Exhibit 99.1
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Company Contact:
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Kevin Scull
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Wayside
Technology Group, Inc.
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Vice President
and Chief Accounting Officer
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(732) 389-0932
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kevin.scull@waysidetechnology.com
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WAYSIDE
TECHNOLOGY GROUP, INC. REPORTS 2010 SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND
- Revenue: $48.4 million, up 31% year-over-year
- Income from operations $1.5 million, up 30% year-over-year
- $.15 dividend declared
SHREWSBURY, NJ, July 29,
2010 — Wayside Technology Group, Inc.
(NASDAQ: WSTG) today reported financial results for the second quarter ended June 30,
2010. The results will be
discussed in a conference call to be held on Friday, July 30, 2010 at
10:00 AM Eastern time. The dial-in telephone number is (866) 835 8907 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 also be available on the company’s website at
www.waysidetechnology.com.
Net sales for the second quarter of
2010 increased 31% or $11.4 million to $48.4 million compared to $37.0 million
for the same period in 2009. Total sales for the second quarter of 2010 for our
Lifeboat segment were $35.8 million compared to $25.0 million in the second
quarter of 2009, representing an increase of $10.8 million or 43%. Total sales
for the second quarter of 2010 for our Programmer’s Paradise segment were $12.6
million compared to $12.0 million in the second quarter of 2009, representing a
5% increase.
Sales from our Lifeboat segment
showed strong growth. The increase in net sales for the three and six months June 30,
2010 compared to 2009 was mainly a
result of our continued focus on the expanding virtual infrastructure-centric
business, the addition of several key product lines, and the strengthening of
our account penetration.
“The second quarter of 2010 showed
continued excellent growth,” said Simon F. Nynens, Chairman and Chief Executive
Officer. “We continue to strengthen our position in the software distribution
market and sign on new vendors.”
Gross Profit for the second quarter
of 2010 was $4.7 million compared to $4.1 million in the second quarter of
2009, a 15% increase. Total gross profit for our Lifeboat segment was $3.4
million compared to $2.5 million in the second quarter of 2009, representing a
32% increase. This increase in gross profit was due to aggressive sales volume
growth within our Lifeboat segment. Total gross profit for our Programmer’s
Paradise segment was $1.3 million compared to $1.6 million in the second
quarter of 2009, representing a 14% decrease. This decrease was primarily due
to competitive pricing pressure.
Total gross profit, as a percentage
of net sales, for the second quarter of 2010 was 9.7%, compared to 11.0% in the
second quarter of 2009.
Total selling, general, and
administrative (“SG&A”) expenses for the second quarter of 2010 were $3.2
million, compared to $2.9 million in the second quarter of 2009. This increase
is mainly due to an increase in employee related expenses (salaries,
commissions and bonus accruals and benefits) of $0.3 million.
Cash and marketable securities
amount to $17.4 million, representing 70% of equity as of June 30, 2010.
The company has no debt.
On July 27, 2010, the Board of
Directors declared a quarterly dividend of $.15 per share of its common stock
payable August 19, 2010 to shareholders of record on August 12, 2010.
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 Acronis, CA Technologies, DataCore, Dell, Flexera Software (publishers
of InstallShield), GFI, Hewlett Packard, Infragistics, Intel
Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft
Technology, TechSmith, Veeam, Vizioncore, and VMware.
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.
–Tables Follow
–
WAYSIDE
TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands, except share and per share amounts)
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June 30,
2010
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December 31,
2009
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(unaudited)
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ASSETS
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Current
assets
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Cash and
cash equivalents
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$
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9,611
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$
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8,560
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Marketable
securities
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7,832
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7,571
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Accounts
receivable, net
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31,791
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27,040
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Inventory
- finished goods
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1,316
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967
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Prepaid
expenses and other current assets
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1,160
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998
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Deferred
income taxes
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611
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677
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Total
current assets
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52,321
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45,813
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Equipment
and leasehold improvements, net
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412
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432
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Accounts
receivable long-term
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4,493
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6,901
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Other
assets
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39
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38
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Deferred
income taxes
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345
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483
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Total
assets
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$
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57,610
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$
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53,667
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current
liabilities
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Accounts
payable and accrued expenses
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$
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32,752
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$
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29,230
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Total
current liabilities
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32,752
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29,230
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Other
liabilities
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—
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78
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Total
liabilities
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32,752
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29,308
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Commitments
and contingencies
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Stockholders’
equity
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Common
stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,795,057 and 4,688,844 shares outstanding,
respectively
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53
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53
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Additional
paid-in capital
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24,839
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24,826
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Treasury
stock, at cost, 489,443 and 595,656 shares, respectively
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(3,315
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(3,555
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Retained
earnings
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2,985
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2,727
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Accumulated
other comprehensive income
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296
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308
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Total
stockholders’ equity
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24,858
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24,359
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Total
liabilities and stockholders’ equity
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$
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57,610
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$
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53,667
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WAYSIDE
TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
(In
thousands, except per share data)
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Six months
ended
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Three months
ended
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June 30,
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June 30,
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2010
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2009
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2010
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2009
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(Unaudited)
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(Unaudited)
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Revenues
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Lifeboat
segment
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$
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64,927
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$
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45,287
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$
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35,810
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$
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25,044
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Programmer’s
Paradise segment
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23,873
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23,495
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12,632
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11,988
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Total
Revenue
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88,800
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68,782
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48,442
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37,032
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Cost of
sales
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Lifeboat
segment
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58,930
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40,757
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32,458
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22,513
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Programmer’s
Paradise segment
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21,217
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20,477
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11,299
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10,438
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Total
Cost of sales
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80,147
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61,234
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43,757
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32,951
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Gross
Profit
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8,653
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7,548
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4,685
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4,081
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Operating
expenses
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Selling
costs
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3,200
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2,708
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1,652
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1,388
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Stock
based compensation
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596
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420
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296
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236
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Other
general and administrative expenses
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2,394
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2,434
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1,212
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1,287
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Total
Selling, general and administrative expenses
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6,190
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5,562
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3,160
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2,911
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Income
from operations
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2,463
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1,986
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1,525
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1,170
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Interest
income, net
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212
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274
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104
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126
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Realized
foreign exchange gain (loss)
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3
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(1
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2
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Income
before income tax provision
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2,678
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2,259
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1,631
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1,296
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Provision
for income taxes
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1,000
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891
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576
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506
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Net
income
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$
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1,678
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$
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1,368
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$
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1,055
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$
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790
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Net
income per common share - Basic
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$
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0.38
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$
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0.31
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$
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0.24
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$
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0.18
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Net
income per common share - Diluted
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$
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0.38
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$
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0.31
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$
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0.23
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$
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0.18
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Weighted
average common shares outstanding - Basic
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4,376
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4,392
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4,380
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4,400
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Weighted
average common shares outstanding - Diluted
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4,461
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4,419
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4,493
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4,426
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