Well, they brought in $4 MM more then they forecasted earlier this month and that gave us another two cents above the forecast of earnings of $.30. Sorry for fouling up that forecast. Here is the release:
Zeev
SHREWSBURY, NJ--(BUSINESS WIRE)--Jan. 28, 1999 -
- Company Achieves Record Sales and Earnings in Fourth Quarter;
Results Exceed Analysts' Expectations -
Programmer's Paradise(r), Inc. (Nasdaq: PROG - news) today reported results for the fourth quarter and year ended
December 31, 1998, which exceeded analysts' estimates.
Net sales for the fourth quarter ended December 31, 1998 increased 24% to $76.0 million, as compared to $61.2 million,
reported in the fourth quarter of 1997. Operating income for the fourth quarter increased 15% to $2.5 million, as compared
with operating income of $2.2 million in 1997. Net income for the fourth quarter was $1.7 million, or $0.32 per share, as
compared to $1.4 million, or $0.26 per share in 1997, an increase of 23% on earnings per share.
Net sales for the year ended December 31, 1998 increased 33% to $234 million, as compared to $176 million for the year
ended December 31, 1997. Net income for the period amounted to $3.4 million, or $0.66 per share, as compared to net
income of $4.0 million, or $0.75 per share in 1997.
Bill Willett, Chairman and Chief Executive Officer of Programmer's Paradise, commented, ''We are pleased to report our
fourth quarter and fiscal year results, which continue to demonstrate solid performance in all of our business channels. As we
commented earlier in the month, our Internet business has grown year-over-year by 490%. We recently enhanced our web site
and have dramatically increased both product selection and product content, in fact, during the past week our number of unique
viewers has increased by 11% and we have seen an 18% increase in revenue run-rates. To date, we have co-branded seven
on-line web stores as part of our focused approach to Internet expansion. We will continue to expand and develop this most
important channel as we go forward in 1999.
''Our catalog channel has continued to post year-over-year and quarter-over-quarter increases and acts as a catalyst to
stimulate our Internet sales. We have increased product listings, product content and improved advertising display ads. These
actions, along with more targeted circulation, has had a positive effect on catalog productivity.
''In North America, our business increased 17% in the quarter. This growth was the result of increased catalog sales, improved
direct sales, and an exclusive distribution agreement with Symantec for their Visual Cafe upgrade, which was launched in
November. Looking forward, we will continue to aggressively pursue additional distribution partners as we enter into what
should be a fairly robust period for new and upgrade product releases.
''In Europe, I am especially pleased to report that in the fourth quarter, all operating subsidiaries were profitable for the first
time. Overall revenues for the quarter grew 27%, led by our Dutch subsidiary, Logicsoft Holding BV, which posted a 65%
revenue increase and our German subsidiary, ISP*D, which posted a 17% increase in the quarter. The performance of our
Dutch subsidiary was outstanding and this continues to exemplify the extraordinary business potential for Europe as a whole.
''We have achieved several significant milestones in the past six months and we are very optimistic about our business as we
begin 1999. We feel our Internet expansion strategy is on point, representing significant growth opportunities ahead. With
concerted efforts to expand Corporate Outbound telemarketing and improved reseller performance, while at the same time
maintaining a focused effort to further reduce costs, we believe that we will achieve our targets for 1999,'' concluded Mr.
Willett.
Programmer's Paradise(r),Inc. is an international marketer of software targeting the software development professional and
information technical professionals within enterprise organizations. Programmer's enhances software development productivity
by providing a single-source for software development tools from industry-leading vendors selected on the basis of features,
quality, price and warranty. The Company offers over 35,000 SKUs from more than 2,000 publishers and manufacturers, and
distributes these products through multiple distribution channels. Programmer's Paradise Web site is 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®, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Twelve
Months Months
Ended Ended
December 31, December 31,
(Unaudited) (Audited)
1998 1997 1998 1997
Net sales $ 75,995 $ 61,236 $ 234,429 $ 176,157
Cost of sales 66,534 53,057 205,241 150,452
Gross profit 9,461 8,179 29,188 25,705
SG&A expenses 6,716 5,741 22,682 18,574
Amortization 243 253 979 914
Income from operations 2,502 2,185 5,527 6,217
Interest income, net 77 43 294 212
Unrealized foreign
exchange gain (loss) (11) 26 62 (58)
Income before taxes 2,568 2,254 5,883 6,371
Provision for taxes 903 873 2,441 2,407
Net income 1,665 1,381 3,442 3,964
Basic net income per common
share $ 0.35 $ 0.29 $ 0.72 $ 0.84
Diluted net income per common
share $ 0.32 $ 0.26 $ 0.66 $ 0.75
Weighted average number of
common shares outstanding- 4,772 4,750 4,797 4,740
basic
Weighted average number of
common shares outstanding- 5,237 5,348 5,249 5,280
diluted
PROGRAMMER'S PARADISE®, INC.
CONSOLIDATED BALANCE SHEETS
(Audited)
(In thousands)
December December
31, 1998 31, 1997
ASSETS
Current Assets:
Cash and cash equivalents $ 21,167 $ 20,571
Trade accounts receivable 53,002 38,517
Inventory 5,335 4,627
Prepaid expenses and
other current assets 2,925 2,561
Deferred tax asset 1,988 1,619
Total Current 84,417 67,895
Assets
Furniture and equipment 2,317 1,862
Deferred income taxes 1,262 1,719
Other assets 1,286 707
Goodwill 15,595 14,185
Total Assets $ 104,877 $ 86,368
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable to banks $ 674 $ 958
Accounts payable and
accrued expenses 58,064 46,976
Other current liabilities 7,993 3,881
Total Current
Liabilities 66,731 51,818
Notes payable - long term 1,761 2,220
Other liabilities 144 117
Total Liabilities 68,636 54,155
SHAREHOLDERS' EQUITY
Common Stock 50 48
Additional Paid-in-capital 34,278 33,633
Treasury stock (545) (343)
Retained earnings / (deficit) 3,186 (256)
Cumulative foreign currency
translation adjustment (728) (869)
Total Shareholders'
Equity 36,241 32,213
Total Liabilities and
Shareholders'Equity $ 104,877 $ 86,368
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