Advant-e Corporation Announces Third Quarter 2005 Results11 November 2005
Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending September 30, 2005. For the third quarter of 2005 the Company reported revenues of $1,143,058, a 24% increase over revenues of $920,038 in the third quarter of 2004. The increase in revenue demonstrates the growing support in the marketplace for the Company's principal products -- web-based electronic data interchange subscription services (Web EDI) and electronic business transaction network services (EnterpriseEC(TM)). Net income for the quarter was $164,945, or $.02 per share, a 37% increase over net income of $120,628, or $.02 per share for the same period in 2004. "We are pleased with our continued growth in both revenue and earnings," said Jason K. Wadzinski, Chairman and Chief Executive Officer. "Once again our revenue hit a new record and our net income for the third quarter increased by 37% over both the third quarter of last year and second quarter of 2005. Our history of revenue growth over several years and our profitability over the past nine consecutive quarters has resulted in a strong financial foundation which we intend to leverage to enhance growth in the coming years." For the nine months ending September 30, 2005 the Company reported revenues of $3,258,931, a 25% increase over revenues of $2,610,655 in the same period in 2004. Net income for the period in 2005 was $390,324, or $.06 per share, compared to $342,212, or $.05 per share in the 2004 period. About Advant-e Corporation Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC(R), an Internet-based Electronic Business Transaction Network, and within specific vertical industries via web-based "vortals" including http://www.GroceryEC.com, http://www.RetailEC.com, http://www.AutomotiveEC.com, http://www.MfgEC.com and http://www.CPGSupplier.com. In addition to Internet and web-based e-commerce solutions, Edict Systems also provides e-commerce integration and bar coding applications. Additional information about Advant-e Corporation can be found at http://www.Advant-e.com and http://www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com. ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Revenue $ 1,143,058 920,038 3,258,931 2,610,655 Cost of revenue 379,142 309,224 1,142,521 913,705 Gross margin 763,916 610,814 2,116,410 1,696,950 Marketing, general and administrative expenses494,103 408,186 1,471,118 1,122,158 Operating income 269,813 202,628 645,292 574,792 Other income (expense) 5,132 --- 5,132 (2,180) Income before taxes274,945 202,628 650,424 572,612 Income tax expense 110,00082,000 260,100 230,400 Net income $ 164,945 120,628 390,324 342,212 Basic earnings per share $ 0.02 0.02 0.06 0.05 Diluted earnings per share $ 0.02 0.02 0.06 0.05 Weighted average shares outstanding 6,332,423 6,244,917 6,298,765 6,244,917 Weighted average shares outstanding, assuming dilution 6,364,810 6,634,107 6,308,378 6,628,571 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS September 30, December 31, 2005 2004 (Unaudited) Assets Current Asset ash and cash equivalents $ 1,472,745 944,892Short-term investments220,750 ---Accounts receivable, net 297,923 290,394Prepaid expenses and deposit43,055 26,420 Total current assets 2,034,473 1,261,706 Software development costs, net 178,048 298,809 Property and equipment, net 274,974 271,604 Total assets $ 2,487,495 1,832,119 Liabilities and Shareholders' Equity Current liabilitie ccounts payable$ 40,372 39,681Accrued salaries and other expenses 107,325 99,810Income taxes payable 268,100 26,000Deferred income taxes 27,600 ---Deferred revenue 87,194 142,788 Total current liabilities530,591 308,279 Deferred income taxes 148,000 191,000 Total liabilities 678,591 499,279 Shareholders' equit ommon stock, $.001 par value; 20,000,000 shares authorized; 6,403,714 outstanding at September 30, 2005 and 6,244,917 outstanding at December 31, 20046,4036,245Paid-in capital1,560,185 1,475,584Accumulated other comprehensive income 981 ---Retained earnings (deficit)241,335 (148,989) Total shareholders' equity 1,808,904 1,332,840 Total liabilities and shareholders' equity $ 2,487,495 1,832,119 ADVANT-E CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30,20052004 Cash flows from operating activities:Net income $ 390,324 342,212Adjustments to reconcile net income to net cash flows from operating activities: Depreciation80,115 57,238 Amortization of software development costs 185,280 250,828 Deferred income taxes(16,000)230,400 Increase (decrease) in cash arising from changes in assets and liabilities:Accounts receivable (7,529)(29,415)Prepaid expenses (16,635) (6,839)Accounts payable 691 (39,776)Accrued salaries, interest and other expenses 7,515 58,721Income taxes payable 242,100---Deferred revenue (55,594) 16,829Net cash flows from operating activities 810,267 880,198 Cash flows from investing activities:Purchases of available-for-sale investments(235,175) ---Proceeds from sale of available-for-sale investments 16,006---Purchases of equipment (83,485) (171,197)Software development costs (64,519) (116,589)Net cash flows from investing activities (367,173) (287,786) Cash flows from financing activities:Issuance of common stock 91,500---Payments on notes --- (94,965)Payments of direct costs of securities registration (6,741)(15,339)Net cash flows from financing activities84,759(110,304) Net increase in cash and cash equivalents 527,853 482,108 Cash and cash equivalents, beginning of period 944,892 216,448 Cash and cash equivalents, end of period $ 1,472,745 698,556 Supplemental disclosures of cash flow items:Interest paid $ --- 3,014Income taxes paid $ 34,000--- 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 or 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: PR Newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Computer Hardware Articles
|
