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Programmer's Paradise, Inc. Reports 1999 Fourth Quarter and Year End Financial Results
Business Wire - February 01, 2000 07:08
SHREWSBURY, N.J.--(BUSINESS WIRE)--Feb. 1, 2000--Programmer's Paradise(R), Inc. (Nasdaq: PROG) today reported results for the fourth quarter and year ended December 31, 1999.
Net sales for the fourth quarter ended December 31, 1999 amounted to $76 million, which equaled those sales reported for the fourth quarter of 1998. Net loss for the quarter was $356,000 or a loss of $0.07 per share, as compared to net income of $1.7 million or $0.32 per share in 1998.
Net sales for the year ended December 31, 1999 increased 4% to $244 million, as compared to $234 million for the year ended December 31, 1998. The net loss for 1999 amounted to $729,000 or $0.14 per share as compared to net income of $3.4 million, or $0.66 per share in 1998.
Bill Willett, Chairman and Chief Executive Officer of Programmer's Paradise, commented, "Customer purchase deferrals as a result of concerns over Y2K system failures, have impacted both revenues and earnings for the past two quarters as well as the full year. European revenues for the fourth quarter of 1999 declined by about 2% from the previous year and on a year-over-year comparison, revenues were flat. Further deterioration of revenues as a result of the Y2K anomaly was offset by an aggressive sales campaign in our last fiscal quarter at the expense of lower margins."
"North American revenues for the quarter increased by 6% year-over-year in the face of continuing competitive margin pressure, an absence of significant new products being released into the market and Y2K. For the year, North American revenues grew by 14.5%. Our Internet business continued to show positive gains as revenues increased 275% to approximately $12 million for the year. We continue to add new functionality and extended product information to our site including our own ESD capabilities in order to allow our customer the ability to download and demo the product before making a purchase decision. We have recently added Alexander Alarid, an experienced Internet executive to our team as Vice President of Internet Marketing who will help us drive our e-commerce business to the next level," added Willett.
"Looking forward, I believe we are poised for a solid recovery in 2000. Our European business should begin to strengthen, especially with the upcoming release of Windows 2000. We have put together a strong management team in Europe to direct this recovery. Our North American business should continue to escalate as we transition toward a more dominant e-commerce platform," concluded Willett.
Programmer's Paradise, Inc. is an international marketer of software targeting the software development professional and information technology professionals within enterprise organizations. Programmer's Paradise enhances software development productivity by providing a single-source for software development tools from industry-leading vendors selected on a basis of features, quality, price and warranty. The Company offers over 175,000 SKUs from more than 2,000 publishers and manufacturers and distributes these products through multiple distribution channels. Programmer's Paradise web site is located at www.pparadise.com. Bill Willett can be e-mailed at 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(R) , INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
(Unaudited) (Audited)
1999 1998 1999 1998
---- ---- ---- ----
Net sales $ 75,805 $ 75,995 $ 244,139 $ 234,429
Cost of sales 68,169 66,534 218,014 205,241
----------- ---------- ------------ -----------
Gross profit 7,636 9,461 26,125 29,188
SG&A expenses 7,176 6,716 24,354 22,682
Amortization 315 243 1,863 979
------------ ---------- ------------ -----------
Income (loss) from
operations 145 2,502 (92) 5,527
Interest income, net 80 77 141 294
Foreign exchange
gain (loss) (10) (11) 525 62
------------ ---------- ------------ -----------
Income before taxes 215 2,568 574 5,883
Provision for taxes 571 903 1,303 2,441
------------ ---------- ------------ -----------
Net income (loss) (356) 1,665 (729) 3,442
============ ========== ============ ===========
Basic net income
per common share $ (0.07) $ 0.35 $ (0.14) $ 0.72
============ ========== ============ ===========
Diluted net income
(loss) per
common share $ (0.07) $ 0.32 $ (0.14) $ 0.66
============ ========== ============ ===========
Weighted average number
of common shares
outstanding-basic 5,042 4,772 5,100 4,797
Weighted average number
of common shares
outstanding-diluted 5,042 5,237 5,100 5,249
PROGRAMMER'S PARADISE(R) , INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
Audited Audited
December 31, December 31,
1999 1998
---- ----
ASSETS
------
Current Assets:
Cash and cash equivalents $ 17,597 $ 21,167
Trade accounts receivable 46,316 53,002
Inventory 5,620 5,335
Prepaid expenses and other
current assets 4,468 2,925
Deferred tax asset 2,720 1,988
----------- ---------
Total Current Assets 76,721 84,417
Furniture and equipment, net 2,135 2,317
Deferred income taxes 1,860 1,262
Other assets 1,505 1,286
Goodwill, net 14,543 15,595
----------- ---------
Total Assets $ 96,764 $ 104,877
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Notes payable to banks $ 3,032 $ 674
Accounts payable and accrued expenses 49,979 58,064
Other current liabilities 7,897 7,993
----------- ---------
Total Current Liabilities 60,908 66,731
Notes payable - long term 0 1,761
Other liabilities 0 144
----------- ---------
Total Liabilities 60,908 68,636
SHAREHOLDERS' EQUITY
Common Stock 53 50
Additional Paid-in-capital 36,879 33,952
Treasury stock (1,356) (219)
Retained earnings 2,457 3,186
Accumulated other comprehensive loss (2,177) (728)
----------- ---------
Total Shareholders' equity 35,856 36,241
----------- ---------
Total Liabilities and
Shareholders' Equity $ 96,764 $ 104,877
=========== =========
CONTACT: Company Contact:
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