8-K

Securities and Exchange Commission

Washington, DC 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) January 28, 2005

PERFICIENT, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-15169	74-2853258
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1120 South Capital of Texas Highway, Suite 220, Building 3, Austin, Texas		78746
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code (512) 531-6000

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 1.01  ENTRY INTO A MATERIAL DEFINATIVE AGREEMENT

On January 31, 2005, Perficient modified its credit facility with Silicon Valley Bank. The modification increased the total size of the Company’s Silicon Valley bank credit facilities from $10 million to $13 million by increasing the accounts receivable line of credit from $6 million to $9 million.  In addition, certain financial covenants were redefined to be more favorable to the Company.  A summary of the modified loan terms can be seen in a copy of the full text of the Loan Modification Agreement as attached hereto as Exhibit 10.1.

ITEM 2.02  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 2, 2005, Perficient, Inc. announced its financial results for the three months and year ended December 31, 2004.  A copy of the press release issued on February 2, 2005 concerning the financial results is filed herewith as Exhibit 99.1.

The information in this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.

USE OF NON-GAAP FINANCIAL INFORMATION

To supplement our consolidated financial statements presented in accordance with generally accepted accounting principals (“GAAP”), Perficient uses non-GAAP measures, such as EBITDA, which are adjusted from results based on GAAP to exclude certain expenses.  Perficient believes that 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.  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.

ITEM 3.01  NOTICE OF DELISTING OR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD;  TRANSFER OF LISTING

On February 2, 2005, Perficient, Inc. announced that the NASDAQ Stock Market has approved the Company’s application to list its common stock on the NASDAQ National Market.  Previously, the Company was listed on the NASDAQ Small Cap Market and the Company is currently in the process of de-listing from the Boston Stock Exchange.  A copy of the press release issued on February 2, 2005 concerning the financial results is filed herewith as Exhibit 99.2.

2

ITEM 9.01  FINANCIAL STATEMENTS AND EXHIBITS

(c)   Exhibits.

10.1Loan Modification Agreement dated January 24, 2005 by and among Perficient, Inc., Perficient Canada Corp., Perficient Genisys, Inc., Perficient Meritage, Inc., Perficient Zettaworks, Inc., and Silicon Valley Bank.

99.1Perficient, Inc. Press Release issued on February 2, 2005 announcing financial results for the three months and year ended December 31, 2004.

99.2Perficient, Inc. Press Release issued on February 2, 2005 announcing that the NASDAQ Stock Market has approved the Company’s application to list its common stock on the NASDAQ National Market.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PERFICIENT, INC.
Date: February 3, 2005	By:	/s/ Michael D. Hill
		Michael D. Hill
		Chief Financial Officer

Exhibit Index

Exhibit Number	Description
10.1*	Loan Modification Agreement effective January 28, 2005, by and among Perficient, Inc., Perficient Canada Corp., Perficient Genisys, Inc., Perficient Meritage, Inc., Perficient Zettaworks, Inc., and Silicon Valley Bank.
99.1	Press release dated February 2, 2005, of the Registrant.
99.2	Perficient, Inc. Press Release issued on February 2, 2005 announcing that the NASDAQ Stock Market has approved the Company’s application to list its common stock on the NASDAQ National Market.

*All schedules to this Exhibit 10.1 filed herewith have been omitted in accordance with Item 601(b)(2) of Regulation S-K. The Company will furnish supplementally a copy of any omitted schedule to the Commission upon request.

3

EX-10.1

Exhibit 10.1

LOAN MODIFICATION AGREEMENT

This Loan Modification Agreement is entered into as of January 24, 2005, by and among Perficient, Inc., Perficient Canada, Corp., Perficient Genisys, Inc., Perficient Meritage, Inc. and Perficient ZettaWorks, Inc. (jointly, severally and collectively, the “Borrower”) and Silicon Valley Bank (“Bank”).

1.DESCRIPTION OF EXISTING OBLIGATIONS:  Among other Obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other documents, a Loan and Security Agreement, dated December 5, 2003, as may be amended from time to time (the “Loan Agreement”). The Loan Agreement provides for, among other things, a Committed Revolving Line in the original principal amount of Six Million Dollars ($6,000,000).  Defined terms used but not otherwise defined herein shall have the same meanings as set forth in the Loan Agreement.

Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Obligations.”

2.DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement.

Hereinafter, the above-described security documents and guaranties, together with all other documents securing repayment of the Obligations shall be referred to as the “Security Documents”.  Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

3.DESCRIPTION OF CHANGE IN TERMS.

A.Modification(s) to Loan Agreement.

