Advant-e Corporation Announces First Quarter 2005 Results

Advant-e Corporation Announces First Quarter 2005 Results Company Reports 24% Increase in Revenue over 2004; Seventh Consecutive Profitable Quarter DAYTON, Ohio, May 10 /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 March 31, 2005. For the first quarter of 2005 the Company reported revenues of $1,039,488, a 24% increase over revenues of $838,635 in the first quarter of 2004, and a 5% increase over revenues of $990,077 in the fourth quarter of 2004. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services. Net income for the quarter was $105,109, or $.02 per share, compared to $114,241, or $.02 per share for the same period in 2004, and $127,111 for the fourth quarter of 2004. The decrease in net income was primarily the result of increased personnel costs. The first quarter of 2005 marks the seventh consecutive profitable quarter for Advant-e Corporation. Jason K. Wadzinski, President and CEO of Advant-e, stated, "The first quarter of 2005 is significant for us in that this is the first quarter where we've surpassed the million dollar mark in revenue. This was accomplished with strong growth for our web-EDI service in the grocery industry of 15% relative to the first quarter of 2004, but also with the 279% growth in non- grocery industries, which now accounts for 10% of our total revenue. Our balance sheet is gaining strength and we are looking forward to continuing our success in 2005 and beyond." 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.cpgsupplier.com/ , http://www.logisticsec.com/, and http://www.mfgec.com/ . In addition to Internet and web-based e-commerce solutions, Edict Systems also provides e-commerce integration and bar coding applications via its FORMULA_ONE(R) translation software and Bar Code Label Modules. 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 (937) 429-4288. The company's email is . ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) For the three months ended March 31, 2005 2004 ----- ----- Revenue $1,039,488 838,635 Cost of revenue 389,044 294,217 Gross margin 650,444 544,418 Marketing, general and administrative expenses 475,335 352,597 Operating income 175,109 191,821 Interest --- 2,180 Income before taxes 175,109 189,641 Income tax expense 70,000 75,400 Net income $105,109 114,241 Basic earnings per common share $0.02 0.02 Diluted earnings per common share $0.02 0.02 Weighted average common shares outstanding 6,268,250 6,244,917 Weighted average common shares outstanding, assuming dilution 6,268,250 6,542,186 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) At March 31, 2005 and December 31, 2004 March 31, December 31, 2005 2004 Assets Current Assets Cash and cash equivalents $1,230,429 944,892 Accounts receivable, net 295,086 290,394 Prepaid expenses and deposit 31,033 26,420 Total current assets 1,556,548 1,261,706 Software development costs, net 248,725 298,809 Property and equipment, net 265,448 271,604 Total assets $2,070,721 $1,832,119 Liabilities and Shareholders' Equity Current liabilities Accounts payable $58,008 39,681 Accrued salaries and other expenses 150,263 99,810 Income taxes payable 98,000 26,000 Deferred revenue 103,251 142,788 Total current liabilities 409,522 308,279 Long-term liabilities Deferred income taxes 163,000 191,000 Total liabilities 572,522 499,279 Shareholders' equity Common stock, $.001 par value; 20,000,000 shares authorized; 6,294,917 outstanding at March 31, 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 (43,880) (148,989) Total shareholders' equity 1,498,199 1,332,840 Total liabilities and shareholders' equity $2,070,721 1,832,119 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) For the three months ended March 31, 2005 and 2004 2005 2004 Cash flows from operating activities: Net income $105,109 114,241 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 23,383 12,816 Amortization of software development costs 66,397 80,252 Deferred income taxes (28,000) 75,400 Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable (4,692) (3,408) Prepaid expenses (4,613) 2,046 Accounts payable 18,327 (36,531) Accrued salaries, interest and other expenses 50,453 48,256 Income taxes payable 72,000 --- Deferred revenue (39,537) (26,890) Net cash flows from operating activities 258,827 266,182 Cash flows from investing activities: Purchases of equipment (17,227) (5,872) Software development costs (16,313) (43,359) Net cash flows from investing activities (33,540) (49,231) Cash flows from financing activities: Issuance of common stock 60,250 --- Payments on notes --- (94,965) Payments of direct costs of securities registration --- (2,040) Net cash flows from financing activities 60,250 (97,005) Net increase in cash and cash equivalents 285,537 119,946 Cash and cash equivalents, beginning of period 944,892 216,448 Cash and cash equivalents, end of period $1,230,429 336,394 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 , +1-937-429-4288, or Web site: http://www.advant-e.com/ http://www.groceryec.com/ http://www.retailec.com/ http://www.cpgsupplier.com/ http://www.logisticsec.com/ http://www.mfgec.com/