Advant-e Corporation Announces Second Quarter 2008 Results

Company Reports 55% Increase in Revenue and 16% Net Income Growth over Q2 2007 


DAYTON, Ohio, Aug. 14  /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC:AVEE) (BULLETIN BOARD: AVEE) , a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced financial and operating results for the quarter ending June 30, 2008.

For the second quarter of 2008 the Company reported revenues of $2,300,267, a 55% increase over revenues of $1,481,150 in the second quarter of 2007. The increase is attributable primarily to revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007, and continued growth of the Company's internet-based EDI services.

Net income for the second quarter of 2008 was $279,625, or $.04 per share, a 16% increase over net income of $241,573, or $.04 per share, for the same period in 2007.

Jason K. Wadzinski, Chairman, Chief Executive Officer, and President, remarked, "We continue to make progress in our strategy of targeting additional vertical markets for our high value solutions and services.  The Merkur Group acquisition continues to contribute to revenue accounting for 29% of our total revenue so far this year."

"In the near future we will be announcing several new and updated products and services that we believe will be well received by our targeted markets," continued Mr. Wadzinski.  "However in the short-term, we believe our results for the remainder of 2008 may fall short of our internal goals due to general economic issues as well as delayed decisions by our targeted customers."

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 CONDENSED STATEMENTS OF INCOME (Unaudited)

                               Three Months Ended      Six Months Ended
                                   June 30,                June 30,
                                 2008       2007        2008       2007

  Revenue                   $2,300,267  1,481,150   4,645,501   2,897,473
  Cost of revenue              902,780    482,776   1,823,626     991,344

  Gross margin               1,397,487    998,374   2,821,875   1,906,129
  Marketing, general and
   administrative expenses     979,392    641,471   1,985,394   1,354,949

  Operating income             418,095    356,903     836,481     551,180
  Other income, net             18,407     32,587      23,611      55,255

  Income before income taxes   436,502    389,490     860,092     606,435
  Income tax expense           156,877    147,917     315,557     233,717

  Net income                  $279,625    241,573     544,535     372,718

  Basic and diluted earnings
   per share                      $.04        .04         .08         .06

  Weighted average shares
   outstanding               6,815,015  6,478,714   6,815,015   6,478,714



                    ADVANT-E CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED CONDENSED BALANCE SHEETS


                                              June 30, 2008    December 31,
                                               (Unaudited)         2007
  Assets
  Current Assets:
      Cash and cash equivalents                 $2,536,240      2,039,447
      Short-term investments                       273,727        292,151
      Accounts receivable, net                     980,441        805,241
      Prepaid software maintenance costs           212,088        183,618
      Prepaid expenses and deposits                 44,705         68,930
      Deferred income taxes                        168,804         40,057

    Total current assets                         4,216,005      3,429,444

  Software development costs, net                  153,346        194,238
  Property and equipment, net                      420,758        433,658
  Goodwill                                       1,474,615      1,450,368
  Other intangible assets, net                     456,288        498,644

        Total assets                            $6,721,012      6,006,352

  Liabilities and Shareholders' Equity
  Current liabilities:
      Accounts payable                            $321,397        211,738
      Accrued salaries and other expenses          294,352        273,210
      Income taxes payable                          13,260        112,700
      Deferred revenue                             735,230        645,093

    Total current liabilities                    1,364,239      1,242,741

  Deferred income taxes                            337,485        288,858

        Total liabilities                        1,701,724      1,531,599

  Shareholders' equity:
    Common stock, $.001 par value; 20,000,000
     shares authorized; 6,815,015 shares
     issued and outstanding at June 30, 2008;
     6,875,015 shares issued and 6,815,015
     shares outstanding at December 31, 2007         6,815          6,875
    Paid-in capital                              2,135,260      2,210,200
    Retained earnings                            2,877,213      2,332,678
    Treasury stock at cost, 60,000 shares at
     December 31, 2007                                 ---        (75,000)

        Total shareholders' equity               5,019,288      4,474,753

        Total liabilities and shareholders'
         equity                                 $6,721,012      6,006,352



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

                                                       Six Months Ended
                                                           June 30,

                                                        2008       2007

  Cash flows from operating activities:
    Net income                                       $544,535    372,718
    Adjustments to reconcile net income to
     net cash flows from operating activities:
      Depreciation                                    133,158    100,219
      Amortization of software development costs       40,892     27,854
      Amortization of other intangible assets          42,356          -
      Deferred income taxes                           (80,120)   (18,268)
      Purchases of trading securities                (146,993)  (107,507)
      Proceeds from sales of trading securities       162,965    125,968
      Net unrealized (gains) losses on trading
       securities                                      13,016     (6,376)
      Net realized gains on sales of securities       (10,564)   (13,377)
      Increase (decrease) in cash arising from
       changes in assets and liabilities:
        Accounts receivable                          (175,200)    45,446
        Prepaid software maintenance costs            (28,470)         -
        Prepaid expenses and deposits                  24,225     (4,419)
        Accounts payable                              109,659     (7,294)
        Accrued salaries and other expenses            21,142     19,653
        Income taxes payable                         (123,687)       424
        Deferred revenue                               90,137      3,270

        Net cash flows from operating activities      617,051    538,311

  Cash flows from investing activities:
    Purchases of property and equipment              (120,258)   (92,950)
    Software development costs                              -    (15,363)

        Net cash flows from investing activities     (120,258)  (108,313)

  Net increase in cash and cash equivalents           496,793    429,998
  Cash and cash equivalents, beginning of period    2,039,447  2,209,782

  Cash and cash equivalents, end of period         $2,536,240  2,639,780

  Supplemental disclosures of cash flow items:
    Income taxes paid                                $518,100    251,561
    Non-cash transaction
      Retirement of 60,000 shares repurchased
       in 2007 and held as treasury stock              75,000        ---





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

 



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

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