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UNITED STATES Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Date of report (Date of earliest event reported): July
26, 2007 Wayside Technology Group, Inc. Delaware 000-26408 13-3136104 (State of Other Jurisdiction (Commission (IRS Employer 1157 Shrewsbury Avenue, Shrewsbury, New Jersey 07702 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (732) 389-8950 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition On July 26, 2007,
Wayside Technology Group, Inc. issued a press release announcing its financial
results for the first quarter ended June 30, 2007. The information contained in
the press release, which is attached as Exhibit 99.1 to this report, is
incorporated by reference herein and is furnished pursuant to Item 2.02,
"Results of Operations and Financial Condition." Item 9.01. Financial Statements and Exhibits. (d) Exhibits. 99.1 Press Release dated July 26, 2007, furnished pursuant to Item 2.02.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Wayside Technology Group, Inc. Dated: July 27, 2007 By: Simon F. Nynens President and Chief Executive Officer
Index to Exhibits Exhibit No. Description 99.1 Press Release dated July 26, 2007, furnished pursuant to Item 2.02. Company Contact: Kevin Scull Wayside Technology Group, Inc. Vice President and Chief Accounting Officer (732)-389-8950 kevin.scull@waysidetechnology.com WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2007 SECOND QUARTER RESULTS; SHREWSBURY, NJ, July 26, 2007
- - Wayside Technology Group, Inc. (NASDAQ: WSTG) Second Quarter 2007 results
- - Sales: $44.0 million, up 6% year-over-year The results will be discussed in a conference call to be held on Friday, July 27, 2007 at 10:00 AM Eastern time. The dial-in telephone number is (866) 835-8825 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. "We successfully continued to execute our strategic business plan in the second quarter. Our net income showed continued excellent growth," said Simon F. Nynens, chairman and chief executive officer. "In accordance with our business plan, we consciously decided not to pursue ultra-low margin revenues. We have, and will continue to focus on growing our business in a profitable way." On July 25, 2007, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable August 20, 2007 to shareholders of record on August 6, 2007. This represents a 7% increase in dividend, from $.14 per share to $.15 per share. Wayside Technology Group, Inc. furthermore announced today that it has engaged an investment banker to assist in identifying and exploring potential acquisition opportunities. Net sales for the second quarter of 2007 increased 6% or $2.6 million to $44.0 million compared to $41.4 million for the same period in 2006. Total sales for the second quarter of 2007 for our Lifeboat segment were $33.7 million compared to $29.0 million in the second quarter of 2006, representing a 16% increase. Total sales for the second quarter of 2007 for our Programmer's Paradise segment were $10.4 million compared to $12.5 million in the second quarter of 2006, representing a 17% decrease. Gross Profit for the quarter ending June 30, 2007 was $4.3 million compared to $4.1 million in the second quarter of 2006, a 7% increase. Total gross profit for our Lifeboat segment was $3.0 million compared to $2.3 million in the second quarter of 2006, representing a 29% increase. Total gross profit for our
Programmer's Paradise segment was $1.3 million compared to $1.7 million in the second quarter of 2006, representing a 23% decrease. Gross profit margin, as a percentage of net sales, for the quarter ending June 30, 2007 was 9.8% unchanged compared to the second quarter of 2006. Gross profit margin for our Programmer's Paradise segment was 12.9% compared to 13.9% in the second quarter of 2006. Gross profit margin for our Lifeboat segment was 8.9% compared to 8.0% in the second quarter of 2006. Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2007 were $3.0 million, up slightly compared to $2.9 million in the second quarter of 2006, despite $0.2 million of compensation expenses in the second quarter of 2007 related to the implementation of FAS 123(R) for stock based compensation. As a percentage of net sales, SG&A expenses for the second quarter of 2007 were 6.8% compared to 7.1 % in the second quarter of 2006. Net income for the second quarter of 2007 increased 23% or $0.2 million to $1 million compared to $0.8 million 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 generated sales of $182 million in 2006, and was ranked No. 8 on BusinessWeek's list of hot growth companies in June 2006. 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 -
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
(Exact name of Registrant as specified in its charter)
of Incorporation)
File Number)
Identification No.)
