AUSTIN, Texas – January 27, 2004 – 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 and year ended December 31, 2003.
Financial Highlights
For the fourth quarter ending December 31, 2003:
- Revenue from services and software was up 34% to $7,476,973 versus $5,585,826 during the fourth quarter of 2002. This exceeds the fourth quarter 2003 revenue guidance range of $6.0 million to $6.3 million previously provided by the company.
- Reported net income was $533,844 or $0.03 earnings per share compared to a net loss of ($679,199) or ($0.08) per share during the fourth quarter of 2002.
- Gross margin for services revenue was 45% compared to 43% in the fourth quarter of 2002. Gross margin for software revenue was 25%, compared to 7% in the fourth quarter of 2002.
- EBITDA (a non-GAAP measure) was up to $977,656 versus ($72,693) during the fourth quarter of 2002. For the year ended December 31, 2003:
- Revenue from services and software was up 36% to $28,321,481 versus $20,794,476 during 2002.
- Reported net income was $1,050,032 or $0.07 earnings per share compared to a net loss of $2,395,044 or ($0.53) per share during 2002.
- Gross margin for services revenue was 43% in 2003 and 2002. Gross margin for software revenue was 19%, compared to 15% in 2002.
- EBITDA (a non-GAAP measure) was up to $3,382,405 versus ($236,060) during 2002.
“Q4 was a great close to a solid year for Perficient,” said Jack McDonald, chairman and chief executive. “We generated a record $978,000 in EBITDA, in what is typically a weak quarter due to seasonality. Our revenue was up 34% over Q4 of 2002, in part due to strong year-end software sales.”
“On a full year basis, our revenue grew 36% in 2003 over 2002, a strong performance in a transitional market environment, and we achieved record full-year EBITDA of $3,382,000. During 2003, we opened more than two dozen new accounts, extended relationships with recurring clients, renewed our partnership with IBM and continued to recruit and retain top-notch sales and technical talent. In addition, we repaid $1.5 million in debt during 2003 to close the year with no amounts owed on our line of credit or capital leases.”
Other 2003 Highlights
Among other achievements in 2003, Perficient:
-- Added new customer relationships and follow-on projects with leading companies including: AAA Michigan, Amdocs, Ameren UE, Anderson Corp, Anheuser-Busch, Bank of America, BIC Corporation, Boeing, CareMark, Commerce Bancshares, Exelon, Express-Scripts, GE Capital, KV Pharmaceuticals, Maytag Corporation, MetLife, Mutual Trust Life, Nestle-Purina, Paragon Life, Pioneer Seed, Prime Therapeutics, Sheetz, ShopNBC, State of Kansas, Thrivent Financial Services, and Union Bank of California.
-- Developed and launched in partnership with IBM vertical portal solutions for the insurance, health care and franchise-based retail industries designed to increase efficiencies, reduce operating costs and strengthen relationships with customers, employees and business partners.
-- Executed alliance agreements with leading technology companies including Mainline Information Systems, Bowstreet, Inc. and Fusion Technologies of India. All three relationships strengthen Perficient’s solution sales and implementation capabilities and open new revenue opportunities.
-- Was recognized by VARBusiness magazine for the second consecutive year as a member of the VARBusiness 500, an annual listing of the top solution providers in the United States by revenue; and
-- Was ranked #151 in Deloitte & Touche’s 2003 Fast500, a listing of the 500 fastest growing technology companies in North America, from 1998-2002 and #9 on the 2003 Texas Fast50.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
The company expects its Q1 2004 services and software revenue, net of reimbursed expenses, to be in the range of $6.5 million to $6.9 million, comprised of $6.1 million to $6.5 million in services revenue and $0.4 in software revenue. It is the company’s practice to include in its revenue guidance only those software sales actually booked as of the guidance date. The forecast range of services revenue would represent services revenue growth of 6% to 13% over the first quarter of 2003.
Conference Call Details
Perficient will host a conference call regarding fourth quarter and full year 2003 financial results today at 4:30 p.m. EST.
WHAT: Perficient Fourth Quarter and Full Year 2003 Results
WHEN: Tuesday, January 27, 2004, at 4:30 p.m. EST
CONFERENCE CALL NUMBER: 888-273-9890 (U.S. and Canada)
REPLAY TIMES: Tuesday, January 27, 2004, at 8:00 p.m. EST, through Wednesday, February 4, 2004, at 12:59 a.m. EST
REPLAY NUMBER: 800-475-6701 (U.S. and Canada) 320-365-3844 (International)
ACCESS CODE: 716689
About Perficient
Perficient is a leading provider of eBusiness solutions to Global 3000 companies in the Central United States. Perficient helps companies acquire and strengthen their customer relationships, reduce their costs and empower their employees by helping them create Enabled Enterprises™, Web-based infrastructures with dynamically-integrated business applications that extend enterprise technology assets to customers, employees, suppliers and partners. Perficient is an award-winning “Premier Level” IBM business partner and a recognized expert in IBM’s WebSphere® software. Perficient’s other partners consist of leading eBusiness technology and services providers including Microsoft, Stellent, Bowstreet, Wily Technology, Tibco, Mainline, Digex, Fusion and others. For more information about Perficient, which has more than 140 professionals in the Central US and Canada, please visit http://www.perficient.com/.
IBM and WebSphere are trademarks of International Business Machines Corporation in the United States, other countries, or both.
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, the ability to manage strains associated with the company’s growth, credit risks associated with the company’s accounts receivable, the company’s ability to continue to attract and retain high quality employees, accurately set fees for and timely complete its current and future client projects, and other risks detailed from time to time in the company’s filings with Securities and Exchange Commission, including the most recent Form 10-KSB and Form 10-QSB. Our reported results may be subject to adjustments, reserves, and other items that may be identified during the normal year-end audit process.
Use of Non-GAAP Financial Information
To supplement our unaudited consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), Perficient uses non-GAAP measures, such as EBITDA, which are adjusted from results based on GAAP to exclude certain expenses. Perficient believes these non-GAAP financial measures are important representations of a company’s financial performance and uses such non- GAAP information internally to evaluate and manage its operations. Management has provided information regarding EBITDA to assist investors in analyzing Perficient’s financial position and results of operations. These non-GAAP measures are provided to enhance the users’ overall understanding of our financial performance, but are not intended to be regarded as an alternative to or more meaningful than GAAP measures. These non-GAAP measures presented may not be comparable to similarly titled measures presented by other companies. A reconciliation of EBITDA to income (loss) from operations and net income (loss) is included in the unaudited consolidated statements of operations.