Company Reports 21% Increase in Revenue and 60% Increase in Net
Income over Q1 2005 DAYTON, Ohio, May 15 /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, 2006. For the first quarter of 2006 the
Company reported revenues of $1,262,169, a 21% increase over
revenues of $1,039,488 in the first quarter of 2005. The increase
in revenue demonstrates the growing support in the marketplace for
the Company's principal products -- web-based electronic data
interchange subscription services (Web EDI) and electronic business
transaction network services (EnterpriseEC(TM)). Net income for the
quarter was $167,706, or $.03 per share, a 60% increase over net
income of $105,109, or $.02 per share, for the same period in 2005.
"We are pleased to report in the first quarter of 2006 continued
growth in revenue and earnings and a pre-tax profit margin of 22%,"
said Jason K. Wadzinski, Chairman and Chief Executive Officer.
"Revenue again reached a record level and net income increased by
60% over last year. We are continuing to focus our efforts and
resources on accelerating revenue growth by systematically
increasing our investment in infrastructure, new product
development, personnel, and new sales and marketing initiatives."
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 March 31, 2006 2005 Revenue
$1,262,169 1,039,488 Cost of revenue 407,868 389,044 Gross margin
854,301 650,444 Marketing, general and administrative expenses
595,855 475,335 Operating income 258,446 175,109 Other income, net
16,975 --- Income before taxes 275,421 175,109 Income tax expense
107,715 70,000 Net income $167,706 105,109 Basic earnings per share
$0.03 0.02 Diluted earnings per share $0.03 0.02 Weighted average
shares outstanding 6,403,174 6,268,250 Weighted average shares
outstanding, assuming dilution 6,426,009 6,268,250 ADVANT-E
CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS
March 31, December 31, 2006 2005 (Unaudited) Assets Current Assets:
Cash and cash equivalents $1,672,125 1,763,435 Short-term
investments 243,928 225,902 Accounts receivable, net 400,356
351,482 Prepaid expenses and deposit 21,840 25,128 Total current
assets 2,338,249 2,365,947 Software development costs, net 190,368
160,656 Property and equipment, net 245,000 262,523 Total assets
$2,773,617 2,789,126 Liabilities and Shareholders' Equity Current
liabilities: Accounts payable $64,532 44,838 Accrued salaries and
other expenses 132,306 115,510 Income taxes payable 77,644 375,652
Deferred income taxes 44,883 26,000 Deferred revenue 103,599 76,173
Total current liabilities 422,964 638,173 Deferred income taxes
158,621 136,000 Total liabilities 581,585 774,173 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 14,988
5,615 Retained earnings 619,035 451,329 Total shareholders' equity
2,192,032 2,014,953 Total liabilities and shareholders' equity
$2,773,617 2,789,126 ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three
Months Ended March 31, 2006 2005 Cash flows from operating
activities: Net income $167,706 105,109 Adjustments to reconcile
net income to net cash flows from operating activities:
Depreciation 29,553 23,383 Amortization of software development
costs 32,383 66,397 Loss on disposal of assets 24,221 --- Net
realized gains on available-for-sale investments (4,241) ---
Deferred income taxes 35,723 (28,000) Increase (decrease) in cash
arising from changes in assets and liabilities: Accounts receivable
(48,874) (4,692) Prepaid expenses 3,288 (4,613) Accounts payable
19,694 18,327 Accrued salaries and other expenses 16,796 50,453
Income taxes payable (298,008) 72,000 Deferred revenue 27,426
(39,537) Net cash flows from operating activities 5,667 258,827
Cash flows from investing activities: Purchases of
available-for-sale investments (35,545) --- Proceeds from sale of
available-for-sale investments 36,914 --- Purchases of equipment
(28,697) (17,227) Software development costs (69,649) (16,313) Net
cash flows from investing activities (96,977) (33,540) Cash flows
from financing activities: Issuance of common stock --- 60,250 Net
cash flows from financing activities --- 60,250 Net increase
(decrease) in cash and cash equivalents (91,310) 285,537 Cash and
cash equivalents, beginning of period 1,763,435 944,892 Cash and
cash equivalents, end of period $1,672,125 1,230,429 Supplemental
disclosures of cash flow items: Income taxes paid $370,000 --- 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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