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Wayside Technology Group, Inc. Reports 2009 Third Quarter Results and Declares Quarterly Dividend
Thursday, October 29, 2009 5:52 PM


(Source: MARKETWIRE)trackingWayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the third quarter ended September 30, 2009. The results will be discussed in a conference call to be held on Friday, October 30, 2009 at 10:00 AM Eastern time. The dial-in telephone number is (866) 238-0637 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 the company's website at www.waysidetechnology.com.

Net income for the third quarter of 2009 amounted to $598,000 or 1.7% of net sales as compared to $811,000 or 1.8% for the same period in 2008.

Cash and marketable securities amount to $14.1 million, representing 57% of equity as of September 30, 2009. The company has no debt.

Total net sales for the third quarter of 2009 amounted to $35.3 million, compared to $45.4 million for the same period in 2008. Sales for the third quarter of 2009 for the Lifeboat segment were $23.8 million compared to $30.1 million in the third quarter of 2008. Excluding VMware, Lifeboat's sales increased by $1.9 million, or 9% compared to the third quarter of 2008. Sales for the third quarter of 2009 for the Programmer's Paradise segment were $11.5 million, compared to $15.3 million in the third quarter of 2008.

Total gross profit for the third quarter of 2009 amounted to $3.7 million, compared to $4.3 million for the same period in 2008. Gross profit for the third quarter of 2009 for the Lifeboat segment was $2.3 million, compared to $2.6 million in the third quarter of 2008. Gross profit for the third quarter of 2009 for the Programmer's Paradise segment was $1.4 million, compared to $1.6 million in the third quarter of 2008. Gross profit dollars decreased in both segments primarily due to the lower sales volume.

Total gross profit, as a percentage of net sales, for the quarter ending September 30, 2009, was 10.5%, compared to 9.4% in the third quarter of 2008.

"I'm pleased with our solid third quarter results," said Simon F. Nynens, Chairman and Chief Executive Officer. "We performed well in a continued tough economic climate. We strengthened our position in the software distribution market and continued to sign on new vendors. We also maintained our focus on costs, which allowed us to drive a solid earnings performance."

Total selling, general, and administrative ("SG&A") expenses for the third quarter of 2009 were $2.7 million compared to $3.0 million in the third quarter of 2008.

On October 27, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable November 20, 2009 to shareholders of record on November 13, 2009.

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.



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