-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BgjptOE4rApsRo1OjYt7gRg6iSpOi9rSLN1g9rIAdJ0XJq61kW0xnWhV7IdDlOqf 1SOXygskA2pfoRJ5yYFFlQ== 0000894579-07-000271.txt : 20070727 0000894579-07-000271.hdr.sgml : 20070727 20070727163429 ACCESSION NUMBER: 0000894579-07-000271 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070726 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070727 DATE AS OF CHANGE: 20070727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Wayside Technology Group, Inc. CENTRAL INDEX KEY: 0000945983 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045] IRS NUMBER: 133136104 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26408 FILM NUMBER: 071007081 BUSINESS ADDRESS: STREET 1: 1157 SHREWSBURY AVE CITY: SHREWSBURY STATE: NJ ZIP: 07702 BUSINESS PHONE: 7323898950 MAIL ADDRESS: STREET 1: 1157 SHREWSBURY AVE CITY: SHREWSBURY STATE: NJ ZIP: 07702 FORMER COMPANY: FORMER CONFORMED NAME: PROGRAMMERS PARADISE INC DATE OF NAME CHANGE: 19950531 8-K 1 wtg8k.htm FORM 8-K Wayside Technology Group, Inc. Form 8-K_

Wayside Technology Group, Inc.
(Exact name of Registrant as specified in its charter)

         

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

   

Washington, DC 20549

   
         
   
 
   
         
         
   

FORM 8-K

   
         
         
   

CURRENT REPORT

   
         

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

         
         
         

Date of report (Date of earliest event reported): July 26, 2007

         
         
         
         
         

Delaware

 

000-26408

 

13-3136104

(State of Other Jurisdiction
of Incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

         
         

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:

/s/ Simon F. Nynens
   

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.

EX-99 2 wtgexh99-1.htm PRESS RELEASE Exhibit 99.1: Press Release
 

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;
SALES INCREASE 6%, NET INCOME INCREASES 23%,
INCREASES QUARTERLY DIVIDEND,
ENGAGES INVESTMENT BANKER

SHREWSBURY, NJ, July 26, 2007 - - Wayside Technology Group, Inc. (NASDAQ: WSTG)

Second Quarter 2007 results

- - Sales: $44.0 million, up 6% year-over-year
- - 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

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 -

 

 

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

 

June 30,
 2006

 

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,
       10,000,000 shares; issued 5,284,500 shares


53

 


53

   Additional paid-in capital

29,686

 

29,252

   Treasury stock, at cost, 584,751 shares and
        687,879 shares, respectively


(1,678)

 


(1,905)

   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
June 30,

 

Three months ended
 June 30,

 

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

               
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