Tuesday, May 06, 2003
Advant-e Corporation Announces First Quarter 2003 Results
Revenue Increases 61% in Q1 2003 over Q1 2002; 14% Revenue
Increase over Q4 2002
DAYTON, Ohio, May 6 /PRNewswire-FirstCall/ -- Advant-e Corporation
(OTC Bulletin Board: AVEE
- News),
a provider of business-to-business electronic commerce internet-based
solutions and software, today announced financial and operating
results for the quarter ending March 31, 2003.
For the first quarter of 2003 the Company reported revenues
of $649,378, a 61% increase over revenues of $403,250 in the
first quarter in 2002 and a 14% increase over revenues of
$567,292 in the fourth quarter of 2002. The increase in revenue
was the result of continuing growth and market acceptance
of the Company's internet-based electronic commerce subscription
services.
Internet-based revenue was 94% of total revenue in the first
quarter of 2003 compared to 85% in first quarter of 2002,
and 92% in the fourth quarter of 2002.
Expenses in the first quarter of 2003 were $731,209 compared
to $452,063 in the first quarter of 2002 and $763,469 in the
fourth quarter of 2002. Net cash provided by operating activities
for the quarter was $108,509 compared to $43,928 for the first
quarter of 2002, and compared to net cash used in operating
activities of $18,474 in the fourth quarter of 2002.
Net loss for the first quarter of 2003 was $69,824, ($.01)
per share, compared to a net loss of $51,408, ($.01) per share,
for the first quarter of 2002 and a net loss of $161,301,
($.03) per share, for the fourth quarter of 2002.
Jason K. Wadzinski, President and CEO of Advant-e, stated,
"I am pleased with the progress we've made in the first
quarter of 2003. The value proposition of our solutions to
connect, integrate, manage, and expand e- Business trading
communities is being received well by our targeted market.
Our Internet-based solutions in combination with products
and services provided by our alliance partners offer our customers
the ability to connect electronically with 100% of their business
partners. We are finding that large organizations are increasing
the use of existing technology investments due to the tight
economy which bodes well for our goal of assisting them with
gaining the maximum return on this strategy."
Edict Systems, Inc., a wholly owned and sole operating entity
of Advant-e, is considered by many to be a leader for web-EDI
solutions for browser-based processing of Electronic Data
Interchange (EDI) documents. GroceryEC.com, the Company's
web-EDI solution for the grocery supply chain has processed
over $3.75 Billion worth of purchase orders since its release
in October of 1999.
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®,
an Internet-based Electronic Business Transaction Network,
and within specific vertical industries via web-based "vortals"
including www.GroceryEC.com
, www.RetailEC.com
, www.CPGSupplier.com
, www.LogisticsEC.com
, and www.MfgEC.com
.
In addition to Internet and web-based e-commerce solutions,
Edict Systems also provides e-commerce integration and bar coding
applications via its FORMULA_ONE® translation software and
Bar Code Label Modules. Additional information about Advant-e
Corporation can be found at www.Advant-e.com
and 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 STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
March 31,
2003 2002
---- ----
REVENUES
Internet products and services $ 609,944 344,009
Software and license fees 39,434 59,241
------- -------
Total revenues 649,378 403,250
------- -------
OPERATING EXPENSES
Production 27,738 32,558
Salaries and benefits 386,465 230,175
General and administrative 186,120 70,334
Depreciation 9,336 6,702
Amortization of software development costs 68,264 27,144
Interest 53,286 85,150
------- -------
Total operating expenses 731,209 452,063
------- -------
LOSS BEFORE TAXES (81,831) (48,813)
INCOME TAXES (BENEFIT) (12,007) 2,595
-------- --------
NET LOSS $ (69,824) (51,408)
======== ========
LOSS PER SHARE
Basic and diluted $ (0.01) (0.01)
===== =====
AVERAGE SHARES OUTSTANDING
Basic and diluted 5,661,002 5,661,002
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
March December
31, 31,
2003 2002
---- ----
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 147,997 98,740
Accounts receivable, net 149,328 157,655
Prepaid expenses 61,375 46,817
Deferred income taxes 52,607 40,600
------- -------
Total current assets 411,307 343,812
------- -------
SOFTWARE DEVELOPMENT COSTS, net of accumulated
amortization of $363,031 at March 31, 2003
and $294,767 at December 31, 2002 608,592 634,956
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $112,795 at March 31, 2003
and $103,460 at December 31, 2002 176,193 171,589
OTHER ASSETS
Deferred income taxes 79,046 79,046
Deposits 6,583 6,583
------ ------
85,629 85,629
--------- ---------
Total assets $ 1,281,721 1,235,986
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 214,824 158,320
Accrued interest 145,404 118,025
Other accrued expenses 80,878 49,600
Deferred revenue 75,910 93,893
Bank notes payable 14,294 14,097
Convertible subordinated notes payable, net 751,414 729,621
8% demand notes payable to shareholder 45,000 45,000
--------- ---------
Total current liabilities 1,327,724 1,208,556
--------- ---------
LONG-TERM LIABILITIES
Bank notes payable, less current maturities 1,188 4,797
--------- ---------
Total liabilities 1,328,912 1,213,353
--------- ---------
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.001 par value; 20,000,000
shares authorized; 5,661,002 issued and
outstanding 5,661 5,661
Paid-in capital 850,459 850,459
Accumulated deficit (903,311) (833,487)
-------- --------
Total shareholders' equity (deficit) ( 47,191) 22,633
--------- ---------
Total liabilities and shareholders'
equity (deficit) $ 1,281,721 1,235,986
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three Months Ended
March 31,
2003 2002
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (69,824) ( 51,408)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 9,336 6,702
Amortization of software development costs 68,264 27,144
Deferred income taxes (benefit) (12,007) 2,595
Amortization of note discount resulting from
valuation of warrants and beneficial
conversion features 21,793 61,795
Increase (decrease) in cash arising from
changes in assets and liabilities:
Accounts receivable 8,327 (37,062)
Prepaid expenses (14,558) (10,661)
Accounts payable 56,504 19,815
Accrued interest 27,379 20,588
Other accrued expenses 31,278 24,175
Deferred revenue (17,983) (19,755)
------- ------
Net cash provided by
operating activities 108,509 43,928
------- ------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of equipment (13,940) ( 9,200)
Software development costs (41,900) (94,756)
------- -------
Net cash used in investing activities ( 55,840) (103,956)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on bank loans ( 3,412) (31,236)
------- --------
Net cash used in financing activities ( 3,412) (31,236)
------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 49,257 (91,264)
Cash and cash equivalents, beginning of period 98,740 180,679
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 147,997 89,415
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ITEMS
Interest paid $ 4,115 2,767
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.
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