AUSTIN, Texas – July 25, 2001 – Perficient, Inc. (NASDAQ: PRFT), an Internet services firm that uses emerging technologies to Web-enable complex enterprise systems, today reported financial results for the second quarter ended June 30, 2001. Revenue for the quarter was $5,359,000 versus $5,601,000 pro forma revenue in the second quarter of 2000, which resulted in a pro forma net loss of $58,000 or $0.01 loss per share compared to a pro forma net loss of $157,000 or $0.03 loss per share for the same period of 2000.
Second Quarter Highlights
Among other accomplishments in the second quarter, Perficient:
- Achieved positive cash flow from operations and reduced short-term borrowings by $1,200,000.
- Reduced annualized costs by over $2.3 million in the second quarter, for a total of $6.6 million in annualized cost reductions since the fourth quarter of 2000.
- Renewed our $6 million revolving credit facility with Silicon Valley Bank.
- Worked on technology design and implementation projects for more than 75 end-user clients, including HP, Chevron, S1 Corporation and Siemens.
- Landed over $4 million in new direct business, in conjunction with our previously announced strategy to source more direct end-user projects and the expansion of our direct sales force, with new clients including AMD, Bank of America, Communications Data Group and TD Bank. This was in addition to more than $2.7 million in VSO retainer and subcontract revenues delivered during the quarter.
- Launched an initiative to establish a leadership position in Web Services, a market segment forecast by IDC to reach $50 billion in 2005, to capitalize on our current positioning and expertise surrounding middleware technologies.
“We are encouraged by the progress we achieved in a challenging environment,” said Jack McDonald, Chairman and CEO of Perficient. “Our investment in direct sales is beginning to pay off and we are aggressively pursuing the Web Services initiative with key partners like IBM. We will continue to focus on the programs that have helped us weather this economic downturn, like delivering the expertise and ‘heavy lifting’ skills our customers demand and maintaining the prudent financial leadership our management team has exercised this year.”
Pro forma net loss and pro forma net loss per share exclude the impact of goodwill amortization, depreciation, stock compensation, other noncash expenses and restructuring costs of $143,000. Pro forma net loss for the second quarter of 2001 would have been $148,000 or $.03 per share including the restructuring charge.
Investor Conference Call
Perficient has scheduled an investor conference call at 4:30 p.m. EDT today, July 25, to discuss the company’s second quarter results. Investors and other interested parties may listen to the call by dialing tollfree (888) 273-9885. The call will be available for playback beginning July 25 at 8:00 p.m. EDT and ending one week later on August 1 at 11:59 p.m. EDT. The playback number is (800) 475-6701, or (320) 365-3844 outside the United States, and the access code is 594651.
Perficient (NASDAQ: PRFT) is a leading Internet services firm that uses emerging technologies to web-enable complex enterprise systems. Perficient builds deep expertise around a targeted set of core technologies and products through unique partnerships with leading Internet software companies. Under these arrangements, the company provides customers and partners with teams of expert technology professionals that manage the implementation of their products for end-user customers. Perficient’s expertise and experience is based on the company’s success integrating next-generation solutions with customers’ previous-generation IT assets. This provides the framework that allows the company to concentrate on three key solution segments: Web services and middleware, enterprise portal software and content management services. Perficient partners are leading Internet commerce “enablers” that provide the software platform for building the e-business infrastructure, such as IBM, Plumtree Software and Vignette Corporation. For more information, visit Perficient’s Web site 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 position for growth and the effectiveness of our model, 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 the 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.