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SHREWSBURY, NJ -- (Marketwired) -- 07/25/13 -- Wayside Technology Group, Inc. (NASDAQ: WSTG)


Revenue:                           $74.1 million
Income from operations:            $2.2 million
Net income:                        $1.5 million
Diluted earnings per share:        $0.34 per share
Dividend declared:                 $0.16 per share

Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the second quarter ended June 30, 2013. The results will be discussed in a conference call to be held on July 26, 2013 at 10:00 AM Eastern time. The dial-in telephone number is (866) 793-1341 and the pass code is "WSTG." This conference call will be webcast by NASDAQ OMX and can be accessed at Wayside Technology's Web site at www.waysidetechnology.com/earnings-call.

"I am pleased to report solid financial results. Overall, revenue increased 7% and net income increased 18% over the same period last year. In addition, our Q2 year-over-year growth on all key metrics -- including revenue, gross margin, income from operations and net income -- showed improvement compared to Q1's year-over-year growth," said Simon F. Nynens, Chairman and Chief Executive Officer.

Cash and cash equivalents amounted to $12.0 million, representing 37% of equity as of June 30, 2013. Working capital amounted to $22.7 million, representing 70% of equity as of June 30, 2013.

Net sales for the second quarter of 2013 increased 7% or $4.9 million to $74.1 million, compared to $69.2 million for the same period in 2012. Net sales for the second quarter of 2013 for our Lifeboat segment were $61.2 million, compared to $53.5 million in the second quarter of 2012, representing an increase of $7.7 million or 14%. Net sales for our TechXtend segment for the second quarter of 2013 were $12.9 million, compared to $15.6 million in the second quarter of 2012, representing a decrease of $2.7 million or 18%.

The 14% increase in net sales for the Lifeboat Distribution segment was mainly a result of our increased account penetration, our continued focus on the expanding virtual infrastructure-centric business and the addition of several key product lines. The 18% decrease in net sales in the TechXtend segment was primarily due to a decrease in extended payment terms sales transactions as compared to exceptionally strong levels of extended payment terms sales in the second quarter ended June 30, 2012.

Gross Profit for the second quarter ended June 30, 2013 increased 7% or $0.4 million to $6.0 million, compared to $5.6 million for the second quarter of 2012. Total gross profit for our Lifeboat segment was $4.5 million, compared to $3.8 million in the second quarter of 2012, representing a 17% increase. The increase in gross profit for the Lifeboat segment was due to higher sales volume in the current year. Total gross profit for our TechXtend segment was $1.5 million, compared to $1.7 million in the second quarter of 2012, representing a 17% decrease. The decrease in gross profit in the TechXtend segment was the result of the decreased sales volume, including a decrease in extended payment terms sales transactions. Gross profit margin (gross profit as a percentage of net sales) for the second quarter of 2013 and 2012 was 8.1% for each period.

Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2013 were $3.8 million, compared to $3.6 million for the second quarter of 2012, representing an increase of $0.2 million or 7%. This increase is primarily the result of an increase in commissions and bonus for our Lifeboat segment (which are based on gross profit) and an increase in salary expense (from increased headcount in sales, finance and operations to support business growth) in 2013 compared to 2012, offset in part by a decrease in commissions and bonus for our TechXtend segment (which are based on gross profit). As a percentage of net sales, SG&A expenses for second quarter of 2013 and 2012 remained consistent at 5.1% for each period.

Net income and diluted earnings per share for the second quarter of 2013 were $1.5 million and $0.34, respectively, compared to $1.3 million and $0.28 in the prior year.

On July 24, 2013, the Board of Directors declared a quarterly dividend of $.16 per share of its common stock, payable August 16, 2013 to shareholders of record on August 6, 2013.

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 including Acronis, Bluebeam Software, CA Technologies, DataCore, Datawatch, Dell/Dell Software, Flexera Software, GFI, Hewlett Packard, Infragistics, Intel Software, Lenovo, Microsoft, Mindjet, SAP/Sybase, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Telerik, Veeam Software, 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.

