AVEE Advant-e Corporation Announces Third Quarter 2007 Results

Advant-e Corporation Announces Third Quarter 2007 ResultsPR Newswire "US Press Releases "
DAYTON, Ohio, Nov. 16 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: AVEE), a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced financial and operating results for the quarter ending September 30, 2007.
For the third quarter of 2007 the Company reported revenues of $2,178,155, a 59% increase over revenues of $1,368,582 in the third quarter of 2006. The increase is attributable primarily to revenue from products and services sold by Merkur Group, Inc. which was acquired on July 2, 2007, and continued growth of the Company's internet-based EDI services.
Net income for the third quarter of 2007 was $335,884, or $.05 per share, a 45% increase over net income of $232,375, or $.04 per share for the same period in 2006. Net income increased 39% over the second quarter of 2007. Third Quarter Highlights
-- Merkur Group Acquisition - Merkur directly contributed $610,300 to
revenue in the quarter and net income of $38,310 before deducting non-
cash charges pertaining to amortization of intangible assets of
$13,554.
-- Edict Systems Growth - Edict Systems revenue grew 15% in the quarter
over Q3 2006 with all major service offerings contributing to this
growth. Net income attributable to Edict for the quarter was $311,128
which is an improvement of 34% over the previous year period.
-- Continued Profitability-The Company reports its seventeenth consecutive
profitable quarter with pre-tax profitability of 23% in the current
quarter.
-- Share Repurchase Program - The Company purchased 60,000 shares at $1.25
as part of the share repurchase program.
Jason K. Wadzinski, Chairman and Chief Executive Officer, remarked, "The third quarter of 2007 was highlighted by our recent acquisition of Merkur Group, Inc., which accounted for 28% of our revenue and contributed to our profitability for the quarter. We are currently working on several opportunities to increase revenue for both Edict and Merkur by leveraging the strengths and product/service offerings of each company."
About Advant-e Corporation
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc is a provider of internet-based 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 info@edictsystems.com.
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Revenue $2,178,155 1,368,582 5,075,628 3,964,509
Cost of revenue 818,716 422,394 1,810,060 1,199,923
Gross margin 1,359,439 946,188 3,265,568 2,764,586
Marketing, general
and administrative
expenses 876,090 589,891 2,231,039 1,799,812
Operating income 483,349 356,297 1,034,529 964,774
Other income, net 18,002 14,142 73,257 46,531
Income before taxes 501,351 370,439 1,107,786 1,011,305
Income tax expense 165,467 138,064 399,184 380,369
Net income $335,884 232,375 708,602 630,936
Basic earnings
per share $0.05 0.04 0.11 0.10
Diluted earnings
per share $0.05 0.04 0.11 0.10
Weighted average
shares outstanding 6,845,015 6,403,174 6,612,266 6,403,174
Weighted average
shares outstanding,
assuming dilution 6,845,015 6,432,246 6,612,266 6,429,770
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30, Decem