AVEE Avantis Emerging Markets Small Cap Equity ETF

Company Reports 59% Increase in Revenue and 45% Net Income Growth over Q3 2006 DAYTON, Ohio, Nov. 16 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC:AVEE) (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 http://www.advant-e.com/, http://www.edictsystems.com/, and http://www.merkurgroup.com/, or by contacting investor relations at (937) 429-4288. The company's email is . 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, December 31, 2007 2006 (Unaudited) Assets Current Assets: Cash and cash equivalents $1,876,255 2,209,782 Short-term investments 295,663 274,434 Accounts receivable, net 894,188 477,639 Prepaid software maintenance costs 198,742 - Prepaid expenses and deposits 70,590 28,339 Deferred income taxes 50,226 - Total current assets 3,385,664 2,990,194 Software development costs, net 214,684 247,621 Property and equipment, net 438,257 386,697 Goodwill 1,376,452 - Other intangible assets, net 519,822 - Total assets $5,934,879 3,624,512 Liabilities and Shareholders' Equity Current liabilities: Borrowings under bank line of credit $140,000 - Accounts payable 323,317 66,936 Accrued salaries and other expenses 268,001 157,802 Income taxes payable 116,049 109,642 Deferred revenue 621,682 112,846 Deferred income taxes - 53,119 Total current liabilities 1,469,049 500,345 Deferred income taxes 305,154 165,784 Total liabilities 1,774,203 666,129 Shareholders' equity: Common stock, $.001 par value; 20,000,000 shares authorized, 6,875,015 and 6,478,714 issued, and 6,815,015 and 6,478,714 outstanding at September 30, 2007 and December 31, 2006, respectively 6,875 6,478 Paid-in capital 2,210,200 1,641,906 Retained earnings 2,018,601 1,309,999 Treasury stock at cost, 60,000 shares at September 30, 2007 (75,000) - Total shareholders' equity 4,160,676 2,958,383 Total liabilities and shareholders' equity $5,934,879 3,624,512 ADVANT-E CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 2007 2006 Cash flows from operating activities: Net income $708,602 630,936 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation 162,233 105,624 Amortization of software development costs 48,300 93,793 Amortization of intangible assets 21,178 - Loss on disposal of assets - 41,921 Deferred income taxes (41,784) 116,963 Purchases of trading securities (154,868) - Proceeds from sales of trading securities 159,184 - Net unrealized gain on trading securities (12,573) - Net realized gain on sale of securities (12,972) (8,768) Increase (decrease) in cash arising from changes in assets and liabilities: Accounts receivable (101,139) (95,099) Prepaid software maintenance costs (26,430) - Prepaid expenses and deposits (3,841) (21,015) Accounts payable 70,493 11,538 Accrued salaries and other expenses 68,320 11,315 Income taxes payable 6,407 (349,347) Deferred revenue 38,310 5,077 Net cash flows from operating activities 929,420 542,938 Cash flows from investing activities: Purchases of available-for-sale securities - (107,966) Proceeds from sale of available-for-sale securities - 90,085 Purchases of property and equipment (181,246) (238,480) Software development costs (15,363) (199,056) Cash paid for purchase of Merkur Group, Inc. (971,338) - Net cash flows from investing activities (1,167,947) (455,417) Cash flows from financing activities: Net payments on bank line of credit (20,000) - Purchase of treasury stock (75,000) - Net cash flows from financing activities (95,000) - Net decrease in cash and cash equivalents (333,527) 87,521 Cash and cash equivalents, beginning of period 2,209,782 1,763,435 Cash and cash equivalents, end of period $1,876,255 1,850,956 Supplemental disclosures of cash flow items: Income taxes paid $434,561 641,000 Noncash transactions: Common stock issued in connection with purchase of Merkur Group, Inc. 568,692 - 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. DATASOURCE: Advant-e Corporation CONTACT: Investor Relations, Advant-e Corporation, +1-937-429-4288, Web site: http://www.advant-e.com/ http://www.edictsystems.com/ http://www.merkurgroup.com/

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