8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the

Securities and Exchange Act of 1934

Date of Report (Date of earliest event reported): March 11, 2010

ADVANT-E CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	0-30983	88-0339012
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
2680 Indian Ripple Rd., Dayton, OH		45440
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 937-429-4288

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On March 11, 2010 Advant-e Corporation issued a press release announcing results of operations for the year ended December 31, 2009. The text of the release is attached as an exhibit hereto.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) EXHIBITS.

Exhibit Number	Description	Method of Filing
99.1	Company Press Release	Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Advant-e Corporation
	(Registrant)
March 12, 2010	By:	/s/ Jason K. Wadzinski
		Jason K. Wadzinski
		Chief Executive Officer

EX-99.1

Exhibit 99.1

Company Press Release

Thursday March 11, 2010 8:00 a.m.

Advant-e Corporation Announces Financial Results for 2009

Company Reports Record Net Income in 2009

Net Income in 2009 Increased by 12% Despite 2% Decrease in Revenue Compared to Prior Year

Revenue in 2009 for Internet-based EDI Services Increased; Software Revenue Decreased

DAYTON, Ohio, Thursday March 11, 2010 — Advant-e Corporation (OTC Bulletin Board: ADVC), today announced financial and operating results for 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.

The Company reported revenue in 2009 of $8,649,199, a 2% decrease compared to revenue of $8,869,169 in 2008. The decrease is attributable to a significant decline in revenue from our Merkur Group subsidiary from $2,134,193 in 2008 to $1,505,974 in 2009. This decline was partially offset by the increase in revenue for Edict Systems from $6,734,976 in 2008 to $7,143,225 in 2009. Revenue for Edict Systems increased by $408,249, or 6%, while revenue from Merkur Group decreased by $628,219, or 29%.

The Company reported record net income for 2009 of $1,194,802, or $.018 per share, compared to $1,063,790, or $.016 per share, in 2008. Net income in 2009 increased 12% compared to 2008. Earnings per share for 2009 and 2008 reflect the increased number of outstanding shares that resulted from the ten for one stock split in the fourth quarter of 2009.

Highlights of 2009 financial and operating results include:

• Edict Systems Revenue Increased for the Ninth Consecutive Year – Revenue for Edict Systems increased across all major product and service categories in 2009 compared to 2008 with the exception of AutomotiveEC, which declined due to the overall weakness in the automotive sector. Revenue from EnterpriseEC^®, a hosted integration service, increased by 15%, from $1,175,178 in 2008 to $1,351,233 in 2009.

• Net Income Exceeded $1 million for Third Consecutive Year – The Company in 2009 reported a net profit for the seventh consecutive year.

• Merkur Group Net Income increased by 47% – Despite a significant decline in revenue for Merkur Group, net Income increased by 47% to $177,459 in 2009 from $121,048 in 2008. The increase was due to the Company’s efforts to control costs and operating expenses.

• Special Cash Dividend – In 2009 the Company announced a special cash dividend of $0.03 per share totaling $2,001,678, to be paid in three installments of $.01 per share. The first installment was paid in December of 2009. Two additional installments of $.01 per share each are scheduled to be paid in June of 2010 and December of 2010.

• Strong Cash Position at Year-end – Cash and cash equivalents of $2,713,996 provide a solid foundation for growth and meeting financial obligations in 2010 and beyond.

• No Outstanding Bank or Other Long-Term Debt – The Company continues to maintain an unused $1.5 million bank line of credit.

Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “2009 was another challenging year for Advant-e with a significant reduction in software revenue from Merkur Group. Customers in the automotive industry were hit very hard by the economic downturn, and accordingly, revenue from our automotive sector declined for the first year since we entered the industry in 2004. We were successful, however, in planning for the slow economy in 2009 as we reduced our selling, general and administrative expenses sufficiently to report a record net income.”

“I continue to be positive about our prospects going forward and our ability to produce acceptable financial results under the current adverse economic conditions. We continue to pursue new industries that would benefit from our services and have been making inroads into the health care market. Merkur Group is expanding product offerings and recently introduced an automated remittance advice solution for its PeopleSoft integration. Edict and Merkur personnel have been working together to combine product offerings into a certified SaaS EDI solution for the PeopleSoft market.”

