-----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, PjBQKAIFN2ZBcMYlV58qtIZEkSvaxRZeR8ipE9FdwBebVTMtJ+ec9/5CwYaF8hdi KQ7Vk0ZG1oxIy6HU36MerA== 0000894579-07-000348.txt : 20071026 0000894579-07-000348.hdr.sgml : 20071026 20071026154916 ACCESSION NUMBER: 0000894579-07-000348 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071026 DATE AS OF CHANGE: 20071026 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: 071193523 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 wtg8k305457.txt FORM 8K -- WAYSIDE TECHNOLOGY GROUP, INC. ================================================================================ 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): October 25, 2007 ---------------- Wayside Technology Group, Inc. ------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Delaware 000-26408 13-3136104 - ---------------------------- ------------------- ------------------- (State of Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) 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 October 25, 2007, Wayside Technology Group, Inc. issued a press release announcing its financial results for the third quarter ended September 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 October 25, 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: October 26, 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 October 25, 2007, furnished pursuant to Item 2.02. EX-99 2 wtg305457exh99.txt PRESS RELEASE EXHIBIT 99.1 Wayside Technology Group [GRAPHIC OMITTED] Company Contact: Kevin Scull Wayside Technology Group, Inc. Vice President and Chief Accounting Officer (732)389-0932 kevin.scull@waysidetechnology.com WAYSIDE TECHNOLOGY GROUP, INC. REPORTS 2007 THIRD QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND SHREWSBURY, NJ, October 25, 2007 -- Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the third quarter ended September 30, 2007. The results will be discussed in a conference call to be held on Friday, October 26, 2007 at 10:00 AM Eastern time. The dial-in telephone number is (866) 814-8483 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. Net sales for the third quarter of 2007 decreased 14% or $6.9 million to $41.8 million compared to $48.7 million for the same period in 2006. Total sales for the third quarter of 2007 for our Lifeboat segment were $30.8 million compared to $31.5 million in the third quarter of 2006, representing a 2% decrease. Total sales for the third quarter of 2007 for our Programmer's Paradise segment were $11.0 million compared to $17.2 million in the third quarter of 2006, representing a 36% decrease. On a sequential basis, sales for our Programmer's Paradise segment increased 6% as compared to the second quarter of 2007. Gross profit margin, as a percentage of net sales, for the quarter ending September 30, 2007 was 9.9% compared to 9.0% in the third quarter of 2006. "We continued to implement our plan to deemphasize the lowest margin segments of the VMware business while new VMware distributors adopted ultra low pricing strategies," said Simon F. Nynens, chairman and chief executive officer. "As a result our VMware labeled sales declined $9.5 million in the third quarter. Excluding VMware, sales of our higher margin lines increased by $2.5 million or 10%." "VMware remains our single largest vendor and represents 30% of our third quarter revenue. We continue to be a strong partner for VMware and we continue to focus on virtualization. We expect VMware, as well as products complementary to VMware, to be a major driver of growth and profitability in the future," said Simon Nynens. "We recently received certification for our distribution business to act as a VMware Authorized Consulting Partner (VAC) and we launched a brand new incentive program, Lifeboat*Points, designed to leverage Lifeboat's technical consulting and other services, and to stimulate the growth of VMware ecosystem solutions. We also expect to grow our sales by adding new software lines and penetrating new accounts." On October 24, 2007, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable November 20, 2007 to shareholders of record on November 6, 2007. In the Lifeboat Distribution segment, sales for the third quarter of 2007 decreased by 2%, compared to the year-earlier period, as we continued to deemphasize the lowest margin segments of the VMware business. Our remaining distribution lines showed strong growth. Excluding VMware, sales increased by $5.7 million or 41%. In the Programmer's