EX-99.1 2 dex991.htm COMPANY PRESS RELEASE Company Press Release

Exhibit 99.1

LOGO

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.