SHREWSBURY, NJ--(Marketwire - January 31, 2008) - Wayside Technology Group, Inc. (
NASDAQ:
WSTG) today reported financial results for the fourth quarter ended
December 31, 2007. The results will be discussed in a conference call to be
held on Friday, February 1, 2008 at 10:00 AM Eastern time. The dial-in
telephone number is (866) 814-8483 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 our website at
www.waysidetechnology.com.
Net income for 2007 was $3.7 million versus $3.3 million for 2006, an
increase of 13%. Cash and cash equivalents as per December 31, 2007 were
$23.9 million versus $20.9 million in 2006, an increase of $3 million or
14%. Cash and cash equivalents amounted to 98% of equity as per December
31, 2007. Total dividends paid in 2007 amounted to $2.7 million. Net cash
provided by operating activities amounted to $5.2 million.
Total net sales for the fourth quarter of 2007 decreased 17% or $9.7
million to $47.1 million compared to $56.8 million for the same period in
2006. Sales for the fourth quarter of 2007 for our Lifeboat segment were
$34.5 million compared to $45.1 million in the fourth quarter of 2006,
representing a 24% decrease. Sales for the fourth quarter of 2007 for our
Programmer's Paradise segment were $12.6 million compared to $11.8 million
in the fourth quarter of 2006, representing a 7% increase. On a sequential
basis, sales for our Lifeboat and Programmer's Paradise segment increased
by 12% and 14%, respectively, as compared to the third quarter of 2007.
Gross profit margin, as a percentage of net sales, for the quarter ending
December 31, 2007 was 9.2% compared to 8.2% in the fourth quarter of 2006.
"New VMware distributors continued with ultra low pricing strategies," said
Simon F. Nynens, chairman and chief executive officer. "As a result our
VMware labeled sales declined $15.2 million versus the fourth quarter of
2006. We are pleased to report that our strategy to add new publishers as
well as expanding our current relationships with software publishers is
working very well. Excluding VMware, sales increased by $5.4 million or
20%."
On January 30, 2008, the Board of Directors declared a quarterly dividend
of $.15 per share of its common stock payable February 20, 2008 to
shareholders of record on February 7, 2008.
Total gross profit for the quarter ended December 31, 2007 was $4.3 million
compared to $4.7 million in the fourth quarter of 2006, an 8% decrease.
Gross profit for our Programmer's Paradise segment for the quarter ended
December 31, 2007 was $1.5 million compared to $1.6 million in the fourth
quarter of 2006, representing a 9% decrease. Gross profit for our Lifeboat
segment for the quarter ended December 31, 2007 was $2.8 million compared
to $3.1 million in the fourth quarter of 2006, representing an 8% decrease.
Total selling, general, and administrative ("SG&A") expenses for the fourth
quarter of 2007 were $3.1 million compared to $3.2 million in the fourth
quarter of 2006.
Net income for the fourth quarter of 2007 amounted to $931,000 or 2.0% of
net sales as compared to $1,037,000 or 1.8% for the same period in 2006.
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, Borland, Quest Software, Compuware, Infragistics, ComponentOne,
Macrovision, 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 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 --
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
December December
31, 2007 31, 2006
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 14,241 $ 13,832
Marketable securities 9,641 7,032
Accounts receivable, net 24,824 28,045
Inventory - finished goods 1,116 1,265
Prepaid expenses and other current assets 927 607
Deferred income taxes 830 1,632
----------- -----------
Total current assets 51,579 52,413
Equipment and leasehold improvements, net 619 488
Other assets 3,469 2,927
Deferred income taxes 1,086 1,453
----------- -----------
Total assets $ 56,753 $ 57,281
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 32,100 $ 35,304
Dividend payable 638
----------- -----------
Total current liabilities 32,100 35,942
Other liabilities 161 41
----------- -----------
Total liabilities 32,261 35,983
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; authorized,
10,000,000 shares; issued 5,284,500 shares 53 53
Additional paid-in capital 28,860 29,252
Treasury stock, at cost, 576,002 shares and
687,879 shares, respectively (2,283) (1,905)
Accumulated deficit (2,599) (6,302)
Accumulated other comprehensive income 461 200
----------- -----------
Total stockholders' equity 24,492 21,298
----------- -----------
Total liabilities and stockholders' equity $ 56,753 $ 57,281
=========== ===========
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
(Unaudited)
(In thousands, except per share data)
Year ended Three months ended
December 31, December 31,
2007 2006 2007 2006
---------- ---------- --------- ---------
Net Sales $ 179,865 $ 182,319 $ 47,112 $ 56,840
Cost of sales 162,630 165,350 42,795 52,154
---------- ---------- --------- ---------
Gross profit 17,235 16,969 4,317 4,686
Selling, general and
administrative expenses 12,081 12,163 3,083 3,164
---------- ---------- --------- ---------
Income from operations 5,154 4,806 1,234 1,522
Interest income, net 989 738 240 237
Realized foreign exchange gain 2 3 1 1
---------- ---------- --------- ---------
Income before income tax
provision 6,145 5,547 1,475 1,760
Provision for income taxes 2,442 2,279 544 723
---------- ---------- --------- ---------
Net income $ 3,703 $ 3,268 $ 931 $ 1,037
========== ========== ========= =========
Net income per common share -
Basic $ 0.84 $ 0.78 $ 0.21 $ 0.24
========== ========== ========= =========
Net income per common share -
Diluted $ 0.80 $ 0.72 $ 0.20 $ 0.22
========== ========== ========= =========
Weighted average common shares
outstanding - Basic 4,406 4,191 4,437 4,278
========== ========== ========= =========
Weighted average common shares
outstanding - Diluted 4,656 4,521 4,585 4,613
========== ========== ========= =========
Reconciliation to comprehensive
income:
Net income $ 3,703 $ 3,268 $ 931 $ 1,037
Other comprehensive income,
net of tax:
Unrealized gain on
marketable securities 8 10 4 (11)
Foreign currency translation
adjustments 253 3 14 (71)
---------- ---------- --------- ---------
Total comprehensive income $ 3,964 $ 3,281 $ 949 $ 955
========== ========== ========= =========
Contact Information: Company Contact:
Kevin Scull
Wayside Technology Group, Inc.
Vice President and Chief Accounting Officer
(732) 389-0932