DAYTON, Ohio, March 31 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: AVEE - News), the parent company of Edict Systems, Inc., a provider of solutions to connect, integrate, manage, and expand e-Business trading communities, today announced financial and operating results for the year ended December 31, 2002.
For the period the Company reported revenues of $2,008,389
compared to $1,185,318 for the fiscal year ended 2001. The
69% increase in revenues is attributed to a sharp increase
in revenues from the company's web-EDI solutions, primarily
www.GroceryEC.com , the company's first vertical industry
portal ("Vortal") for suppliers and retailers in
the grocery industry.
The net loss for the year ended December 31, 2002 was $307,534, or $.05 per share, compared to a net loss of $161,629, or $.03 per share for the same period in 2001. Expenses in 2002 totaled $2,342,189 compared to expenses of $1,364,529 in 2001.
Interest expense in 2002 of $311,463 included $202,473 of non-cash interest related to the value of warrants and the beneficial conversion feature of convertible debt issued in 2001 and 2002.
The Company reports positive cash flow from operations of $198,013 in 2002. Cash flow from operations does not include the Company's investing activities in 2002 of expenditures for software development costs of $307,703 and for new equipment of $149,345, nor does it include the Company's financing activities in 2002 that included proceeds of $250,000 from the issuance of 10% notes and repayments of bank loans totaling $72,904.
Jason K. Wadzinski, Chief Executive Officer of Advant-e, reported that the year's results reflected the continued acceptance of the Company's web-EDI solutions that provide small and medium size suppliers with the ability to support the e-Business initiatives of their large customers. In addition, EnterpriseEC®, the Company's Electronic Trading Network and Trading Community Management Platform began to contribute revenue in 2002. Internet- based revenue increased 106% to $1,728,996 in 2002 from $839,074 in 2001 and comprised 86% of total revenue. The Company's software revenue declined 19% to $279,393 in 2002 from $346,244 in 2001.
Commenting on the year-end results, Mr. Wadzinski stated, "We are pleased with our revenue growth in 2002 given the challenging economic environment that many technology companies faced last year. We attribute our growth to the value that our e-Business solutions provide all participants in the trading communities that we support".
Mr. Wadzinski continued, "Edict Systems accomplished many milestones in 2002 including moving to a new facility to support our growth, filling key positions, increasing our sales and marketing staff, and enhancing our capabilities internally and with business partners to provide a more robust set of product and service offerings. By offering products and services that connect, integrate, manage, and expand e-Business trading communities, Edict Systems has positioned itself to increase its leadership position in the markets that it targets".
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
Year Ended December 31
-----------------------
2002 2001
---- ----
REVENUES
Internet products and services $ 1,728,996 839,074
Software and license fees 279,393 346,244
--------- ---------
Total revenues 2,008,389 1,185,318
--------- ---------
OPERATING EXPENSES
Production 132,433 61,468
Salaries and benefits 1,151,413 734,922
General and administrative 526,510 301,964
Compensation for investor relations services
in exchange for warrants - 4,800
Depreciation 36,081 29,164
Amortization of software development costs 184,289 104,253
Interest 311,463 127,958
--------- ---------
Total operating expenses 2,342,189 1,364,529
--------- ---------
LOSS BEFORE INCOME TAX BENEFIT (333,800) (179,211)
INCOME TAX BENEFIT ( 26,266) ( 17,582)
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NET LOSS $ (307,534) (161,629)
========= ==========
LOSS PER SHARE
Basic and diluted $ (0.05) (0.03)
========= =========
AVERAGE SHARES OUTSTANDING
Basic and diluted 5,661,002 5,638,969
========= =========
ADVANT-E CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
December 31
-----------------------
ASSETS 2002 2001
---- ----
CURRENT ASSETS
Cash and cash equivalents $ 98,740 180,679
Accounts receivable, net 157,655 84,229
Prepaid expenses 46,817 83,092
Deferred income taxes 40,600 39,716
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Total current assets 343,812 387,716
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SOFTWARE DEVELOPMENT COSTS, net of
accumulated amortization of $294,767 at
December 31, 2002 and $271,632 at
December 31, 2001 634,956 511,542
PROPERTY AND EQUIPMENT, net of accumulated
depreciation of $103,460 at December 31,
2002 and $153,846 at December 31, 2001 171,589 58,325
OTHER ASSETS
Deferred income taxes 79,046 53,664
Deposits 6,583 -
------ ------
85,629 53,664
--------- ---------
Total assets $ 1,235,986 1,011,247
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 158,320 96,950
Accrued expenses 167,625 55,887
Deferred revenue 93,893 114,297
Bank notes payable 14,097 91,798
Convertible subordinated notes
payable, net 729,621 364,320
8% demand notes payable to shareholder 45,000 45,000
--------- -------
Total current liabilities 1,208,556 768,252
--------- -------
LONG-TERM LIABILITIES
Bank notes payable, less current
maturities 4,797 -
--------- -------
Total liabilities 1,213,353 768,252
--------- -------
SHAREHOLDERS' EQUITY
Common stock, $.001 par value; 20,000,000
shares authorized; 5,661,002 issued and
outstanding 5,661 5,661
Paid-in capital 850,459 763,287
Retained earnings deficit (833,487) (525,953)
------- -------
Total shareholders' equity 22,633 242,995
------- -------
Total liabilities and shareholders'
equity $ 1,235,986 1,011,247
========= =========
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.
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 .