Company Contact:
Kevin Scull
Wayside Technology Group, Inc.
Vice President and Chief Accounting Officer
(732) 389-0932
kevin.scull@waysidetechnology.com
 
 
WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2009 THIRD QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

SHREWSBURY, NJ, 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.


–Tables Follow –
 
 
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