Advant-e Corporation Announces Second Quarter 2005 Results

Company Reports 26% Increase in Revenue and 12% Increase in Net Income over Q2 2004 


DAYTON, Ohio, Aug. 8  /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 June 30, 2005.

For the second quarter of 2005 the Company reported revenues of $1,076,385, a 26% increase over revenues of $851,982 in the second quarter of 2004. The increase in revenue was the direct result of continued growth of the Company's web-based electronic data interchange subscription services for small and medium-size businesses (Web EDI) and the Company's electronic business transaction network service (EnterpriseEC(TM)).

Net income for the quarter was $120,270, or $.02 per share, compared to $107,343, or $.02 per share for the same period in 2004.

"These results mark our eighth consecutive profitable quarter and reflect our steady and continued growth, " said Jason K. Wadzinski, Chairman and Chief Executive Officer. "Our sales reached record numbers and our net income in the second quarter increased by 14% over the first quarter and by 12% over the net income for the second quarter of 2004. Our increase in revenue is exceeding the additional investments in our sales and marketing efforts, infrastructure improvements and additional personnel costs."

"While revenue increased steadily from GroceryEC.com, our industry leading web EDI solution, we've experienced excellent growth in the automotive and retail web EDI segments which now account for approximately 10% of our total revenue."

For the six months ending June 30, 2005 the Company reported revenues of $2,115,873, a 25% increase over revenues of $1,690,617 in the same period in 2004.  Net income for the period in 2005 was $225,379, or $.04 per share, compared to net income of $221,584, or $.04 per share in the 2004 period ($.03 per share on a diluted basis).

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 Electronic Business Transaction Network, and within specific vertical industries via web-based "vortals" 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 [phone]. The company's email is .

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

                          Three Months Ended        Six Months Ended
                               June 30,                 June 30,
                         2005         2004         2005         2004

  Revenue             $1,076,385      851,982    2,115,873    1,690,617
  Cost of revenue        374,335      310,264      763,379      604,481

  Gross margin           702,050      541,718    1,352,494    1,086,136
  Marketing, general and
   administrative
   expenses              501,680      361,375      977,015      716,152

  Income before taxes    200,370      180,343      375,479      369,984
  Income tax expense      80,100       73,000      150,100      148,400

  Net income            $120,270      107,343      225,379      221,584

  Basic earnings
   per common share        $0.02         0.02         0.04         0.04

  Diluted earnings
   per common share        $0.02         0.02         0.04         0.03

  Weighted average
   common shares
   outstanding         6,294,917    6,244,917    6,281,657    6,244,917

  Weighted average
   common shares
   outstanding,
   assuming dilution   6,294,917    6,722,654    6,281,657    6,627,694



                   ADVANT-E CORPORATION AND SUBSIDIARY
                  CONSOLIDATED CONDENSED BALANCE SHEETS

                                               June 30, 2005    December 31,
                                                (Unaudited)         2004
  Assets

  Current Assets
    Cash and cash equivalents                     $1,412,245        944,892
    Accounts receivable, net                         303,116        290,394
    Prepaid expenses and deposit                      32,710         26,420
  Total current assets                             1,748,071      1,261,706

  Software development costs, net                    208,479        298,809

  Property and equipment, net                        294,934        271,604

      Total assets                                $2,251,484      1,832,119

  Liabilities and Shareholders' Equity

  Current liabilities
    Accounts payable                                $109,210         39,681
    Accrued salaries and other expenses              106,545         99,810
    Income taxes payable                             174,100         26,000
    Deferred revenue                                  84,160        142,788
  Total current liabilities                          474,015        308,279

  Long-term liabilities
    Deferred income taxes                            159,000        191,000
      Total liabilities                              633,015        499,279

  Shareholders' equity
    Common stock, $.001 par value;
     20,000,000 shares authorized;
     6,294,917 outstanding at
     June 30, 2005 and 6,244,917
     outstanding at December 31, 2004                  6,295          6,245
    Paid-in capital                                1,535,784      1,475,584
    Retained earnings (deficit)                       76,390       (148,989)

      Total shareholders' equity                   1,618,469      1,332,840

      Total liabilities and
       shareholders' equity                       $2,251,484      1,832,119



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

                                                      Six Months Ended
                                                           June 30,
                                                     2005           2004

  Cash flows from operating activities:
    Net income                                      $225,379        221,584
    Adjustments to reconcile net income to
     net cash flows from operating activities:
      Depreciation                                    51,389         34,099
      Amortization of software development costs     134,639        164,014
      Deferred income taxes                          (32,000)       148,400
      Increase (decrease) in cash arising
       from changes in assets and liabilities:
        Accounts receivable                          (12,722)       (28,533)
        Prepaid expenses                              (6,290)         6,825
        Accounts payable                              69,529         32,803
        Accrued salaries, interest and
         other expenses                                6,735         16,359
        Income taxes payable                         148,100             --
        Deferred revenue                             (58,628)        31,348

        Net cash flows from
         operating activities                        526,131        626,899

  Cash flows from investing activities:
    Purchases of equipment                           (74,719)      (126,614)
    Software development costs                       (44,309)       (84,245)

        Net cash flows from
        investing activities                        (119,028)      (210,859)

  Cash flows from financing activities:
    Issuance of common stock                          60,250             --
    Payments on notes                                     --        (94,965)
    Payments of direct costs of securities
     registration                                         --         (7,945)

        Net cash flows from
         financing activities                         60,250       (102,910)

  Net increase in cash and cash equivalents          467,353        313,130
  Cash and cash equivalents, beginning of period     944,892        216,448

  Cash and cash equivalents, end of period        $1,412,245        529,578

  Supplemental disclosures of cash flow items:
    Interest paid                                        $--          3,014





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 or 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/

http://www.edictsystems.com/

http://www.groceryec.com/

http://www.retailec.com/

http://www.automotiveec.com/

http://www.mfgec.com/

http://www.cpgsupplier.com/ 

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