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 FOURTH QUARTER
RESULTS AND DECLARES QUARTERLY DIVIDEND

- Revenue: $42.3 million, up 6% year-over-year

- Net income $0.9 million, $.20 per share

- $.15 dividend declared

SHREWSBURY, NJ, February 4, 2010 – Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the fourth quarter ended December 31, 2009. The results will be discussed in a conference call to be held on Friday, February 5, 2010 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 also be available on the company’s website at www.waysidetechnology.com.
 
Net income for the fourth quarter of 2009 amounted to $900,000 or 2.1% of net sales as compared to $902,000 or 2.2% for the same period in 2008.

Cash and marketable securities amount to $16.1 million, representing 67% of equity as of December 31, 2009. The company has no debt.
 
Total net sales for the fourth quarter of 2009 amounted to $42.3 million, compared to $40.0 million for the same period in 2008, representing a 6% increase. Sales for the fourth quarter of 2009 for the Lifeboat segment were $28.9 million compared to $22.7 million in the fourth quarter of 2008, representing a 27% increase. Sales for the fourth quarter of 2009 for the Programmer’s Paradise segment were $13.4 million, compared to $17.3 million in the fourth quarter of 2008, representing a 23% decline.
 
Total gross profit for the fourth quarter of 2009 amounted to $4.4 million, compared to $4.5 million for the same period in 2008. Gross profit for the fourth quarter of 2009 for the Lifeboat segment was $3.1 million, compared to $2.5 million in the fourth quarter of 2008. Gross profit for the fourth quarter of 2009 for the Programmer’s Paradise segment was $1.3 million, compared to $2.0 million in the fourth quarter of 2008. The decrease in gross profit dollars for the Programmer’s Paradise segment was primarily due to the lower sales volume. Q4 revenue for our Lifeboat segment increased due to strong growth for some of our product lines as well as signing on more software publishers. As a result, gross profit dollars for our Lifeboat segment increased by 25% in the fourth quarter of 2009.
 
 
Total gross profit, as a percentage of net sales, for the quarter ending December 31, 2009, was 10.3%, compared to 11.2% in the fourth quarter of 2008.
 
“I’m very pleased with our solid YTD 2009 results as well as our fourth quarter results,” said Simon F. Nynens, Chairman and Chief Executive Officer. “We have performed well in a very difficult economic climate and strengthened our position in the software distribution market in 2009 and continued to sign on new vendors. Strict cost controls allowed us to drive a solid earnings performance.”

Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2009 were $3.0 million compared to $3.1 million in the fourth quarter of 2008.

On February 3, 2010, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable February 19, 2010 to shareholders of record on February 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 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)
  
             
             
   
December 31, 2009
    
December 31, 2008
  
   
 
        
             
ASSETS
  
             
Current assets
            
Cash and cash equivalents
   $ 8,560     $ 9,349  
Marketable securities
     7,571       9,367  
Accounts receivable, net
     27,040       16,940  
Inventory - finished goods
     967       1,058  
Prepaid expenses and other current assets
     998       776  
Deferred income taxes
     677       712  
Total current assets
     45,813       38,202  
                 
Equipment and leasehold improvements, net
     432       549  
Accounts Receivable Long-Term
     6,901       7,860  
Other assets
     38       66  
Deferred income taxes
     483       808  
                 
Total assets
   $ 53,667     $ 47,485  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
  
                 
Current liabilities
                
Accounts payable and accrued expenses
     29,230       23,396  
Total current liabilities
     29,230       23,396  
                 
Other liabilities
     78       205  
Total liabilities
     29,308       23,601  
                 
Commitments and contingencies
                
                 
Stockholders' equity
                
Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,688,844 and 4,643,662 shares outstanding, respectively
     53       53  
Additional paid-in capital
     24,826       26,636  
Treasury stock, at cost, 595,656 shares and 640,838 shares, respectively
     (3,555 )     (3,383 )
Retained earnings
     2,727       567  
Accumulated other comprehensive income
     308       11  
Total stockholders' equity
     24,359       23,884  
Total liabilities and stockholders' equity
   $ 53,667     $ 47,485  
 
 
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
  
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
  
(In thousands, except per share data)
  
                         
   
Year ended
    
Three months ended
  
   
December 31,
    
December 31,
  
   
2009
    
2008
    
2009
    
2008
  
               
(Unaudited )
  
Net Sales
   $ 146,384     $ 174,025     $ 42,292     $ 40,030  
Cost of sales
     130,791       157,228       37,941       35,530  
Gross profit
     15,593       16,797       4,351       4,500  
Selling, general and administrative expenses
     11,319       12,207       3,016       3,148  
Income from operations
     4,274       4,590       1,335       1,352  
Interest income, net
     521       741       118       192  
Realized foreign exchange gain (loss)
     -       3       1       (3 )
Income before income tax provision
     4,795       5,334       1,454       1,541  
Provision for income taxes
     1,928       2,168       554       639  
Net income
   $ 2,867     $ 3,166     $ 900     $ 902  
Net income per common share - Basic
   $ 0.65     $ 0.72     $ 0.20     $ 0.21  
Net income per common share - Diluted
   $ 0.65     $ 0.71     $ 0.20     $ 0.20  
                                 
Weighted average common shares outstanding - Basic
     4,399       4,414       4,397       4,389  
Weighted average common shares outstanding - Diluted
     4,427       4,461       4,430       4,414