Exhibit 99.1
Company Contact:
Bill Willett
Programmer's Paradise®, Inc.
Chairman and Chief Executive Officer
(732)-389-8950
bill.willett@programmers.com
PROGRAMMER'S PARADISE, INC. REPORTS 2005 SECOND QUARTER
FINANCIAL RESULTS
SECOND QUARTER SALES INCREASE 20%
SHREWSBURY, NJ, July 28, 2005 - 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.
PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
June 30, |
December 31, |
|
|
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, |
53 |
53 |
|
Additional paid-in capital |
31,947 |
32,642 |
|
Treasury stock, at cost, 1,292,965 shares and |
(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, |
|||
|
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 |
|
Weighted average common shares outstanding - |
4,413 |
4,103 |
4,364 |
4,118 |
|
Reconciliation to comprehensive income: |
||||
|
Net income |
$485 |
$885 |
$185 |
$523 |
|
Other comprehensive income(loss), net of tax: |
6 |
(36) |
6 |
(46) |
|
Foreign currency translation adjustments |
(33) |
(50) |
(23) |
(12) |
|
Total comprehensive income |
$458 |
$799 |
$168 |
$465 |