<SUBMISSION>
<ACCESSION-NUMBER>0000894579-05-000017
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20041231
<ITEMS>2.02
<ITEMS>5.02
<FILING-DATE>20050128
<DATE-OF-FILING-DATE-CHANGE>20050128
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PROGRAMMERS PARADISE INC
<CIK>0000945983
<ASSIGNED-SIC>5045
<IRS-NUMBER>133136104
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-26408
<FILM-NUMBER>05559362
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1157 SHREWSBURY AVE
<CITY>SHREWSBURY
<STATE>NJ
<ZIP>07702
<PHONE>7323898950
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1157 SHREWSBURY AVE
<CITY>SHREWSBURY
<STATE>NJ
<ZIP>07702
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>ppiform8k-0128.htm
<DESCRIPTION>FORM 8K
<TEXT>
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<BODY VLINK="#800080">

<B><FONT SIZE=5><P ALIGN="CENTER">UNITED STATES</P>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
</FONT><P ALIGN="CENTER">Washington, DC 20549</B><BR>
<BR>
____________________</P>
<B><FONT SIZE=5><P ALIGN="CENTER">FORM 8-K</P>
</FONT><P ALIGN="CENTER">CURRENT REPORT<BR>
<BR>
Pursuant to Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934</P>
</B><P ALIGN="CENTER">Date of report (Date of earliest event reported):  <U>January 27, 2005</P>
<P ALIGN="CENTER">Programmer's Paradise, Inc.</U><BR>
(Exact name of Registrant as specified in its charter)</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111">
<TR><TD WIDTH="38%" VALIGN="TOP">
<U><P ALIGN="CENTER">Delaware</U></TD>
<TD WIDTH="29%" VALIGN="TOP">
<U><P ALIGN="CENTER">000-26408</U></TD>
<TD WIDTH="33%" VALIGN="TOP">
<U><P ALIGN="CENTER">13-3136104</U></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">(State of Other Jurisdiction</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">(Commission</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">(IRS Employer</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">of Incorporation)</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">File Number)</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER">Identification No.)</FONT></TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="38%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111" height="73">
<TR><TD WIDTH="59%" VALIGN="TOP" height="19">
<U><P ALIGN="CENTER">1157 Shrewsbury Avenue, Shrewsbury, New Jersey</U></TD>
<TD WIDTH="8%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" height="19">
<U><P ALIGN="CENTER">07702</U></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" height="19">
<FONT SIZE=1><P ALIGN="CENTER">(Address of Principal Executive Offices)</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" height="19">
<FONT SIZE=1><P ALIGN="CENTER">(Zip Code)</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" height="16"></TD>
<TD WIDTH="8%" VALIGN="TOP" height="16"></TD>
<TD WIDTH="33%" VALIGN="TOP" height="16"></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="8%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" height="19">&nbsp;</TD>
</TR>
</TABLE>

<P>Registrant's telephone number, including area code:  <U>(732) 389-8950</P>
</U><P style="text-indent: 50">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
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<TR><TD WIDTH="7%" VALIGN="TOP">
<P>[  ]</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>[  ]</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>[  ]</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>[  ]</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>
</TABLE>
<p Style='page-break-before:always'>
<P>&nbsp;</P>
<B><P>Item 2.02 and Item 7.01.  Results of Operations and Financial Condition and Regulation FD Disclosure</P>
</B><P style="text-indent: 50">On January 27, 2005, Programmer's Paradise, Inc. (the &quot;Company&quot;) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2004.  The information contained in the press release, which is attached as Exhibit 99.1 to this report, is incorporated by reference herein and is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 7.01, "Regulation FD Disclosure."</P>
<B><P>Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.</P>
</B><P style="text-indent: 50">On January 27, 2005, the Company issued a press release announcing the resignation of Mr. James W. Sight from the Board of Directors
of the Company effective January 26, 2005. Mr. Sight's resignation was not the result of any disagreement between Mr. Sight and the Company or its Board of Directors.</P>
<p Style='page-break-before:always'>
<P>&nbsp;</P>
<B><P ALIGN="CENTER">SIGNATURE</P>
</B><P ALIGN="JUSTIFY" style="text-indent: 50">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<TABLE CELLSPACING=0 CELLPADDING=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111" height="93">
<TR><TD WIDTH="45%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2 height="19">
<P>PROGRAMMER'S PARADISE, INC.</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" height="17"></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2 height="17"></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" height="19">
<P>Dated:  January 28, 2005</TD>
<TD WIDTH="6%" VALIGN="TOP" height="19">
<P>By:</TD>
<TD WIDTH="49%" VALIGN="TOP" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
/s/ Simon F. Nynens</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP" height="19" style="border-top-style: solid; border-top-width: 1">
<P>Simon F. Nynens</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="6%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP" height="19">
<P>Chief Financial Officer</TD>
</TR>
</TABLE>

