Exhibit 99.1
Company Contact:
Bill Willett
Programmer's ParadiseÒ
, Inc.
Chairman and Chief Executive Officer
(732)-389-8950
bill.willett@programmers.com
PROGRAMMER'S PARADISE, INC. REPORTS 2005 THIRD QUARTER
FINANCIAL RESULTS
THIRD QUARTER SALES INCREASE 32% INCOME FROM OPERATIONS INCREASES 52%
SHREWSBURY, NJ, October 27, 2005 - Programmer's Paradise, Inc. (NASDAQ: PROG) today reported financial results for the third quarter ended September 30, 2005. The results will be discussed in a conference call to be held on Friday, October 28, 2005 at 10:00 AM Eastern time. The dial-in telephone number is (866) 814-8476 and the pass code is PROG.
Net sales for the quarter ending September 30, 2005 were $35.5 million compared with $26.8 million in the third quarter of 2004, a 32% increase. "This solid performance is the result of improved productivity of our account executive team including our sales office in Long Island which opened last quarter," said William H. Willett, Chairman and Chief Executive Officer.
Income from operations for the quarter ending September 30, 2005 was $0.9 million compared with $0.6 million in the third quarter of 2004 or an increase of 52%.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware. When it comes to software, Programmer's Paradise has it all. Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.
Additional information can be found by visiting www.programmersparadise.com.
Contact Programmer's Paradise, Inc. via Bill Willett, CEO of Programmer's Paradise, Inc. at (732) 389-8950 or bill.willett@programmers.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 include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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.
- Tables Follow -
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PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
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September 30, 2005 (Unaudited)
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December 31, 2004
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$4,609 |
$4,888 |
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Marketable securities |
7,911 |
6,595 |
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Accounts receivable, net |
17,586 |
14,173 |
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Inventory - finished goods |
1,263 |
1,423 |
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Prepaid expenses and other current assets |
450 |
673 |
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Deferred income taxes, current |
1,738 |
1,423 |
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Total current assets |
33,557 |
29,175 |
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Equipment and leasehold improvements, net |
442 |
303 |
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Other assets |
465 |
581 |
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Deferred income taxes, net of current |
2,053 |
2,855 |
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Total assets |
$ 36,517 |
$ 32,914 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable and accrued expenses |
$ 19,082 |
$ 15,994 |
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Dividend payable |
480 |
425 |
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Total current liabilities |
19,562 |
16,419 |
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Commitments and contingencies |
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Stockholders' equity |
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Common stock, $.01 par value; authorized, 10,000,000 shares; issued 5,284,500 shares |
53 |
53 |
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Additional paid-in capital |
31,468 |
32,642 |
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Treasury stock, at cost, 1,289,665 shares and 1,418,090 shares, respectively |
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Accumulated deficit |
(11,135) |
(12,223) |
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Accumulated other comprehensive income |
189 |
153 |
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Total stockholders' equity |
16,955 |
16,495 |
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Total liabilities and stockholders' equity |
$ 36,517 |
$ 32,914 |
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PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
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(Unaudited) |
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(In thousands, except per share data) |
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Nine months |
Three months |
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ended |
ended |
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September 30, |
September 30, |
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2005 |
2004 |
2005 |
2004 |
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Net sales |
$95,692 |
$72,560 |
$ 35,471 |
$ 26,788 |
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Cost of sales |
85,016 |
63,677 |
31,594 |
23,574 |
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Gross profit |
10,676 |
8,883 |
3,877 |
3,214 |
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Selling, general and administrative expenses |
9,064 |
7,359 |
2,956 |
2,607 |
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Income from operations |
1,612 |
1,524 |
921 |
607 |
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Interest income, net |
218 |
87 |
79 |
34 |
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Realized foreign exchange gain (loss) |
(14) |
4 |
10 |
32 |
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Income before income tax provision |
1,816 |
1,615 |
1,010 |
673 |
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Provision for income taxes |
728 |
104 |
407 |
47 |
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Net income |
$ 1,088 |
$ 1,511 |
$ 603 |
$ 626 |
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Net income per common share - Basic |
$ 0.27 |
$ 0.40 |
$ 0.15 |
$ 0.16 |
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Net income per common share - Diluted |
$ 0.25 |
$ 0.37 |
$ 0.14 |
$ 0.15 |
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Weighted average common shares outstanding - Basic |
3,969 |
3,819 |
3,994 |
3,834 |
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Weighted average common shares outstanding - Diluted |
4,391 |
4,071 |
4,339 |
4,189 |
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Reconciliation to comprehensive income: |
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Net income |
$ 1,088 |
$ 1,511 |
$ 603 |
$ 626 |
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Other comprehensive income (loss), net of tax: Unrealized gain (loss) on marketable securities |
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Foreign currency translation adjustments |
22 |
26 |
55 |
76 |
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Total comprehensive income |
$ 1,124 |
$1,515 |
$ 666 |
$716 |