,445 200,370 640,866 375,479
Income tax expense 134,590 80,100 242,305 150,100 Net income
$230,855 120,270 398,561 225,379 Basic earnings per share $0.03
0.02 0.06 0.04 Diluted earnings per share $0.03 0.02 0.06 0.04
Weighted average shares outstanding 6,403,174 6,294,917 6,403,174
6,281,657 Weighted average shares outstanding, assuming dilution
6,434,196 6,294,917 6,428,439 6,281,657 ADVANT-E CORPORATION AND
SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS June 30, 2006
December 31, (Unaudited) 2005 Assets Current Assets: Cash and cash
equivalents $1,707,047 1,763,435 Short-term investments 244,303
225,902 Accounts receivable, net 432,485 351,482 Prepaid expenses
and deposit 40,345 25,128 Total current assets 2,424,180 2,365,947
Software development costs, net 227,063 160,656 Property and
equipment, net 338,578 262,523 Total assets $2,989,821 2,789,126
Liabilities and Shareholders' Equity Current liabilities: Accounts
payable $61,009 44,838 Accrued salaries and other expenses 167,971
115,510 Income taxes payable 15,819 375,652 Deferred income taxes
49,266 26,000 Deferred revenue 94,135 76,173 Total current
liabilities 388,200 638,173 Deferred income taxes 180,845 136,000
Total liabilities 569,045 774,173 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 12,877 5,615 Retained
earnings 849,890 451,329 Total shareholders' equity 2,420,776
2,014,953 Total liabilities and shareholders' equity $2,989,821
2,789,126 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended
June 30, 2006 2005 Cash flows from operating activities: Net income
$398,561 225,379 Adjustments to reconcile net income to net cash
flows from operating activities: Depreciation 61,746 51,389
Amortization of software development costs 63,088 134,639 Loss on
disposal of assets 24,221 - Net realized gains on
available-for-sale investments (9,005) - Deferred income taxes
63,678 (32,000) Increase (decrease) in cash arising from changes in
assets and liabilities: Accounts receivable (81,003) (12,722)
Prepaid expenses (15,217) (6,290) Accounts payable 16,171 69,529
Accrued salaries and other expenses 52,461 6,735 Income taxes
payable (359,833) 148,100 Deferred revenue 17,962 (58,628) Net cash
flows from operating activities 232,830 526,131 Cash flows from
investing activities: Purchases of available-for-sale investments
(56,943) - Proceeds from sale of available-for-sale investments
59,242 - Purchases of equipment (154,468) (74,719) Software
development costs (137,049) (44,309) Net cash flows from investing
activities (289,218) (119,028) 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 (56,388) 467,353 Cash and cash equivalents,
beginning of period 1,763,435 944,892 Cash and cash equivalents,
end of period $1,707,047 1,412,245 Supplemental disclosures of cash
flow items: Income taxes paid $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
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/
http://www.edictsystems.com/
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