<p Style='page-break-before:always'>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P align="center">

<U>Index to Exhibits</U></P><DIR>
<DIR>
<DIR>
<DIR>
<DIR>
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<P ALIGN="left">&nbsp;</P>
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<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111">
<TR><TD WIDTH="17%" VALIGN="TOP">
<U><P>Exhibit No.</U></TD>
<TD WIDTH="83%" VALIGN="TOP">
<U><P>Description</U></TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="83%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="17%" VALIGN="TOP">
<P>99.1</TD>
<TD WIDTH="83%" VALIGN="TOP">
<P>Press Release dated January 27, 2005 announcing financial results for the fourth quarter and year ended December 31, 2004 and the resignation of Mr. James W. Sight from the Board of Directors on January 26, 2005.</TD>
</TR>
</TABLE>

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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ppiexh99.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<B><P align="right"><u>Exhibit 99.1</u></P>

<P>Company Contact:<BR>
Bill Willett<BR>
Programmer's Paradise<SUP><FONT FACE="Times New Roman Bold,Times New Roman">(R)</SUP></FONT>, Inc.<BR>
Chairman and Chief Executive Officer<BR>
(732)-389-8950<BR>
<u>bill.willett@programmers.com</u></P>

<P>&nbsp;</P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</DIR>

<P ALIGN="CENTER">PROGRAMMER'S PARADISE<SUP>(R)</SUP>, INC. REPORTS 2004 FOURTH QUARTER <BR>
AND YEAR END FINANCIAL RESULTS</P>
<P ALIGN="CENTER">FOURTH QUARTER SALES INCREASE 55%</P>
<P>SHREWSBURY, NJ, January 27, 2005 </B>- Programmer's Paradise <SUP>(R)</SUP>, Inc. (NASDAQ: PROG) today reported financial results for the fourth quarter and year ended December 31, 2004. The results will be discussed in a conference call to be held on Friday, January 28, 2005 at 10:00 AM Eastern time. The dial-in telephone number is (866) 802-4324 and the pass code is "PROG".</P>
<P>Revenue for the quarter ended December 31, 2004 was $31.0 million compared with $20.0 million for the quarter ended December 31, 2003. This 55% increase in sales reflects the expansion of our account executive team, improved productivity and a continued favorable IT spending environment. In addition, sales increased 16% over the immediately preceding quarter.</P>

<P>For the year 2004 sales were $103.6 million, compared with $69.6 million for the year 2003, a 49% increase.</P>
<P>For the year of 2005, we will continue to invest to grow market share.  We expect to increase the number of account executives in our Shrewsbury, N.J. home office and in our satellite offices in Mount Laurel, N.J. and in Mississauga, Ontario, Canada. In addition, early in the second quarter we expect to open a new satellite sales office in Long Island, New York.</P>

<P>As a result of our strong performance in 2004 and our confidence in our future performance we reversed $4.1 million of our $5.0 million deferred income tax valuation allowance on December 31, 2004.</P>
<P>As discussed in the Company's previously filed Form 10-Q for the period ended September 30, 2004, the Company had net deferred tax assets totaling approximately $5.7 million, all of which were offset by a valuation allowance. The Company also noted that its assessment of the requirement for the valuation allowance could change in the future based upon its level of pre-tax income.</P>
<P>Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes (SFAS No. 109), requires the Company to record a valuation allowance when it is "more likely than not that some portion or all of the deferred tax assets will not be realized." Since December 31, 2000, the Company has maintained a 100% valuation allowance equal to the net deferred tax assets.</P>
<p Style='page-break-before:always'>
<P>Based upon the Company's profitable operations since December 31, 2002, and its expected profitability in future years, the Company has concluded that the results of future operations will generate sufficient taxable income to realize certain deferred tax assets. The Company has reduced its valuation allowance which was provided for in prior years. The Company believes that uncertainty still exists regarding the realizability of certain deferred tax assets, and accordingly, has established a $0.9 million valuation allowance, based on management's estimates, against these specific deferred tax assets.</P>
<P>As a result, in accordance with SFAS No. 109, the Company recorded a net deferred tax benefit (including the net change in valuation allowance) in the amount of $4.1 million.</P>
<P>As a result of the reversal of the valuation allowance, beginning with the first quarter of 2005, the Company expects to begin providing an income tax provision at a rate on income before taxes equal to the combined federal and state effective tax rates, currently estimated to be 40 percent.</P>
<P>On January 26, 2005, Mr. James W. Sight resigned for personal reasons from the Board of Directors of Programmer's Paradise, Inc. Bill Willett, Chairman and CEO, said, "on behalf of Programmer's Paradise, Inc. we thank Jim for his years of service as a member of our Board". There were no disagreements between Mr. Sight and the Company or its Board of Directors.</P>

