<A Michael Willoughby>: Well, I would say that the majority of the prospects in our
pipeline currently have an online initiative. Its difficult to say what percentage is with a
competitor or with a third-party versus in-house. Id have to go back and look at that. My gut feel
on that is that over 50% of what we see in the pipeline is with another third-party today. So, they
would be re-platforming from either a group of separate providers like a 3PL [third party
logistics] plus a call center provider with software platform thrown in. So, its not End2End or
with one of our competitors that offers a total solution.
<Q Alex Silverman>: Okay. And my last question, on the last call, I think you confirmed
with Argento that your pipeline was syndicated at $35 million; its grown by 15 on a net basis.
Obviously, some you want, some you didnt, plus youve added stuff on top. Can you give us a sense
of how much youve taken out of the pipeline over either in the fourth quarter or even better in
the first quarter and the fourth quarter without naming names?
<A Mike Willoughby>: Yeah. This is going to be sort of a rough number. We probably if
you look at the net to get to the 50, we probably took Id say 15 to 20 out. There was one fairly
large deal in there that was a fulfillment-only kind of a 3PL deal that was pretty big deal in that
pipeline. So, it made a dent as that went out. We did not win that piece of business. It went to a
sort of commodity 3PL provider. So, ended up being I think a lower margin than we have an appetite
for but it was pretty big number in the pipeline. So, say, 15 to 20 that went out.
<Q Alex Silverman>: So, 30 gross added?
<A Mike Willoughby>: About right.
<Q Alex Silverman>: Okay. And of the 15 to 20 that went out, would you say two-thirds were
lost and one-third won, if you include that big deal that you passed on?
<A Mike Willoughby>: If you include that big deal we passed on thats probably close to
right number, somewhere between two-thirds and three-quarters or something like that.
<Q Alex Silverman>: Okay, very helpful. Thank you for this help. I appreciate it.
<A Mark C. Layton>: Thanks, Alex.
Operator: Your next question comes from George Walsh of Gilford Securities.
<Q George Walsh>: Morning gentlemen. Congratulations on the quarter.
<A Mark C. Layton>: Thank you, George.
<A Thomas J. Madden>: Thank you, George.
<Q George Walsh>: Just a couple of balance sheet items, a little bit would be the lines of
credit. It was touched on earlier, but I just want to go in to that a bit more. With the
divestiture of eCOST, is there an ability to consolidate those lines or is that something youre
looking to do or are you more or less happy with the structure you have?
<A Thomas J. Madden>: Were looking at consolidating in the future. There still is a need
in our ongoing Retail Connect business that have an asset-based lending facility to support some of
the working capital need of that business. So we do expect that facility for that subsidiary
actually renews in May, so its a little bit later in the process. We do expect to try to renew
that component probably at a smaller dollar amount because its not necessary to have such a big
amount right now.