Company Reports 21% Increase in Revenue, 43% Increase in Net Income
over Prior Year DAYTON, Ohio, Feb. 12 /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
year ending December 31, 2006. In 2006 the Company reported record
revenues of $5,403,632 compared to $4,462,702 for 2005. The 21%
increase in revenue is attributed to the continued expansion and
market acceptance of the Company's Internet-based
business-to-business electronic commerce subscription services. Net
income for 2006 was a record $858,670 or $.13 per share compared to
$600,318 or $.09 per share in 2005. For the fourth quarter of 2006
the Company reported revenue of $1,439,123 and net income of
$227,734 or $.03 per share, compared to revenue of $1,203,771 and
net income of $209,994 or $.03 per share in the fourth quarter of
2005. Highlights of 2006 financial and operating results include:
-- Revenue Increase for the sixth consecutive year - Continued
strong acceptance of core Web EDI services to small and medium size
suppliers of large grocery and general merchandise retailers,
automotive manufacturers, and other large buying organizations. --
Net Income Increased by 43% and Pre-tax Profit was 25% of Revenue.
- Net Income and pre-tax profitability benefited from lower
amortization of software development costs in 2006 of $124,498
compared to $217,780 in 2005, and from capitalized software
development costs of $219,018 in 2006 compared to $79,627 in 2005.
-- Automotive Web EDI Revenue Acceleration - Automotive Web EDI
revenue comprised 7% of total revenue in 2006 compared to 4% in
2005 indicating increased activity with both automotive
manufacturers and their suppliers. -- EnterpriseEC(R) Revenue
Growth of 67% - Trading Community Connectivity, Management, and
Integration Services accounted for 15% of revenue in 2006 compared
to 11% in 2005 indicating an increased reliance upon this service
by higher volume customers for enhanced data management and
integration into in-house systems. -- Cash and Short-term
Investments increased 25% - Increase to $2,484,216 in 2006 from
$1,989,337 in 2005. -- Shareholders Equity Increased 47% - From
$2,014,953 in 2005 to $2,958,383 in 2006. Commenting on the
year-end results, Mr. Jason K. Wadzinski, CEO of Advant-e stated,
"In 2006 we continued to strengthen our financial position while
growing key elements of the business. Although our 21% revenue
growth was lower than our goal for the year, we substantially
exceeded our pre-tax profit target. "In 2006 we made significant
investments in our infrastructure, product offerings, and our sales
and marketing activities. In 2007 we expect to announce an updated
version of our Web EDI service, which accounts for the majority of
our revenue. We are also working with several large customers for a
new hosted service that is an extension of our existing Testing
& Certification service. Called ValidateEC, it enables our
customers to monitor their electronic commerce activities via a
hosted business rule engine so that they can rapidly design, test,
and implement business rules and proactively respond to exceptions.
"We are pleased with our accomplishments in 2006. I would like to
thank the dedicated, hard-working Edict Systems team for their
outstanding efforts resulting in these achievements. In 2007 we
will continue our focus on accelerating revenue growth while
maintaining an acceptable level of profitability." 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, Management, and Integration 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/,
http://www.cpgsupplier.com/, and http://www.webedi.com/. 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
STATEMENTS OF INCOME Three Months Ended Year Ended December 31,
December 31, 2006 2005 2006 2005 Revenue $1,439,123 1,203,771
5,403,632 4,462,702 Cost of revenue 478,014 368,486 1,677,937
1,511,007 Gross margin 961,109 835,285 3,725,695 2,951,695
Marketing, general and administrative expenses 654,071 539,793
2,453,883 2,010,911 Operating income 307,038 295,492 1,271,812
940,784 Other income, net 41,331 4,602 87,862 9,734 Income before
taxes 348,369 300,094 1,359,674 950,518 Income tax expense 120,635
90,100 501,004 350,200 Net income $227,734 209,994 858,670 600,318
Basic earnings per share $0.03 0.03 0.13 0.09 Diluted earnings per
share $0.03 0.03 0.13 0.09 Weighted average shares outstanding
6,424,370 6,403,174 6,408,516 6,325,218 Weighted average shares
outstanding, assuming dilution 6,447,771 6,408,788 6,434,615
6,340,851 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE
SHEETS December 31, December 31, 2006 2005 Assets Current assets:
Cash and cash equivalents $2,209,782 1,763,435 Short-term
investments 274,434 225,902 Accounts receivable, net 477,639
351,482 Prepaid expenses and deposit 28,339 25,128 Total current
assets 2,990,194 2,365,947 Software development costs, net 247,621
160,656 Property and equipment, net 386,697 262,523 Total assets
3,624,512 2,789,126 Liabilities and Shareholders' Equity Current
liabilities: Accounts payable 66,936 44,838 Accrued salaries and
other expenses 157,802 115,510 Income taxes payable 109,642 375,652
Deferred income taxes 53,119 26,000 Deferred revenue 112,846 76,173
Total current liabilities 500,345 638,173 Deferred income taxes
165,784 136,000 Total liabilities 666,129 774,173 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 6,403 Paid-in
capital 1,641,906 1,551,606 Accumulated other comprehensive income
--- 5,615 Retained earnings 1,309,999 451,329 Total shareholders'
equity 2,958,383 2,014,953 Total liabilities and shareholders'
equity $3,624,512 2,789,126 ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2006
2005 Cash flows from operating activities: Net income $858,670
600,318 Adjustments to reconcile net income to net cash flows from
operating activities: Depreciation 153,113 110,721 Amortization of
software development costs 124,498 217,780 Loss on disposal of
assets 41,922 --- Deferred income taxes 60,703 (32,800) Purchases
of trading investments (31,541) --- Proceeds from sale of trading
investments 28,393 --- Net realized (gains) losses on short-term
investments (9,701) 2,222 Net unrealized gains on trading
investments (27,218) --- Increase (decrease) in cash arising from
changes in assets and liabilities: Accounts receivable (126,157)
(61,088) Prepaid expenses (3,211) 1,292 Accounts payable 22,098
5,157 Accrued salaries and other expenses 42,292 15,700 Income
taxes payable (266,010) 349,652 Deferred revenue 36,673 (66,615)
Net cash flows from operating activities 904,524 1,142,339 Cash
flows from investing activities: Purchases of available-for-sale
investments (107,966) (253,877) Proceeds from sale of
available-for-sale investments 90,086 35,168 Purchases of equipment
(311,654) (101,640) Software development costs (219,018) (79,627)
Net cash flows from investing activities (548,552) (399,976) Cash
flows from financing activities: Issuance of common stock 90,375
91,500 Payments of direct costs of securities registration ---
(15,320) Net cash flows from financing activities 90,375 76,180 Net
increase in cash and cash equivalents 446,347 818,543 Cash and cash
equivalents, beginning of year 1,763,435 944,892 Cash and cash
equivalents, end of year $2,209,782 1,763,435 Supplemental
disclosures of cash flow items: Income taxes paid $706,311 33,348
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.
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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