Company Reports 41% Increase in Net Income for the Quarter DAYTON,
Ohio, Nov. 14 /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 September
30, 2006. For the third quarter of 2006 the Company reported record
revenues of $1,368,582, a 20% increase over revenues of $1,143,058
in the third 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
$232,375, or $.04 per share, a 41% increase over net income of
$164,945, or $.02 per share, for the same period in 2005. Jason K.
Wadzinski, Chairman and Chief Executive Officer, remarked, "I am
pleased to announce that our third quarter was another record for
Advant-e in both revenue and net income. Even though our
investments in improved infrastructure, product development, and
sales and marketing efforts have not as yet resulted in the revenue
growth we expected, we remain committed to our strategy of prudent
investment in those areas that provide the best opportunity to
accelerate our top-line sales." For the nine months ending
September 30, 2006 the Company reported revenues of $3,964,509, a
22% increase over revenues of $3,258,931 in the same period in
2005. Net income for the period in 2006 was $630,936, or $.10 per
share, compared to net income of $390,324, or $.06 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 Nine Months Ended September
30, September 30, 2006 2005 2006 2005 Revenue $1,368,582 1,143,058
3,964,509 3,258,931 Cost of revenue 422,394 379,142 1,199,923
1,142,521 Gross margin 946,188 763,916 2,764,586 2,116,410
Marketing, general and administrative expenses 589,891 494,103
1,799,812 1,471,118 Operating income 356,297 269,813 964,774
645,292 Other income, net 14,142 5,132 46,531 5,132 Income before
taxes 370,439 274,945 1,011,305 650,424 Income tax expense 138,064
110,000 380,369 260,100 Net income $232,375 164,945 630,936 390,324
Basic earnings per share $0.04 0.02 0.10 0.06 Diluted earnings per
share $0.04 0.02 0.10 0.06 Weighted average shares outstanding
6,403,174 6,332,423 6,403,174 6,298,765 Weighted average shares
outstanding, assuming dilution 6,432,246 6,364,810 6,429,770
6,308,378 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED BALANCE SHEETS September 30, 2006 December 31,
(Unaudited) 2005 Assets Current assets: Cash and cash equivalents
$1,850,956 1,763,435 Short-term investments 264,503 225,902
Accounts receivable, net 446,581 351,482 Prepaid expenses and
deposit 46,143 25,128 Total current assets 2,608,183 2,365,947
Software development costs, net 258,365 160,656 Property and
equipment, net 361,012 262,523 Total assets $3,227,560 2,789,126
Liabilities and Shareholders' Equity Liabilities Current
liabilities: Accounts payable $56,376 44,838 Accrued salaries and
other expenses 126,825 115,510 Income taxes payable 26,305 375,652
Deferred income taxes 70,966 26,000 Deferred revenue 81,250 76,173
Total current liabilities 361,722 638,173 Deferred income taxes
212,530 136,000 Total liabilities 574,252 774,173 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 13,034
5,615 Retained earnings 1,082,265 451,329 Total shareholders'
equity 2,653,308 2,014,953 Total liabilities and shareholders'
equity $3,227,560 2,789,126 ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine
Months Ended September 30, 2006 2005 Cash flows from operating
activities: Net income $630,936 390,324 Adjustments to reconcile
net income to net cash flows from operating activities:
Depreciation 105,624 80,115 Amortization of software development
costs 93,793 185,280 Loss on disposal of assets 41,921 - Net
realized gains on sales of available-for-sale investments (8,768) -
Deferred income taxes 116,963 (16,000) Increase (decrease) in cash
arising from changes in assets and liabilities: Accounts receivable
(95,099) (7,529) Prepaid expenses (21,015) (16,635) Accounts
payable 11,538 691 Accrued salaries and other expenses 11,315 7,515
Income taxes payable (349,347) 242,100 Deferred revenue 5,077
(55,594) Net cash flows from operating activities 542,938 810,267
Cash flows from investing activities: Purchases of
available-for-sale investments (107,966) (235,175) Proceeds from
sales of available-for-sale investments 90,085 16,006 Purchases of
equipment (238,480) (83,485) Software development costs (199,056)
(64,519) Net cash flows from investing activities (455,417)
(367,173) Cash flows from financing activities: Issuance of common
stock --- 91,500 Payments of direct costs of securities
registration --- (6,741) Net cash flows from financing activities
--- 84,759 Net increase in cash and cash equivalents 87,521 527,853
Cash and cash equivalents, beginning of period 1,763,435 944,892
Cash and cash equivalents, end of period $1,850,956 1,472,745
Supplemental disclosures of cash flow items: Income taxes paid
$641,000 34,000 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, Web
site: http://www.advant-e.com/
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