AUSTIN, Texas – April 29, 2002 – Perficient, Inc. (NASDAQ: PRFT), a leading eBusiness solutions provider to Global 3000 companies in the central United States, today reported financial results for the quarter ended March 31, 2002.
For the first quarter ending March 31, 2002:
-- Revenue, net of project expenses, was $3,432,000 vs $6,401,000 in the first quarter of 2001. Including the results of the recently completed acquisitions of Vertecon and Javelin, revenue, net of project expenses, would have been $6,454,000.
-- For the first quarter, Perficient's reported net loss was $500,000 and the net loss available to common stockholders was $1,710,000 or a $0.27 loss per share compared to a net loss of $5,148,000 or $0.99 loss per share for the same period of 2001. The net loss for the first quarter of 2002 includes $43,000 of severance expense. The net loss per share for the first quarter of 2002 includes a $1,180,000 beneficial conversion charge and dividend accretion of $29,000 related to the Series A preferred stock financing. The net loss for the first quarter of 2001 includes $123,000 of postponed offering costs and $289,000 of restructuring costs.
-- Gross margin as a percentage of net revenue was 42%.
-- Core net loss* was $19,000 or $0.00 diluted loss per share compared to core net income of $185,000 or $0.03 diluted earnings per share for the same period in 2001. Including the results of the recently completed acquisitions of Vertecon and Javelin, core net income would have been $6,000 or $0.00 per diluted share.
* Core net income (loss) and core net income (loss) per share exclude the impact of goodwill amortization, depreciation, stock compensation, acquisition expenses and one time charges. Pro forma results of operations including the results of Vertecon and Javelin have been prepared as if the acquisitions had occurred at the beginning of the period presented. These acquisitions were both approved by the shareholders of Perficient on April 23, 2002.
"We achieved breakeven on a core operating basis in Q1 and saw the first signs of market stabilization in over a year," said Jack McDonald, chairman and chief executive officer of Perficient. "Our Q1 results, the closings last week of the Vertecon and Javelin transactions and improving customer demand provide a solid wind at our backs as we move into Q2."
Other Q1 2002 Highlights
As previously announced, at special meetings held on April 23, 2002, the shareholders of Perficient, Vertecon and Javelin approved the issuance of shares in connection with the acquisition by Perficient of Vertecon and Javelin.
Although the legal closings of the Javelin and Vertecon mergers occurred last week, business-level integration commenced when the deals were signed, six months ago. As a result, Perficient has already completed Phase I integration of both acquisitions. This yielded benefits in the first quarter beyond cost savings related to scale. In multiple real-world examples of operating synergies, cross-company teams worked together to win substantial new client engagements including Pioneer Hi-Bred International, CommScope, Maritz and Unigroup.
In total, Perficient, combined with Javelin and Vertecon, worked on technology design and implementation projects in the first quarter for more than 75 end-user clients, such as Ameren, Bristol-Meyers Squibb, Express Scripts, Legal and General, Louis Dreyfus, Paragon Life (division of MetLife), Screaming Media, US Bank, and XTRA Lease.
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 EnterpriseTM: a Web-based infrastructure and dynamically integrated business applications that extend enterprise technology assets to customers, employees, suppliers and partners. Perficient.s more than 180 professionals serve its clients from six Solutions Centers in the central United States, Canada and the United Kingdom. Perficient’s partners are leading eBusiness technology and services providers including IBM, Sun, Microsoft, Oracle, Digex, Vignette, Gauss, Stellent, Autonomy and Screaming Media. For more information, visit Perficient’s Website at 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, particularly with respect to our ability to successfully integrate the Javelin Solutions, Inc. and Vertecon, Inc. acquisitions and other acquisitions, and that the combined results of operations of the companies would be indicative of results that could be anticipated in the future, 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.