Wayside Technology Group, Inc. Reports 2007 Fourth Quarter Results and Declares Quarterly Dividend

SHREWSBURY, NJ -- (MARKET WIRE) -- 01/31/08 -- Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the fourth quarter ended December 31, 2007. The results will be discussed in a conference call to be held on Friday, February 1, 2008 at 10:00 AM Eastern time. The dial-in telephone number is (866) 814-8483 and the pass code is "WSTG."

This conference call will be available via live webcast -- in listen-mode only -- at www.earnings.com. A replay will be available on our website at www.waysidetechnology.com.

Net income for 2007 was $3.7 million versus $3.3 million for 2006, an increase of 13%. Cash and cash equivalents as per December 31, 2007 were $23.9 million versus $20.9 million in 2006, an increase of $3 million or 14%. Cash and cash equivalents amounted to 98% of equity as per December 31, 2007. Total dividends paid in 2007 amounted to $2.7 million. Net cash provided by operating activities amounted to $5.2 million.

Total net sales for the fourth quarter of 2007 decreased 17% or $9.7 million to $47.1 million compared to $56.8 million for the same period in 2006. Sales for the fourth quarter of 2007 for our Lifeboat segment were $34.5 million compared to $45.1 million in the fourth quarter of 2006, representing a 24% decrease. Sales for the fourth quarter of 2007 for our Programmer's Paradise segment were $12.6 million compared to $11.8 million in the fourth quarter of 2006, representing a 7% increase. On a sequential basis, sales for our Lifeboat and Programmer's Paradise segment increased by 12% and 14%, respectively, as compared to the third quarter of 2007. Gross profit margin, as a percentage of net sales, for the quarter ending December 31, 2007 was 9.2% compared to 8.2% in the fourth quarter of 2006.

"New VMware distributors continued with ultra low pricing strategies," said Simon F. Nynens, chairman and chief executive officer. "As a result our VMware labeled sales declined $15.2 million versus the fourth quarter of 2006. We are pleased to report that our strategy to add new publishers as well as expanding our current relationships with software publishers is working very well. Excluding VMware, sales increased by $5.4 million or 20%."

On January 30, 2008, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable February 20, 2008 to shareholders of record on February 7, 2008.

Total gross profit for the quarter ended December 31, 2007 was $4.3 million compared to $4.7 million in the fourth quarter of 2006, an 8% decrease. Gross profit for our Programmer's Paradise segment for the quarter ended December 31, 2007 was $1.5 million compared to $1.6 million in the fourth quarter of 2006, representing a 9% decrease. Gross profit for our Lifeboat segment for the quarter ended December 31, 2007 was $2.8 million compared to $3.1 million in the fourth quarter of 2006, representing an 8% decrease.

Total selling, general, and administrative ("SG&A") expenses for the fourth quarter of 2007 were $3.1 million compared to $3.2 million in the fourth quarter of 2006.

Net income for the fourth quarter of 2007 amounted to $931,000 or 2.0% of net sales as compared to $1,037,000 or 1.8% for the same period in 2006.

About Wayside Technology Group, Inc.

Wayside Technology Group, Inc. (NASDAQ: WSTG) was founded in 1982 and is a unified and integrated technology company providing products and solutions for corporate resellers, VARs, and developers, as well as business, government and educational entities. The company offers technology products from software publishers and manufacturers such as Microsoft, CA, IBM, VMware, Borland, Quest Software, Compuware, Infragistics, ComponentOne, Macrovision, and Adobe.

Additional information can be found by visiting www.waysidetechnology.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.

-- Tables Follow --


              WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
            (In thousands, except share and per share amounts)



                                                    December     December
                                                    31, 2007     31, 2006
                                                  -----------  -----------

                         ASSETS

Current assets
  Cash and cash equivalents                       $    14,241  $    13,832
  Marketable securities                                 9,641        7,032
  Accounts receivable, net                             24,824       28,045
  Inventory - finished goods                            1,116        1,265
  Prepaid expenses and other current assets               927          607
  Deferred income taxes                                   830        1,632
                                                  -----------  -----------
Total current assets                                   51,579       52,413

Equipment and leasehold improvements, net                 619          488
Other assets                                            3,469        2,927
Deferred income taxes                                   1,086        1,453
                                                  -----------  -----------

Total assets                                      $    56,753  $    57,281
                                                  ===========  ===========


        LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses           $    32,100  $    35,304
  Dividend payable                                                     638
                                                  -----------  -----------
Total current liabilities                              32,100       35,942

Other liabilities                                         161           41
                                                  -----------  -----------
Total liabilities                                      32,261       35,983

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                           28,860       29,252
  Treasury stock, at cost, 576,002 shares and
   687,879 shares, respectively                        (2,283)      (1,905)
  Accumulated deficit                                  (2,599)      (6,302)
  Accumulated other comprehensive income                  461          200
                                                  -----------  -----------
Total stockholders' equity                             24,492       21,298
                                                  -----------  -----------
Total liabilities and stockholders' equity        $    56,753  $    57,281
                                                  ===========  ===========



              WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
                                  INCOME
                                (Unaudited)
                  (In thousands, except per share data)




                                      Year ended       Three months ended
                                      December 31,        December 31,
                                    2007       2006      2007      2006
                                 ---------- ---------- --------- ---------

Net Sales                        $  179,865 $  182,319 $  47,112 $  56,840

Cost of sales                       162,630    165,350    42,795    52,154
                                 ---------- ---------- --------- ---------

Gross profit                         17,235     16,969     4,317     4,686

Selling, general and
 administrative expenses             12,081     12,163     3,083     3,164
                                 ---------- ---------- --------- ---------

Income from operations                5,154      4,806     1,234     1,522

Interest income, net                    989        738       240       237

Realized foreign exchange gain            2          3         1         1
                                 ---------- ---------- --------- ---------
Income before income tax
 provision                            6,145      5,547     1,475     1,760

Provision for income taxes            2,442      2,279       544       723
                                 ---------- ---------- --------- ---------

Net income                       $    3,703 $    3,268 $     931 $   1,037
                                 ========== ========== ========= =========

Net income per common share -
 Basic                           $     0.84 $     0.78 $    0.21 $    0.24
                                 ========== ========== ========= =========

Net income per common share -
 Diluted                         $     0.80 $     0.72 $    0.20 $    0.22
                                 ========== ========== ========= =========

Weighted average common shares
 outstanding - Basic                  4,406      4,191     4,437     4,278
                                 ========== ========== ========= =========

Weighted average common shares
 outstanding - Diluted                4,656      4,521     4,585     4,613
                                 ========== ========== ========= =========

Reconciliation to comprehensive
 income:

Net income                       $    3,703 $    3,268 $     931 $   1,037

  Other comprehensive income,
   net of tax:

    Unrealized gain on
     marketable securities                8         10         4       (11)

    Foreign currency translation
     adjustments                        253          3        14       (71)
                                 ---------- ---------- --------- ---------

Total comprehensive income       $    3,964 $    3,281 $     949 $     955
                                 ========== ========== ========= =========


Company Contact:
Kevin Scull
Wayside Technology Group, Inc.
Vice President and Chief Accounting Officer
(732) 389-0932
Email Contact