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

May 10, 2010 | About:
10qk

10qk

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WAYSIDE TECHNOLOGY GROUP, INC. (WSTG) filed Quarterly Report for the period ended 2010-03-31.

Wayside Technology Group, Inc. has a market cap of $46.79 million; its shares were traded at around $9.69 with a P/E ratio of 12.42 and P/S ratio of 0.32. The dividend yield of Wayside Technology Group, Inc. stocks is 6.19%.WSTG is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management.

Highlight of Business Operations:

Net sales for the first quarter of 2010 increased 27% or $8.6 million to $40.4 million compared to $31.7 million for the same period in 2009. Total sales for the first quarter of 2010 for our Lifeboat segment were $29.1 million compared to $20.2 million in the first quarter of 2009, representing an increase of $8.9 million or 44%. Total sales for the first quarter of 2010 for our Programmer s Paradise segment were $11.2 million compared to $11.5 million in the first quarter of 2009, representing a 2% decrease.

Gross Profit for the quarter ending March 31, 2010 was $4.0 million compared to $3.5 million in the first quarter of 2009, a 14% increase. Total gross profit for our Lifeboat segment was $2.7 million compared to $2.0 million in the first quarter of 2009, representing a 32% increase. This increase in gross profit was due to aggressive sales volume growth within our Lifeboat segment. Total gross profit for our Programmer s Paradise segment was $1.3 million compared to $1.5 million in the first quarter of 2009, representing a 10% decrease. This decrease was primarily due to the lower sales volume and competitive pricing pressure.

Direct selling costs (a component of SG&A) for the first quarter of 2010 were $1.5 million compared to $1.3 million in the first quarter of 2009. Total direct selling costs for our Programmer s Paradise segment for the first quarter of 2010 were $0.7 million compared to $0.7 million in the same period in 2009. Total direct selling costs for our Lifeboat segment for the first quarter of 2010 were $0.8 million compared to $0.7 million in the first quarter of 2009.

For the quarter ended March 31, 2010, the Company recorded a provision for income taxes of $424,000 which consists of a provision of $215,000 for U.S. federal income taxes as well as a $62,000 provision for state and local taxes and $38,000 for Canadian taxes, and a deferred tax expense of $109,000. For the quarter ended March 31, 2009, the Company recorded a provision for income taxes of $384,000, which consists of a provision of $202,000 for U.S. federal income taxes as well as $49,000 for state and local taxes and $21,000 for Canadian taxes, and a deferred tax expense of $113,000.

During the first three months of 2010 our cash and cash equivalents increased by $0.9 million to $9.4 million at March 31, 2010, from $8.5 million at December 31, 2009. During the first three months of 2010, net cash provided by operating activities amounted to $0.7 million; net cash provided by investing activities amounted to $0.9 million and net cash used in financing activities amounted to $0.8 million.

Net cash provided by investing activities in the first three months of 2010 amounted to $0.9 million. This primarily resulted from net sales of $1.0 million in marketable securities. These securities are highly rated and highly liquid. These securities are classified as available-for-sale securities in accordance with ASC Topic 320 “Investments in Debt and Equity Securities”, and as a result, unrealized gains and losses are reported as part of accumulated other comprehensive income (loss). Net sales of $1.0 million in marketable securities were partially offset by $0.1 million of capital expenditures.

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