Q1 2021 Wayside Technology Group Inc Earnings Call
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Joining us today are wayside C E O. Mr Day off foster the companies CFO and.
Mister Michael D C and the companies outside Investor Relations adviser Cody Cree with Gateway investors relations.
By now everyone should have access to the first quarter of 2021 earnings release, which went out yesterday afternoon at approximately 415 PM Eastern time the.
The releases available and the Investor Relations section of Wayside technology groups website at Wayside technology Dot com.
This call is also available for webcast replay on the company's website.
Following management remarks will open the call for your questions.
And now like to turn the call over to Mister Cree for some introductory comments.
Thank you James before I introduce Dale I'd like to remind listeners that certain comments made and this conference call and webcast are considered forward looking statements under the private Securities Litigation Reform Act of 1995 is forward looking statements are subject of certain known and unknown risks and uncertainties as well as assumptions that could cause actual.
[noise] results to differ materially from those reflected and these forward looking statements and.
And he's forward looking statements are also subject generally to other risks and uncertainties that are described from time to time and the company's filings with the SEC do not place undue reliance on any forward looking statements, which speak only as of the day of this call except as required by law and the company undertakes no obligation to revise our public.
Released the results of any revision to any for looking statements.
Our presentation also include certain non-GAAP financial measures, including adjusted gross billings adjusted EBITDA net income, excluding non-recurring costs and non-GAAP earnings per share a supplemental measures of performance of our business. All non-GAAP measures have been reconciled for the most directly comparable GAAP measures in accordance with the SEC rule.
And you'll find reconciliation charts and other important information and the earnings release and form 8-K, we furnished to the SEC yesterday and now like to turn the call over at the Wayside C E O L. Foster.
Thank you Cody and good morning, everyone. We continue to drawing for growth strategy during the first quarter, giving your business a solid foundation for 2021, despite the tough comparable prior year period are gross profit reached $10.8 million, which is a company record and we continue year over year growth across net sales and adjusted.
And then gradually advances and we were working to ultimately position and diversify our portfolio to support these needs.
These recent spending trends on security data center and cloud product lines point to another concept that underlies our current strategy the prevalence of the cloud. According to a recent guide published by IDC spending on security products and is expected to reach over 23 billion by the end of this year driven by the rapid growth and.
<unk>, a cloud driven market remote work solutions.
And the current state our portfolio and vendor line card already includes growing exposure to cloud and cloud adjacent products or work to further support and diversify our network will help us can continue to build on our platform as an incubator for emerging vendors.
Ones that are not only serving today and it needs for also preparing customers for their it needs of tomorrow.
Next we're continuing to focus on developing emerging vendors with long term growth potential to establish a mutually beneficial partnerships to discuss this in conjunction with our current line card. Let me now turn to our second core growth driver and highlight some of the important vendor updates and winds from the quarter.
And April climb channel solutions was awarded the title of <unk> of the year by temporary hopefully I'm subsidiary of data direct networks, we've had a long running distribution partnership with centuries, intelligent and infrastructure products and we're honored to have has received this recognition of our high touch sales approach and expertise.
And we collaborate among U S, Canada, and EMEA sales team, where further expanding our global reach of our line card.
This includes several new key wins from their relationships. We're building through a recently acquired Cvs network for instance, carrying forward the momentum we generated with security products. This quarter one of our established vendors sofas is launching its next generation firewall product and we've added this enhanced product to our distribution portfolio.
Keeping with the UK. We've also continue to drive growth with digital transformation and enterprise software provider given the remarkable success, we've had with microfocus over the past four quarters and North America were now turning your attention to Europe to do more of the same.
One other key new product, we've added towards distribute and sweet as being mapping by Microsoft, which we've started distributing across our global footprint. This Microsoft mapping platform integrates with office 365 functionality on key features and and powers developers and enterprise the light to build intelligent location enabled.
Capability.
Having this product and our portfolio is a significant added resource to our offerings and will help us as we continue to expand and go deeper into the independent software vendor or Isps customer marketplace, where we currently cell and tell software focus products.
These incremental UK vendor and product conditions dovetail into our progress on our third corps driver, which is using our balance sheet liquidity to identify accretive acquisition and enhance our margin profiles.
And as we continue to develop our vendor network and advanced the full integration and Cvs were supported by a strong balance sheet as well as the capabilities of a recent acquisitions added to our platform, particularly around cloud services as I stated last quarter being able to leverage the skill set of Cdf's cloud and no house.
<unk>, our adoption and migrations.