SEC Filings Section 16 Filings Only
 
PFSWEB INC filed this 8-K on 05/16/2011.
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<Q — George Walsh>: Okay, good. Mark, you mentioned possibly looking at either — you mentioned your headquarters. I don’t know if you mean an expansion, or looking for a new location, or a new lease. Can you just elaborate on that a bit?
<A — Mark C. Layton>: Yes, we’re operating at capacity or maybe above in terms of our office space at this point in time. We’ve been in the current facilities that we’re in here for over 20 years at this point. So we have a bit of a tired infrastructure in terms of the office space in here that needs to be addressed as well. But the biggest issue really is just to be certain that we can provide the capacity for our people to be able to work. So we’re evaluating all the options. Staying here, we might relocate somewhere close. It will just depend on what kind of offers we see from the various landlords and municipalities that are interested in our presence.
<Q — George Walsh>: Okay. Well, is the market down in that office space is such that you’d be in a good position to make a deal or just curious of the real estate market?
<A — Mark C. Layton>: Yeah, we’d not expect any — other than maybe some one-time expenses related to the moving, we’ll expect that we’ll be at or better than our current rental rates in the things that we’re doing. The real key for us, particularly in a call center area is that, we have seen an ability to be able to negotiate and some things that we’re working on. More flexibility for us to be able to expand and contract to the extent that we get new client deals or they have immediate needs for space, or as does occasionally happen in there, we lose a client relationship for whatever reason. We don’t want to be in a situation where we are tied down with a lot of excess capacity or not able to — or boxed in and not able to grow quickly with that. So fortunately here in Dallas, the real estate market is such, particularly in the downtown sector where there is a lot of opportunity and a lot of supply for us to be able to work with and landlords that are willing to work with us on the terms that we want.
<Q — George Walsh>: Okay very good. And just in reference to the previous question asking about clients and landing the big clients. In terms of the definition that you are using for pipeline, can you just put the timeline associated to that when you put something in the pipeline as you define it there?
<A — Mark C. Layton>: Yes so basically over $50 million is one year of our clients projected — as our client gives us their projections for gross merchandise revenue, if you will, and then we lay our fees against that. So that over $50 million, if we were to win at all, we’d expect in one year to book $50 million of service fees on that one year. Now typically, the contracts are in the three to five-year range that we see. So the actual win value is probably at least three times the amount in terms to the extent that if we can win all that business.
<A — Thomas J. Madden>: And that $50 million includes outstanding proposals that have actually been provided to the client based on a specific request for them for a solution being offered.
<A — Mark C. Layton>: Right. Yes, we don’t include anything in the pipeline that hasn’t been proposed on.
<Q — George Walsh>: Okay. So it’s a proposal. So it’s something thats at that theoretically one year point as you were talking about before. That’s where it’s moved along, it’s a proposal that still you know the max would be a decision made within a year. Is that reasonable?
<A — Michael Willoughby>: Yeah. When you’re talking about businesses that’s already been proposed, that’s well within that one-year sales cycle.
<Q — George Walsh>: Okay.
<A — Michael Willoughby>: We would look at probably an average of two to three months remaining from that point of proposal to a decision.

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