EX-99.1 2 a04-12842_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

Contact: Bill Davis

Perficient, Inc.

(314) 995-8822

bill.davis@perficient.com

 

 

Perficient, Inc. Reports Third Quarter 2004 Results

 

AUSTIN, Texas – Nov 3, 2004 — Perficient, Inc. (NASDAQ: PRFT), a leading eBusiness solutions provider in the central United States, today reported financial results for the quarter ended September 30, 2004.

 

Financial Highlights

 

For the third quarter ended September 30, 2004:

 

•                  Revenue from services and software was up 133% to $16,845,974 versus $7,221,616 in the third quarter of 2003.

•                  Reported net income was up 170% to $1,146,089 versus $424,265 in the third quarter of 2003.

•                  Earnings per share were $0.05 as compared to $0.03 per share in the third quarter of 2003.

•                  Gross margin for services revenue was 38.6% versus 41.6% in the third quarter of 2003.

•                  Gross margin for software revenue was 14.1% as compared to 19.9% in the third quarter of 2003.

•                  EBITDA (a non-GAAP performance measure) was up 148% to $2,284,988 versus $920,928 during the third quarter of 2003.

 

“Our revenue growth in Q3 was extraordinary and, in addition to our best top-line performance ever, we achieved record EBITDA, net income and earnings per share,” said Jack McDonald, Perficient’s chairman and chief executive officer.  “We are well positioned for continued organic growth and expansion through accretive acquisitions.  We remain focused on delivering value for our clients and shareholders, and a near-term goal of achieving $100 million in annual revenues by 2006.”

 

Additional Q3 2004 Highlights

 

Among other Q3 2004 highlights, Perficient:

 

•                  Achieved its sixth consecutive quarter of positive EPS;

•                  Announced the renewal of its subcontracting agreement with IBM;

•                  Added new projects and follow-on engagements with top-tier enterprise clients including AC Nielsen, Anheuser-Busch, Chicago Board of Trade, Cole Taylor, Deutsche Asset Management, Equity Office Products,  Kemlite, Scottrade, Sigma Chi, Union Bank of California, Wachovia and many others;

•                  Successfully completed the integrations of Genisys Consulting and Meritage Technologies;

•                  Was named for the second consecutive year as one of the fastest growing technology companies in Texas by Deloitte & Touche;

•                  Appointed two leading technology industry veterans, Kenneth R. Johnsen and Ralph Derrickson, to its Board of Directors; and

•                  Continued to accelerate investor relations activities by meeting with dozens of institutional investors, presenting at the Roth Capital Partners New York Conference and being featured by Reuters in a series of pieces highlighting potential micro-cap investing opportunities.

 

Business Outlook

 

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions, divestitures or other business combinations that may be completed after November 3rd, 2004.

 


 

We expect our Q4 2004 services and software revenue, net of reimbursed expenses, to be in the range of $13 million to $13.6 million, comprised of $12.0 million to $12.6 million in services revenue and $1 million in software revenue. It is our practice to include in our 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 95% to 105% over the fourth quarter of 2003.

 

Earnings Conference Call and Webcast

 

We will host a public conference call at 4:30 p.m. Eastern today. Analysts and investors wishing to participate in the call and ask questions during the call’s Q&A session may access the call as follows:

 

Toll-Free: 800-659-2032

International: 617.614.2712

Participant Passcode: 13967089

 

In addition, the call will be webcast by CCBN and may be accessed via Perficient’s website at www.perficient.com.

 

The webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors may listen to the call through CCBN’s individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors may access the call via CCBN’s password-protected event management site, StreetEvents (www.streetevents.com).

 

Earnings Conference Call and Webcast Replay

 

A replay of this afternoon’s call may be accessed beginning this evening at 6:30 pm and ending on November 10th, 2004. Replay information is as follows:

 

Toll-Free: 888-286-8010

International: 617-801-6888

Replay Passcode: 11042607

 

Additionally, the call replay will be hosted at www.perficient.com.

 

About Perficient

Perficient is a leading provider of eBusiness solutions 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 320 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. The foregoing information concerning Perficient’s business outlook represents our outlook as of the date of this news release, and Perficient undertakes no obligation to update or revise any forward-looking statements whether as a result of new developments or otherwise.

 


 

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 user’s overall understanding of our financial performance, but are not intended to be regarded as an alternative to or more meaningful than GAAP measures. The 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.

