Company Reports Net Income Increased by 11% over Second Quarter of
2008 Despite 4% Revenue Decline DAYTON, Ohio, Aug. 13
/PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board:
AVEE) today announced financial and operating results for the
second 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 second
quarter of 2009 the Company reported revenue of $2,200,958, a 4%
decrease compared to revenue of $2,300,267 in the second quarter of
2008. Revenue from Edict Systems increased by $65,555, but revenue
from Merkur Group fell by $164,864. Net income for the second
quarter of 2009 was $311,263, or $.05 per share, an 11% increase
compared to net income of $279,625, or $.04 per share, for the same
period in 2008. Jason K. Wadzinski, Chairman of the Board and Chief
Executive Officer, remarked, "Given the economic realities during
the quarter, I am pleased that we were able to increase net income
despite the drop in software-related revenue. While Merkur's
revenue is down over last year, Merkur has contributed
significantly to our increased net income in the quarter." "Our
focus for the remainder of 2009 will be to continue our push into
additional industries and increase our investment in upgrades and
enhancements, primarily in our Web EDI offerings and integration
solutions." 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 Six Months Ended June 30,
June 30, ------------------ ------------------ 2009 2008 2009 2008
------- ------- ------- ------- Revenue $2,200,958 2,300,267
4,356,250 4,645,501 Cost of revenue 930,171 902,780 1,829,830
1,823,626 ------- ------- --------- --------- Gross margin
1,270,787 1,397,487 2,526,420 2,821,875 Marketing, general and
administrative expenses 837,504 979,392 1,724,789 1,985,394 -------
------- --------- --------- Operating income 433,283 418,095
801,631 836,481 Other income (expense), net 25,484 18,407 5,834
23,611 ------- ------ ----- ------ Income before income taxes
458,767 436,502 807,465 860,092 Income tax expense 147,504 156,877
261,526 315,557 ------- ------ ------- ------- Net income $311,263
279,625 545,939 544,535 ======= ======= ======= ======= Earnings
per share - basic and diluted $.05 .04 .08 .08 ======= =======
======= ======= Weighted average shares outstanding - basic and
diluted 6,689,026 6,815,015 6,700,698 6,815,015 ========= =========
========= ========= ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS June 30, 2009 December 31,
(Unaudited) 2008 ----------- ----------- Assets Current Assets:
Cash and cash equivalents $2,679,196 2,090,005 Short-term
investments 197,332 232,721 Accounts receivable, net 810,565
699,095 Prepaid software maintenance costs 176,237 156,027 Prepaid
expenses and deposits 59,103 74,361 Prepaid income taxes 19,546
16,837 Deferred income taxes 143,559 152,156 ------- ------- Total
current assets 4,085,538 3,421,202 Software development costs, net
71,561 112,453 Property and equipment, net 318,498 434,645 Goodwill
1,474,615 1,474,615 Other intangible assets, net 371,576 413,932
------- ------- Total assets $6,321,788 5,856,847 =========
========= Liabilities and Shareholders' Equity Current liabilities:
Accounts payable $157,625 207,374 Accrued salaries and other
expenses 347,523 283,360 Deferred revenue 613,830 583,677 -------
------- Total current liabilities 1,118,978 1,074,411 Deferred
income taxes 252,288 335,663 ------- ------- Total liabilities
1,371,266 1,410,074 --------- --------- Shareholders' equity:
Common stock, $.001 par value; 20,000,000 shares authorized;
6,737,741 shares issued and 6,677,799 outstanding at June 30, 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 3,001,703 2,455,764 Treasury stock at cost,
60,842 and 24,342 shares at June 30, 2009 and December 31, 2008,
respectively (77,502) (35,935) ------ ------ Total shareholders'
equity 4,950,522 4,446,773 --------- --------- Total liabilities
and shareholders' equity $6,321,788 5,856,847 ========= =========
ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30,
---------------- 2009 2008 ---- ---- Cash flows from operating
activities: Net income $545,939 544,535 Adjustments to reconcile
net income to net cash flows from operating activities:
Depreciation 125,716 133,158 Amortization of software development
costs 40,892 40,892 Amortization of other intangible assets 42,356
42,356 Deferred income taxes (74,778) (80,120) Purchases of trading
securities (87,591) (146,993) Proceeds from sales of trading
securities 123,056 162,965 Net unrealized (gains) losses on trading
securities (24,158) 13,016 Net realized (gains) losses on sales of
securities 24,082 (10,564) Increase (decrease) in cash arising from
changes in assets and liabilities: Accounts receivable (111,470)
(175,200) Prepaid software maintenance costs (20,210) (28,470)
Prepaid expenses and deposits 15,258 24,225 Prepaid income taxes
(2,709) - Accounts payable (49,749) 109,659 Accrued salaries and
other expenses 64,163 21,142 Income taxes payable - (123,687)
Deferred revenue 30,153 90,137 Net cash flows from operating
activities 640,950 617,051 ------- ------- Cash flows from
investing activities: Purchases of property and equipment (9,569)
(120,258) ----- ------ Cash flows from financing activities:
Purchase of treasury shares (42,190) - ------ ------ Net increase
in cash and cash equivalents 589,191 496,793 Cash and cash
equivalents, beginning of period 2,090,005 2,039,447 ---------
--------- Cash and cash equivalents, end of period $2,679,196
2,536,240 ========= ========= Supplemental disclosures of cash flow
items: Income taxes paid $339,013 518,100 Non-cash transaction
Retirement of 520 and 60,000 treasury shares during the six months
ended June 30, 2009 and 2008, respectively 623 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: Investor Relations of Advant-e
Corporation, +1-937-429-4288, or Web Site: http://www.advant-e.com/
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