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 /PRNewswire-FirstCall/ -- 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 [email protected].
ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) |
|||
Three Months Ended |
|||
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, |
||
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.
SOURCE Advant-e Corporation
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