 


 

PERFICIENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2003

 

2004

 

2003

 

2004

 

 

 

(unaudited)

 

(unaudited )

 

Revenue

 

 

 

 

 

 

 

 

 

Services

 

$

6,516,153

 

$

13,454,616

 

$

18,381,926

 

$

29,771,852

 

Software

 

705,463

 

3,391,358

 

2,462,582

 

5,793,600

 

Reimbursable expenses

 

433,835

 

677,158

 

1,385,074

 

1,658,251

 

Total revenue

 

7,655,451

 

17,523,132

 

22,229,582

 

37,223,703

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Project personnel costs

 

3,686,578

 

8,199,266

 

10,161,342

 

17,763,263

 

Software costs

 

564,901

 

2,913,946

 

2,084,047

 

4,898,381

 

Reimbursable expenses

 

433,835

 

677,158

 

1,385,074

 

1,658,251

 

Other project related expenses

 

121,661

 

55,875

 

321,056

 

218,173

 

Total cost of revenue

 

4,806,975

 

11,846,245

 

13,951,519

 

24,538,068

 

Gross margin

 

2,848,476

 

5,676,887

 

8,278,063

 

12,685,635

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

1,901,659

 

3,390,054

 

5,763,276

 

7,559,245

 

Stock compensation

 

25,889

 

1,845

 

110,038

 

26,613

 

EBITDA(1)

 

920,928

 

2,284,988

 

2,404,749

 

5,099,777

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

165,943

 

138,718

 

560,543

 

363,593

 

Amortization of intangibles

 

62,502

 

233,541

 

554,170

 

446,320

 

Income from operations

 

692,483

 

1,912,729

 

1,290,036

 

4,289,864

 

Interest income

 

297

 

1,069

 

2,926

 

1,706

 

Interest expense

 

(55,771

)

(52,983

)

(199,172

)

(82,116

)

Other

 

17,814

 

20,612

 

(22,197

)

22,514

 

Income before income taxes

 

654,823

 

1,881,427

 

1,071,593

 

4,231,968

 

Provision for income taxes

 

230,558

 

735,338

 

555,405

 

1,655,338

 

Net income

 

$

424,265

 

$

1,146,089

 

$

516,188

 

$

2,576,630

 

 

 

 

 

 

 

 

 

 

 

Accretion of dividends on preferred stock

 

(44,899

)

—

 

(138,025

)

—

 

Net income available to common stockholders

 

$

379,366

 

$

1,146,089

 

$

378,163

 

$

2,576,630

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

0.04

 

$

0.06

 

$

0.04

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

$

0.03

 

$

0.05

 

$

0.04

 

$

0.13

 

Shares used in computing basic net income per share

 

10,748,580

 

19,227,873

 

9,954,244

 

17,013,579

 

Shares used in computing diluted net income per share

 

15,036,570

 

21,844,127

 

14,727,460

 

19,904,355

 

 

(1) EBITDA is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income. EBITDA measures presented may not be comparable to similarly titled measures presented by other companies.

 


 

PERFICIENT, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

December 31,
2003

 

September 30,
2004

 

 

 

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash

 

$

1,989,395

 

$

2,786,639

 

Accounts receivable, net

 

5,534,607

 

14,352,505

 

Other current assets

 

297,058

 

450,806

 

Total current assets

 

7,821,060

 

17,589,950

 

Net property and equipment

 

699,145

 

782,916

 

Net intangible assets

 

11,693,834

 

28,532,584

 

Other noncurrent assets

 

45,944

 

133,648

 

Total assets

 

$

20,259,983

 

$

47,039,098

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

775,980

 

$

3,595,912

 

Current portion of long term debt

 

—

 

576,140

 

Other current liabilities

 

2,664,787

 

5,386,811

 

Current portion of notes payable to related parties

 

366,920

 

239,331

 

Total current liabilities

 

3,807,687

 

9,798,194

 

Long term debt, net of current portion

 

—

 

1,923,860

 

Accrued income taxes, net of current portion

 

—

 

296,784

 

Notes payable to related parties, net of current portion

 

436,258

 

222,089

 

Total liabilities

 

4,243,945

 

12,240,927

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

14,033

 

19,267

 

Additional paid-in capital

 

76,315,780

 

92,500,743

 

Deferred stock compensation

 

(26,623

)

(8

)

Accumulated other comprehensive loss

 

(51,830

)

(63,139

)

Accumulated deficit

 

(60,235,322

)

(57,658,692

)

Total stockholders’ equity

 

16,016,038

 

34,798,171

 

Total liabilities and stockholders’ equity

 

$

20,259,983

 

$

47,039,098

 

 

Note:  Certain balances have been reclassified to conform with current period presentation.