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 2003 FOURTH QUARTER FINANCIAL RESULTS NET SALES INCREASE 34% EARNINGS PER SHARE OF $.10 SHREWSBURY, NJ, January 29, 2004 - Programmer's Paradise(R), Inc. (NASDAQ: PROG) today reported financial results for the fourth quarter and year ended December 31, 2003. The results will be discussed in a conference call to be held on Friday, January 30, 2004 at 10:00 AM Eastern time. The dial-in telephone number is (703) 871-3026 and the pass code is "PROG". Revenue for the quarter ended December 31, 2003 was $20.0 million compared with $14.9 million for the quarter ended December 31, 2002. The 34% increase in year-over-year sales reflects the improved productivity of our account executive team, and a more favorable IT spending environment. In addition sales increased 9% over the immediately preceding quarter. For the year 2003 sales were $69.6 million, a 7% increase over 2002. Earnings per share for 2003 were $.26 vs. $.01 in 2002. Bill Willett, Chairman and Chief Executive Officer, stated, "This increase in sales and our continued focus on expense control has resulted in another profitable quarter for our Company, and a solid performance for the year 2003." 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) December 31, December 31, 2003 2002 ------------ ------------ ASSETS Current assets Cash and cash equivalents $ 5,878 $ 6,072 Marketable Securities 5,033 5,110 Accounts receivable, net 7,783 6,342 Inventory - finished goods 1,119 1,151 Prepaid expenses and other current assets 333 264 ----------- ------------ Total current assets 20,146 18,939 Equipment and leasehold improvements, net 292 460 Other assets 51 69 ----------- ------------ Total assets $ 20,489 $ 19,468 =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 8,919 $ 7,772 Dividend payable 375 - ----------- ------------- Total current liabilities 9,294 7,772 Commitments and contingencies Stockholders' equity Common stock, $.01 par value; authorized, 10,000,000 shares; issued 5,284,500 shares and 5,230,250 shares, respectively 53 52 Additional paid-in capital 34,098 35,484 Treasury stock, at cost, 1,533,970 shares and 1,389,576 shares, respectively (4,490) (4,184) Accumulated deficit (18,544) (19,511) Accumulated other comprehensive income (loss) 78 (145) ----------- ------------- Total stockholders' equity 11,195 11,696 ----------- ------------- Total liabilities and stockholders' equity $ 20,489 $ 19,468 =========== ============ PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In thousands, except per share data)
Three months ended December 31, December 31, (Unaudited) 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $ 69,569 $ 65,157 $ 19,965 $ 14,886 Cost of sales 60,609 56,540 17,410 12,805 ----------- ----------- ----------- ----------- Gross profit 8,960 8,617 2,555 2,081 Selling, general and administrative expenses 8,143 8,926 2,203 2,473 Settlement of escrow - 348 - - ----------- ------------ ----------- ------------ Income (loss) from operations 817 (657) 352 (392) Realized gain on sale of available-for-sale securities - 205 - 64 Interest income, net 133 241 40 46 Foreign exchange gain (loss) 97 (31) 27 (22) ----------- ------------ ----------- ------------ Income (loss) before income taxes 1,047 (242) 419 (304) Provision (benefit) for income taxes 81 (270) 29 (13) ----------- ------------ ----------- ------------ Net income (loss) $ 966 $ 28 $ 390 (291) =========== =========== =========== ============ Net income (loss) per common share - Basic $ 0.26 $ 0.01 $ 0.10 $ (0.07) =========== =========== ============ ============ Net income (loss) per common share - Diluted $ 0.25 $ 0.01 $ 0.10 $ (0.07) =========== ============ ============ ============ Weighted average number of common shares outstanding Basic 3,725 4,459 3,732 3,920 =========== ============ ============ ============ Diluted 3,900 4,480 3,907 3,920 =========== ============ ============ ============ Reconciliation of net income (loss) to comprehensive income (loss): Net income (loss) $ 966 $ 28 $ 390 $ (291) ----------- ------------ ----------- ------------ Other comprehensive income, net of tax: Reclassification adjustment for gain realized on sale of available-for-sale securities - (78) (78) Unrealized gain on available-for-sale securities - 114 (16) 73 Foreign currency translation adjustments 223 285 23 (47) ----------- ------------ ----------- ------------ Total comprehensive income (loss) $ 1,189 $ 349 $ 397 $ (262) =========== ============ =========== ============