<P>The 2004 cash dividend distribution paid to shareholders should be treated as 56.4% as a return of capital and 43.6% as a taxable dividend. However, shareholders should discuss this with their tax advisors.</P>
<P>Programmer's Paradise, Inc. (NASDAQ: PROG) was founded in 1982 and is an award-winning marketer of technical software and hardware.</P>
<P>Programmer's Paradise is one of the most recognizable and memorable brands in developer marketing. Our experienced account executives are key in our strategy. We offer our customers customized extranets, consultancy services, and flexible financing, as well as same day shipping.</P>
<P>Additional information can be found by visiting .</P>
<P>Contact Programmer's Paradise, Inc. via Bill Willett, CEO of Programmer's Paradise, Inc. at (732) 389-8950 or
<u>bill.willett@programmers.com</u>.</P>
<P><i>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.</i></P>
<P ALIGN="CENTER">- Tables Follow -</P>
<p Style='page-break-before:always'>
<P ALIGN="CENTER"><CENTER>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=588 style="border-collapse: collapse" bordercolor="#111111" height="814">
<TR><TD VALIGN="TOP" COLSPAN=4 height="57">
<B><FONT SIZE=3><P ALIGN="CENTER">PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED BALANCE SHEETS<BR>
(In thousands)</B></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="57">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="57">
<FONT SIZE=3><P ALIGN="CENTER">December 31,<BR>
<U>2004<BR>
</U>(Unaudited)</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="57">
<FONT SIZE=3><P ALIGN="CENTER">December 31,<BR>
<U>2003<BR>
</U>(Audited)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=4 height="19">
<FONT SIZE=3><P>ASSETS</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Current assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Cash and cash equivalents</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;  4,888</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp; 5,878</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Marketable Securities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">6,595</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">5,033</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Accounts receivable, net</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">14,173</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">7,634</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Inventory - finished goods</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">1,423</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">1,119</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
Prepaid expenses and other current assets</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<p align="right">673</TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<p align="right">333</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<P>     Deferred income taxes, current</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">1,423</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<P ALIGN="RIGHT">-</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Total current assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 style="border-top-style: solid; border-top-width: 1" height="20">
<FONT SIZE=3><P ALIGN="RIGHT">29,175</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">
<FONT SIZE=3><P ALIGN="RIGHT">19,997</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Equipment and leasehold improvements, net</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">303</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">292</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Other assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">581</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">200</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
Deferred income taxes, net of current</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">
<p align="right">2,855</TD>
<TD WIDTH="21%" VALIGN="TOP" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">-</TD>
</TR>
<TR>
  <TD WIDTH="61%" VALIGN="TOP" height="19" style="border-bottom-style: none; border-bottom-width: medium">
<FONT SIZE=3><P>Total assets</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 style="border-top-style: solid; border-top-width: 1" height="20" bordercolordark="#111111">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;  32,914</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" height="19" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;  20,489</FONT></TD>
</TR>
<TR>
  <TD WIDTH="61%" VALIGN="TOP" height="2" style="border-top-style: none; border-top-width: medium"></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"></TD>
<TD WIDTH="21%" VALIGN="TOP" height="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1"></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="17"></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="17" style="border-top-style: solid; border-top-width: 1"></TD>
<TD WIDTH="21%" VALIGN="TOP" height="17" style="border-top-style: solid; border-top-width: 1"></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" height="19">&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=4 height="19">
<FONT SIZE=3><P ALIGN="CENTER">LIABILITIES AND STOCKHOLDERS' EQUITY</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Current liabilities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Accounts payable and accrued expenses</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp; 15,994</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp; 8,919</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Dividend payable</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">  425</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">  375</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Total current liabilities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">  16,419</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19" style="border-top-style: solid; border-top-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">  9,294</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Commitments and contingencies</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Stockholders' equity</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Common stock, $.01 par value; authorized, 10,000,000</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>          shares; issued 5,284,500 shares</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">  53</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">53</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Additional paid-in capital</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">  32,642</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">34,099</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Treasury stock, at cost, 1,418,090 shares and 1,533,970</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">&nbsp;</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>          shares, respectively</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">(4,130)</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">  (4,490)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Retained earnings</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19">
<FONT SIZE=3><P ALIGN="RIGHT">(12,223)</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19">
<FONT SIZE=3><P ALIGN="RIGHT">(18,545)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>     Accumulated other comprehensive income (loss)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">  153</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19" style="border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">78</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Total stockholders' equity</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">16,495</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">11,195</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="19">
<FONT SIZE=3><P>Total liabilities and stockholders' equity</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" height="19" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp; 32,914</FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="19" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<FONT SIZE=3><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp; 20,489</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="2">
  </TD>
<TD WIDTH="18%" VALIGN="TOP" height="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
  </TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
  </TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" height="1">
  </TD>
<TD WIDTH="18%" VALIGN="TOP" height="1" style="border-top-style: solid; border-top-width: 1">
  </TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2 height="1" style="border-top-style: solid; border-top-width: 1">
  </TD>
</TR>
</TABLE>
</CENTER></P>
<p Style='page-break-before:always'>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111" height="1043">
<TR><TD VALIGN="TOP" COLSPAN=5 height="2">
