Climb Global Solutions, Inc. - Quarter Report: 2012 June (Form 10-Q)

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2012

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                to               

 

Commission File No. 000-26408

 

Wayside Technology Group, Inc.

(Exact name of registrant as specified in its charter)

 

 

1157 Shrewsbury Avenue, Shrewsbury, New Jersey 07702

(Address of principal executive offices)

 

(732) 389-8950

Registrant’s Telephone Number

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” and “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Check One:

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

 

There were 4,711,867 outstanding shares of common stock, par value $.01 per share, (“Common Stock”) as of July 31, 2012, not including 572,633 shares classified as treasury stock.

 

 

 

PART I — FINANCIAL INFORMATION

WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

		June 30,			December 31,
		2012			2011
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	7,237		$	9,202
Marketable securities		5,572			5,375
Accounts receivable, net of allowances of $1,422 and $1,513, respectively		50,369			47,066
Inventory, net		1,307			1,240
Prepaid expenses and other current assets		1,256			1,997
Deferred income taxes		347			329
Total current assets		66,088			65,209
Equipment and leasehold improvements, net		370			458
Accounts receivable-long-term		9,551			8,889
Other assets		74			54
Deferred income taxes		250			251
Total assets		$	76,333		$	74,861
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses		$	45,750		$	45,796
Current portion - capital lease obligation		83			76
Total current liabilities		45,833			45,872
Long- term portion- capital lease obligation		14			55
Total liabilities		45,847			45,927
Commitments and contingencies
Stockholders’ equity
Common Stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued; 4,711,867 and 4,679,878 shares outstanding, respectively		53			53
Additional paid-in capital		27,453			26,725
Treasury stock, at cost, 572,633 and 604,622 shares, respectively		(5,012		)	(4,991		)
Retained earnings		7,665			6,818
Accumulated other comprehensive income		327			329
Total stockholders’ equity		30,486			28,934
Total liabilities and stockholders’ equity		$	76,333		$	74,861

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except per share data)

 

		Six months ended						Three months ended
		June 30,						June 30,
		2012			2011			2012			2011
Net sales		$	136,076		$	112,210		$	69,169		$	60,661
Cost of sales		124,919			101,784			63,579			55,060
Gross profit		11,157			10,426			5,590			5,601
Selling, general and administrative expenses		7,538			7,170			3,551			3,640
Income from operations		3,619			3,256			2,039			1,961
Interest income, net		254			172			130			86
Realized foreign exchange gain		1			1			—			1
Income before income tax provision		3,874			3,429			2,169			2,048
Provision for income taxes		1,541			1,358			865			820
Net income		$	2,333		$	2,071		$	1,304		$	1,228
Net income per common share - Basic		$	0.52		$	0.47		$	0.29		$	0.28
Net income per common share — Diluted		$	0.50		$	0.45		$	0.28		$	0.26
Weighted average common shares outstanding-Basic		4,449			4,414			4,471			4,414
Weighted average common shares outstanding-Diluted		4,632			4,647			4,656			4,645
Dividends paid per common share		$	0.32		$	0.32		$	0.16		$	0.16

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

 

		Six months ended						Three months ended
		June 30,						June 30,
		2012			2011			2012			2011
Net income		$	2,333		$	2,071		$	1,304		$	1,228
Other comprehensive income, net of tax:
Foreign currency translation adjustment		(7		)	88			(75		)	(33		)
Unrealized gain on available- for -sale marketable securities		5			4			1			1
Other comprehensive income (loss)		(2		)	92			(74		)	(32		)
Comprehensive income		$	2,331		$	2,163		$	1,230		$	1,196

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except share amounts)

 

																		Accumulated
							Additional											Other
		Common Stock					Paid-In			Treasury					Retained			Comprehensive
		Shares		Amount			Capital			Shares		Amount			Earnings			Income			Total
Balance at January 1, 2012		5,284,500		$	53		$	26,725		604,622		$	(4,991	)	$	6,818		$	329		$	28,934
Net income															2,333						2,333
Translation adjustment																		(7		)	(7		)
Unrealized gain on available- for-sale securities																		5			5
Dividends paid															(1,486		)				(1,486		)
Stock options exercised							153			(53,375	)	256									409
Share-based compensation expense							463														463
Tax benefit from share- based compensation							112														112
Treasury shares repurchased										21,386		(277		)							(277		)
Balance at June 30, 2012		5,284,500		$	53		$	27,453		572,633		$	(5,012	)	$	7,665		$	327		$	30,486

