Advant-e Corporation Announces Financial Results for 2008

Company Reports 24% Increase in Revenue over Prior Year, Net Income Exceeds $1 Million for 2nd Consecutive Year 


DAYTON, Ohio, March 4  /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of Internet-based Electronic Data Interchange services and electronic document management software and services today announced financial and operating results for the year ending December 31, 2008.

The Company reported record revenues for 2008 of $8,869,169, a 24% increase over revenues of $7,162,329 for 2007. The increase is attributable to continued growth of the Company's internet-based EDI services and the first full year of revenue from products and services sold by Merkur Group, Inc., which was acquired on July 2, 2007.

The Company reported record net income for 2008 of $1,063,790 or $.16 per share compared to $1,022,679 or $.15 per share in 2007.  Net income increased 4% in 2008 compared to 2007.

  Highlights of 2008 financial and operating results include:
  --  Revenue Increased for the Eighth Consecutive Year - Revenue increased
      across all significant product and service categories in 2008 compared
      to 2007, including Web EDI growth of 10% in grocery and 23% in
      automotive.
  --  Net Income Exceeded $1 million for Second Consecutive Year - The
      Company in 2008 reported net income for the sixth consecutive year.
  --  Merkur Group Inc. Acquisition - On July 2, 2007, the Company acquired
      Merkur Group Inc. Merkur contributed $2,137,152 to revenue in 2008 and
      net income of $121,048 before deducting non-cash charges pertaining to
      amortization of intangible assets of $54,216.
  --  Strong Cash Position at Year-end - Cash and cash equivalents of almost
      $2.1 million provides a solid foundation for meeting the economic
      challenges due to the credit crisis and weakening economy in 2009.
  --  One Time Dividend - In 2008 the Company paid a one-time cash dividend
      of $.14 per share totaling $940,704 to shareholders of record as of
      October 24, 2008.
  --  The Company has no Outstanding Bank or Other Long-Term Debt - The
      Company continues to maintain an unused $1 million bank line of
      credit.
  --  Share Repurchase Program - In 2008 the Company repurchased 101,096
      shares of common stock at an average price of $1.49 per share.




Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, "2008 was a challenging year for Advant-e and almost all other companies due to the credit crisis, weakening economy, and other factors.  I am pleased that even with all of the issues that have negatively impacted businesses across the country, we continued to grow top line revenue last year and that we surpassed $1 million in net income for the second consecutive year."

"Many of our customers are facing significant challenges due to the current recession. This is especially true in the automotive and manufacturing sector which represented 9% of Edict System's revenue last year.  Merkur Group met our expectations in 2008, but weakness occurred in the second half of 2008, which we believe is directly attributable to the overall economy."

"Due to the recurring nature of much of our revenue, our strong balance sheet, and the exceptional value proposition of our product and service offerings, we believe we are well positioned to weather the current economic challenges in 2009 and beyond."

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 [phone]. The Company's email is .

                    ADVANT-E CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF INCOME
                For the years ended December 31, 2008 and 2007

                                                          2008       2007
  Revenue                                           $8,869,169  7,162,329
   Cost of revenue                                   3,476,670  2,498,850
  Gross margin                                       5,392,499  4,663,479
   Marketing, general and administrative expenses    3,705,542  3,147,344
  Operating income                                   1,686,957  1,516,135
   Other income (expense), net                         (30,701)    77,431

   Income before income taxes                        1,656,256  1,593,566
   Income tax expense                                  592,466    570,887
  Net income                                        $1,063,790  1,022,679
  Earnings per share - basic and diluted                 $0.16       0.15
  Weighted average shares outstanding -
    basic and diluted                                6,785,794  6,655,808



                       ADVANT-E CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                          December 31, 2008 and 2007


                                                          2008       2007
  Assets
   Current assets:
           Cash and cash equivalents                $2,090,005  2,039,447
           Short-term investments                      232,721    292,151
           Accounts receivable, net                    699,095    805,241
           Prepaid software maintenance costs          156,027    183,618
           Prepaid expenses and deposits                74,361     68,930
           Prepaid income taxes                         16,837          -
           Deferred income taxes                       152,156     70,554
       Total current assets                          3,421,202  3,459,941
   Software development costs, net                     112,453    194,238
   Property and equipment, net                         434,645    433,658
   Goodwill                                          1,474,615  1,450,368
   Other intangible assets, net                        413,932    498,644

