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): May 17, 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 May 17, 2010 Advant-e Corporation issued a press release announcing results of operations for the quarter ended March 31, 2010. 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)
May 17, 2010	By:	/s/ Jason K. Wadzinski
		Jason K. Wadzinski
		Chief Executive Officer

EX-99.1

Exhibit 99.1

Monday, May 17, 2010

Advant-e Corporation Announces First Quarter 2010

Results

Company Reports Net Income Increase of 13% and Revenue Increase of 2% over First

Quarter of 2009

DAYTON, Ohio, May 17, 2009 — Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the first quarter of 2010. 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 first quarter of 2010 the Company reported revenue of $2,193,821, a 2% increase, compared to revenue of $2,155,291 in the first quarter of 2009. Revenue from Edict Systems increased 10% in the quarter while revenue from Merkur Group decreased by 33%.

Net income for the first quarter of 2010 was $264,279, or $.004 per share, a 13% increase compared to net income of $234,677, or $.003 per share, for the same period in 2009.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “Edict Systems performed well in the first quarter with revenue increases across all major product and service categories and an increase in net income of 31%. Merkur Group continues to struggle with sluggish software sales as potential customers continued to delay purchasing decisions as they deal with the uncertainty of today’s business climate. Due to Merkur’s recurring revenue from maintenance contracts on software sold in prior years as well as the Company’s efforts to control costs and expenses, Merkur contributed slightly to net income in the quarter.”

“I am cautiously optimistic that Merkur’s results will improve during the remainder of 2010. The overall economy is showing signs of improvement and Merkur’s pipeline of opportunities is expanding for both software-based and on-demand services,” continued Mr. Wadzinski.

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 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 advant-e@edictsystems.com.

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended March 31,
	2010		2009
Revenue	$	2,193,821	2,155,291
Cost of revenue		933,984	899,659
Gross margin		1,259,837	1,255,632
Marketing, general and administrative expenses		859,101	887,285
Operating income		400,736	368,347
Other income (expense), net		800	(19,649	)
Income before income taxes		401,536	348,698
Income tax expense		137,257	114,021
Net income	$	264,279	234,677
Earnings per share – basic and diluted	$	0.004	0.003
Weighted average shares outstanding – basic and diluted		66,722,590	67,116,990

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

	March 31, 2010 (Unaudited)			December 31, 2009
Assets
Current Assets:
Cash and cash equivalents	$	3,240,650		2,713,996
Accounts receivable, net		772,824		634,055
Prepaid software maintenance costs		197,635		162,507
Prepaid expenses and deposits		78,988		75,519
Prepaid income taxes		—		39,798
Deferred income taxes		163,056		139,144
Total current assets		4,453,153		3,765,019
Software development costs, net		188,119		149,956
Property and equipment, net		305,594		312,821
Goodwill		1,474,615		1,474,615
Other intangible assets, net		308,042		329,220
Total assets	$	6,729,523		6,031,631
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	154,087		115,546
Dividend payable		1,334,452		1,334,452
Accrued salaries and other expenses		304,942		146,699
Income taxes payable		120,840		—
Deferred revenue		697,756		582,298
Total current liabilities		2,612,077		2,178,995
Deferred income taxes		261,555		261,024
Total liabilities		2,873,632		2,440,019
Shareholders’ equity:
Common stock, $.001 par value; 100,000,000 shares authorized; 66,951,010 shares issued and 66,722,590 shares outstanding		66,951		66,951
Paid-in capital		1,964,221		1,964,221
Retained earnings		1,852,911		1,588,632
Treasury stock at cost, 228,420 shares		(28,192	)	(28,192	)
Total shareholders’ equity		3,855,891		3,591,612
Total liabilities and shareholders’ equity	$	6,729,523		6,031,631

ADVANT-E CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months Ended March 31,
	2010			2009
Cash flows from operating activities:
Net income	$	264,279		234,677
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation		55,480		62,767
Amortization of software development costs		20,446		20,445
Amortization of other intangible assets		21,178		21,178
Loss on disposal of property and equipment		800		—
Deferred income taxes		(23,381	)	(45,039	)
Purchases of trading securities		—		(43,949	)
Proceeds from sales of trading securities		—		49,828
Net unrealized loss on trading securities		—		4,667
Net realized loss on sale of trading securities		—		18,401
Increase (decrease) in cash arising from changes in assets and liabilities:
Accounts receivable		(138,769	)	(129,200	)
Prepaid software maintenance costs		(35,128	)	(16,829	)
Prepaid expenses and deposits		(3,469	)	(5,240	)
Prepaid income taxes		39,798		16,837
Accounts payable		38,541		1,802
Accrued salaries and other expenses		158,243		(37,891	)
Income taxes payable		120,840		116,223
Deferred revenue		115,458		30,958
Net cash flows from operating activities		634,316		299,635
Cash flows from investing activities:
Purchases of property and equipment		(49,053	)	(7,390	)
Software development costs		(58,609	)	—
Net cash flows from investing activities		(107,662	)	(7,390	)
Cash flows from financing activities:
Purchase of treasury shares		—		(3,920	)
Net increase in cash and cash equivalents		526,654		288,325
Cash and cash equivalents, beginning of period		2,713,996		2,090,005
Cash and cash equivalents, end of period	$	3,240,650		2,378,330
Supplemental disclosures of cash flow items:
Income taxes paid	$	—		26,000
Non-cash transaction: Retirement of shares		—		623

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.