1.The “Usage Fee” as described in Section 2.4 entitled “Fees” is hereby amended to read as follows:

A usage fee, payable in arrears within 15 days of the end of each calendar quarter, in an amount equal to the product of 0.08% times the per annum average Unused Balance.  The term “Unused Balance” shall mean the result of (i) the Committed Revolving Line minus (ii) the aggregate amount of all Advances, and minus (iii) the face amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit).

2.Effective as of December 15, 2004, the Quick Ratio identified under Section 6.7 entitled “Financial Covenants” amended as follows:

Quick Ratio (Adjusted) (to be maintained at all times). A ratio of Quick Assets (including 50% of Borrower’s Eligible Unbilled Accounts not to exceed $2,000,000) to outstanding Obligations of at least 1.50 to 1.00.

3.The following term is hereby amended in Section 13.1 entitled “Definitions”:

“Committed Revolving Line” is a Credit Extension of up to $9,000,000.

4.CONSISTENT CHANGES.  The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

5.NO DEFENSES OF BORROWER.  Borrower (and each guarantor and pledgor signing below) agrees that, as of the date hereof, it has no defenses against paying any of the Obligations.

6.PAYMENT OF LOAN FEE.  Borrower shall pay Bank a fee in the amount of Four Thousand Dollars ($4,000) (“Loan Fee”) plus all out-of-pocket expenses.

7.CONTINUING VALIDITY.  Borrower (and each guarantor and pledgor signing below) understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents.  Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect.  Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations.  Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations.  It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing.  Unless expressly released herein, no maker, endorser, or guarantor will be released by virtue of this Loan Modification Agreement.  The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan modification agreements.

8.CONDITIONS.  The effectiveness of this Loan Modification Agreement is conditioned upon payment of the Loan Fee.

This Loan Modification Agreement is executed as of the date first written above.

BORROWER:	BANK:
PERFICIENT, INC.	SILICON VALLEY BANK
By:	By:
Name:	Name:
Title:	Title:
PERFICIENT CANADA, CORP.
By:
Name:
Title:
PERFICIENT GENISYS, INC.
By:
Name:
Title:
PERFICIENT MERITAGE, INC.
By:
Name:
Title:
PERFICIENT ZETTAWORKS, INC.
By:
Name:
Title:

SILICON VALLEY BANK

PRO FORMA INVOICE FOR LOAN CHARGES

BORROWER:	Perficient, Inc., Perficient Canada, Corp., Perficient Genisys, Inc. and Perficient Meritage, Inc.
LOAN OFFICER:	Phillip Wright
DATE:	January 24, 2005
	Loan Fee	$	4,000.00
	Documentation Fee	250.00
	TOTAL FEE DUE	$	4,250.00

Please indicate the method of payment:

{   }   A check for the total amount is attached.

{   }   Debit DDA #                                for the total amount.

{   }   Loan proceeds

Borrower	(Date)
Silicon Valley Bank	(Date)
Account Officer’s Signature

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE
Contact: Bill Davis

Perficient, Inc.

314-995-8822

bill.davis@perficient.com

PERFICIENT REPORTS FOURTH QUARTER AND YEAR-END 2004 RESULTS

AUSTIN, Texas – February 2, 2004 – Perficient, Inc. (NASDAQ: PRFT) a leading business consulting and technology services firm in the central United States, today reported financial results for the quarter and year ended December 31, 2004.

Financial Highlights

For the fourth quarter ended December 31, 2004:

•Revenue from services and software, net of reimbursed expenses, was up 180% to $20.9 million compared to $7.5 million during the fourth quarter of 2003.

•Net income was up 150% to $1.3 million compared to $534 thousand during the fourth quarter of 2003.

•Diluted earnings per share were up 100% to $0.06 compared to $0.03 per share during the fourth quarter of 2003.

•Gross margin for services revenue was 38.4% compared to 45.0% in the fourth quarter of 2003. Gross margin for software revenue was 12.7%, compared to 24.7% in the fourth quarter of 2003.

•EBITDA(1) was up 171% to $2.7 million versus $1.0 million during the fourth quarter of 2003.

For the year ended December 31, 2004:

•Revenue from services and software, net of reimbursed expenses, was up 99% to $56.5 million compared to $28.3 million during 2003.

•Net income was up 273% to $3.9 million compared to $1.1 million during 2003.

•Diluted earnings per share were up 171% to $0.19 earnings per share compared to $0.07 per share during 2003.

•Gross margin for services revenue was 39.2% in 2004 compared to 43.5% in 2003. Gross margin for software revenue was 13.9%, compared to 18.6% in 2003.

•EBITDA(1) was up 129% to $7.8 million compared to $3.4 million during 2003.

“Q4 was a great close to a strong year,” said Jack McDonald, Perficient’s chairman and chief executive. “We posted the highest revenue total in Company history, the core business executed superbly and we laid the foundation for future growth with the accretive acquisition of ZettaWorks late in the quarter. Additionally, the tremendous Q4 software sales have us optimistic about the associated services revenues we anticipate could follow in 2005.”