-Tables Follow -



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

                                                   June 30,    December 31,
                                                     2013          2012
                                                 -----------  -------------
                                                 (unaudited)

ASSETS

Current assets
  Cash and cash equivalents                      $    12,021  $       9,835
  Marketable securities                                    -          4,411
  Accounts receivable, net                            53,454         61,388
  Inventory - finished goods                           1,747          1,717
  Prepaid expenses and other current assets            1,518          1,281
  Deferred income taxes                                  286            280
                                                 -----------  -------------
Total current assets                                  69,026         78,912

Equipment and leasehold improvements, net                372            375
Accounts receivable long-term                          8,835         11,851
Other assets                                             153             71
Deferred income taxes                                    215            236
                                                 -----------  -------------

                                                 $    78,601  $      91,445
                                                 ===========  =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses          $    46,309  $      59,265
  Current portion- capital lease obligation               14             55
                                                 -----------  -------------
Total current liabilities                             46,323         59,320


Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000
   shares authorized, 5,284,500 shares issued,
   and 4,696,553 and 4,740,873 shares
   outstanding, respectively                              53             53
  Additional paid-in capital                          28,040         27,712
  Treasury stock, at cost, 587,947 and 543,627
   shares, respectively                               (6,304)        (5,373)
  Retained earnings                                   10,383          9,316
  Accumulated other comprehensive income                 106            417
                                                 -----------  -------------
Total stockholders' equity                            32,278         32,125
                                                 -----------  -------------
                                                 $    78,601  $      91,445
                                                 ===========  =============




               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,
                                        2013      2012      2013      2012
                                     --------- --------- --------- ---------
                                         (Unaudited )        (Unaudited )
                                     ------------------- -------------------
Revenues
  Lifeboat segment                   $ 115,078 $ 102,850 $  61,209 $  53,548
  TechXtend segment (formerly
   Programmer's Paradise segment)       24,997    33,226    12,886    15,621
                                     --------- --------- --------- ---------
  Total Revenue                        140,075   136,076    74,095    69,169

Cost of sales
  Lifeboat segment                     106,794    95,221    56,698    49,704
  TechXtend segment (formerly
   Programmer's Paradise segment)       22,003    29,698    11,432    13,875
                                     --------- --------- --------- ---------
  Total Cost of sales                  128,797   124,919    68,130    63,579
                                     --------- --------- --------- ---------

Gross Profit                            11,278    11,157     5,965     5,590

Operating expenses
  Selling costs                          4,004     3,919     2,010     1,947
  Stock based compensation                 551       463       280       231
  Other general and administrative
   expenses                              3,176     3,156     1,524     1,373
                                     --------- --------- --------- ---------
Total Selling, general and
 administrative expenses                 7,731     7,538     3,814     3,551
                                     --------- --------- --------- ---------

Income from operations                   3,547     3,619     2,151     2,039

Interest income, net                       276       254       146       130
Foreign currency transaction gain           21         1        16         -
                                     --------- --------- --------- ---------
Income before income tax provision       3,844     3,874     2,313     2,169
Provision for income taxes               1,284     1,541       773       865

                                     --------- --------- --------- ---------
Net income                           $   2,560 $   2,333 $   1,540 $   1,304
                                     ========= ========= ========= =========

Net income per common share - Basic  $    0.57 $    0.52 $    0.35 $    0.29
                                     ========= ========= ========= =========
Net income per common share -
 Diluted                             $    0.56 $    0.50 $    0.34 $    0.28
                                     ========= ========= ========= =========

Weighted average common shares
 outstanding - Basic                     4,464     4,449     4,451     4,471
                                     ========= ========= ========= =========
Weighted average common shares
 outstanding - Diluted                   4,578     4,632     4,557     4,656
                                     ========= ========= ========= =========


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