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 www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The Company’s email is info@edictsystems.com.

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2009 and 2008

	2009			2008
Assets
Current assets:
Cash and cash equivalents	$	2,713,996		2,090,005
Short-term investments		—		232,721
Accounts receivable, net		634,055		699,095
Prepaid software maintenance costs		162,507		156,027
Prepaid expenses and deposits		75,519		74,361
Prepaid income taxes		39,798		16,837
Deferred income taxes		139,144		152,156
Total current assets		3,765,019		3,421,202
Software development costs, net		149,956		112,453
Property and equipment, net		312,821		434,645
Goodwill		1,474,615		1,474,615
Other intangible assets, net		329,220		413,932
Total assets	$	6,031,631		5,856,847
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	115,546		207,374
Dividends payable		1,334,452		—
Accrued salaries and other expenses		146,699		283,360
Deferred revenue		582,298		583,677
Total current liabilities		2,178,995		1,074,411
Deferred income taxes		261,024		335,663
Total liabilities		2,440,019		1,410,074
Shareholders’ equity:
Common stock, $.001 par value; 100,000,000 shares authorized, 66,951,010 shares issued, and 66,722,590 shares outstanding at December 31, 2009; 20,000,000 shares authorized, 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008		66,951		6,738
Paid-in capital		1,964,221		2,020,206
Retained earnings		1,588,632		2,455,764
Treasury stock, at cost, 228,420 shares at December 31, 2009 and 24,342 at December 31, 2008		(28,192	)	(35,935	)
Total shareholders’ equity		3,591,612		4,446,773
Total liabilities and shareholders’ equity	$	6,031,631		5,856,847

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

For the years ended December 31, 2009 and 2008

	2009		2008
Revenue	$	8,649,199	8,869,169
Cost of revenue		3,561,780	3,476,670
Gross margin		5,087,419	5,392,499
Marketing, general and administrative expenses		3,294,187	3,705,542
Operating income		1,793,232	1,686,957
Other income (expense), net		5,007	(30,701	)
Income before income taxes		1,798,239	1,656,256
Income tax expense		603,437	592,466
Net income	$	1,194,802	1,063,790
Earnings per share – basic and diluted	$	0.018	0.016
Weighted average shares outstanding – basic and diluted		66,869,669	67,857,940

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2009 and 2008

	2009			2008
Cash flows from operating activities:
Net income	$	1,194,802			1,063,790
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation		257,340			284,097
Amortization of software development costs		81,784			81,785
Amortization of other intangible assets		84,712			84,712
Deferred income taxes		(61,627	)		(65,294	)
Purchases of trading securities		(99,922	)		(264,182	)
Proceeds from sale of trading securities		327,193			258,457
Net realized (gain) loss on sales of securities		(34,546	)		952
Net unrealized loss on trading securities		39,996			64,203
Increase (decrease) in cash arising from changes in assets and liabilities, net of effects of acquisition:
Accounts receivable		65,040			106,146
Prepaid software maintenance costs		(6,480	)		27,591
Prepaid expenses and deposits		(1,158	)		(5,431	)
Prepaid income taxes		(22,961	)		(16,837	)
Accounts payable		(91,828	)		(4,364	)
Accrued salaries and other expenses		(136,661	)		10,150
Income taxes payable		—			(136,947	)
Deferred revenue		(1,379	)		(61,416	)
Net cash flows from operating activities		1,594,305			1,427,412
Cash flows from investing activities:
Purchases of property and equipment		(135,516	)		(285,084	)
Software development costs		(119,287	)		—
Net cash flows from investing activities		(254,803	)		(285,084	)
Cash flows from financing activities:
Purchase of treasury shares		(48,285	)		(151,066	)
Dividends paid		(667,226	)		(940,704	)
Net cash flows from financing activities		(715,511	)		(1,091,770	)
Net increase in cash and cash equivalents		623,991			50,558
Cash and cash equivalents, beginning of year		2,090,005			2,039,447
Cash and cash equivalents, end of year	$	2,713,996		$	2,090,005
Supplemental disclosures of cash flow items:
Income taxes paid	$	688,024			810,279
Non cash transactions:
Retirement of shares	$	56,028			190,131
Dividends declared in 2009 and payable in 2010	$	1,334,452			—

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.