Company Reports 24% Increase in Revenue and 37% Increase in Net
Income over Q3 2004 DAYTON, Ohio, Nov. 9 /PRNewswire-FirstCall/ --
Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of
Internet-based business-to-business electronic commerce services,
today announced financial and operating results for the quarter
ending September 30, 2005. For the third quarter of 2005 the
Company reported revenues of $1,143,058, a 24% increase over
revenues of $920,038 in the third quarter of 2004. The increase in
revenue demonstrates the growing support in the marketplace for the
Company's principal products -- web-based electronic data
interchange subscription services (Web EDI) and electronic business
transaction network services (EnterpriseEC(TM)). Net income for the
quarter was $164,945, or $.02 per share, a 37% increase over net
income of $120,628, or $.02 per share for the same period in 2004.
"We are pleased with our continued growth in both revenue and
earnings," said Jason K. Wadzinski, Chairman and Chief Executive
Officer. "Once again our revenue hit a new record and our net
income for the third quarter increased by 37% over both the third
quarter of last year and second quarter of 2005. Our history of
revenue growth over several years and our profitability over the
past nine consecutive quarters has resulted in a strong financial
foundation which we intend to leverage to enhance growth in the
coming years." For the nine months ending September 30, 2005 the
Company reported revenues of $3,258,931, a 25% increase over
revenues of $2,610,655 in the same period in 2004. Net income for
the period in 2005 was $390,324, or $.06 per share, compared to
$342,212, or $.05 per share in the 2004 period. 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 (937) 429-4288. The company's
email is . ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine
Months Ended September 30, September 30, 2005 2004 2005 2004
Revenue $ 1,143,058 920,038 3,258,931 2,610,655 Cost of revenue
379,142 309,224 1,142,521 913,705 Gross margin 763,916 610,814
2,116,410 1,696,950 Marketing, general and administrative expenses
494,103 408,186 1,471,118 1,122,158 Operating income 269,813
202,628 645,292 574,792 Other income (expense) 5,132 --- 5,132
(2,180) Income before taxes 274,945 202,628 650,424 572,612 Income
tax expense 110,000 82,000 260,100 230,400 Net income $ 164,945
120,628 390,324 342,212 Basic earnings per share $ 0.02 0.02 0.06
0.05 Diluted earnings per share $ 0.02 0.02 0.06 0.05 Weighted
average shares outstanding 6,332,423 6,244,917 6,298,765 6,244,917
Weighted average shares outstanding, assuming dilution 6,364,810
6,634,107 6,308,378 6,628,571 ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS September 30, December 31,
2005 2004 (Unaudited) Assets Current Assets Cash and cash
equivalents $ 1,472,745 944,892 Short-term investments 220,750 ---
Accounts receivable, net 297,923 290,394 Prepaid expenses and
deposit 43,055 26,420 Total current assets 2,034,473 1,261,706
Software development costs, net 178,048 298,809 Property and
equipment, net 274,974 271,604 Total assets $ 2,487,495 1,832,119
Liabilities and Shareholders' Equity Current liabilities Accounts
payable $ 40,372 39,681 Accrued salaries and other expenses 107,325
99,810 Income taxes payable 268,100 26,000 Deferred income taxes
27,600 --- Deferred revenue 87,194 142,788 Total current
liabilities 530,591 308,279 Deferred income taxes 148,000 191,000
Total liabilities 678,591 499,279 Shareholders' equity Common
stock, $.001 par value; 20,000,000 shares authorized; 6,403,714
outstanding at September 30, 2005 and 6,244,917 outstanding at
December 31, 2004 6,403 6,245 Paid-in capital 1,560,185 1,475,584
Accumulated other comprehensive income 981 --- Retained earnings
(deficit) 241,335 (148,989) Total shareholders' equity 1,808,904
1,332,840 Total liabilities and shareholders' equity $ 2,487,495
1,832,119 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended
September 30, 2005 2004 Cash flows from operating activities: Net
income $ 390,324 342,212 Adjustments to reconcile net income to net
cash flows from operating activities: Depreciation 80,115 57,238
Amortization of software development costs 185,280 250,828 Deferred
income taxes (16,000) 230,400 Increase (decrease) in cash arising
from changes in assets and liabilities: Accounts receivable (7,529)
(29,415) Prepaid expenses (16,635) (6,839) Accounts payable 691
(39,776) Accrued salaries, interest and other expenses 7,515 58,721
Income taxes payable 242,100 --- Deferred revenue (55,594) 16,829
Net cash flows from operating activities 810,267 880,198 Cash flows
from investing activities: Purchases of available-for-sale
investments (235,175) --- Proceeds from sale of available-for-sale
investments 16,006 --- Purchases of equipment (83,485) (171,197)
Software development costs (64,519) (116,589) Net cash flows from
investing activities (367,173) (287,786) Cash flows from financing
activities: Issuance of common stock 91,500 --- Payments on notes
--- (94,965) Payments of direct costs of securities registration
(6,741) (15,339) Net cash flows from financing activities 84,759
(110,304) Net increase in cash and cash equivalents 527,853 482,108
Cash and cash equivalents, beginning of period 944,892 216,448 Cash
and cash equivalents, end of period $ 1,472,745 698,556
Supplemental disclosures of cash flow items: Interest paid $ ---
3,014 Income taxes paid $ 34,000 --- 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 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/
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