Wayside Technology Group, Inc. Reports 2009 First Quarter Results and Declares Quarterly Dividend

SHREWSBURY, NJ--(Marketwire - April 30, 2009) - Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the first quarter ended March 31, 2009. The results will be discussed in a conference call to be held on Friday, May 1, 2009 at 10:00 AM Eastern time. The dial-in telephone number is (866) 238-0826 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.

Total net sales for the first quarter of 2009 amounted to $31.8 million, compared to $40.5 million for the same period in 2008. Sales for the first quarter of 2009 for our Lifeboat segment were $20.2 million compared to $29.3 million in the first quarter of 2008, representing a 31% decrease. Excluding VMware, Lifeboat's sales increased by $0.1 million, or 1% compared to the first quarter of 2008. Sales for the first quarter of 2009 for our Programmer's Paradise segment were $11.5 million, compared to $11.2 million in the first quarter of 2008, representing a 3% increase.

Total gross profit for the first quarter of 2009 amounted to $3.5 million, compared to $3.7 million for the same period in 2008. Gross profit for the first quarter of 2009 for our Lifeboat segment was $2 million, compared to $2.4 million in the first quarter of 2008, representing a 16% decrease. Gross profit for the first quarter of 2009 for our Programmer's Paradise segment was $1.5 million, compared to $1.4 million in the first quarter of 2008, representing an 8% increase.

Total gross profit, as a percentage of net sales, for the quarter ending March 31, 2009, was 10.9%, compared to 9.3% in the first quarter of 2008.

Cash and marketable securities amount to $17 million, representing 71% of our equity as of March 31, 2009. We have no debt.

"In a recessionary business climate impacting every segment of the economy, we delivered solid first-quarter results," said Simon F. Nynens, Chairman and Chief Executive Officer.

Total selling, general, and administrative ("SG&A") expenses for the first quarter of 2009 were $2.7 million compared to $2.9 million in the first quarter of 2008.

Net income for the first quarter of 2009 amounted to $578,000 or 1.8% of net sales as compared to $629,000 or 1.6% for the same period in 2008.

On April 28, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable May 20, 2009 to shareholders of record on May 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, Embarcadero Technologies, SAP Business Objects, Intel, Compuware, Infragistics, ComponentOne, Acresso Software, 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)



                                                   March 31,   December 31,
                                                      2009         2008
                                                  -----------  -----------
                                                  (Unaudited)

                       ASSETS

Current assets
  Cash and cash equivalents                       $     7,216  $     9,349
  Marketable securities                                 9,758        9,367
  Accounts receivable, net                             21,266       16,940
  Inventory - finished goods                              811        1,058
  Prepaid expenses and other current assets               564          776
  Deferred income taxes                                   672          712
                                                  -----------  -----------
Total current assets                                   40,287       38,202

Equipment and leasehold improvements, net                 527          549
Accounts Receivable Long-Term                           6,064        7,860
Other assets                                               39           66
Deferred income taxes                                     735          808
                                                  -----------  -----------

Total assets                                      $    47,652  $    47,485
                                                  ===========  ===========


          LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses                23,747       23,396
                                                  -----------  -----------
Total current liabilities                              23,747       23,396

Other liabilities                                          78          205
                                                  -----------  -----------
Total liabilities                                      23,825       23,601

Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000 shares
   authorized, 5,284,500 shares issued, and
   4,639,786 and 4,643,662 shares outstanding,
   respectively                                            53           53
  Additional paid-in capital                           26,108       26,636
  Treasury stock, at cost, 644,714 shares and
   640,838 shares, respectively                        (3,410)      (3,383)
  Retained Earnings                                     1,145          567
  Accumulated other comprehensive income (loss)           (69)          11
                                                  -----------  -----------
Total stockholders' equity                             23,827       23,884
                                                  -----------  -----------
Total liabilities and stockholders' equity        $    47,652  $    47,485
                                                  ===========  ===========






              WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE
                                  INCOME
                                (Unaudited)
                  (In thousands, except per share data)


                                                    Three months ended
                                                         March 31,
                                                      2009         2008
                                                  -----------  -----------
Net Sales                                         $    31,750  $    40,506
Cost of sales                                          28,283       36,761
                                                  -----------  -----------
Gross profit                                            3,467        3,745
Selling, general and administrative expenses            2,651        2,942
                                                  -----------  -----------
Income from operations                                    816          803
Interest income, net                                      148          234
Realized foreign exchange gain (loss)                      (1)           3
                                                  -----------  -----------
Income before income tax provision                        963        1,040
Provision for income taxes                                385          411
                                                  -----------  -----------
Net income                                        $       578  $       629
                                                  ===========  ===========
Net income per common share - Basic               $      0.13  $      0.14
                                                  ===========  ===========
Net income per common share - Diluted             $      0.13  $      0.14
                                                  ===========  ===========

Weighted average common shares outstanding -
 Basic                                                  4,386        4,441
                                                  ===========  ===========
Weighted average common shares outstanding -
 Diluted                                                4,413        4,533
                                                  ===========  ===========

Reconciliation to comprehensive income:

Net income                                        $       578  $       629
  Other comprehensive income (loss), net of tax:
    Unrealized loss on marketable securities              (33)          (8)
    Foreign currency translation adjustments              (47)         (87)
                                                  -----------  -----------
Total comprehensive income                        $       498  $       534
                                                  ===========  ===========

Contact Information: Company Contact: Kevin Scull Wayside Technology Group, Inc. Vice President and Chief Accounting Officer (732) 389-0932 kevin.scull@waysidetechnology.com