Powering the Presentation Layer

Infragistics Journal

Subscribe to Infragistics Journal: eMailAlertsEmail Alerts newslettersWeekly Newsletters
Get Infragistics Journal: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


Infragistics Journal Authors: RealWire News Distribution, Jason Dolinger, John Addington

Related Topics: CEOs in Technology, Virtualization Magazine, VMware Journal, Intel Virtualization Journal, Intel SOA Journal, Oracle Journal, Astaro Journal, Infragistics Journal, Veeam Software Journal, Government News, Microsoft Developer, CIO/CTO Update, Dell News on Ulitzer

News Feed Item

Wayside Technology Group, Inc. Reports 2012 Second Quarter Results and Declares Quarterly Dividend

Revenue: $69.2 Million, Up 14% Year-Over-Year; Income From Operations $2.0 Million, Up 4% Year-Over-Year; $.16 Quarterly Dividend Declared

SHREWSBURY, NJ -- (Marketwire) -- 07/26/12 -- Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the second quarter ended June 30, 2012. The results will be discussed in a conference call to be held on Friday, July 27, 2012 at 10:00 AM Eastern time. The dial-in telephone number is (866) 961-5936 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 amounted to $12.8 million, representing 42% of equity as of June 30, 2012. Working capital amounted to $20.3 million, representing 66% of equity as of June 30, 2012.

Net sales for the second quarter of 2012 increased 14% to $69.2 million compared to $60.7 million for the same period in 2011. Total sales for the second quarter of 2012 for our TechXtend segment were $15.6 million compared to $11.7 million in the second quarter of 2011, representing a 33% increase. Total sales for the second quarter of 2012 for our Lifeboat segment were $53.5 million compared to $49 million in the second quarter of 2011, representing a 9% increase.

"We delivered solid results in the second quarter of 2012. Our TechXtend division performed especially well," said Simon F. Nynens, Chairman and Chief Executive Officer. "We continued to increase our market share and grow our service offerings."

The 14% increase in net sales in the second quarter of 2012 compared to 2011 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 June 30, 2012 was $5.6 million compared to $5.6 million for the second quarter of 2011. Total gross profit for our TechXtend segment was $1.7 million compared to $1.3 million in the second quarter of 2011, representing a 34% increase. The increase in gross profit in the TechXtend segment was mainly a result of the increased sales volume. Total gross profit for our Lifeboat segment was $3.8 million compared to $4.3 million in the second quarter of 2011, representing an 11% decrease. The decrease in gross profit for the Lifeboat segment was mainly due to increased competitive pricing pressure within this segment and lower vendor rebate attainments. Vendor rebates and discounts for the quarter ended June 30, 2012 amounted to $0.4 million compared to $0.8 million for the second quarter of 2011. Vendor rebates are dependent on reaching certain targets set by our vendors. Vendors have been periodically substantially increasing their target revenues for rebate eligibility. Therefore, despite our increasing revenue, vendor rebates have declined.

Total gross profit, as a percentage of net sales, for the second quarter of 2012 was 8.1%, compared to 9.2% in the second quarter of 2011.

The attainment of gross profit dollars and the decrease in gross profit margins as a percentage of net sales were primarily caused by the increased competitive pricing pressure in both segments and by winning several large bids based on aggressive pricing, which we plan to continue.

Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2012 were $3.5 million compared to $3.6 million for the second quarter of 2011, which was mainly the result of lower stock compensation and bad debt expense compared to 2011. As a percentage of net sales, SG&A expenses for the second quarter of 2012 were 5.1% compared to 6.0% for the second quarter of 2011.

On July 24, 2012, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock payable August 17, 2012 to shareholders of record on August 7, 2012.

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 Technologies, DataCore, Datawatch, Dell, Doyenz, Flexera Software, GFI, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, Oracle, Quest Software, SolarWinds, Sophos/Astaro, StorageCraft Technology, TechSmith, Veeam, Vision Solutions, 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.



              WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED BALANCE SHEETS
             (In thousands, except share and per share amounts)

                                                   June 30,    December 31,
                                                     2012          2011
                                                 ------------  ------------
                                                  (unaudited)

                                   ASSETS

Current assets
  Cash and cash equivalents                      $      7,237  $      9,202
  Marketable securities                                 5,572         5,375
  Accounts receivable, net                             50,369        47,066
  Inventory - finished goods                            1,307         1,240
  Prepaid expenses and other current assets             1,256         1,997
  Deferred income taxes                                   347           329
                                                 ------------  ------------
Total current assets                                   66,088        65,209

Equipment and leasehold improvements, net                 370           458
Accounts receivable long-term                           9,551         8,889
Other assets                                               74            54
Deferred income taxes                                     250           251
                                                 ------------  ------------

Total assets                                     $     76,333  $     74,861
                                                 ============  ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses          $     45,750  $     45,796
  Current portion- capital lease obligation                83            76
                                                 ------------  ------------
Total current liabilities                              45,833        45,872

Long term portion- capital lease obligation                14            55
                                                 ------------  ------------
Total liabilities                                      45,847        45,927
                                                 ------------  ------------

Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000 shares
   authorized, 5,284,500 shares issued, and
   4,711,867 and 4,679,878 shares outstanding,
   respectively                                            53            53
  Additional paid-in capital                           27,453        26,725
  Treasury stock, at cost, 572,633 and 604,622
   shares, respectively                                (5,012)       (4,991)
  Retained earnings                                     7,665         6,818
  Accumulated other comprehensive income                  327           329
                                                 ------------  ------------
Total stockholders' equity                             30,486        28,934
                                                 ------------  ------------
Total liabilities and stockholders' equity       $     76,333  $     74,861
                                                 ============  ============




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

                                      Six months ended    Three months ended
                                          June 30,             June 30,
                                      2012       2011       2012      2011
                                   ---------- ---------- --------- ---------
                                        (Unaudited )         (Unaudited )
                                   --------------------- -------------------
Revenues
  Lifeboat segment                 $  102,850 $   88,502 $  53,548 $  48,951
  TechXtend segment (formerly
   Programmer's Paradise segment)      33,226     23,708    15,621    11,710
                                   ---------- ---------- --------- ---------
  Total Revenue                       136,076    112,210    69,169    60,661

Cost of sales
  Lifeboat segment                     95,221     80,790    49,704    44,653
  TechXtend segment (formerly
   Programmer's Paradise segment)      29,698     20,994    13,875    10,407
                                   ---------- ---------- --------- ---------
  Total Cost of sales                 124,919    101,784    63,579    55,060
                                   ---------- ---------- --------- ---------

Gross Profit                           11,157     10,426     5,590     5,601

Operating expenses
  Selling costs                         3,919      3,728     1,947     1,892
  Stock based compensation                463        589       231       300
  Other general and administrative
   expenses                             3,156      2,853     1,373     1,448
                                   ---------- ---------- --------- ---------
Total Selling, general and
 administrative expenses                7,538      7,170     3,551     3,640
                                   ---------- ---------- --------- ---------

Income from operations                  3,619      3,256     2,039     1,961

Interest income, net                      254        172       130        86
Realized foreign exchange gain              1          1         -         1
                                   ---------- ---------- --------- ---------
Income before income tax provision      3,874      3,429     2,169     2,048
Provision for income taxes              1,541      1,358       865       820

                                   ---------- ---------- --------- ---------
Net income                         $    2,333 $    2,071 $   1,304 $   1,228
                                   ========== ========== ========= =========

Net income per common share -
 Basic                             $     0.52 $     0.47 $    0.29 $    0.28
                                   ========== ========== ========= =========
Net income per common share -
 Diluted                           $     0.50 $     0.45 $    0.28 $    0.26
                                   ========== ========== ========= =========

Weighted average common shares
 outstanding - Basic                    4,449      4,414     4,471     4,414
                                   ========== ========== ========= =========
Weighted average common shares
 outstanding - Diluted                  4,632      4,647     4,656     4,645
                                   ========== ========== ========= =========



More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.