AdStar Inc. (ADST.PK)

Adstar, Inc. provides classified advertising technology services to publishers, primarily in the newspaper industry in the United States. The company offers services using its proprietary software that electronically connects advertisers with newspaper publishing systems, as well as online advertising formats. Its software applications enable professional advertising agencies, businesses, and individuals to electronically send ads to publishers, for insertion in newspapers, Web sites, and other media. The company’s services are provided on an application service provider (ASP) basis, enabling publishers to expand their relationships with advertising customers using a single integrated platform. Its professional software applications accept transmissions from classified advertising agencies and corporations using desktop software and Web-based communications. The company’s ASP Web site technology enables visitors to a newspaper’s Web site, giving the opportunity to buy classified ads, for both the print and/or online editions of the newspaper on a 24/7 basis. In addition, Adstar, through its subsidiary, Edgil Associates, Inc., provides credit card processing services to the newspaper industry. Edgil offers system integration, installation support, training, and customer services, as well as EdgCapture software that allows publishers and groups of publishers to establish their own private payment processing interfaces. The company was founded in 1986. It was formerly known as AdStar com, Inc. and AdStar-Services, Inc. The company is based in Marina del Rey, California.

For the six months ended 30 June 2006, AdStar, Inc.'s revenues fell 2% to $2.5M. Net loss applicable to Common rose 72% to $654K. Revenues reflect a rise in ASP revenues due to net increase of seven publication customers serviced & higher transaction volumes. Higher loss reflects an increase in cost of revenue, rise in costs of marketing programs intended to expand the volume and the presence of employee stock compensation expenses.