Exhibit 99.1
Company Contact:
Simon Nynens
Programmer's Paradise(R), Inc.
President and Chief Executive Officer
(732)-389-8950
simon.nynens@programmers.com
PROGRAMMER'S PARADISE, INC. REPORTS FIRST QUARTER RESULTS;
SALES INCREASE 17%, INCOME FROM OPERATIONS INCREASES 98%
SHREWSBURY, NJ, May 3, 2006 - Programmer's Paradise, Inc. (NASDAQ: PROG)
- Sales: $35.4 million, up 17% year-over-year
- Gross profit: $3.8 million, up 12% year-over-year
- Income from operations: $0.9 million, up 98% year-over-year
- Net income: $0.6 million, up 97% year-over-year
- Diluted earnings per share: $0.13, up 86% year-over-year
The results will be discussed in a conference call to be held on Thursday, May
4, 2006 at 10:00 AM Eastern time. The dial-in telephone number is (866)-793-1306
and the pass code is PROG.
"We are very pleased with our overall performance. Our Lifeboat division
continued to take market share. The sales growth combined with our focus on cost
control resulted in an increase of 98% in income from operations versus the year
ago quarter" said Simon F. Nynens, President and Chief Executive Officer.
Net sales for the quarter ending March 31, 2006 were $35.4 million compared with
$30.2 million in the first quarter of 2005, a 17% increase. Total sales for our
Programmer's Paradise division were $12.3 million compared to $14.0 million in
the first quarter of 2005, representing a 12% decrease. Total sales for our
Lifeboat division were $23.1 million compared to $16.1 million in the first
quarter of 2005, representing a 43% increase.
Gross Profit for the quarter ending March 31, 2006 was $3.8 million compared
with $3.4 million in the first quarter of 2005, a 12% increase. Total gross
profit for our Programmer's Paradise division was $1.8 million compared to $2.0
million in the first quarter of 2005, representing a 6% decrease. Total gross
profit for our Lifeboat division was $2.0 million compared to $1.5 million in
the first quarter of 2005, representing a 36% increase.
Gross profit margin, as a percentage of net sales, for the quarter ending March
31, 2006 was 10.9% compared to 11.4% in the first quarter of 2005. Gross profit
margin for our Programmer's Paradise division was 15.0% compared to 14.0% in the
first quarter of 2005. Gross profit margin for our Lifeboat division was 8.7%
compared to 9.1% in the first quarter of 2005.
Total selling, general, and administrative ("SG&A") expenses were stable at $3.0
million compared to $3.0 million in the first quarter of 2005. As a percentage
of net sales, SG&A expenses were 8.4% compared to 9.9% in the first quarter of
2005.
First quarter income from operations in 2006 was $877,000 compared to $444,000
in the first quarter of 2005, representing a 98% increase. First quarter net
income in 2006 was $591,000 compared to $300,000 in the first quarter of 2005.
Diluted earnings per share were $.13 versus $.07 in the first quarter of 2005,
representing a 86% increase.
Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an
award-winning marketer and distributor of technical software and hardware. When
it comes to software, Programmer's Paradise has it all. 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 Simon Nynens, CEO of Programmer's
Paradise, Inc. at (732) 389-8950 or simon.nynens@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. 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 -
PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
March 31,
2006 December 31,
---- 2005
(Unaudited) ----
ASSETS
Current assets
Cash and cash equivalents $ 6,960 $ 7,369
Marketable securities 8,021 7,884
Accounts receivable, net 18,557 21,185
Inventory - finished goods 1,474 1,956
Prepaid expenses and other current assets 628 688
Deferred income taxes, current 1,477 1,783
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Total current assets 37,117 40,865
Equipment and leasehold improvements, net 540 434
Other assets 659 453
Deferred income taxes, net of current 2,917 2,516
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Total assets $ 41,233 $ 44,268
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 21,710 $ 25,751
Dividend payable 539 519
----------- ---------------
Total current liabilities 22,249 26,270
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 30,892 30,948
Treasury stock, at cost, 1,141,238 shares and 1,289,665 shares,
respectively (3,187) (3,620)
Accumulated deficit (8,979) (9,570)
Accumulated other comprehensive income 205 187
------------- ---------------
Total stockholders' equity 18,984 17,998
------------- ---------------
Total liabilities and stockholders' equity $ 41,233 $ 44,268
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PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands, except per share data)
Three months ended
March 31,
2006 2005
---- ----
Net sales $ 35,362 $ 30,169
Cost of sales 31,518 26,740
----------- -----------
Gross profit 3,844 3,429
Selling, general and administrative expenses 2,967 2,985
----------- -----------
Income from operations 877 444
Interest income, net 113 67
Realized foreign currency exchange gain (loss) 1 (11)
----------- -----------
Income before income tax provision 991 500
Provision for income taxes 400 200
----------- -----------
Net income $ 591 $ 300
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Net income per common share - Basic $ 0.14 $ 0.08
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Net income per common share - Diluted $ 0.13 $ 0.07
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Weighted average common shares outstanding - Basic 4,101 3,922
=========== ===========
Weighted average common shares outstanding - Diluted 4,454 4,445
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Reconciliation to comprehensive income:
Net income $ 591 $ 300
Other comprehensive income(loss), net of tax:
Unrealized gain on marketable securities 7 -
Foreign currency translation adjustments 11 (10)
---------- ----------
Total comprehensive income $ 609 $ 290
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