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

		Six months ended
		June 30,
		2012			2011
Net income		$	2,333		$	2,071
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		163			157
Deferred income taxes		(18		)	64
Provision for doubtful accounts receivable		95			105
Share-based compensation expense		463			589
Changes in operating assets and liabilities:
Accounts receivable		(4,077		)	4,513
Inventory		(67		)	(180		)
Prepaid expenses and other current assets		740			(126		)
Accounts payable and accrued expenses		(18		)	(7,181		)
Net change in other assets and liabilities		(21		)	(3		)
Net cash (used in) provided by operating activities		(407		)	9
Cash flows from investing activities:
Purchases of available-for-sale securities		(2,886		)	—
Redemptions of available-for-sale securities		2,695			3,137
Capital expenditures		(73		)	(124		)
Net cash (used in) provided by investing activities		(264		)	3,013
Cash flows from financing activities:
Dividend paid		(1,486		)	(1,503		)
Treasury stock repurchased		(277		)	(1,072		)
Tax benefit from share-based compensation		112			188
Repayment of capital lease obligations		(34		)	(41		)
Proceeds from stock option exercises		409			71
Net cash used in financing activities		(1,276		)	(2,357		)
Effect of foreign exchange rate on cash		(18		)	47
Net (decrease) increase in cash and cash equivalents		(1,965		)	712
Cash and cash equivalents at beginning of period		9,202			10,955
Cash and cash equivalents at end of period		$	7,237		$	11,667
Supplementary disclosure of cash flow information:
Income taxes paid		$	1,960		$	1,231

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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WAYSIDE TECHNOLOGY GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

June 30, 2012

 

1.                                      The accompanying unaudited condensed consolidated financial statements of Wayside Technology Group, Inc. and its subsidiaries (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“ U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP for complete audited financial statements.

 

The preparation of these condensed consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, investments, intangible assets, income taxes, stock-based compensation, and contingencies and litigation. The Company bases its estimates on its historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In the opinion of the Company’s management, all adjustments that are of a normal recurring nature, considered necessary for fair presentation, have been included in the accompanying financial statements. The Company’s actual results may differ from these estimates under different assumptions or conditions. The unaudited condensed consolidated statements of earnings for the interim periods are not necessarily indicative of results for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the Securities Exchange Commission for the year ended December 31, 2011.

 

2.                                Assets and liabilities of the Company’s foreign subsidiaries have been translated at current exchange rates, and related sales and expenses have been translated at average rates of exchange in effect during the period. The sales from our Canadian operations in the first six months of 2012 were $11.5 million as compared to $8.8 million for the first six months of 2011. The sales from our Canadian operations for the second quarter of 2012 were $5.6 million as compared to $4.2 million for the second quarter of 2011.

 

3.                                      Cumulative translation adjustments and unrealized gains (losses) on available-for-sale securities have been classified within accumulated other comprehensive income, which is a separate component of stockholders’ equity in accordance with FASB ASC Topic 220, “Comprehensive Income.”

 

4.                                      The Company records revenues from sales transactions when title to products sold passes to the customer. Usual sales terms are FOB shipping point, at which time title and risk of loss have passed to the customer and delivery has occurred.  Revenue is recognized in accordance with ASC Topic 985-605 “ Software Revenue Recognition” and  ASC Topic 605-10-S99, and ASC Topic 605 -45, “Reporting Revenue Gross as a Principal versus Net as an Agent”. The majority of the Company’s revenues relates to physical products and is recognized on a gross basis with the selling price to the customer recorded as net sales and the acquisition cost of the product to the Company recorded as cost of sales. At the time of sale, the Company also records an estimate for sales returns based on historical experience. Certain software maintenance products, third party services and extended warranties sold by the Company (for which the Company is not the primary obligor) are recognized on a net basis. Accordingly, such revenues are recognized in net sales either at the time of sale or over the contract period, based on the nature of the contract, at the net amount retained by the Company, with no cost of goods sold.

