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Advant-e Corporation Announces Second Quarter 2010 Results
Aug 06, 2010 (08:08 AM EDT)


Company Reports Record Net Income for the Second Quarter of 2010; Revenue Growth of 6% over Q2 2009

DAYTON, Ohio, Aug. 6 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the second quarter of 2010.  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 2010 the Company reported revenue of $2,343,816, a 6% increase compared to revenue of $2,200,958 in the second quarter of 2009. Revenue from Edict Systems increased by 8% and revenue from Merkur Group increased by 2%.  

Net income for the second quarter of 2010 was $399,840, or $.006 per share, a 28% increase compared to net income of $311,263, or $.005 per share, for the same period in 2009.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, "I am pleased to announce that we reported a record quarterly net income, which is our 28th consecutive profitable quarter."

"Both Edict Systems and Merkur Group performed well.  Edict Systems showed year over year growth in the grocery and automotive industries and Merkur Group increased revenue by 54% over the first quarter of this year," continued Mr. Wadzinski.  "I remain cautiously optimistic about our performance for the remainder of 2010 because our pipeline of opportunities is strengthening and we will continue to focus on cost control."

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 www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The company's email is advant-e@edictsystems.com.

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)










Three Months Ended
June 30,


Six Months Ended
June 30,


2010


2009


2010


2009

Revenue 

$  2,343,816


2,200,958


4,537,637


4,356,250

Cost of revenue   

921,566


930,171


1,855,550


1,829,830









Gross margin     

1,422,250


1,270,787


2,682,087


2,526,420

Marketing, general and administrative expenses 

815,838


837,504


1,674,941


1,724,789









Operating income 

606,412


433,283


1,007,146


801,631

Other income, net 

1,205


25,484


2,004


5,834









Income before income taxes 

607,617


458,767


1,009,150


807,465

Income tax expense       

207,777


147,504


345,034


261,526









Net income       

$  399,840


311,263


664,116


545,939









Earnings per share – basic and diluted 

$  .006


.005


.010


.008









Weighted average shares outstanding – basic and diluted 

66,722,590


66,890,260


66,722,590


67,006,980












ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS






June 30, 2010
(Unaudited)


December 31, 2009

Assets




Current Assets:




             Cash and cash equivalents

$  2,959,670


2,713,996

             Accounts receivable, net

795,345


634,055

             Prepaid software maintenance costs

191,517


162,507

             Prepaid expenses and deposits

47,165


75,519

             Prepaid income taxes


39,798

             Deferred income taxes

160,903


139,144





      Total current assets       

4,154,600


3,765,019

Software development costs, net

227,091


149,956

Property and equipment, net

271,132


312,821

Goodwill

1,474,615


1,474,615

Other intangible assets, net

286,864


329,220





                    Total assets

$  6,414,302


6,031,631





Liabilities and Shareholders' Equity




Current liabilities:




             Accounts payable

$  122,942


115,546

             Dividend payable

667,226


1,334,452

             Accrued salaries and other expenses

385,085


146,699

             Income taxes payable

50,341


             Deferred revenue

680,302


582,298





      Total current liabilities

1,905,896


2,178,995

Deferred income taxes

252,678


261,024





                    Total liabilities

2,158,574


2,440,019





Shareholders' equity:




      Common stock, $.001 par value; 100,000,000 shares authorized; 66,722,590 shares issued
and outstanding at June 30, 2010; 66,951,010 shares issued and 66,722,590 shares
outstanding at December 31, 2009

66,723


66,951

      Paid-in capital

1,936,257


1,964,221

      Retained earnings

2,252,748


1,588,632

      Treasury stock at cost, 228,420 shares at December 31, 2009


(28,192)





             Total shareholders' equity

4,255,728


3,591,612

             Total liabilities and shareholders' equity

$  6,414,302


6,031,631








ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)






Six Months Ended
June 30,


2010


2009

Cash flows from operating activities:




Net income 

$  664,116


545,939

Adjustments to reconcile net income to net cash flows from operating activities:




Depreciation   

110,020


125,716

Amortization of software development costs 

30,669


40,892

Amortization of other intangible assets      

42,356


42,356

Loss on disposal of property and equipment

800


Deferred income taxes   

(30,105)


(74,778)

Purchases of trading securities   


(87,591)

Proceeds from sales of trading securities   


123,056

Net unrealized gain on trading securities     


(24,158)

Net realized loss on sales of securities     


24,082

Increase (decrease) in cash arising from changes in assets and liabilities:




Accounts receivable       

(161,290)


(111,470)

Prepaid software maintenance costs  

(29,010)


(20,210)

Prepaid expenses and deposits      

28,354


15,258

Prepaid income taxes       

39,798


(2,709)

Accounts payable 

7,396


(49,749)

Accrued salaries and other expenses 

238,386


64,163

Income taxes payable      

50,341


Deferred revenue 

98,004


30,153





Net cash flows from operating activities       

1,089,835


640,950





Cash flows from investing activities:




Purchases of property and equipment    

(69,131)


(9,569)

Software development costs

(107,804)






Net cash flows from investing activities

(176,935)


(9,569)





Cash flows from financing activities:




Purchase of treasury shares   


(42,190)

Dividends paid

(667,226)






Net cash flows from financing activities

(667,226)


(42,190)





Net increase in cash and cash equivalents     

245,674


589,191

Cash and cash equivalents, beginning of period 

2,713,996


2,090,005





Cash and cash equivalents, end of period      

$  2,959,670


2,679,196





Supplemental disclosures of cash flow items:




Income taxes paid   

$  285,000


339,013

Non-cash transaction: retirement of shares       

28,192


623




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.

SOURCE Advant-e Corporation