Welcome!

News Feed Item

Wayside Technology Group, Inc. Reports 2014 Second Quarter Results and Declares Quarterly Dividend

SHREWSBURY, NJ -- (Marketwired) -- 07/24/14 -- Wayside Technology Group, Inc. (NASDAQ: WSTG)

                                    Q2 2014:
                                    ---------------
Revenue:                            $84.4 million
Income from operations:             $2.2 million
Net income:                         $1.5 million
Diluted earnings per share:         $0.31 per share

        Dividend declared - $0.17 per share

Wayside Technology Group, Inc. (NASDAQ: WSTG) today announced financial results for the second quarter ended June 30, 2014. The results will be discussed in a conference call to be held on Friday, July 25, 2014 at 10:00 a.m. EDT. The dial-in telephone number is (866) 846-7864 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 for Q2 2014. Overall, revenue increased 14% and gross profit increased 3% over the same period last year," said Simon F. Nynens, Chairman and Chief Executive Officer.

Cash and long term receivables amounted to $25.1 million, representing 66% of equity as of June 30, 2014. Working capital amounted to $27.2 million, representing 71% of equity as of June 30, 2014.

Net sales for the second quarter ended June 30, 2014 increased 14% or $10.3 million to $84.4 million compared to $74.1 million for the same period in 2013. Total sales for the second quarter of 2014 for our Lifeboat Distribution segment were $70.0 million compared to $61.2 million in the second quarter of 2013, representing an increase of $8.8 million or 14%. Total sales for the second quarter of 2014 for our TechXtend segment were $14.4 million compared to $12.9 million in the second quarter of 2013, representing an increase of $1.5 million or 12%.

The 14% increase in net sales for the Lifeboat Distribution segment was mainly a result of the strengthening of our account penetration, our continued focus on the expanding virtual infrastructure-centric business and the addition of several key product lines. The 12% increase in net sales in the TechXtend segment was primarily due an increase in extended payment terms sales transactions as compared to the second quarter ended June 30, 2013.

Gross Profit for the second quarter ended June 30, 2014 was $6.1 million, a 3% increase as compared to $6.0 million for the second quarter of 2013. Gross profit for our Lifeboat segment in the second quarter of 2014 was $4.6 million compared to $4.5 million for the second quarter of 2013, representing a 2% increase. Gross profit for our TechXtend segment of $1.5 million in the second quarter of 2014 was essentially flat as compared to the second quarter of 2013.

Gross profit margin (gross profit as a percentage of net sales) for the second quarter ended June 30, 2014 was 7.3% compared to 8.1% for the second quarter of 2013. Gross profit margin for the six months ended June 30, 2014 was 7.5% compared to 8.1% in the same period in 2013. Gross profit margin for our Lifeboat segment for the second quarter of 2014 was 6.6% compared to 7.4% for the second quarter of 2013. The decrease in gross profit margin for the Lifeboat Distribution segment was primarily caused by competitive pricing pressure. Gross profit margin for our TechXtend segment for the second quarter of 2014 was 10.6% compared to 11.3% for the second quarter of 2013. The decrease in gross profit margin for the TechXtend segment was primarily caused by the increase in larger extended payment term sales transactions which typically carry lower margins.

The Company monitors gross profits and gross profit margins carefully. Price competition in our market persisted in 2014. We anticipate that margins, as well as discounts and rebates, will continue to be under pressure in the near future.

Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2014 were $4.0 million compared to $3.8 million for the second quarter of 2013.

For the three months ended June 30, 2014, the Company recorded a provision for income taxes of $839,000 or 36.1% of income, compared to $773,000 or 33.4% of income for the same period in 2013.

Net income and diluted earnings per share for the second quarter of 2014 were $1.5 million and $0.31, respectively, compared to $1.5 million and $0.34, respectively, for the second quarter of 2013.

On July 22, 2014, the Board of Directors declared a quarterly dividend of $.17 per share of its common stock payable August 15, 2014 to shareholders of record on August 6, 2014.