 

Accounts  receivable long-term result from product sales with extended payment terms that are discounted to their present values at the prevailing market rates. In subsequent periods, the accounts receivable are increased to the amounts due and payable by the customers through the accretion of interest income on the

 

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unpaid accounts receivable due in future years. The amounts due under these long-term accounts receivable due within one year are reclassified to the current portion of accounts receivable.

 

5.                                      Vendor rebates and price protection are recorded when earned as a reduction to cost of sales or merchandise inventory, as applicable. Cooperative reimbursements from vendors, which are earned and available, are recorded in the period in which the related advertising expenditure is incurred. Cooperative reimbursements are recorded as reduction in cost of sales in accordance with ASC Topic 605-50 “Accounting by a Customer (including reseller) for Certain Consideration Received from a Vendor.”

 

6.                                      The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximated fair value at June 30, 2012 and December 31, 2011 because of the relative short maturity of these instruments.

 

Investments in available-for-sale securities at June 30, 2012 were (in thousands):

 

		Cost			Market value			Unrealized (loss)
Certificates of deposit		$	5,586		$	5,572		$	(14	)
Total Marketable securities		$	5,586		$	5,572		$	(14	)

 

The cost and market value of the Company’s investments at June 31, 2012 determined by contractual maturity were (in thousands):

 

					Estimated
		Cost			Fair Value
Due in one year or less		$	5,586		$	5,572

 

Investments in available-for-sale securities at December 31, 2011 were (in thousands):

 

		Cost			Market value			Unrealized (loss)
Certificates of deposit		$	5,394		$	5,375		$	(19	)
Total Marketable securities		$	5,394		$	5,375		$	(19	)

 

The cost and market value of the Company’s investments at December 31, 2011 determined by contractual maturity were (in thousands):

 

					Estimated
		Cost			Fair Value
Due in one year or less		$	5,394		$	5,375

 

7.                                      The Company accounts for the fair value measurement in accordance with FASB ASC Topic 820 “Fair Value Measurement and Disclosure”, which establishes a framework for measuring fair value under U.S. GAAP and expands disclosures about fair value measurements. The Company uses the following methods for determining fair value in accordance with ASC Topic 820. For assets and liabilities that are measured using quoted prices in active markets for the identical asset or liability, the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs (Level 1). Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data (Level 2). For all remaining assets and liabilities for which there are no significant observable inputs, fair value is derived using an assessment of various discount rates, default risk, credit quality and the overall capital market liquidity (Level 3).

 

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The following table summarizes the basis used to measure certain financial assets and liabilities at fair value on a recurring basis in the condensed consolidated balance sheets:

 

					Fair Value Measurements at June 30, 2012 Using
(In thousands) Description		Balance at June 30, 2012			Quoted Prices in Active Markets for Identical Items (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Certificates of deposit		$	5,572		$	—		$	5,572		$	—

 

 

					Fair Value Measurements at December 31, 2011 Using
(In thousands) Description		Balance at December 31, 2011			Quoted Prices in Active Markets for Identical Items (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Certificates of deposit		$	5,375		$	—		$	5,375		$	—

 

Certificates of deposit- The fair value of certificates of deposit is estimated using third-party quotations for similar certificates of deposit. These deposits are categorized in Level 2 of the fair value hierarchy.

