Programmer's Paradise, Inc. (NASDAQ: PROG) today
reported financial results for the second quarter ended June 30, 2005.
The results will be discussed in a conference call to be held on
Friday, July 29, 2005 at 10:00 AM Eastern time. The dial-in telephone
number is (866) 793-1342 and the pass code is PROG.
Net sales for the quarter ending June 30, 2005 were $30.1 million compared with $25.1 million in the second quarter of 2004, a 20% increase. "This solid performance is the result of the expansion of our account executive team including the opening of our new sales office in Long Island," said William H. Willett, Chairman and Chief Executive Officer. "We continue to exercise tight management on all expenses and even with an investment in our new Long Island office this quarter of $318,000 and an accounts receivable expense of $302,000 as the result of a bankruptcy filing by Amherst Technologies, LLC, we generated $247,000 in income from operations." This compares to income from operations in the second quarter of 2004 of $537,000.
As previously announced the company declared a second quarter 2005 dividend of $.12 per share.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware. When it comes to software, Programmer's Paradise has it all. Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.
Additional information can be found by visiting www.programmersparadise.com.
Contact Programmer's Paradise, Inc. via Bill Willett, CEO of Programmer's Paradise, Inc. at (732) 389-8950 or bill.willett@programmers.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 include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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. -0- PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 2005 2004 (Unaudited) ----------- ------------- ASSETS Current assets Cash and cash equivalents $ 3,147 $ 4,888 Marketable securities 7,797 6,595 Accounts receivable, net 11,558 14,173 Inventory - finished goods 1,297 1,423 Prepaid expenses and other current assets 229 673 Deferred income taxes, current 1,365 1,423 ----------- ------------- Total current assets 25,393 29,175 Equipment and leasehold improvements, net 490 303 Other assets 610 581 Deferred income taxes, net of current 2,743 2,855 ----------- ------------- Total assets $ 29,236 $ 32,914 =========== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 11,999 $ 15,994 Dividend payable 479 425 ----------- ------------- Total current liabilities 12,478 16,419 Commitments and contingencies Stockholders' equity Common stock, $.01 par value; authorized, 10,000,000 shares; issued 5,284,500 shares 53 53 Additional paid-in capital 31,947 32,642 Treasury stock, at cost, 1,292,965 shares and 1,418,090 shares, respectively (3,630) (4,130) Accumulated deficit (11,738) (12,223) Accumulated other comprehensive income 126 153 ----------- ------------- Total stockholders' equity 16,758 16,495 ----------- ------------- Total liabilities and stockholders' equity $ 29,236 $ 32,914 =========== ============= PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share data) Six months ended Three months ended June 30, June 30, ------------------------------------ 2005 2004 2005 2004 -------- -------- -------- --------- Net sales $60,221 $45,772 $30,052 $25,093 Cost of sales 53,422 40,103 26,682 22,025 -------- -------- -------- --------- Gross profit 6,799 5,669 3,370 3,068 Selling, general and administrative expenses 6,108 4,753 3,123 2,531 -------- -------- -------- --------- Income from operations 691 916 247 537 Interest income, net 140 54 73 15 Realized foreign exchange loss (25) (27) (14) (6) -------- -------- -------- --------- Income before income tax provision 806 943 306 546 Provision for income taxes 321 58 121 23 -------- -------- -------- --------- Net income $ 485 $ 885 $ 185 $ 523 ======== ======== ======== ========= Net income per common share - Basic $ 0.12 $ 0.23 $ 0.05 $ 0.14 ======== ======== ======== ========= Net income per common share - Diluted $ 0.11 $ 0.22 $ 0.04 $ 0.13 ======== ======== ======== ========= Weighted average common shares outstanding- 3,957 3,812 3,991 3,826 Basic ======== ======== ======== ========= Weighted average common shares outstanding- 4,413 4,103 4,364 4,118 Diluted ======== ======== ======== ========= Reconciliation to comprehensive income: ------------------------------- Net income $ 485 $ 885 $ 185 $ 523 Other comprehensive income(loss), net of tax: Unrealized gain (loss) on marketable securities 6 (36) 6 (46) Foreign currency translation adjustments (33) (50) (23) (12) -------- -------- -------- --------- Total comprehensive income $ 458 $ 799 $ 168 $ 465 ======== ======== ======== =========
Net sales for the quarter ending June 30, 2005 were $30.1 million compared with $25.1 million in the second quarter of 2004, a 20% increase. "This solid performance is the result of the expansion of our account executive team including the opening of our new sales office in Long Island," said William H. Willett, Chairman and Chief Executive Officer. "We continue to exercise tight management on all expenses and even with an investment in our new Long Island office this quarter of $318,000 and an accounts receivable expense of $302,000 as the result of a bankruptcy filing by Amherst Technologies, LLC, we generated $247,000 in income from operations." This compares to income from operations in the second quarter of 2004 of $537,000.
