Final Transcript
May. 16. 2007 / 11:00AM ET, PFSW — Q1 2007 PFSweb, Inc. Earnings Conference Call
Mark Layton - PFSweb, Inc. — CEO
Actually not, John. This is Mark. There is still quite a few products in the technology
segment. There’s probably another 100,000 SKUs in the technology segment that we want to get into
and with the virtual warehouse relationship that we are using, we get into them basically using our
technology as our way to expand. And with that comes little inventory obsolescence risk and things
along that line. So it is a great way to go.
But further to the technology side, you’re going to see us use this same avenue to get into other
product categories whether that’s housewares, sporting goods, a variety of product segments that we
are looking and valuating at and you’re going to see us broaden the store to be much more
multi-category oriented. In the past as we discussed, we would consider doing other acquisitions in
this area and bring them in underneath the umbrella. If those became available, and that’s nothing
on the horizon and nothing going on right now but just in terms of a strategy.
So we got into the eCOST deal because we saw an opportunity to leverage the strengths of our
business in terms of our infrastructure pipeline, our technology capabilities, our call center
capabilities, and to this growing Web commerce area. And eCOST was our avenue to get in, it brought
us customers, it brought us a business that needed a turnaround but it got us a foothold in that.
And we are serious about our expansion in this area and we will continue to grow when we believe we
can do it profitably and in a very, very broad business segment going forward.
John Fitzgerald - Bishop, Rosen — Analyst
The site itself has vastly improved. I have people that really know these sites and they have
said the turnaround and quality of the site has been exceptional. So you’re not really concerned,
the integration as you keep adding these products on as sort of chewing off more than you can
swallow at one time here. You are comfortable with the rate of integration I guess is my statement?
Mark Layton - PFSweb, Inc. — CEO
Yes, sir.
John Fitzgerald - Bishop, Rosen — Analyst
Okay, thanks very much.
Operator
(OPERATOR INSTRUCTIONS) George Walsh, Gilford Securities.
George Walsh - Gilford Securities — Analyst
Mark, on the Supplies Distributors side, there was a — actually a big difference versus last
year but do you see that ramping up through the balance of the year? And the other was — there was
an item I saw in the Q with regard to a bit of a joint venture with IBM and Ricoh. And could you
elaborate is that something that you think could have a near-term impact in terms of your
relationship there or is that something you just kind of see how it goes?
Tom Madden - PFSweb, Inc. — CFO
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