Company Contact:
Bill Willett
Programmer's Paradise(R), Inc.
Chairman and Chief Executive Officer
(732)-389-8950
bill.willett@programmers.com
PROGRAMMER'S PARADISE(R), INC. REPORTS 2004 THIRD QUARTER
FINANCIAL RESULTS
NET SALES INCREASE 46%
EARNINGS PER SHARE OF $.16
SHREWSBURY, NJ, October 28, 2004 - Programmer's Paradise(R), Inc. (NASDAQ: PROG)
today reported financial results for the third quarter ended September 30, 2004.
The results will be discussed in a conference call to be held on Friday, October
29, 2004 at 10:00 AM Eastern time. The dial-in telephone number is (703)
639-1179 and the pass code is "PROG".
Revenue for the quarter ended September 30, 2004 was $26.8 million compared with
$18.4 million for the quarter ended September 30, 2003.
Bill Willett, Chairman and Chief Executive Officer, stated, "This increase in
sales during the third quarter of 46% over the same period in 2003 is primarily
the result of improved account executive productivity, an expanded account
executive team and a favorable IT spending environment.
Earnings per share for the quarter were $ .16 compared with earnings per share
of $ .09 for the same quarter in 2003. This 78% growth in earnings per share is
primarily the result of our sales growth and continued focus on expense control.
Programmer's Paradise, Inc. is a marketer of technical software and hardware for
microcomputers, servers and networks in the United States and Canada.
Programmer's Paradise offers a wide variety of technical and general business
application software, PC hardware and components from a broad range of
publishers and manufacturers. 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.
- Tables Follow -
PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2004 2003
---- ----
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $ 4,785 $ 5,878
Marketable Securities 7,022 5,033
Accounts receivable, net 11,354 7,634
Inventory - finished goods 1,487 1,119
Prepaid expenses and other current assets 572 333
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Total current assets 25,220 19,997
Equipment and leasehold improvements, net 220 292
Other assets 453 200
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Total assets $ 25,893 $ 20,489
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 13,711 $ 8,919
Dividend payable 421 375
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Total current liabilities 14,132 9,294
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 32,874 34,099
Treasury stock, at cost, 1,449,715 shares and 1,533,970 shares,
respectively (4,214) (4,490)
Retained earnings (17,034) (18,545)
Accumulated other comprehensive income (loss) 82 78
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Total stockholders' equity 11,761 11,195
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Total liabilities and stockholders' equity $ 25,893 $ 20,489
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PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except per share data)
Nine months ended Three months ended
September 30, September 30,
------------- -------------
2004 2003 2004 2003
---- ---- ---- ----
Net sales $ 72,560 $ 49,604 $ 26,788 $ 18,355
Cost of sales 63,677 43,199 23,574 16,061
---------- ----------- ---------- -----------
Gross profit 8,883 6,405 3,214 2,294
Selling, general and administrative expenses 7,359 5,940 2,607 2,001
---------- ----------- ---------- -----------
Income from operations 1,524 465 607 293
Interest income, net 87 93 34 43
Realized foreign exchange gain/(loss) 4 71 32 (9)
---------- ----------- ---------- -----------
Income before income tax provision 1,615 629 673 327
Provision (benefit) for income taxes 104 52 47 (6)
---------- ----------- ---------- -----------
Net income $ 1,511 $ 577 $ 626 $ 333
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Net income per common share - Basic $ 0.40 $ 0.16 $ 0.16 $ 0.09
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Net income per common share - Diluted $ 0.37 $ 0.15 $ 0.15 $ 0.09
========== =========== ========== ===========
Weighted average common shares outstanding-Basic 3,819 3,722 3,834 3,694
========== =========== ========== ===========
Weighted average common shares outstanding-Diluted 4,071 3,816 4,189 3,788
========== =========== ========== ===========
Reconciliation to comprehensive income:
- --------------------------------------
Net Income $ 1,511 $ 577 $ 626 $ 333
---------- ----------- ---------- -----------
Other comprehensive income(loss), net of tax:
Unrealized gain (loss) on marketable securities (22) 16 14 2
Foreign currency translation adjustments 26 200 76 (10)
---------- ----------- ---------- -----------
Total comprehensive income $ 1,515 $ 793 $ 716 $ 325
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