Paradise segment, sales for the third quarter of 2007 decreased by $6.2 million, compared with the year-earlier period, primarily due to declining VMware sales as well as increased competition in the "direct to end user" segment of our business. The decline in VMware sales is mainly due to a change in the government's GSA program by VMware. VMware has selected an exclusive reseller/distributor for GSA government sales. Programmer's Paradise now receives a referral fee for VMware GSA sales. This has a positive impact on gross margins; however, as a result, VMware's sales for our Programmer's Paradise segment decreased $3.1 million. Gross Profit for the quarter ended September 30, 2007 was $4.1 million compared to $4.4 million in the third quarter of 2006, a 6% decrease. Total gross profit for our Programmer's Paradise segment for the quarter ended September 30, 2007 was $1.4 million compared to $2.1 million in the third quarter of 2006, representing a 32% decrease. Total gross profit for our Lifeboat segment for the quarter ended September 30, 2007 was $2.7 million compared to $2.3 million in the third quarter of 2006, representing a 19% increase. Total selling, general, and administrative ("SG&A") expenses for the third quarter of 2007 were $3.0 million compared to $3.1 million in the third quarter of 2006. Net income for the third quarter of 2007 amounted to $822,000 or 2.0% of net sales as compared to $859,000 or 1.8% 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. - Table Follow -
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) September 30, December 31, 2007 2006 ---- ---- (Unaudited) ASSETS Current assets Cash and cash equivalents $ 9,270 $ 13,832 Marketable securities 9,421 7,032 Accounts receivable, net 20,150 28,045 Inventory - finished goods 1,249 1,265 Prepaid expenses and other current assets 848 607 Deferred income taxes 926 1,632 ------------- --------------- Total current assets 41,864 52,413 Equipment and leasehold improvements, net 620 488 Other assets 2,096 2,927 Deferred income taxes 1,127 1,453 ------------- --------------- Total assets $ 45,707 $ 57,281 ============= =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 21,691 $ 35,304 Dividend payable - 638 ------------- --------------- Total current liabilities 21,691 35,942 Other liabilities 20 41 ------------- --------------- Total liabilities 21,711 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 29,406 29,252 Treasury stock, at cost, 605,104 shares and 687,879 shares, respectively (2,376) (1,905) Accumulated deficit (3,530) (6,302) Accumulated other comprehensive income 443 200 ------------- --------------- Total stockholders' equity 23,996 21,298 ------------- --------------- Total liabilities and stockholders' equity $ 45,707 $ 57,281 ============= ===============
WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share data) Nine months ended Three months ended September 30, September 30, ----------------- ------------------ 2007 2006 2007 2006 ---- ---- ---- ---- Net sales $132,752 $125,479 $41,790 $48,679 Cost of sales 119,834 113,196 37,664 44,299 -------- -------- ------- ------- Gross profit 12,918 12,283 4,126 4,380 Selling, general and administrative expenses 8,998 8,999 2,962 3,109 -------- -------- ------- ------- Income from operations 3,920 3,284 1,164 1,271 Interest income, net 749 501 257 222 Realized foreign exchange gain 1 2 1 1 -------- -------- ------- ------- Income before income tax provision 4,670 3,787 1,422 1,494 Provision for income taxes 1,898 1,556 600 635 -------- -------- ------- ------- Net income $ 2,772 $ 2,231 $ 822 $ 859 ======== ======== ======= ======= Net income per common share - Basic $ 0.63 $0.54 $ 0.19 $ 0.20 ======== ======== ======= ======= Net income per common share - Diluted $ 0.59 $0.50 $ 0.18 $ 0.19 ======== ======== ======= ======= Weighted average common shares outstanding- Basic 4,395 4,162 4,426 4,213 ======== ======== ======= ======= Weighted average common shares outstanding- Diluted 4,682 4,495 4,674 4,548 ======== ======== ======= ======= Reconciliation to comprehensive income: - -------------------------------------- Net income $ 2,772 $ 2,231 $ 822 $ 859 Other comprehensive income, net of tax: Unrealized gain on marketable securities 4 21 4 6 Foreign currency translation adjustments 239 74 77 16 -------- -------- ------- ------- Total comprehensive income $ 3,015 $ 2,326 $ 903 $ 881 ======== ======== ======= =======
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