 

8.                                Balance Sheet Detail — (in thousands):

 

Equipment and leasehold improvements consist of the following as of June 30, 2012 and December 31, 2011:

 

		June 30, 2012			December 31, 2011
Equipment		$	2,769		$	2,696
Leasehold improvements		560			560
		3,329			3,256
Less accumulated depreciation and amortization		(2,959		)	(2,798		)
		$	370		$	458

 

Accounts payable and accrued expenses consist of the following as of June 30, 2012 and December 31, 2011:

 

		June 30, 2012			December 31, 2011
Trade accounts payable		$	43,596		$	42,417
Other accrued expenses		2,154			3,379
		$	45,750		$	45,796

 

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Accumulated other comprehensive income consists of the following as of June 30, 2012 and December 31, 2011:

 

		June 30,  2012			December 31, 2011
Foreign currency translation adjustments		$	341		$	348
Unrealized (loss) on marketable securities		(14		)	(19		)
		$	327		$	329

 

9.                                      Basic Earnings Per Share (“EPS”) is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted EPS is computed considering the potentially dilutive effect of outstanding stock options and nonvested shares of restricted stock. A reconciliation of the numerators and denominators of the basic and diluted per share computations follows (in thousands, except share and per share data):

 

		Six months ended						Three months ended
		June 30,						June 30,
		2012			2011			2012			2011
Numerator:
Net income		$	2,333		$	2,071		$	1,304		$	1,228
Denominator:
Weighted average shares (Basic)		4,449			4,414			4,471			4,414
Dilutive effect of outstanding options and non-vested shares of restricted stock		183			233			185			231
Weighted average shares including assumed conversions (Diluted)		4,632			4,647			4,656			4,645
Basic net income per share		$	0.52		$	0.47		$	0.29		$	0.28
Diluted net income per share		$	0.50		$	0.45		$	0.28		$	0.26

 

10.                         The Company had one major vendor that accounted for 14.6% and 14.5% of total purchases during the six and three months, respectively, that ended June 30, 2012. The Company had one major vendor that accounted for 11.9% and 13.9% of total purchases during the six and three months, respectively, that ended June 30, 2011. The Company had three major customers that accounted for 13.4%, 13.3% and 12.3%, respectively, of its total net sales during the six months ended June 30, 2012, and 13.7%, 15.9% and 13.0% of total net sales for

 

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the three months then ended. These same customers accounted for 12.0%, 14.0% and 9.9%, respectively, of total net accounts receivable as of June 30, 2012. The Company had three major customers that accounted for 14.5%, 11.0% and 10.7%, respectively, of its total net sales during the six months ended June 30, 2011, and 14.6%, 11.4% an 11.0% of total net sales for the three months then ended.

 

11.               The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2008. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as operating expenses. The Company believes that it has appropriate support for the income tax positions it takes and expects to take on its tax returns, and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter.

 

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The provision consists of the following (in thousands):

 

		Six months ended						Three months ended
		June 30,						June 30,
		2012			2011			2012			2011
Current:
Federal		$	1,208		$	922		$	726		$	566
State		228			268			137			165
Canada		123			103			44			46
		1,559			1,293			907			777
Deferred tax (benefit) expense		(18		)	65			(42		)	43
		$	1,541		$	1,358		$	865		$	820
Effective tax rate		39.8		%	39.6		%	39.9		%	40.0		%

 

12.               The 2006 Stock- Based Compensation Plan (the “2006 Plan”). The 2006 Plan authorizes the grant of Stock Options, Stock Units, Stock Appreciation Rights, Restricted Stock, Deferred Stock, Stock Bonuses, and other equity-based awards. The total number of shares of Common Stock initially available for award under the 2006 Plan was 800,000. As of June 30, 2012, the number of shares of Common Stock available for future award grants to employees and directors under the 2006 Plan is 122,250.

 

During 2006, the Company granted a total of 315,000 shares of Restricted Stock to officers, directors and employees. Included in this grant were 200,000 Restricted Shares granted to the Company’s CEO in accordance with his employment agreement. These 200,000 Restricted Shares vest over 120 months. The remaining grants of Restricted Stock vest over 60 months.

 

During 2007, the Company granted a total of 30,000 shares of Restricted Stock to officers, directors and employees. These shares of Restricted Stock vest over 60 months. In 2007, a total of 12,500 shares of Restricted Stock were forfeited as a result of employees and officers terminating employment with the Company.

 

During 2008, the Company granted a total of 57,500 shares of Restricted Stock to officers and directors. These shares of Restricted Stock vest over 60 months.  In 2008, a total of 3,500 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company.

