Advant-e Corporation Announces Record Revenue and Net Income for 2007

Company Reports 33% Increase in Revenue, 19% Increase in Net Income over Prior Year 


DAYTON, Ohio, March 6  /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC:AVEE) (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, 2007.

The Company reported record revenues for 2007 of $7,162,329, a 33% increase over revenues of $5,403,632 for 2006. The increase is attributable to continued growth of the Company's internet-based EDI services and revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007.  Net income for 2007 was a record $1,022,679 or $.15 per share compared to $858,670 or $.13 per share in 2006.

  Highlights of 2007 financial and operating results include:
  -- Revenue Increased for the seventh consecutive year
  -- Net Income Exceeded $1 million for first time and increased by 19%
  -- Merkur Group Inc. Acquisition -- On July 2, 2007 the Company acquired
     Merkur Group Inc. which contributed $1,086,724 to revenue in 2007 and
     net income of $58,300 before deducting non-cash charges pertaining to
     amortization of intangible assets of $27,108.
  -- Continued Automotive related Web EDI Revenue Acceleration -- Automotive
     and manufacturing Web EDI revenue increased by 25% and comprised 8% of
     Edict Systems revenue in 2007 compared to 7% in 2006.




Commenting on the year-end results, Mr. Jason K. Wadzinski, CEO of Advant- e stated, "In 2007 we continued executing on our strategy of expanding the industries we support while enhancing our service offerings.  The acquisition of Merkur Group has contributed to our overall performance by adding over $1 million in revenue in 2007 while contributing to the bottom line.  Our cash flow is strong and we are looking forward to continuing our progress 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 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 BALANCE SHEETS
                      At December 31, 2007 and 2006

                                                    2007           2006

  Assets
  Current assets:
    Cash and cash equivalents                   $2,039,447      2,209,782
    Short-term investments                         292,151        274,434
    Accounts receivable, net                       805,241        477,639
    Prepaid software maintenance costs             183,618            ---
    Prepaid expenses and deposits                   68,930         28,339
    Deferred income taxes                           40,057            ---

  Total current assets                           3,429,444      2,990,194
  Software development costs, net                  194,238        247,621
  Property and equipment, net                      433,658        386,697
  Goodwill                                       1,450,368            ---
  Other intangible assets, net                     498,644            ---

          Total assets                          $6,006,352      3,624,512

  Liabilities and Shareholders' Equity
  Current liabilities:
    Accounts payable                              $211,738         66,936
    Accrued salaries and other expenses            273,210        157,802
    Income taxes payable                           112,700        109,642
    Deferred revenue                               645,093        112,846
    Deferred income taxes                              ---         53,119

  Total current liabilities                      1,242,741        500,345
  Deferred income taxes                            288,858        165,784

          Total liabilities                      1,531,599        666,129


  Shareholders' equity:
    Common stock, $.001 par value; 20,000,000
     shares authorized; 6,875,015 shares issued
     and 6,815,015 shares outstanding at December
     31, 2007 and 6,478,714 outstanding at
     December 31, 2006                               6,875          6,478
    Paid-in capital                              2,210,200      1,641,906
    Retained earnings                            2,332,678      1,309,999
    Treasury stock at cost, 60,000 shares at
     December 31, 2007                             (75,000)           ---

         Total shareholders' equity              4,474,753      2,958,383

         Total liabilities and shareholders'
          equity                                $6,006,352      3,624,512



                  ADVANT-E CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME
              For the years ended December 31, 2007 and 2006



                                                    2007           2006
  Revenue                                       $7,162,329      5,403,632
  Cost of revenue                                2,498,850      1,677,937

  Gross margin                                   4,663,479      3,725,695
  Marketing, general and administrative expenses 3,147,344      2,453,883

  Operating income                               1,516,135      1,271,812
  Other income, net                                 77,431         87,862

  Income before taxes                            1,593,566      1,359,674
  Income tax expense                               570,887        501,004

  Net income                                    $1,022,679        858,670

  Basic earnings per share                           $0.15           0.13

  Diluted earnings per hare                          $0.15           0.13

  Weighted average shares outstanding            6,655,808      6,408,516

  Weighted average shares outstanding,
   assuming dilution                             6,655,808      6,434,615



                  ADVANT-E CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
              For the years ended December 31, 2007 and 2006

                                                    2007            2006

  Cash flows from operating activities:
    Net income                                   $1,022,679        858,670

    Adjustments to reconcile net income to net
     cash flows from operating activities:
      Depreciation                                  228,614        153,113
      Amortization of software development costs     68,746        124,498
      Amortization of other intangible assets        42,356            ---
      Loss on disposal of assets                        ---         41,922
      Deferred income taxes                         (69,732)        60,703
      Purchases of trading securities              (187,218)       (31,541)
      Proceeds from sale of trading securities      183,694         28,393
      Net realized gain on sales of securities       (2,438)        (9,701)
      Net unrealized gain on trading securities     (11,755)       (27,218)
      Increase (decrease) in cash arising from
       changes in assets and liabilities:
        Accounts receivable                         (12,192)      (126,157)
        Prepaid software maintenance costs          (11,306)           ---
        Prepaid expenses and deposits                (2,182)        (3,211)
        Accounts payable                            (41,084)        22,098
        Accrued salaries and other expenses          49,712         42,292
        Income taxes payable                            833       (266,010)
        Deferred revenue                             61,721         36,673

        Net cash flows from operating activities  1,320,448        904,524

  Cash flows from investing activities:
    Purchases of available-for-sale securities          ---       (107,966)
    Proceeds from sale of available-for-sale
     securities                                         ---         90,086
    Purchases of property and equipment            (242,125)      (311,654)
    Software development costs                      (15,363)      (219,018)
    Purchase of Merkur Group, Inc.                 (998,295)           ---

        Net cash flows from investing
         activities                              (1,255,783)      (548,552)

  Cash flows from financing activities:
    Net payments on bank line of credit            (160,000)           ---
    Issuance of common stock                            ---         90,375
    Purchase of treasury shares                     (75,000)           ---

        Net cash flows from financing activities   (235,000)        90,375

  Net increase (decrease) in cash and cash
   equivalents                                     (170,335)       446,347
  Cash and cash equivalents, beginning of year    2,209,782      1,763,435

  Cash and cash equivalents, end of year         $2,039,447      2,209,782

  Supplemental disclosures of cash flow items:
    Income taxes paid                              $637,561        706,311
  Non cash transactions
    Issuance of common shares in connection with
     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. 

DATASOURCE: Advant-e Corporation



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





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

http://www.edictsystems.com/

http://www.merkurgroup.com/ 

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