               Total assets                         $5,856,847  6,036,849
  Liabilities and Shareholders' Equity
   Current liabilities:
           Accounts payable                           $207,374    211,738
           Accrued salaries and other expenses         283,360    273,210
           Income taxes payable                              -    112,700
           Deferred revenue                            583,677    645,093

       Total current liabilities                     1,074,411  1,242,741
   Deferred income taxes                               335,663    319,355
               Total liabilities                     1,410,074  1,562,096

  Shareholders' equity:
       Common stock, $.001 par value; 20,000,000
        shares authorized; 6,738,261 shares
        issued and 6,713,919 shares outstanding
        at December 31, 2008; 6,875,015 shares
        issued and 6,815,015 shares outstanding
        at December 31, 2007                             6,738      6,875
       Paid-in capital                               2,020,206  2,210,200
       Retained earnings                             2,455,764  2,332,678
       Treasury stock, at cost, 24,342 and 60,000
        shares at December 31, 2008 and 2007,
        respectively                                   (35,935)   (75,000)
               Total shareholders' equity            4,446,773  4,474,753
               Total liabilities and shareholders'
                equity                              $5,856,847  6,036,849



  ADVANT-E CORPORATION AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  For the years ended December 31, 2008 and 2007

                                                        2008        2007
  Cash flows from operating activities:
       Net income                                  $1,063,790    1,022,679
       Adjustments to reconcile net income to
        net cash flows from operating
        activities:
           Depreciation                               284,097      228,614
           Amortization of software development
            costs                                      81,785       68,746
           Amortization of other intangible assets     84,712       42,356
           Deferred income taxes                      (65,294)     (69,732)
           Purchases of trading securities           (264,182)    (187,218)
           Proceeds from sale of trading securities   258,457      183,694
           Net realized (gain) loss on sales of
            securities                                    952       (2,438)
           Net unrealized (gain) loss on trading
            securities                                 64,203      (11,755)
           Increase (decrease) in cash arising from
            changes in assets and liabilities, net
            of effects of acquisition:
               Accounts receivable                    106,146      (12,192)
               Prepaid software maintenance costs      27,591      (11,306)
               Prepaid expenses and deposits           (5,431)      (2,182)
               Prepaid income taxes                   (16,837)           -
               Accounts payable                        (4,364)     (41,084)
               Accrued salaries and other expenses     10,150       47,487
               Income taxes payable                  (136,947)       3,058
               Deferred revenue                       (61,416)      61,721
               Net cash flows from operating
                activities                          1,427,412    1,320,448

  Cash flows from investing activities:
       Purchases of property and equipment           (285,084)    (242,125)
       Software development costs                           -      (15,363)
       Purchase of Merkur Group, Inc.                       -     (998,295)
               Net cash flows from investing
                activities                           (285,084)  (1,255,783)
  Cash flows from financing activities:
       Net payments on bank line of credit                  -     (160,000)
       Purchase of treasury shares                   (151,066)     (75,000)
       Dividends paid                                (940,704)           -

               Net cash flows from financing
                activities                         (1,091,770)    (235,000)
  Net increase (decrease) in cash and cash
    equivalents                                        50,558     (170,335)
   Cash and cash equivalents, beginning of
    year                                            2,039,447    2,209,782
  Cash and cash equivalents, end of year           $2,090,005    2,039,447

   Supplemental disclosures of cash flow
    items:
       Income taxes paid                             $810,279      637,561
       Non cash transactions:
           Retirement of shares                      $190,131            -
           Issuance of shares for purchase of
            Merkur Group, Inc.                             $-      568,692


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.

http://www.advant-e.com/index.html 

DATASOURCE: Advant-e Corporation



CONTACT:  Investor Relations of Advant-e Corporation, [phone], or





Web Site:  http://www.advant-e.com/index.html 

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