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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