SOURCE: Wayside Technology Group

Wayside Technology Group

October 29, 2009 17:00 ET

Wayside Technology Group, Inc. Reports 2009 Third Quarter Results and Declares Quarterly Dividend

SHREWSBURY, NJ--(Marketwire - October 29, 2009) - Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the third quarter ended September 30, 2009. The results will be discussed in a conference call to be held on Friday, October 30, 2009 at 10:00 AM Eastern time. The dial-in telephone number is (866) 238-0637 and the pass code is "WSTG."

This conference call will be available via live webcast -- in listen-mode only -- at www.earnings.com. A replay will be available on the company's website at www.waysidetechnology.com.

Net income for the third quarter of 2009 amounted to $598,000 or 1.7% of net sales as compared to $811,000 or 1.8% for the same period in 2008.

Cash and marketable securities amount to $14.1 million, representing 57% of equity as of September 30, 2009. The company has no debt.

Total net sales for the third quarter of 2009 amounted to $35.3 million, compared to $45.4 million for the same period in 2008. Sales for the third quarter of 2009 for the Lifeboat segment were $23.8 million compared to $30.1 million in the third quarter of 2008. Excluding VMware, Lifeboat's sales increased by $1.9 million, or 9% compared to the third quarter of 2008. Sales for the third quarter of 2009 for the Programmer's Paradise segment were $11.5 million, compared to $15.3 million in the third quarter of 2008.

Total gross profit for the third quarter of 2009 amounted to $3.7 million, compared to $4.3 million for the same period in 2008. Gross profit for the third quarter of 2009 for the Lifeboat segment was $2.3 million, compared to $2.6 million in the third quarter of 2008. Gross profit for the third quarter of 2009 for the Programmer's Paradise segment was $1.4 million, compared to $1.6 million in the third quarter of 2008. Gross profit dollars decreased in both segments primarily due to the lower sales volume.

Total gross profit, as a percentage of net sales, for the quarter ending September 30, 2009, was 10.5%, compared to 9.4% in the third quarter of 2008.

"I'm pleased with our solid third quarter results," said Simon F. Nynens, Chairman and Chief Executive Officer. "We performed well in a continued tough economic climate. We strengthened our position in the software distribution market and continued to sign on new vendors. We also maintained our focus on costs, which allowed us to drive a solid earnings performance."

Total selling, general, and administrative ("SG&A") expenses for the third quarter of 2009 were $2.7 million compared to $3.0 million in the third quarter of 2008.

On October 27, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable November 20, 2009 to shareholders of record on November 13, 2009.

About Wayside Technology Group, Inc.

Wayside Technology Group, Inc. (NASDAQ: WSTG) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers, as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Microsoft, CA, IBM, VMware, Quest Software, DataCore, Embarcadero Technologies, SAP BusinessObjects, Intel, Compuware, Infragistics, SolarWinds, Flexera Software (publishers of InstallShield), and Adobe.

Additional information can be found by visiting www.waysidetechnology.com.

The statements in this release concerning the Company's future prospects are forward-looking statements that involve certain risks and uncertainties. Such risks and uncertainties could cause actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general and other factors. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in our filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.


              WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
            (In thousands, except share and per share amounts)



                                                September 30,  December 31,
                                                    2009          2008
                                                ------------  ------------
                                                (Unaudited)

                           ASSETS

Current assets
  Cash and cash equivalents                     $      6,223  $      9,349
  Marketable securities                                7,839         9,367
  Accounts receivable, net                            22,430        16,940
  Inventory - finished goods                           1,147         1,058
  Prepaid expenses and other current assets              652           776
  Deferred income taxes                                  651           712
                                                ------------  ------------
Total current assets                                  38,942        38,202

Equipment and leasehold improvements, net                504           549
Accounts Receivable Long-Term                          5,762         7,860
Other assets                                              40            66
Deferred income taxes                                    511           808
                                                ------------  ------------

Total assets                                    $     45,759  $     47,485
                                                ============  ============


          LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses         $     21,225  $     23,396
                                                ------------  ------------
Total current liabilities                             21,225        23,396

Other liabilities                                         78           205
                                                ------------  ------------
Total liabilities                                     21,303        23,601

Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000
   shares authorized, 5,284,500 shares
   issued, and 4,767,818 and 4,643,662 shares
   outstanding, respectively                              53            53
  Additional paid-in capital                          24,600        26,636
  Treasury stock, at cost, 516,682 shares and
   640,838 shares, respectively                       (2,959)       (3,383)
  Retained earnings                                    2,534           567
  Accumulated other comprehensive income                 228            11
                                                ------------  ------------
Total stockholders' equity                            24,456        23,884
                                                ------------  ------------
Total liabilities and stockholders' equity      $     45,759  $     47,485
                                                ============  ============




              WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE
                                  INCOME
                                (Unaudited)
                  (In thousands, except per share data)


                                  Nine months ended   Three months ended
                                    September 30,         September 30,
                                  2009       2008       2009       2008
                                ---------  ---------- ---------- ---------
Net Sales                       $ 104,092  $  133,994 $   35,310 $  45,392

Cost of sales                      92,850     121,698     31,616    41,139
                                ---------  ---------- ---------- ---------
Gross profit                       11,242      12,296      3,694     4,253

Selling, general and
 administrative expenses            8,303       9,059      2,741     3,043
                                ---------  ---------- ---------- ---------

Income from operations              2,939       3,237        953     1,210

Interest income, net                  403         549        128       173

Realized foreign exchange gain
 (loss)                                (1)          6          -        (1)
                                ---------  ---------- ---------- ---------
Income before income tax
 provision                          3,341       3,792      1,081     1,382

Provision for income taxes          1,374       1,529        483       571
                                ---------  ---------- ---------- ---------

Net income                      $   1,967  $    2,263 $      598 $     811
                                =========  ========== ========== =========

Net income per common share -
 Basic                          $    0.45  $     0.51 $     0.14 $    0.18
                                =========  ========== ========== =========

Net income per common share -
 Diluted                        $    0.44  $     0.50 $     0.13 $    0.18
                                =========  ========== ========== =========

Weighted average common shares
 outstanding - Basic                4,400       4,422      4,415     4,408
                                =========  ========== ========== =========

Weighted average common shares
 outstanding - Diluted              4,427       4,491      4,444     4,438
                                =========  ========== ========== =========