Advant-e Corporation Announces First Quarter 2005 Results Company
Reports 24% Increase in Revenue over 2004; Seventh Consecutive
Profitable Quarter DAYTON, Ohio, May 10 /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 March 31, 2005. For the first quarter of 2005 the
Company reported revenues of $1,039,488, a 24% increase over
revenues of $838,635 in the first quarter of 2004, and a 5%
increase over revenues of $990,077 in the fourth quarter of 2004.
The increase in revenue was the result of continued growth and
market acceptance of the Company's internet-based electronic
commerce subscription services. Net income for the quarter was
$105,109, or $.02 per share, compared to $114,241, or $.02 per
share for the same period in 2004, and $127,111 for the fourth
quarter of 2004. The decrease in net income was primarily the
result of increased personnel costs. The first quarter of 2005
marks the seventh consecutive profitable quarter for Advant-e
Corporation. Jason K. Wadzinski, President and CEO of Advant-e,
stated, "The first quarter of 2005 is significant for us in that
this is the first quarter where we've surpassed the million dollar
mark in revenue. This was accomplished with strong growth for our
web-EDI service in the grocery industry of 15% relative to the
first quarter of 2004, but also with the 279% growth in non-
grocery industries, which now accounts for 10% of our total
revenue. Our balance sheet is gaining strength and we are looking
forward to continuing our success in 2005 and beyond." 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 Electronic Business
Transaction Network, and within specific vertical industries via
web-based "vortals" including http://www.groceryec.com/ ,
http://www.retailec.com/ , http://www.cpgsupplier.com/ ,
http://www.logisticsec.com/, and http://www.mfgec.com/ . In
addition to Internet and web-based e-commerce solutions, Edict
Systems also provides e-commerce integration and bar coding
applications via its FORMULA_ONE(R) translation software and Bar
Code Label Modules. 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)
For the three months ended March 31, 2005 2004 ----- ----- Revenue
$1,039,488 838,635 Cost of revenue 389,044 294,217 Gross margin
650,444 544,418 Marketing, general and administrative expenses
475,335 352,597 Operating income 175,109 191,821 Interest --- 2,180
Income before taxes 175,109 189,641 Income tax expense 70,000
75,400 Net income $105,109 114,241 Basic earnings per common share
$0.02 0.02 Diluted earnings per common share $0.02 0.02 Weighted
average common shares outstanding 6,268,250 6,244,917 Weighted
average common shares outstanding, assuming dilution 6,268,250
6,542,186 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED BALANCE SHEETS (Unaudited) At March 31, 2005 and December
31, 2004 March 31, December 31, 2005 2004 Assets Current Assets
Cash and cash equivalents $1,230,429 944,892 Accounts receivable,
net 295,086 290,394 Prepaid expenses and deposit 31,033 26,420
Total current assets 1,556,548 1,261,706 Software development
costs, net 248,725 298,809 Property and equipment, net 265,448
271,604 Total assets $2,070,721 $1,832,119 Liabilities and
Shareholders' Equity Current liabilities Accounts payable $58,008
39,681 Accrued salaries and other expenses 150,263 99,810 Income
taxes payable 98,000 26,000 Deferred revenue 103,251 142,788 Total
current liabilities 409,522 308,279 Long-term liabilities Deferred
income taxes 163,000 191,000 Total liabilities 572,522 499,279
Shareholders' equity Common stock, $.001 par value; 20,000,000
shares authorized; 6,294,917 outstanding at March 31, 2005 and
6,244,917 outstanding at December 31, 2004 6,295 6,245 Paid-in
capital 1,535,784 1,475,584 Retained earnings deficit (43,880)
(148,989) Total shareholders' equity 1,498,199 1,332,840 Total
liabilities and shareholders' equity $2,070,721 1,832,119 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF
CASH FLOWS (Unaudited) For the three months ended March 31, 2005
and 2004 2005 2004 Cash flows from operating activities: Net income
$105,109 114,241 Adjustments to reconcile net income to net cash
flows from operating activities: Depreciation 23,383 12,816
Amortization of software development costs 66,397 80,252 Deferred
income taxes (28,000) 75,400 Increase (decrease) in cash arising
from changes in assets and liabilities: Accounts receivable (4,692)
(3,408) Prepaid expenses (4,613) 2,046 Accounts payable 18,327
(36,531) Accrued salaries, interest and other expenses 50,453
48,256 Income taxes payable 72,000 --- Deferred revenue (39,537)
(26,890) Net cash flows from operating activities 258,827 266,182
Cash flows from investing activities: Purchases of equipment
(17,227) (5,872) Software development costs (16,313) (43,359) Net
cash flows from investing activities (33,540) (49,231) Cash flows
from financing activities: Issuance of common stock 60,250 ---
Payments on notes --- (94,965) Payments of direct costs of
securities registration --- (2,040) Net cash flows from financing
activities 60,250 (97,005) Net increase in cash and cash
equivalents 285,537 119,946 Cash and cash equivalents, beginning of
period 944,892 216,448 Cash and cash equivalents, end of period
$1,230,429 336,394 Supplemental disclosures of cash flow items:
Interest paid $--- 3,014 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.groceryec.com/
http://www.retailec.com/ http://www.cpgsupplier.com/
http://www.logisticsec.com/ http://www.mfgec.com/
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