Advant-e Corporation Announces First Quarter 2012 Results

          Advant-e Corporation Announces First Quarter 2012 Results  Quarterly Revenue Increased by 7% and Net Income Increased by 1% Compared to the First Quarter of 2011  PR Newswire  DAYTON, Ohio, May 14, 2012  DAYTON, Ohio, May 14, 2012 /PRNewswire/ --Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the first quarter of 2012. The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group.  Revenue in the first quarter of 2012 of $2,465,438 increased by 7% over revenue of $2,300,420 in the first quarter of 2011. Revenue from Edict Systems increased by 8% and revenue from Merkur Group was approximately the same, compared to the first quarter in 2011.  Net income in the first quarter of 2012 was $387,207, or $.006 per share, compared to net income of $385,087, or $.006 per share, in the same period in 2011. Net income for Edict Systems decreased 2% while net income for Merkur Group increased by 20%.  Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "We again exceeded our 20% pre-tax profitability goal this quarter, although the higher cost of our new headquarters had an impact on net income. Pre-tax profitability was 24% and our cash position remains strong."  "We continued rolling out our updated Web EDI service to existing customers this quarter and plan on accelerating conversions over the remainder of this year," continued Mr. Wadzinski. "This new platform will enable us to offer additional services to our customers as well as attract new customers who want to utilize their EDI data in analyzing their business activities and optimizing performance."  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,                                                         2012        2011 Revenue                                                 $ 2,465,438 2,300,420 Cost of revenue                                         1,023,737   917,892 Gross margin                                            1,441,701   1,382,528 Marketing, general and administrative expenses          854,972     799,457 Operating income                                        586,729     583,071 Other income, net                                       810         1,127 Income before income taxes                              587,539     584,198 Income tax expense                                      200,332     199,111 Net income                                              $ 387,207   385,087 Earnings per share – basic and diluted                  $ 0.006     0.006 Weighted average shares outstanding – basic and diluted 66,722,590  66,722,590  ADVANT-E CORPORATION AND SUBSIDIARIES  CONSOLIDATED CONDENSED BALANCE SHEETS                                                    March 31, 2012 December 31,                                                                   2011                                                    (Unaudited) Assets Current Assets: Cash and cash equivalents                          $ 4,230,826    3,459,402 Accounts receivable, net                           828,102        784,239 Prepaid software maintenance costs                 209,462        190,429 Prepaid expenses and deposits                      104,094        107,871 Prepaid income taxes                               —              1,910 Deferred income taxes                              222,265        207,336 Total current assets                               5,594,749      4,751,187 Software development costs, net                    232,979        262,102 Property and equipment, net                        155,498        171,199 Goodwill                                           1,474,615      1,474,615 Other intangible assets, net                       138,618        159,796 Total assets                                       $ 7,596,459    6,818,899 Liabilities and Shareholders' Equity Current liabilities: Accounts payable                                   $ 121,135      112,402 Income taxes payable                               224,959        — Accrued salaries and other expenses                294,250        205,334 Deferred revenue                                   838,181        748,828 Total current liabilities                          1,478,525      1,066,564 Deferred income taxes                              176,848        198,456 Total liabilities                                  1,655,373      1,265,020 Shareholders' equity: Common stock, $.001 par value; 100,000,000 shares  authorized; 66,722,590    66,723         66,723 shares issued and outstanding Paid-in capital                                    1,936,257      1,936,257 Retained earnings                                  3,938,106      3,550,899 Total shareholders' equity                         5,941,086      5,553,879 Total liabilities and shareholders' equity         $ 7,596,459    6,818,899  ADVANT-E CORPORATION AND SUBSIDIARIES  CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)                                                          Three Months Ended                                                           March 31,                                                          2012        2011 Cash flows from operating activities: Net income                                               $ 387,207   385,087 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation                                             27,274      42,078 Amortization of software development costs               29,123      — Amortization of other intangible assets                  21,178      21,178 Deferred income taxes                                    (36,537)    (20,386) Increase (decrease) in cash and cash equivalents arising from  changes in assets and liabilities: Accounts receivable                                      (43,863)    (46,006) Prepaid software maintenance costs                       (19,033)    (27,727) Prepaid expenses and deposits                            3,777       8,700 Prepaid income taxes                                     1,910       — Accounts payable                                         8,733       55,650 Income taxes payable                                     224,959     169,497 Accrued salaries and other expenses                      88,916      93,332 Deferred revenue                                         89,353      59,895 Net cash flows from operating activities                 782,997     741,298 Cash flows from investing activities: Purchases of property and equipment                      (11,573)    (6,236) Software development costs                               —           (40,636) Net cash flows from investing activities                 (11,573)    (46,872) Net increase in cash and cash equivalents                771,424     694,426 Cash and cash equivalents, beginning of period           3,459,402   2,963,172 Cash and cash equivalents, end of period                 $ 4,230,826 3,657,598 Supplemental disclosures of cash flow items: Income taxes paid                                        $ 10,000    50,000  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 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.  SOURCE Advant-e Corporation  
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