“The business made progress on several fronts during 2004.  We became the leading WebSphere and enterprise application integration consultancy in the central US and added more than 170 clients to our book of business. We established locations in seven new cities, tripled the size of our consulting force, took our revenue run-rate(2) from $28 million to more than $75 million and accelerated our goal of achieving

(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.  EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

(2) Run-rate is a non-GAAP measure and is not intended to be a measure that should be regarded as an alternative to or more meaningful than traditional GAAP measures.  Run-rate measures presented may not be comparable to similarly titled measures presented by other companies.  The run-rate for 2003 is historical 2003 total revenue excluding reimbursed expenses and our current run-rate is annualized Q4 2004 total revenue excluding reimbursed expenses.

$100 million in revenues by a full year – to the end of 2005. New and recurring business from solid clients is driving this growth and we’re as excited as we’ve ever been about Perficient’s future.”

Other 2004 Highlights

Among other achievements in 2004, Perficient:

• Completed the acquisitions of Genisys Consulting, Meritage Technologies and ZettaWorks;

• Added new customer relationships and follow-on projects with leading companies including: Anheuser-Busch, Chicago Board of Trade, Chicago Mercantile Exchange, Cingular Wireless, Cole Taylor, DaimlerChrysler, General Mills, Sara Lee, KV Pharmaceutical, Nash Finch, Novartis, Pepsi, Pfizer, Scottrade, ShopNBC, State Farm, Tufts, T-Mobile, Union Bank of California, Wachovia Securities and Watson Wyatt Worldwide;

• Introduced a hybrid on-site/offshore project delivery model designed to enable Perficient to offer clients high levels of customer service and value by blending expert US consultants with offshore resources from India and Macedonia;

• Was recognized by VARBusiness magazine for the third consecutive year as a member of the VARBusiness 500, an annual listing of the top solution providers in the United States by revenue;

• Was named for the second consecutive year to Deloitte & Touche’s 2004 Fast500 and Texas Fast50, listings of the fastest growing technology companies in North America and Texas, from 1999-2003;

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

• Increased the total size of our credit facility with Silicon Valley Bank from $6 million to $13 million (under which only $3.8 million has been drawn as of December 31, 2004); and

• Initiated an active investor relations program, presenting at three industry conferences, meeting with dozens of institutional investors and securing coverage from equity analysts at Stifel, Nicolaus & Co. and Gilford Securities.

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 2005 services and software revenue, net of reimbursed expenses, to be in the range of $18.0 million to $19.2 million, comprised of $17.2 million to $18.0 million in services revenue and $800 thousand to $1.2 million in software revenue.  The Company has amended its revenue guidance policy on software to include software sales actually booked as of the guidance date and a software revenue forecast based on the Company’s software sales pipeline.  The Q1 2005 forecast range of services revenue would represent services revenue growth of 158% to 170% over the first quarter of 2004.

Conference Call Details

Perficient will host a conference call regarding fourth quarter and full year 2004 financial results today at 4:30 p.m. EST.

WHAT: Perficient Fourth Quarter and Full Year 2004 Results

WHEN: Wednesday, February 2, 2005, at 4:30 p.m. EST

CONFERENCE CALL NUMBERS: 888-396-2298 (U.S. and Canada) 617-801-6736 (International)

PARTICIPANT PASSCODE:12020654

REPLAY TIMES: Wednesday, February 3, 2005, at 6:30 p.m. EST, through Wednesday, February 10, 2005

REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)

REPLAY PASSCODE: 27598716

About Perficient

Perficient is a leading business consulting and technology services firm in the central United States. Perficient delivers business-driven technology solutions that enable our clients to reach new markets and increase revenues, strengthen customer relationships, reduce operating costs, increase productivity and empower their employees. Perficient is an award-winning “Premier Level” IBM business partner and a recognized expert in IBM’s WebSphere® software. Perficient’s partners include leading eBusiness technology and services providers including IBM, Tibco, Microsoft, Wily Technology, Adobe, ATG, Grumium and others. For more information about Perficient, which has more than 425 professionals in the central US and Canada, please visit 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 from operations and net income is included in the unaudited consolidated statements of operations attached to this release.

PERFICIENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended December 31,						Year Ended December 31,
	2003			2004			2003			2004
	(unaudited)						(unaudited)
Revenue
Services	$	6,152,691		$	13,558,905		$	24,534,617		$	43,330,757
Software	1,324,282			7,376,093			3,786,864			13,169,693
Reimbursable expenses	485,367			688,972			1,870,441			2,347,223
Total revenue	7,962,340			21,623,970			30,191,922			58,847,673
Cost of revenue
Project personnel costs	3,250,420			8,309,253			13,411,762			26,072,516
Software costs	996,847			6,442,764			3,080,894			11,341,145
Reimbursable expenses	485,367			688,972			1,870,441			2,347,223
Other project related expenses	132,356			49,243			453,412			267,416
Total cost of revenue	4,864,990			15,490,232			18,816,509			40,028,300
Gross margin	3,097,350			6,133,738			11,375,413			18,819,373
Selling, general and administrative	2,093,805			3,481,929			7,857,081			11,041,171
Stock compensation	25,889			8			135,927			26,621
EBITDA(1)	977,656			2,651,801			3,382,405			7,751,581
Depreciation	109,893			148,483			670,436			512,076
Amortization of intangibles	56,251			250,100			610,421			696,420
Income from operations	811,512			2,253,218			2,101,548			6,543,085
Interest income	360			858			3,286			2,564
Interest expense	(86,766		)	(55,162		)	(285,938		)	(137,278		)
Other	8,738			10,072			(13,459		)	32,586
Income before income taxes	733,844			2,208,986			1,805,437			6,440,957
Provision for income taxes	200,000			872,331			755,405			2,527,669
Net income	$	533,844		$	1,336,655		$	1,050,032		$	3,913,288
Accretion of dividends on preferred stock	(19,607		)	—			(157,632		)	—
Net income available to common stockholders	$	514,237		$	1,336,655		$	892,400		$	3,913,288
Basic net income per share	$	0.04		$	0.07		$	0.08		$	0.22
Diluted net income per share	$	0.03		$	0.06		$	0.07		$	0.19
Shares used in computing basic net income per share	12,661,899			19,553,561			10,818,417			17,648,575
Shares used in computing diluted net income per share	16,527,898			23,008,965			15,306,151			20,680,507

(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			December 31, 2004
				(unaudited)
ASSETS
Current assets:
Cash	$	1,989,395		$	3,905,460
Accounts receivable, net	5,534,607			20,049,500
Other current assets	297,058			336,309
Total current assets	7,821,060			24,291,269
Net property and equipment	699,145			805,831
Net intangible assets	11,693,834			37,407,039
Other noncurrent assets	45,944			78,226
Total assets	$	20,259,983		$	62,582,365
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	775,980		$	6,927,523
Current portion of long term debt	—			1,135,354
Other current liabilities	2,664,787			6,750,968
Current portion of notes payable to related parties	366,920			243,847
Total current liabilities	3,807,687			15,057,692
Long term debt, net of current portion	—			2,676,027
Notes payable to related parties, net of current portion	436,258			226,279
Total liabilities	4,243,945			17,959,998
Stockholders’ equity:
Common stock	14,033			20,914
Additional paid-in capital	76,315,780			102,637,699
Deferred stock compensation	(26,623		)	(1,656,375		)
Accumulated other comprehensive loss	(51,830		)	(57,833		)
Accumulated deficit	(60,235,322		)	(56,322,038		)
Total stockholders’ equity	16,016,038			44,622,367
Total liabilities and stockholders’ equity	$	20,259,983		$	62,582,365

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

EX-99.2

EXHIBIT 99.2

FOR IMMEDIATE RELEASE

Contact: Bill Davis

Perficient, Inc.

(314) 995-8822

bill.davis@perficient.com

Perficient Moves Up to NASDAQ National Market

AUSTIN, Texas- Feb 2, 2005 - Perficient, Inc. (NASDAQ: PRFT), a leading business consulting and technology services firm in the central United States, announced today that the NASDAQ Stock Market has approved the company’s application to list its common stock on the NASDAQ National Market. The stock commenced trading on the National Market System today under the symbol PRFT. Perficient had been trading on the NASDAQ Small Cap Market under the same symbol since July 29, 1999.

“Having met the market capitalization requirements for a NASDAQ National Market listing is an important milestone that underscores the tremendous growth Perficient has experienced since our initial public offering in 1999,” said Jack McDonald, Perficient’s chairman and chief executive. “This move to the NASDAQ National Market, the world’s premier stock market for high-tech companies, will help us grow further by making our common stock available on the broader market and increasing our awareness among institutional and retail investors, equity analysts and the media.”

About Perficient

Perficient is a leading business consulting and technology services firm in the central United States. Perficient delivers business-driven technology solutions that enable our clients to reach new markets and increase revenues, strengthen customer relationships, reduce operating costs, increase productivity and empower their employees. Perficient is an award-winning “Premier Level” IBM business partner and a recognized expert in IBM’s WebSphere® software. Perficient’s partners include leading eBusiness technology and services providers including IBM, Tibco, Microsoft, Wily Technology, Adobe, ATG, Grumium and others. For more information about Perficient, which has more than 425 professionals in the central US and Canada, please visit 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.