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, Datawatch, Dell/Dell Software, Flexera Software, Hewlett Packard, Infragistics, Intel Software, JetBrains, Lenovo, Microsoft, Mindjet, Samsung, SAP/Sybase, SmartBear, SolarWinds, Sophos, StorageCraft Technology, TechSmith, Telerik, Unitrends, Veeam Software 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)

                                                               December 31,
                                               June 30, 2014       2013
                                               -------------  -------------
                                                (unaudited)

                                   ASSETS

Current assets
  Cash and cash equivalents                    $      14,716  $      19,609
  Accounts receivable, net                            57,585         60,796
  Inventory, net                                       1,221          1,315
  Prepaid expenses and other current assets              974          2,117
  Deferred income taxes                                  236            218
                                               -------------  -------------
Total current assets                                  74,732         84,055

Equipment and leasehold improvements, net                328            324
Accounts receivable long-term                         10,411         10,006
Other assets                                             162            159
Deferred income taxes                                    216            216
                                               -------------  -------------

Total assets                                   $      85,849  $      94,760
                                               =============  =============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses        $      47,493  $      60,039
                                               -------------  -------------
Total current liabilities                             47,493         60,039


Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000
   shares authorized, 5,284,500 shares issued,
   and 4,873,507 and 4,653,293 shares
   outstanding, respectively
                                                          53             53
  Additional paid-in capital                          30,488         28,791
  Treasury stock, at cost, 410,993 and 631,207
   shares, respectively                               (5,965)        (7,017)
  Retained earnings                                   13,645         12,695
  Accumulated other comprehensive income                 135            199
                                               -------------  -------------
Total stockholders' equity                            38,356         34,721
                                               -------------  -------------
Total liabilities and stockholders' equity     $      85,849  $      94,760
                                               =============  =============


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

                                      Six months ended    Three months ended
                                          June 30,             June 30,
                                       2014       2013      2014      2013
                                    ---------  --------- --------- ---------
                                        (Unaudited )         (Unaudited )
                                    -------------------- -------------------
Revenues
  Lifeboat segment                  $ 129,238  $ 115,078 $  69,979 $  61,209
  TechXtend segment                    26,891     24,997    14,420    12,886
                                    ---------  --------- --------- ---------
  Total Revenue                       156,129    140,075    84,399    74,095

Cost of sales
  Lifeboat segment                    120,509    106,794    65,367    56,698
  TechXtend segment                    23,943     22,003    12,893    11,432
                                    ---------  --------- --------- ---------
  Total Cost of sales                 144,452    128,797    78,260    68,130
                                    ---------  --------- --------- ---------

Gross Profit                           11,677     11,278     6,139     5,965

Operating expenses
  Selling costs                         4,074      4,004     2,049     2,010
  Share-based compensation                575        551       252       280
  Other general and administrative
   expenses                             3,353      3,176     1,656     1,524
                                    ---------  --------- --------- ---------
Total Selling, general and
 administrative expenses                8,002      7,731     3,957     3,814
                                    ---------  --------- --------- ---------

Income from operations                  3,675      3,547     2,182     2,151

Interest, net                             255        276       132       146
Foreign currency transaction (loss)
 gain                                      (4)        21         8        16
                                    ---------  --------- --------- ---------
Income before provision for income
 taxes                                  3,926      3,844     2,322     2,313
Provision for income taxes              1,384      1,284       839       773

                                    ---------  --------- --------- ---------
Net income                          $   2,542  $   2,560 $   1,483 $   1,540
                                    =========  ========= ========= =========

Income per common share - Basic     $    0.55  $    0.57 $    0.32 $    0.35
                                    =========  ========= ========= =========
Income per common share - Diluted   $    0.54  $    0.56 $    0.31 $    0.34
                                    =========  ========= ========= =========

Weighted average common shares
 outstanding - Basic                    4,601      4,464     4,664     4,451
                                    =========  ========= ========= =========
Weighted average common shares
 outstanding - Diluted                  4,665      4,578     4,719     4,557
                                    =========  ========= ========= =========

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.

Latest Stories
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
By 2021, 500 million sensors are set to be deployed worldwide, nearly 40x as many as exist today. In order to scale fast and keep pace with industry growth, the team at Unacast turned to the public cloud to build the world's largest location data platform with optimal scalability, minimal DevOps, and maximum flexibility. Drawing from his experience with the Google Cloud Platform, VP of Engineering Andreas Heim will speak to the architecture of Unacast's platform and developer-focused processes.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in development and launches of disruptive technologies to create new market opportunities as well as enhance enterprise product portfolios with emerging technologies. His most recent venture was Octoblu, a cross-protocol Internet of Things (IoT) mesh network platform, acquired by Citrix. Prior to co-founding Octoblu, Chris was founder of Nodester, an open-source Node.JS PaaS which was acquired by AppFog and ...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your job is mostly boring. Many of the IT operations tasks you perform on a day-to-day basis are repetitive and dull. Utilizing automation can improve your work life, automating away the drudgery and embracing the passion for technology that got you started in the first place. In this presentation, I'll talk about what automation is, and how to approach implementing it in the context of IT Operations. Ned will discuss keys to success in the long term and include practical real-world examples. Ge...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.