 

During 2009, the Company granted a total of 140,000 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over 20 equal quarterly installments.

 

During 2010, the Company granted a total of 150,500 shares of Restricted Stock to officers and employees. These shares of Restricted Stock vest over 60 months. In 2010, a total of 5,875 shares of Restricted Stock were forfeited as a result of employees and officers terminating employment with the Company.

 

During 2011, the Company granted a total of 15,000 shares of Restricted Stock to employees. These shares of Restricted Stock vest over 60 months. In 2011, a total of 8,375 shares of Restricted Stock were forfeited as a result of employees terminating employment with the Company.

 

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Changes during 2012 in options outstanding under the Company’s combined plans (i.e., the 2006 Plan, the 1995 Non-Employee Director Plan and the 1995 Stock Option Plan) were as follows:

 

		Number of Options		Weighted Average Exercise Price			Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value ($M)(1)
Outstanding at January 1, 2012		374,140		$	8.33
Granted in 2012		—		—
Canceled in 2012		—		—
Exercised in 2012		53,375		$	7.66
Outstanding at June 30, 2012		320,765		$	8.44		2.0		$	1.3
Exercisable at June 30, 2012		320,765		$	8.44		2.0		$	1.3

 

(1) The intrinsic value of an option is calculated as the difference between the market value on the last trading day of the quarter (June 29, 2012) and the exercise price of the outstanding options. The market value as of June 29, 2012 was $12.25 per share represented by the closing price as reported by The Nasdaq Global Market on that day.

 

A summary of nonvested shares of Restricted Stock awards outstanding under the Company’s 2006 Plan as of June 30, 2012, and changes during the six months then ended is as follows:

 

		Shares		Weighted Average Grant Date Fair Value
Nonvested shares at January 1, 2012		262,275		$	10.44
Granted in 2012		—		—
Vested in 2012		(46,700	)	9.91
Forfeited in 2012		—		—
Nonvested shares at June 30, 2012		215,575		$	10.55

 

As of June 30, 2012, there is approximately $2.3 million of total unrecognized compensation costs related to nonvested share-based compensation arrangements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.1 years.

 

For the six months ended June 30, 2012 and 2011, the Company recognized share-based compensation cost of approximately $463,000 and $589,000, respectively, which is included in the Company’s general and administrative expense.

 

13.               ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer.

 

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The Company is organized into two reportable operating segments — the “TechXtend” segment, which sells technical software, hardware and services directly to end-users (such as individual programmers, corporations, government agencies, and educational institutions) and the “Lifeboat” segment, which distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators.

 

As permitted by ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as the Canadian operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources.

 

Segment income is based on segment revenue less the applicable segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable and inventory by segment as shown below as “Selected Assets” it does not allocate its other assets, including capital expenditures by segment.

 

The following segment reporting information of the Company is provided (in thousands):

 

		Six months ended						Three months ended
		June 30,						June 30,
		2012			2011			2012			2011
Revenue:
TechXtend		$	33,226		$	23,708		$	15,621		$	11,710
Lifeboat		102,850			88,502			53,548			48,951
		136,076			112,210			69,169			60,661
Gross Profit:
TechXtend		$	3,528		$	2,714		$	1,746		$	1,303
Lifeboat		7,629			7,712			3,844			4,298
		11,157			10,426			5,590			5,601
Direct Costs:
TechXtend		$	1,681		$	1,459		$	840		$	740
Lifeboat		2,238			2,269			1,107			1,152
		3,919			3,728			1,947			1,892
Segment Income:
TechXtend		$	1,847		$	1,255		$	906		$	563
Lifeboat		5,391			5,443			2,737			3,146
Segment Income		7,238			6,698			3,643			3,709
Corporate general and administrative expenses		$	3,619		$	3,442		$	1,604		$	1,748
Interest income, net		254			172			130			86
Foreign currency translation gain		1			1			—			1
Income before taxes		$	3,874		$	3,429		$	2,169		$	2,048
Selected Assets By Segment:
TechXtend		$	30,329
Lifeboat		30,898
Corporate assets		15,106
Segment Selected Assets		$	76,333

 

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