Wayside Technology Group, Inc. Reports 2010 Second Quarter Results and Declares Quarterly Dividend

Revenue: $48.4 Million, Up 31% Year-Over-Year; Income From Operations $1.5 Million, Up 30% Year-Over-Year; $.15 Dividend Declared

SHREWSBURY, NJ -- (MARKET WIRE) -- 07/29/10 -- Wayside Technology Group, Inc. (NASDAQ: WSTG) today reported financial results for the second quarter ended June 30, 2010. The results will be discussed in a conference call to be held on Friday, July 30, 2010 at 10:00 AM Eastern time. The dial-in telephone number is (866) 835 8907 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 also be available on the company's website at www.waysidetechnology.com.

Net sales for the second quarter of 2010 increased 31% or $11.4 million to $48.4 million compared to $37.0 million for the same period in 2009. Total sales for the second quarter of 2010 for our Lifeboat segment were $35.8 million compared to $25.0 million in the second quarter of 2009, representing an increase of $10.8 million or 43%. Total sales for the second quarter of 2010 for our Programmer's Paradise segment were $12.6 million compared to $12.0 million in the second quarter of 2009, representing a 5% increase.

Sales from our Lifeboat segment showed strong growth. The increase in net sales for the three and six months June 30, 2010 compared to 2009 was mainly a result of our continued focus on the expanding virtual infrastructure-centric business, the addition of several key product lines, and the strengthening of our account penetration.

"The second quarter of 2010 showed continued excellent growth," said Simon F. Nynens, Chairman and Chief Executive Officer. "We continue to strengthen our position in the software distribution market and sign on new vendors."

Gross Profit for the second quarter of 2010 was $4.7 million compared to $4.1 million in the second quarter of 2009, a 15% increase. Total gross profit for our Lifeboat segment was $3.4 million compared to $2.5 million in the second 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 $1.6 million in the second quarter of 2009, representing a 14% decrease. This decrease was primarily due to competitive pricing pressure.

Total gross profit, as a percentage of net sales, for the second quarter of 2010 was 9.7%, compared to 11.0% in the second quarter of 2009.

Total selling, general, and administrative ("SG&A") expenses for the second quarter of 2010 were $3.2 million, compared to $2.9 million in the second quarter of 2009. This increase is mainly due to an increase in employee related expenses (salaries, commissions and bonus accruals and benefits) of $0.3 million.

Cash and marketable securities amount to $17.4 million, representing 70% of equity as of June 30, 2010. The company has no debt.

On July 27, 2010, the Board of Directors declared a quarterly dividend of $.15 per share of its common stock payable August 19, 2010 to shareholders of record on August 12, 2010.

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 Acronis, CA Technologies, DataCore, Dell, Flexera Software (publishers of InstallShield), GFI, Hewlett Packard, Infragistics, Intel Software, Microsoft, Mindjet, Quest Software, SolarWinds, StorageCraft Technology, TechSmith, Veeam, Vizioncore, and VMware.

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 could cause actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation, the continued acceptance of the Company's distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, contribution of key vendor relationships and support programs, as well as factors that affect the software industry in general and other factors. 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. Except as otherwise required by law, the Company undertakes no obligation to update or revise these forward-looking statements.


                             - Tables Follow -



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


                                                  June 30,    December 31,
                                                    2010          2009
                                                (unaudited)
                    ASSETS
Current assets
  Cash and cash equivalents                     $      9,611  $      8,560
  Marketable securities                                7,832         7,571
  Accounts receivable, net                            31,791        27,040
  Inventory - finished goods                           1,316           967
  Prepaid expenses and other current assets            1,160           998
  Deferred income taxes                                  611           677
                                                ------------  ------------
Total current assets                                  52,321        45,813

Equipment and leasehold improvements, net                412           432
Accounts receivable long-term                          4,493         6,901
Other assets                                              39            38
Deferred income taxes                                    345           483
                                                ------------  ------------
Total assets                                    $     57,610  $     53,667
                                                ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses         $     32,752  $     29,230
                                                ------------  ------------
Total current liabilities                             32,752        29,230

Other liabilities                                          -            78
                                                ------------  ------------
Total liabilities                                     32,752        29,308
                                                ------------  ------------

Commitments and contingencies

Stockholders' equity
  Common stock, $.01 par value; 10,000,000
   shares authorized, 5,284,500 shares
   issued, and 4,795,057 and 4,688,844 shares
   outstanding, respectively                              53            53
  Additional paid-in capital                          24,839        24,826
  Treasury stock, at cost, 489,443 and 595,656
   shares, respectively                               (3,315)       (3,555)
  Retained earnings                                    2,985         2,727
  Accumulated other comprehensive income                 296           308
                                                ------------  ------------
Total stockholders' equity                            24,858        24,359
                                                ------------  ------------
Total liabilities and stockholders' equity      $     57,610  $     53,667
                                                ============  ============




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


                                     Six months ended   Three months ended
                                         June 30,            June 30,
                                      2010      2009      2010      2009
                                    --------- --------  --------- ---------
                                        (Unaudited)         (Unaudited)
                                    ------------------  -------------------
Revenues
  Lifeboat segment                  $  64,927 $ 45,287  $  35,810 $  25,044
  Programmer's Paradise segment        23,873   23,495     12,632    11,988
                                    --------- --------  --------- ---------
  Total Revenue                        88,800   68,782     48,442    37,032

Cost of sales
  Lifeboat segment                     58,930   40,757     32,458    22,513
  Programmer's Paradise segment        21,217   20,477     11,299    10,438
                                    --------- --------  --------- ---------
  Total Cost of sales                  80,147   61,234     43,757    32,951
                                    --------- --------  --------- ---------

Gross Profit                            8,653    7,548      4,685     4,081

Operating expenses
  Selling costs                         3,200    2,708      1,652     1,388
  Stock based compensation                596      420        296       236
  Other general and administrative
   expenses                             2,394    2,434      1,212     1,287
                                    --------- --------  --------- ---------
Total Selling, general and
 administrative expenses                6,190    5,562      3,160     2,911
                                    --------- --------  --------- ---------

Income from operations                  2,463    1,986      1,525     1,170

Interest income, net                      212      274        104       126
Realized foreign exchange gain
 (loss)                                     3       (1)         2
                                    --------- --------  --------- ---------
Income before income tax provision      2,678    2,259      1,631     1,296
Provision for income taxes              1,000      891        576       506

                                    --------- --------  --------- ---------
Net income                          $   1,678 $  1,368  $   1,055 $     790
                                    ========= ========  ========= =========

Net income per common share - Basic $    0.38 $   0.31  $    0.24 $    0.18
                                    ========= ========  ========= =========
Net income per common share -
 Diluted                            $    0.38 $   0.31  $    0.23 $    0.18
                                    ========= ========  ========= =========

Weighted average common shares
 outstanding - Basic                    4,376    4,392      4,380     4,400
                                    ========= ========  ========= =========
Weighted average common shares
 outstanding - Diluted                  4,461    4,419      4,493     4,426
                                    ========= ========  ========= =========