As previously announced the company declared a second quarter 2005 dividend of $.12 per share.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware. When it comes to software, Programmer's Paradise has it all. Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.
Additional information can be found by visiting www.programmersparadise.com.
Contact Programmer's Paradise, Inc. via Bill Willett, CEO of Programmer's Paradise, Inc. at (732) 389-8950 or bill.willett@programmers.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 include the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, and contribution of key vendor relationships and support programs. 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. -0- PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 2005 2004 (Unaudited) ----------- ------------- ASSETS Current assets Cash and cash equivalents $ 3,147 $ 4,888 Marketable securities 7,797 6,595 Accounts receivable, net 11,558 14,173 Inventory - finished goods 1,297 1,423 Prepaid expenses and other current assets 229 673 Deferred income taxes, current 1,365 1,423 ----------- ------------- Total current assets 25,393 29,175 Equipment and leasehold improvements, net 490 303 Other assets 610 581 Deferred income taxes, net of current 2,743 2,855 ----------- ------------- Total assets $ 29,236 $ 32,914 =========== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 11,999 $ 15,994 Dividend payable 479 425 ----------- ------------- Total current liabilities 12,478 16,419 Commitments and contingencies Stockholders' equity Common stock, $.01 par value; authorized, 10,000,000 shares; issued 5,284,500 shares 53 53 Additional paid-in capital 31,947 32,642 Treasury stock, at cost, 1,292,965 shares and 1,418,090 shares, respectively (3,630) (4,130) Accumulated deficit (11,738) (12,223) Accumulated other comprehensive income 126 153 ----------- ------------- Total stockholders' equity 16,758 16,495 ----------- ------------- Total liabilities and stockholders' equity $ 29,236 $ 32,914 =========== ============= PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) (In thousands, except per share data) Six months ended Three months ended June 30, June 30, ------------------------------------ 2005 2004 2005 2004 -------- -------- -------- --------- Net sales $60,221 $45,772 $30,052 $25,093 Cost of sales 53,422 40,103 26,682 22,025 -------- -------- -------- --------- Gross profit 6,799 5,669 3,370 3,068 Selling, general and administrative expenses 6,108 4,753 3,123 2,531 -------- -------- -------- --------- Income from operations 691 916 247 537 Interest income, net 140 54 73 15 Realized foreign exchange loss (25) (27) (14) (6) -------- -------- -------- --------- Income before income tax provision 806 943 306 546 Provision for income taxes 321 58 121 23 -------- -------- -------- --------- Net income $ 485 $ 885 $ 185 $ 523 ======== ======== ======== ========= Net income per common share - Basic $ 0.12 $ 0.23 $ 0.05 $ 0.14 ======== ======== ======== ========= Net income per common share - Diluted $ 0.11 $ 0.22 $ 0.04 $ 0.13 ======== ======== ======== ========= Weighted average common shares outstanding- 3,957 3,812 3,991 3,826 Basic ======== ======== ======== ========= Weighted average common shares outstanding- 4,413 4,103 4,364 4,118 Diluted ======== ======== ======== ========= Reconciliation to comprehensive income: ------------------------------- Net income $ 485 $ 885 $ 185 $ 523 Other comprehensive income(loss), net of tax: Unrealized gain (loss) on marketable securities 6 (36) 6 (46) Foreign currency translation adjustments (33) (50) (23) (12) -------- -------- -------- --------- Total comprehensive income $ 458 $ 799 $ 168 $ 465 ======== ======== ======== =========
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