SALES INCREASE 6%, NET INCOME INCREASES 23%,
INCREASES QUARTERLY DIVIDEND,
ENGAGES INVESTMENT BANKER
- - Gross profit: $4.3 million, up 7% year-over-year
- - Income from operations: $1.3 million, up 18% year-over-year
- - Net income: $1.0 million, up 23% year-over-year
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
June 30, |
December 31, 2006 |
|||
(Unaudited) |
||||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 11,029 |
$ 13,832 |
||
Marketable securities |
9,414 |
7,032 |
||
Accounts receivable, net |
21,497 |
28,045 |
||
Inventory - finished goods |
1,636 |
1,265 |
||
Prepaid expenses and other current assets |
638 |
607 |
||
Deferred income taxes |
1,103 |
1,632 |
||
Total current assets |
45,317 |
52,413 |
||
Equipment and leasehold improvements, net |
641 |
488 |
||
Other assets |
2,408 |
2,927 |
||
Deferred income taxes |
1,214 |
1,453 |
||
Total assets |
$ 49,580 |
$ 57,281 |
||
|
|
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities |
||||
Accounts payable and accrued expenses |
$ 25,482 |
$ 35,304 |
||
Dividend payable |
- |
638 |
||
Total current liabilities |
25,482 |
35,942 |
||
Other liabilities |
28 |
41 |
||
Total liabilities |
25,510 |
35,983 |
||
Commitments and contingencies |
||||
Stockholders' equity |
||||
Common stock, $.01 par value; authorized, |
|
|
||
Additional paid-in capital |
29,686 |
29,252 |
||
Treasury stock, at cost, 584,751 shares and |
|
|
||
Accumulated deficit |
(4,353) |
(6,302) |
||
Accumulated other comprehensive income |
362 |
200 |
||
Total stockholders' equity |
24,070 |
21,298 |
||
Total liabilities and stockholders' equity |
$ 49,580 |
$ 57,281 |
||
|
|
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except per share data)
Six months ended |
Three months ended |
||||||
2007 |
2006 |
2007 |
2006 |
||||
Net sales |
$ 90,962 |
$ 76,800 |
$ 44,040 |
$ 41,438 |
|||
Cost of sales |
82,170 |
68,897 |
39,703 |
37,379 |
|||
Gross profit |
8,792 |
7,903 |
4,337 |
4,059 |
|||
Selling, general and administrative expenses |
6,036 |
5,891 |
2,993 |
2,924 |
|||
Income from operations |
2,756 |
2,012 |
1,344 |
1,135 |
|||
Interest income, net |
491 |
279 |
251 |
166 |
|||
Realized foreign exchange gain |
- |
2 |
1 |
1 |
|||
Income before income tax provision |
3,247 |
2,293 |
1,596 |
1,302 |
|||
Provision for income taxes |
1,298 |
921 |
637 |
521 |
|||
Net income |
$ 1,949 |
$ 1,372 |
$ 959 |
$ 781 |
|||
|
|
|
|
||||
Net income per common share - Basic |
$ 0.44 |
$ 0.33 |
$ 0.22 |
$ 0.19 |
|||
|
|
|
|
||||
Net income per common share - Diluted |
$ 0.42 |
$ 0.31 |
$ 0.20 |
$ 0.17 |
|||
|
|
|
|
||||
Weighted average common shares outstanding-Basic |
4,380 |
4,137 |
4,407 |
4,172 |
|||
|
|
|
|
||||
Weighted average common shares outstanding-Diluted |
4,687 |
4,474 |
4,706 |
4,494 |
|||
|
|
|
|
||||
Reconciliation to comprehensive income: |
|||||||
Net income |
$ 1,949 |
$ 1,372 |
$ 959 |
$ 781 |
|||
Other comprehensive income, net of tax: |
|||||||
Unrealized gain on marketable securities |
- |
15 |
- |
8 |
|||
Foreign currency translation adjustments |
162 |
58 |
143 |
47 |
|||
Total comprehensive income |
$ 2,111 |
$ 1,445 |
$ 1,102 |
$ 836 |
|||