Good morning, ladies and gentlemen, and welcome to the Wayside Technology Group Conference Call. [Operator Instructions] As a reminder, ladies and gentlemen, this conference is being recorded. I would now like to introduce your host for today's conference, Melanie Caponigro. Ms. Caponigro, you may begin your conference at this time.

Thank you, and good morning. Welcome to Wayside Technology's First Quarter 2018 Earnings Call. Before turning the call over to Simon Nynens, the company's Chairman and CEO, I'll dispense with the customary cautionary language and comment about the webcast for this earnings call. We released earnings for the first quarter at approximately 5:00 p.m. Eastern time, Thursday, May 3, 2018. The earnings release is available at the company's Investor Relations website at waysidetechnology.com. Today's call, including all questions and answers, is being webcast live, and a rebroadcast will be available at www.waysidetechnology.com/site/content/webcast. This conference call and the associated webcast contain time-sensitive information that is accurate only as of today, May 4, 2018. A detailed discussion of risks and uncertainties are discussed in our Forms 10-Q and also in greater detail in our Forms 10-K. Wayside Technology Group, Inc. sees no obligation to update and does not intend to update any forward-looking statements. Now I would like to turn the call over to Simon Nynens.

Thank you, Melanie, and good morning to everybody. Income before tax increased 7.5% and diluted earnings per share increased 23%, a good quarter. From an operational view, we strengthened our position in the software distribution market as we signed distribution agreements with more than 10 new vendors. We also maintained our focus on costs, which allowed us to drive a solid earnings performance. We continue to have one of the most conservative balance sheets as a public company and do not have a current need for debt. Cash, vendor prepayments and long-term receivables, what we internally view as total cash, amounted to $19.7 million or 31% of our market capitalization and represent the 50% or half of our equity at the end of March 2018. In addition, we have current dividend yield of almost 5%. We have the tools in place to add more publishers, including a great team and great IT infrastructure. Now I would like to hand it over to Michael Vesey to report on the financial numbers. Mike?

Thanks, Simon. I'll review our financial results for the first quarter, then discuss our balance sheet and the liquidity. To start, you'll note we adopted ASC 606 revenue from contracts of customers effective January 1, 2018, using the full retrospective method. So all comparisons reflect restatement of the prior year amounts to be consistent. The adoption had no impact on income from operations. However, we now report a substantial portion of our revenue net of the related cost of sales, which impacts gross margin as a percent of net sales and other operating metrics. As has been the case in recent quarters, our Lifeboat Distribution business, which accounts for over 90% of net sales, has shown growth, while our TechXtend business, which tends to fluctuate from period to period based on the level of extended payment term sales, declined. Overall net sales for the quarter increased 6% to $40.6 million compared to $38.1 million for the same quarter last year. Lifeboat Distribution net sales were up 9% for the quarter to $36.8 million, while TechXtend net sales for the quarter were down 13% to 13.7%. As I mentioned, the decrease in TechXtend sales were due to lower extended payment term sales, which fluctuate based on market opportunity and internal capital allocation decisions. Gross profit for the quarter increased 2% to $6.9 million compared to $6.8 million for the same period last year. Following the sales pattern, Lifeboat Distribution gross profit for the quarter increased 6% to $6.1 million, while TechXtend decreased 23% to $700,000 due to lower extended payment term sales. Gross profit margin as a percentage of net sales decreased by 70 basis points to 17.7% compared to 17.0% in the prior year. Here, you will note that the percentage margins are significantly higher than reported under the prior…

Thank you, Mike. Now before we start the Q&A session, a couple of more thoughts. We thank our customers and vendors for their trust and partnership. We are a flexible, proactive and knowledgeable partner, who acts like an extension of a vendor's sales and marketing team. We strive to give our customers the absolute best buying experience. This year, we made it to number 34 in New Jersey's best places to work, a great testament to our forward-thinking culture. We look forward to a great confidence in the people who make these results possible, our team here at Wayside Technology Group. And to them, I say thank you for your hard work during this past quarter, and thank you for your continued passion to win. Thank you. Operator, we can now start the Q&A session.

[Operator Instructions] Your first question comes from Lu Molder [ph].

I was just wondering if there's any effort made -- I know that you're small-cap company and you don't want to pay for coverage, but is there any interest in getting some analysts to look at your company? You've got a great dividend. You've got a long-term record. A lot going for you, and it seems that nobody knows about it.

Yes, this is Mike Vesey, and I think the answer is yes. We're going to look at creating some market awareness in the upcoming year. We've been focused in the past year on kind of adjusting to be an accelerated filer and putting some things in place where we could approach the market a little bit more proactively, and we will be looking at that on a going-forward basis.

That's good. The momentum that you've created in this quarter, do you expect it to pretty much carry through as the quarters progress? Or is there something that might interfere with the progress of the company?

In our industry, we fight for sales on every single month, there are no long-term contracts. It's a very good start to the year, and we look forward to it with great confidence. However, it's early in the year, and as I said before, it's very hard to give forward-looking information in our industry.

At this time there are no further questions. Please continue with any closing remarks.

Thanks for your interest in our company, and we look forward to reporting our second quarter results at the end of July or the beginning of August. Thank you so much.

This concludes today's conference call. You may disconnect at this time, and thank you for your participation.