Wayside Technology Group, Inc. (WSTG - Quote) today reported financial results for the second quarter ended June 30, 2009. The results will be discussed in a conference call to be held on Friday, July 31, 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 our website at www.waysidetechnology.com.
Total net sales for the second quarter of 2009 amounted to $37.0 million, compared to $48.1 million for the same period in 2008. Sales for the second quarter of 2009 for our Lifeboat segment were $25.0 million compared to $35.0 million in the second quarter of 2008, representing a 28% decrease. Excluding VMware, Lifeboat's sales increased by $1.7 million, or 7% compared to the second quarter of 2008. Sales for the second quarter of 2009 for our Programmer's Paradise segment were $12.0 million, compared to $13.1 million in the second quarter of 2008, representing an 8% decrease.
Total gross profit for the second quarter of 2009 amounted to $4.1 million, compared to $4.3 million for the same period in 2008. Gross profit for the second quarter of 2009 for our Lifeboat segment was $2.5 million, compared to $2.8 million in the second quarter of 2008, representing a 13% decrease. This decrease in gross profit was due to the lower sales volume. Gross profit for the second quarter of 2009 for our Programmer's Paradise segment was $1.6 million, compared to $1.5 million in the second quarter of 2008, representing a 6% increase. This increase was primarily due to a shift in mix of order size. We sold more of our smaller, specialized software lines, which typically carry higher margins. As a result, gross profit increased 6% as compared to last year, despite the 8% decrease in revenue as compared to last year.
Total gross profit, as a percentage of net sales, for the quarter ending June 30, 2009, was 11%, compared to 8.9% in the second quarter of 2008.
Cash and marketable securities amount to $16.5 million, representing 68% of our equity as of June 30, 2009. We have no debt.
"During the second quarter of 2009 we delivered solid second quarter results despite the continued recessionary business climate impacting every segment of the economy," said Simon F. Nynens, Chairman and Chief Executive Officer.
Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2009 were $2.9 million compared to $3.1 million in the second quarter of 2008.
Net income for the second quarter of 2009 amounted to $790,000 or 2.1% of net sales as compared to $823,000 or 1.7% for the same period in 2008.
On July 28, 2009, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable August 20, 2009 to shareholders of record on August 13, 2009.
About Wayside Technology Group, Inc.
Wayside Technology Group, Inc. (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 such as Microsoft, CA, IBM, VMware, Quest Software, Embarcadero Technologies, SAP Business Objects, Intel, Compuware, Infragistics, ComponentOne, Acresso Software, and Adobe.
Additional information can be found by visiting www.waysidetechnology.com.
Disclosure I am Long WSTG shares.
Consumer-Goods Basic-Materials ETF'S Services Industrial-Goods Black Gold(OIL) Technology Bonds Links Financial Dividend-Increasers Emerging Markets Commodities HealthCare Inflation IRA Large Cap Shipping Utilities Cefs Small Caps Fees Monthly Dividend Reits Currency 8%+ Dividend Food Fixed Income Agricultural Precious metals Dividend Declared Insurance Earnings Miss Earnings Surprise Silver Insider Buying MLP'S Stock Splits 2 - 5% Dividend Tips For NEW Investors Banks Global etfs Aerospace Computers Index Funds Preferred Stocks New ETFS Ultrashort Etfs Asset Management Chemicals Hedged Etfs 5-8% Dividend Bio-Tech Build America Bonds ETN'S Investment Brokerage Semiconductors Steel Bad Picks Dividend Cut Mortgage Retail Special Dividend 10+++% Dividend 2 - 5% dividend Audio Podcasts Bankruptcy Diversified Investments Dividend Axed Equity Offering Natural Gas Office