Perficient Reports 2002 Results

AUSTIN, Texas – February 25, 2003 – Perficient, Inc. (NASDAQ: PRFT) a leading eBusiness solutions provider to Global 3000 companies in the Central United States, today reported financial results for the year and quarter ended December 31, 2002.

Financial Highlights

For the year ended December 31, 2002:

  • Revenue, net of project expenses, was $20,464,000 vs $20,417,000 during 2001. Pro forma* revenue net of project expenses would have been $24,278,000.
  • Reported net loss was $2,395,000 and the net loss available to common stockholders was $4,231,000 or a $0.53 loss per share compared to a net loss per share of $7.46 during 2001. The net loss for 2002 includes intangibles amortization of $1,286,000 and non-cash stock compensation expense of $241,000. Additionally, the net loss for 2002 includes $461,000 of severance expense and $118,000 of severance and other expenses related to the closing of our London office.
  • Gross margin as a percentage of net revenue was 44%, compared to 42% during 2001.
  • EBITDA, excluding stock compensation and restructuring expense, was up 192% to $584,000 vs $200,000 during 2001. Pro forma* EBITDA, excluding stock compensation and restructuring expense, would have been $697,000 for 2002.

For the fourth quarter ending December 31, 2002:

  • Revenue, net of project expenses, was up 44% to $5,534,000 vs $3,846,000 during 2001.
  • Reported net loss was $679,000 and the net loss available to common stockholders was $730,000 or a $0.08 loss per share compared to a net loss per share of $0.13 during 2001. The net loss for the fourth quarter of 2002 includes $338,000 of intangibles amortization and non-cash stock compensation expense of $51,000. Additionally, the net loss for the fourth quarter of 2002 includes $192,000 of severance expense.
  • Gross margin as a percentage of net revenue was 43% for both 2002 and 2001.
  • EBITDA, excluding stock compensation and restructuring expense, was up 314% to $170,000 vs $41,000 during 2001.

* Pro forma results of operations data for the year ending December 31, 2002 include the effect of the acquisitions of Javelin Solutions, Inc. and Vertecon, Inc. as if the acquisitions had occurred as of January 1, 2002. Both acquisitions closed on April 26, 2002.

“2002 was for us a good year in a bad market,” said Jack McDonald, Chairman and CEO of Perficient. “We opened 12 new top-tier accounts, had strong repeat business from existing clients, expanded our industry-leading partnership with IBM and added a prominent investor in Mort Meyerson, an IT services veteran. We were EBITDA positive excluding stock compensation, restructuring and severance expense and, through our continuing focus on costs, are positioned to substantially increase EBITDA in 2003.”

Other 2002 Highlights

Among other achievements in 2002, Perficient:

  • Added more than 50 new clients including Anheuser-Busch, Charter Communications, GE, Maritz, Pioneer Hi-Bred International – a Dupont company, Thrivent, and Yahoo!.
  • Expanded its industry-leading partnership with IBM to include WebSphere
  • Portal Server, IBM’s newest offering in the growing enterprise portal software segment;
  • Was named to the VARBusiness Fast 50, a list of the year’s 50 fastest-growing solutions providers;
  • Completed and integrated two significant acquisitions: Javelin Solutions and Vertecon; expanding the company’s market presence and solutions capabilities and deepening its consulting and management teams;
  • Was recognized for industry thought leadership, by winning the VARBusiness Technology Leadership Award, being named a charter member of the prestigious OASIS Web Services Security Technical Committee (whose members include Microsoft, IBM, Verisign, Oracle, Cisco, BEA, SAP and Sun), and being selected as a founding member of IBM’s Web Services on WebSphere (WoW) Advisory Council; and
  • Received an equity investment from 2M Technology Ventures, L.P., a private equity firm founded by Morton Meyerson, former Chairman and CEO of Perot Systems and President of EDS.

About Perficient

Perficient provides eBusiness solutions to Global 3000 companies in the Central United States. Perficient helps clients acquire and strengthen customer relationships, reduce costs and empower employees by creating an Enabled Enterprise: a Web-based infrastructure and dynamically integrated business applications that extend enterprise technology assets to customers, employees, suppliers and partners. Perficient’s more than 140 professionals serve its clients from five Solutions Centers in the Central United States and Canada. Perficient’s partners are leading eBusiness technology and services providers including IBM, Sun, Microsoft, Oracle, Digex, Vignette, Gauss, Stellent, Pinnacor and Autonomy. For more information, visit Perficient’s Website at http://www.perficient.com/.

Safe Harbor Statement

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive services, demand for services like those provided by the company and market acceptance risks, fluctuations in operating results, cyclical market pressures on the technology industry and other risks detailed from time to time in the company’s filings with Securities and Exchange Commission. Our reported results may be subject to adjustments, reserves, and other items that may be identified during the normal year-end audit process.

Consolidated Statements of Operations

Consolidated Balance Sheets