Avantis Emerging Markets... (AMEX:AVEE)
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Company Reports Net Income Increased by 11% over Second Quarter of 2008 Despite 4% Revenue Decline
DAYTON, Ohio, Aug. 13 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: AVEE) today announced financial and operating results for the second 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 second quarter of 2009 the Company reported revenue of $2,200,958, a 4% decrease compared to revenue of $2,300,267 in the second quarter of 2008. Revenue from Edict Systems increased by $65,555, but revenue from Merkur Group fell by $164,864.
Net income for the second quarter of 2009 was $311,263, or $.05 per share, an 11% increase compared to net income of $279,625, or $.04 per share, for the same period in 2008.
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, "Given the economic realities during the quarter, I am pleased that we were able to increase net income despite the drop in software-related revenue. While Merkur's revenue is down over last year, Merkur has contributed significantly to our increased net income in the quarter."
"Our focus for the remainder of 2009 will be to continue our push into additional industries and increase our investment in upgrades and enhancements, primarily in our Web EDI offerings and integration solutions."
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 (937) 429-4288. 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,
------------------ ------------------
2009 2008 2009 2008
------- ------- ------- -------
Revenue $2,200,958 2,300,267 4,356,250 4,645,501
Cost of revenue 930,171 902,780 1,829,830 1,823,626
------- ------- --------- ---------
Gross margin 1,270,787 1,397,487 2,526,420 2,821,875
Marketing, general and
administrative expenses 837,504 979,392 1,724,789 1,985,394
------- ------- --------- ---------
Operating income 433,283 418,095 801,631 836,481
Other income (expense), net 25,484 18,407 5,834 23,611
------- ------ ----- ------
Income before income taxes 458,767 436,502 807,465 860,092
Income tax expense 147,504 156,877 261,526 315,557
------- ------ ------- -------
Net income $311,263 279,625 545,939 544,535
======= ======= ======= =======
Earnings per share - basic and
diluted $.05 .04 .08 .08
======= ======= ======= =======
Weighted average shares
outstanding - basic and
diluted 6,689,026 6,815,015 6,700,698 6,815,015
========= ========= ========= =========
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, 2009 December 31,
(Unaudited) 2008
----------- -----------
Assets
Current Assets:
Cash and cash equivalents $2,679,196 2,090,005
Short-term investments 197,332 232,721
Accounts receivable, net 810,565 699,095
Prepaid software maintenance costs 176,237 156,027
Prepaid expenses and deposits 59,103 74,361
Prepaid income taxes 19,546 16,837
Deferred income taxes 143,559 152,156
------- -------
Total current assets 4,085,538 3,421,202
Software development costs, net 71,561 112,453
Property and equipment, net 318,498 434,645
Goodwill 1,474,615 1,474,615
Other intangible assets, net 371,576 413,932
------- -------
Total assets $6,321,788 5,856,847
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $157,625 207,374
Accrued salaries and other expenses 347,523 283,360
Deferred revenue 613,830 583,677
------- -------
Total current liabilities 1,118,978 1,074,411
Deferred income taxes 252,288 335,663
------- -------
Total liabilities 1,371,266 1,410,074
--------- ---------
Shareholders' equity:
Common stock, $.001 par value;
20,000,000 shares authorized;
6,737,741 shares issued and
6,677,799 outstanding at June 30,
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 3,001,703 2,455,764
Treasury stock at cost, 60,842 and
24,342 shares at June 30, 2009 and
December 31, 2008, respectively (77,502) (35,935)
------ ------
Total shareholders' equity 4,950,522 4,446,773
--------- ---------
Total liabilities and shareholders'
equity $6,321,788 5,856,847
========= =========
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended
June 30,
----------------
2009 2008
---- ----
Cash flows from operating activities:
Net income $545,939 544,535
Adjustments to reconcile net income to
net cash flows from operating
activities:
Depreciation 125,716 133,158
Amortization of software development
costs 40,892 40,892
Amortization of other intangible assets 42,356 42,356
Deferred income taxes (74,778) (80,120)
Purchases of trading securities (87,591) (146,993)
Proceeds from sales of trading
securities 123,056 162,965
Net unrealized (gains) losses on
trading securities (24,158) 13,016
Net realized (gains) losses on
sales of securities 24,082 (10,564)
Increase (decrease) in cash arising
from changes in assets and liabilities:
Accounts receivable (111,470) (175,200)
Prepaid software maintenance costs (20,210) (28,470)
Prepaid expenses and deposits 15,258 24,225
Prepaid income taxes (2,709) -
Accounts payable (49,749) 109,659
Accrued salaries and other expenses 64,163 21,142
Income taxes payable - (123,687)
Deferred revenue 30,153 90,137
Net cash flows from operating
activities 640,950 617,051
------- -------
Cash flows from investing activities:
Purchases of property and equipment (9,569) (120,258)
----- ------
Cash flows from financing activities:
Purchase of treasury shares (42,190) -
------ ------
Net increase in cash and cash equivalents 589,191 496,793
Cash and cash equivalents, beginning of
period 2,090,005 2,039,447
--------- ---------
Cash and cash equivalents, end of period $2,679,196 2,536,240
========= =========
Supplemental disclosures of cash flow items:
Income taxes paid $339,013 518,100
Non-cash transaction
Retirement of 520 and 60,000 treasury
shares during the six months ended
June 30, 2009 and 2008, respectively 623 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: Investor Relations of Advant-e Corporation, +1-937-429-4288, or
Web Site: http://www.advant-e.com/