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 |
WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2010 FOURTH QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND
· 4th quarter revenue: $64.9 million, up 54% year-over-year
· 2010 revenue: $206.7 million, up 41% year-over-year
· Income from operations $2.4 million, up 79% year-over-year
· $.16 quarterly dividend declared
SHREWSBURY, NJ, February 3, 2011 — Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the fourth quarter ended December 31, 2010. The results will be discussed in a conference call to be held on Friday, February 4, 2011 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.
Cash and marketable securities amount to $15.5 million, representing 58% of equity as of December 31, 2010.
Net sales for the fourth quarter of 2010 increased 54% or $22.6 million to $64.9 million compared to $42.3 million for the same period in 2009. Total sales for the fourth quarter of 2010 for our Lifeboat segment were $45.8 million compared to $28.9 million in the fourth quarter of 2009, representing a 58% increase. Total sales for the fourth quarter of 2010 for our Programmer’s Paradise segment were $19.1 million compared to $13.4 million in the fourth quarter of 2009, representing a 43% increase.
Net sales for 2010 increased 41% or $60.3 million to $206.7 million compared to $146.4 million in 2009. Total sales for our Lifeboat segment were $149.2 million compared to $98.1 million in 2009, representing a 52% increase. Total sales for the Programmer’s Paradise segment in 2010 amounted to $57.6 million, compared to $48.3 million in 2009, representing a 19% increase.
“The fourth quarter of 2010 was a tremendous success for us,” said Simon F. Nynens, Chairman and Chief Executive Officer. “Our continued high growth rate shows that software publishers and our customers are exceedingly satisfied with our service model, as we continue to expand our offerings.”
Sales for both segments showed strong growth. The increase in net sales for the three months and full year results for the period ended December 31, 2010 compared to the same periods in 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.
Gross Profit for the quarter ended December 31, 2010 was $6.2 million compared to $4.4 million for the fourth quarter of 2009, a 43% increase. Total gross profit for our Lifeboat segment was $4.3 million compared to $3.1 million in the fourth quarter of 2009, representing a 39% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment, as well as vendor rebates and discounts earned. Total gross profit for our Programmer’s Paradise segment was $1.9 million compared to $1.3 million in the fourth quarter of 2009, representing a 53% increase. This increase was primarily due to the increased sales volume. Vendor rebates and discounts for the quarter ended December 31, 2010 amounted to $0.9 million compared to $0.4 million for the fourth quarter of 2009, mainly as a result of our aggressive sales growth.
Gross Profit for 2010 was $20.0 million compared to $15.6 million in 2009, a 28% increase. Total gross profit for our Programmer’s Paradise segment was $6.3 million compared to $5.7 million in 2009, representing a 12% increase. Total gross profit for our Lifeboat segment was $13.7 million compared to $9.9 million in 2009, representing a 38% increase. Vendor rebates and discounts for 2010 amounted to $2.4 million compared to $1.0 million for 2009, mainly as a result of our aggressive sales growth.
Total gross profit, as a percentage of net sales, for the fourth quarter of 2010 was 9.6%, compared to 10.3% in the fourth quarter of 2009.
The increase in gross profit dollars and the decrease in gross profit margin as a percentage of net sales was primarily caused by the aggressive sales growth within our Lifeboat segment, competitive pricing pressure in both segments, and also in part by our having won several large bids based on aggressive pricing, which we plan to continue to do.
Total selling, general, and administrative (“SG&A”) expenses for the fourth quarter of 2010 were $3.8 million, compared to $3.0 million in the fourth quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions, bonus accruals and benefits) of $0.6 million.
On February 1, 2011, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable February 18, 2011 to shareholders of record on February 8, 2011.
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, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, 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.
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