<B><P ALIGN="CENTER"><font size="2">PROGRAMMER'S PARADISE, INC. AND SUBSIDIARIES<br>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND<br>
COMPREHENSIVE INCOME<br>
(Unaudited)<br>
(In thousands, except per share data)</font></B></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="6"></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2 height="6"></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2 height="6">
<P ALIGN="CENTER"><font size="2">Three months ended</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="6"></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2 height="6">
<U><P ALIGN="CENTER"><font size="2">December 31,</font></U></TD>
<TD WIDTH="23%" VALIGN="TOP" COLSPAN=2 height="6">
<U><P ALIGN="CENTER"><font size="2">December 31,</font></U></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="6"></TD>
<TD WIDTH="11%" VALIGN="TOP" height="6">
<U><P ALIGN="CENTER"><font size="2">2004</font></U></TD>
<TD WIDTH="11%" VALIGN="TOP" height="6">
<U><P ALIGN="CENTER"><font size="2">2003</font></U></TD>
<TD WIDTH="12%" VALIGN="TOP" height="6">
<U><P ALIGN="CENTER"><font size="2">2004</font></U></TD>
<TD WIDTH="11%" VALIGN="TOP" height="6">
<U><P ALIGN="CENTER"><font size="2">2003</font></U></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Net sales</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">$ 103,582</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">$  69,569</font></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">$   31,022</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">$  19,965</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Cost of sales</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">91,243</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">60,609</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">27,566</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">17,410</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Gross profit</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">12,339</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">8,960</font></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">3,456</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">2,555</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Selling, general and administrative expenses</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">10,173</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">8,143</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">2,814</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">2,203</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Income from operations</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">2,166</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">817</font></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">642</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">352</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Interest income, net</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">156</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">133</font></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">69</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">40</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Realized foreign exchange gain/(loss)</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">(44)</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">97</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">(48)</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">27</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Income before income tax provision</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">2,278</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">1,047</font></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT"><font size="2">663</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">419</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Provision (benefit) for income taxes</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">(4,044)</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">81</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">(4,148)</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">29</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Net income</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;6,322</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp; 966</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;   4,811</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;  390</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Net income per common share - Basic</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp;  1.65</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;  0.26</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp; 1.25</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp; 0.10</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="2">
  </TD>
<TD WIDTH="11%" VALIGN="TOP" height="2" style="border-top-style: solid; border-top-width: 1">
  </TD>
<TD WIDTH="11%" VALIGN="TOP" height="2" style="border-top-style: solid; border-top-width: 1">
  </TD>
<TD WIDTH="12%" VALIGN="TOP" height="2" style="border-top-style: solid; border-top-width: 1">
  </TD>
<TD WIDTH="11%" VALIGN="TOP" height="2" style="border-top-style: solid; border-top-width: 1">
  </TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="19">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="20">&nbsp;</TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="20">
<P><font size="2">Net income per common share - Diluted</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp; 1.51</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">
<P ALIGN="RIGHT"><font size="2">$&nbsp; 0.25</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp; 1.10</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="20">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;  0.10</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="12"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Weighted average common shares outstanding-Basic</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">3,828</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">3,724</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">3,854</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">3,732</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="2">
<P></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Weighted average common shares outstanding-Diluted</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">4,180</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">3,900</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">4,357</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">3,907</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="2">
<P></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<U><P><font size="2">Reconciliation to comprehensive income:</font></U></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12"></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12"></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Net Income</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;  6,322</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp; 966</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp; 4,811</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp; 390</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="10">
<P><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other comprehensive income (loss), net of tax:</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P>         <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;         Unrealized gain (loss) on marketable securities</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">(22)</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">-</font></TD>
<TD WIDTH="12%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">-</font></TD>
<TD WIDTH="11%" VALIGN="TOP" height="12">
<P ALIGN="RIGHT">  <font size="2">(16)</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P>         <font size="2">Foreign currency translation adjustments</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">97</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">223</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">71</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT">  <font size="2">23</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="12">
<P><font size="2">Total comprehensive income</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp; 6,397</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp; 1,189</font></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;  4,882</font></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="12">
<P ALIGN="RIGHT"><font size="2">$&nbsp;&nbsp;&nbsp; 397</font></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="2"></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" height="10"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
<TD WIDTH="12%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
<TD WIDTH="11%" VALIGN="TOP" style="border-top-style: solid; border-top-width: 1" height="10"></TD>
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