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WAYSIDE TECHNOLOGY GROUP, INC. Reports Operating Results (10-Q)

May 12, 2009 | About:

WAYSIDE TECHNOLOGY GROUP, INC. (WSTG) filed Quarterly Report for the period ended 2009-03-31.

Wayside Technology Group Inc. is a unified and integrated technology company providing products and solutions for corporate resellers VARs developers as well as business government and educational entities. The Company offers technology products and services for software publishers and manufacturers such as Microsoft Computer Associates IBM VMware Borland Quest Software Compuware Infragistics ComponentOne Macrovision and Adobe. It offers a wide variety of technical and general business application software from a broad range of publishers and manufacturers. They market these products through its well-known catalogs direct mail programs advertisements in trade magazines as well as through Internet and e-mail promotions. WAYSIDE TECHNOLOGY GROUP, INC. has a market cap of $32.3 million; its shares were traded at around $6.9648 with a P/E ratio of 10.1 and P/S ratio of 0.2. The dividend yield of WAYSIDE TECHNOLOGY GROUP, INC. stocks is 8.6%.

Highlight of Business Operations:

Net sales for the first quarter of 2009 decreased 22% or $8.8 million to $31.8 million compared to $40.5 million for the same period in 2008. Total sales for the first quarter of 2009 for our Programmer s Paradise segment were $11.5 million compared to $11.2 million in the first quarter of 2008, representing a 3% increase. Total sales for the first quarter of 2009 for our Lifeboat segment were $20.2 million compared to $29.3 million in the first quarter of 2008, representing a 31% decrease.

Gross Profit for the quarter ending March 31, 2009 was $3.5 million compared to $3.7 million in the first quarter of 2008, a 7% decrease. Total gross profit for our Programmer s Paradise segment was $1.5 million compared to $1.4 million in the first quarter of 2008, representing an 8% increase. Total gross profit for our Lifeboat segment was $2.0 million compared to $2.4 million in the first quarter of 2008, representing a 16% decrease.

Direct selling costs for the first quarter of 2009 were $1.3 million compared to $1.5 million in the first quarter of 2008. Total direct selling costs for our Programmer s Paradise segment for the first quarter of 2009 were $0.7 million compared to $0.7 million in 2008. Total direct selling costs for our Lifeboat segment for the first quarter of 2009 and 2008 were $0.7 million.

For the quarter ended March 31, 2009, the Company recorded a provision for income taxes of $385,000, which consisted of a provision of $202,000 for U.S. federal income taxes as well as a $49,000 provision for state and local taxes and $21,000 for Canadian taxes and a deferred tax expense of $113,000. For the quarter ended March 31, 2008, the Company recorded a provision for income taxes of $411,000, which consisted of a provision of $216,000 for U.S. federal income taxes as well as a $35,000 provision for state and local taxes and $69,000 for Canadian taxes and a deferred tax expense of $91,000.

During the first three months of 2009 our cash and cash equivalents decreased by $2.1 million to $7.2 million at March 31, 2009, from $9.3 million at December 31, 2008. During the first three months of 2009, net cash used in operating activities amounted to $0.9 million; net cash used in investing activities amounted to $0.5 million and net cash used in financing activities amounted to $0.7 million.

Net cash used in operating activities in the first three months of 2009 was $0.9 million and primarily resulted from a $2.6 million increase in accounts receivable, offset partially by a $0.2 million increase in accounts payable, net income excluding non-cash charges of $0.9 million, a decrease of $0.2 million in inventory and a decrease of $0.2 million in prepaid expenses. The $2.6 million increase in accounts receivable primarily relates to the timing of large sales transactions in the later part of the quarter.

Read the The complete ReportWSTG is in the portfolios of John Keeley of Keeley Fund Management.

Rating: 4.5/5 (2 votes)

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