Advant-e Corporation Announces First Quarter 2009 Results

Company Reports Net Income for 23rd Consecutive Quarter; Revenue for Internet-based EDI Services Increased; Software Revenue Decreased 


DAYTON, Ohio, May 15  /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: AVEE) today announced financial and operating results for the first 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 first quarter of 2009 the Company reported revenue of $2,155,291, an 8% decrease compared to revenue of $2,345,234 in the first quarter of 2008. Revenue from Edict Systems increased by $111,752, but revenue from Merkur Group fell by $301,695.

Net income for the first quarter of 2009 was $234,677, or $.03 per share, an 11% decrease compared to net income of $264,910, or $.04 per share, for the same period in 2008.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, "As stated in previous earnings releases, current economic weakness is having a more pronounced impact on software sales by Merkur Group than internet-based EDI services provided by Edict Systems.  Although Merkur's results are below our internal targets, the steep decline in Merkur's revenue year-over-year is mainly due to the strong sales Merkur reported in the first quarter of 2008."

"I believe that given the current economic conditions, our overall performance and level of profitability are satisfactory.  We are continuing to focus on our core markets as well as expanding into new industries and we are investing in the people and resources deemed appropriate to position the company for increased activity going forward."

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 [phone]. The company's email is .

                  ADVANT-E CORPORATION AND SUBSIDIARIES
          CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)


                                                     Three Months Ended
                                                          March 31,

                                                       2009        2008

   Revenue                                         $2,155,291   2,345,234
   Cost of revenue                                    899,659     920,846

   Gross margin                                     1,255,632   1,424,388
   Marketing, general and administrative expenses     887,285   1,006,002

   Operating income                                   368,347     418,386
   Other income (expense), net                        (19,649)      5,204

   Income before income taxes                         348,698     423,590
   Income tax expense                                 114,021     158,680

   Net income                                        $234,677     264,910

   Earnings per share - basic and diluted               $0.03        0.04

   Weighted average shares outstanding - basic and
    diluted                                         6,711,699   6,815,015



                    ADVANT-E CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED CONDENSED BALANCE SHEETS


                                          March 31, 2009      December 31,
                                            (Unaudited)          2008

   Assets
   Current Assets:
    Cash and cash equivalents                 $2,378,330      2,090,005
    Short-term investments                       203,774        232,721
    Accounts receivable, net                     828,295        699,095
    Prepaid software maintenance costs           172,856        156,027
    Prepaid expenses and deposits                 79,601         74,361
    Prepaid income taxes                             ---         16,837
    Deferred income taxes                        153,700        152,156

     Total current assets                      3,816,556      3,421,202
   Software development costs, net                92,008        112,453
   Property and equipment, net                   379,268        434,645
   Goodwill                                    1,474,615      1,474,615
   Other intangible assets, net                  392,754        413,932

     Total assets                             $6,155,201      5,856,847


   Liabilities and Shareholders' Equity
   Current liabilities:
    Accounts payable                            $209,176        207,374
    Accrued salaries and other expenses          245,469        283,360
    Income taxes payable                         116,223            ---
    Deferred revenue                             614,635        583,677

     Total current liabilities                 1,185,503      1,074,411
   Deferred income taxes                         292,168        335,663

     Total liabilities                         1,477,671      1,410,074


   Shareholders' equity:
   Common stock, $.001 par value;
    20,000,000 shares authorized;
    6,737,741 shares issued and
    6,710,399 shares outstanding at
    March 31, 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                           2,690,441      2,455,764
   Treasury stock at cost, 27,342 and
    24,342 shares at March 31, 2009 and
    December 31, 2008, respectively              (39,232)       (35,935)

     Total shareholders' equity                4,677,530      4,446,773

     Total liabilities and shareholders'
      equity                                  $6,155,201      5,856,847



                  ADVANT-E CORPORATION AND SUBSIDIARIES
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)


                                                  Three Months Ended
                                                       March 31,

                                                     2009         2008

   Cash flows from operating activities:
    Net income                                    $234,677      264,910
    Adjustments to reconcile net income to net
     cash flows from operating activities:
    Depreciation                                    62,767       63,399
    Amortization of software development costs      20,445       20,446
    Amortization of other intangible assets         21,178       21,178
    Deferred income taxes                          (45,039)     (41,020)
    Purchases of trading securities                (43,949)     (80,477)
    Proceeds from sales of trading securities       49,828       78,007
    Net unrealized losses on trading securities      4,667       14,078
    Net realized (gains) losses on sales of
     securities                                     18,401       (5,339)
    Increase (decrease) in cash arising from
     changes in assets and liabilities:
      Accounts receivable                         (129,200)    (131,363)
      Prepaid software maintenance costs           (16,829)     (25,911)
      Prepaid expenses and deposits                 (5,240)     (51,733)
      Prepaid income taxes                          16,837          ---
      Accounts payable                               1,802      324,567
      Accrued salaries and other expenses          (37,891)      52,035
      Income taxes payable                         116,223       60,336
      Deferred revenue                              30,958      157,274

      Net cash flows from operating activities     299,635      720,387

   Cash flows from investing activities:
    Purchases of property and equipment             (7,390)     (98,186)

   Cash flows from financing activities:
    Purchase of treasury shares                     (3,920)         ---

   Net increase in cash and cash equivalents       288,325      622,201
   Cash and cash equivalents, beginning of
    period                                       2,090,005    2,039,447

   Cash and cash equivalents, end of period     $2,378,330   $2,661,648

   Supplemental disclosures of cash flow items:
    Income taxes paid                              $26,000     $138,100
    Non-cash transaction:  retirement of 520
     treasury shares                                   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. 

DATASOURCE: Advant-e Corporation



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





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

Copyright