Company Reports 55% Increase in Revenue and 16% Net Income Growth
over Q2 2007 DAYTON, Ohio, Aug. 14 /PRNewswire-FirstCall/ --
Advant-e Corporation (OTC:AVEE) (BULLETIN BOARD: AVEE) , 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, 2008. For the
second quarter of 2008 the Company reported revenues of $2,300,267,
a 55% increase over revenues of $1,481,150 in the second quarter of
2007. The increase is attributable primarily to revenue from
products and services sold by Merkur Group, Inc. which was acquired
on July 2, 2007, and continued growth of the Company's
internet-based EDI services. Net income for the second quarter of
2008 was $279,625, or $.04 per share, a 16% increase over net
income of $241,573, or $.04 per share, for the same period in 2007.
Jason K. Wadzinski, Chairman, Chief Executive Officer, and
President, remarked, "We continue to make progress in our strategy
of targeting additional vertical markets for our high value
solutions and services. The Merkur Group acquisition continues to
contribute to revenue accounting for 29% of our total revenue so
far this year." "In the near future we will be announcing several
new and updated products and services that we believe will be well
received by our targeted markets," continued Mr. Wadzinski.
"However in the short-term, we believe our results for the
remainder of 2008 may fall short of our internal goals due to
general economic issues as well as delayed decisions by our
targeted customers." About Advant-e Corporation Advant-e, via its
wholly owned subsidiaries Edict Systems, Inc. and Merkur Group,
Inc. is a provider of internet-based 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 Six Months Ended June 30,
June 30, 2008 2007 2008 2007 Revenue $2,300,267 1,481,150 4,645,501
2,897,473 Cost of revenue 902,780 482,776 1,823,626 991,344 Gross
margin 1,397,487 998,374 2,821,875 1,906,129 Marketing, general and
administrative expenses 979,392 641,471 1,985,394 1,354,949
Operating income 418,095 356,903 836,481 551,180 Other income, net
18,407 32,587 23,611 55,255 Income before income taxes 436,502
389,490 860,092 606,435 Income tax expense 156,877 147,917 315,557
233,717 Net income $279,625 241,573 544,535 372,718 Basic and
diluted earnings per share $.04 .04 .08 .06 Weighted average shares
outstanding 6,815,015 6,478,714 6,815,015 6,478,714 ADVANT-E
CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, 2008 December 31, (Unaudited) 2007 Assets Current Assets:
Cash and cash equivalents $2,536,240 2,039,447 Short-term
investments 273,727 292,151 Accounts receivable, net 980,441
805,241 Prepaid software maintenance costs 212,088 183,618 Prepaid
expenses and deposits 44,705 68,930 Deferred income taxes 168,804
40,057 Total current assets 4,216,005 3,429,444 Software
development costs, net 153,346 194,238 Property and equipment, net
420,758 433,658 Goodwill 1,474,615 1,450,368 Other intangible
assets, net 456,288 498,644 Total assets $6,721,012 6,006,352
Liabilities and Shareholders' Equity Current liabilities: Accounts
payable $321,397 211,738 Accrued salaries and other expenses
294,352 273,210 Income taxes payable 13,260 112,700 Deferred
revenue 735,230 645,093 Total current liabilities 1,364,239
1,242,741 Deferred income taxes 337,485 288,858 Total liabilities
1,701,724 1,531,599 Shareholders' equity: Common stock, $.001 par
value; 20,000,000 shares authorized; 6,815,015 shares issued and
outstanding at June 30, 2008; 6,875,015 shares issued and 6,815,015
shares outstanding at December 31, 2007 6,815 6,875 Paid-in capital
2,135,260 2,210,200 Retained earnings 2,877,213 2,332,678 Treasury
stock at cost, 60,000 shares at December 31, 2007 --- (75,000)
Total shareholders' equity 5,019,288 4,474,753 Total liabilities
and shareholders' equity $6,721,012 6,006,352 ADVANT-E CORPORATION
AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) Six Months Ended June 30, 2008 2007 Cash flows from
operating activities: Net income $544,535 372,718 Adjustments to
reconcile net income to net cash flows from operating activities:
Depreciation 133,158 100,219 Amortization of software development
costs 40,892 27,854 Amortization of other intangible assets 42,356
- Deferred income taxes (80,120) (18,268) Purchases of trading
securities (146,993) (107,507) Proceeds from sales of trading
securities 162,965 125,968 Net unrealized (gains) losses on trading
securities 13,016 (6,376) Net realized gains on sales of securities
(10,564) (13,377) Increase (decrease) in cash arising from changes
in assets and liabilities: Accounts receivable (175,200) 45,446
Prepaid software maintenance costs (28,470) - Prepaid expenses and
deposits 24,225 (4,419) Accounts payable 109,659 (7,294) Accrued
salaries and other expenses 21,142 19,653 Income taxes payable
(123,687) 424 Deferred revenue 90,137 3,270 Net cash flows from
operating activities 617,051 538,311 Cash flows from investing
activities: Purchases of property and equipment (120,258) (92,950)
Software development costs - (15,363) Net cash flows from investing
activities (120,258) (108,313) Net increase in cash and cash
equivalents 496,793 429,998 Cash and cash equivalents, beginning of
period 2,039,447 2,209,782 Cash and cash equivalents, end of period
$2,536,240 2,639,780 Supplemental disclosures of cash flow items:
Income taxes paid $518,100 251,561 Non-cash transaction Retirement
of 60,000 shares repurchased in 2007 and held as treasury stock
75,000 --- 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: Advant-e Corporation
Investor Relations, +1-937-429-4288, Web site:
http://www.advant-e.com/
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