Advant-e Corporation Announces Third Quarter 2007 Results

Company Reports 59% Increase in Revenue and 45% Net Income Growth over Q3 2006 


DAYTON, Ohio, Nov. 16  /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 September 30, 2007.

For the third quarter of 2007 the Company reported revenues of $2,178,155, a 59% increase over revenues of $1,368,582 in the third quarter of 2006. 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 third quarter of 2007 was $335,884, or $.05 per share, a 45% increase over net income of $232,375, or $.04 per share for the same period in 2006.  Net income increased 39% over the second quarter of 2007.

  Third Quarter Highlights

  -- Merkur Group Acquisition - Merkur directly contributed $610,300 to
     revenue in the quarter and net income of $38,310 before deducting non-
     cash charges pertaining to amortization of intangible assets of
     $13,554.
  -- Edict Systems Growth - Edict Systems revenue grew 15% in the quarter
     over Q3 2006 with all major service offerings contributing to this
     growth.  Net income attributable to Edict for the quarter was $311,128
     which is an improvement of 34% over the previous year period.
  -- Continued Profitability-The Company reports its seventeenth consecutive
     profitable quarter with pre-tax profitability of 23% in the current
     quarter.
  -- Share Repurchase Program - The Company purchased 60,000 shares at $1.25
     as part of the share repurchase program.



Jason K. Wadzinski, Chairman and Chief Executive Officer, remarked, "The third quarter of 2007 was highlighted by our recent acquisition of Merkur Group, Inc., which accounted for 28% of our revenue and contributed to our profitability for the quarter.  We are currently working on several opportunities to increase revenue for both Edict and Merkur by leveraging the strengths and product/service offerings of each company."

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         Nine Months Ended
                               September 30,             September 30,
                            2007         2006           2007       2006

  Revenue               $2,178,155    1,368,582      5,075,628   3,964,509
  Cost of revenue          818,716      422,394      1,810,060   1,199,923
  Gross margin           1,359,439      946,188      3,265,568   2,764,586
  Marketing, general
   and administrative
   expenses                876,090      589,891      2,231,039   1,799,812
  Operating income         483,349      356,297      1,034,529     964,774
  Other income, net         18,002       14,142         73,257      46,531
  Income before taxes      501,351      370,439      1,107,786   1,011,305
  Income tax expense       165,467      138,064        399,184     380,369
  Net income              $335,884      232,375        708,602     630,936
  Basic earnings
   per share                 $0.05         0.04           0.11        0.10
  Diluted earnings
   per share                 $0.05         0.04           0.11        0.10
  Weighted average
   shares outstanding    6,845,015    6,403,174      6,612,266   6,403,174

  Weighted average
   shares outstanding,
   assuming dilution     6,845,015    6,432,246      6,612,266   6,429,770



                  ADVANT-E CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED CONDENSED BALANCE SHEETS

                                                 September 30,  December 31,
                                                      2007          2006
                                                  (Unaudited)
  Assets
  Current Assets:
    Cash and cash equivalents                     $1,876,255     2,209,782
    Short-term investments                           295,663       274,434
    Accounts receivable, net                         894,188       477,639
    Prepaid software maintenance costs               198,742             -
    Prepaid expenses and deposits                     70,590        28,339
    Deferred income taxes                             50,226             -
  Total current assets                             3,385,664     2,990,194
  Software development costs, net                    214,684       247,621
  Property and equipment, net                        438,257       386,697
  Goodwill                                         1,376,452             -
  Other intangible assets, net                       519,822             -
      Total assets                                $5,934,879     3,624,512

  Liabilities and Shareholders' Equity
  Current liabilities:
    Borrowings under bank line of credit            $140,000             -
    Accounts payable                                 323,317        66,936
    Accrued salaries and other expenses              268,001       157,802
    Income taxes payable                             116,049       109,642
    Deferred revenue                                 621,682       112,846
    Deferred income taxes                                  -        53,119

  Total current liabilities                        1,469,049       500,345
  Deferred income taxes                              305,154       165,784
      Total liabilities                            1,774,203       666,129

  Shareholders' equity:
    Common stock, $.001 par value;
     20,000,000 shares authorized,
     6,875,015 and 6,478,714 issued, and
     6,815,015 and 6,478,714 outstanding
     at September 30, 2007 and December 31,
     2006, respectively                                6,875         6,478
    Paid-in capital                                2,210,200     1,641,906
    Retained earnings                              2,018,601     1,309,999
    Treasury stock at cost, 60,000 shares
     at September 30, 2007                           (75,000)            -

      Total shareholders' equity                   4,160,676     2,958,383

      Total liabilities and
       shareholders' equity                       $5,934,879     3,624,512



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

                                                      Nine Months Ended
                                                        September 30,
                                                      2007          2006

  Cash flows from operating activities:
    Net income                                      $708,602       630,936
    Adjustments to reconcile net income to
     net cash flows from operating activities:
      Depreciation                                   162,233       105,624
      Amortization of software development costs      48,300        93,793
      Amortization of intangible assets               21,178             -
      Loss on disposal of assets                           -        41,921
      Deferred income taxes                          (41,784)      116,963
      Purchases of trading securities               (154,868)            -
      Proceeds from sales of trading securities      159,184             -
      Net unrealized gain on trading securities      (12,573)             -
      Net realized gain on sale of securities        (12,972)       (8,768)
      Increase (decrease) in cash arising from
       changes in assets and liabilities:
        Accounts receivable                         (101,139)      (95,099)
        Prepaid software maintenance costs           (26,430)             -
        Prepaid expenses and deposits                 (3,841)      (21,015)
        Accounts payable                              70,493        11,538
        Accrued salaries and other expenses           68,320        11,315
        Income taxes payable                           6,407      (349,347)
        Deferred revenue                              38,310         5,077

        Net cash flows from operating activities     929,420       542,938

  Cash flows from investing activities:
    Purchases of available-for-sale securities             -      (107,966)
    Proceeds from sale of available-for-sale
     securities                                            -        90,085
    Purchases of property and equipment             (181,246)     (238,480)
    Software development costs                       (15,363)     (199,056)
    Cash paid for purchase of Merkur Group, Inc.    (971,338)             -

        Net cash flows from
         investing activities                     (1,167,947)     (455,417)

  Cash flows from financing activities:
    Net payments on bank line of credit              (20,000)            -
    Purchase of treasury stock                       (75,000)            -

        Net cash flows from financing activities     (95,000)            -

  Net decrease in cash and cash equivalents         (333,527)       87,521
  Cash and cash equivalents, beginning
   of period                                       2,209,782     1,763,435
  Cash and cash equivalents, end of period        $1,876,255     1,850,956
  Supplemental disclosures of cash flow items:
    Income taxes paid                               $434,561       641,000
  Noncash transactions:
    Common stock issued 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, Advant-e Corporation, [phone],

 



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

http://www.edictsystems.com/

http://www.merkurgroup.com/ 

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