QUESTION AND ANSWER SECTION
Operator: [Operator Instructions] Your first question comes from the line of Mark Argento
with Craig-Hallum Capital.
<Q Mark Argento Craig-Hallum Capital Group LLC>: Good morning, guys.
<A Thomas Madden EVP, Chief Financial & Accounting Officer>: Hi, Mark. How are you?
<A Mark Layton Chairman & Chief Executive Officer>: Hi, Mark.
<Q Mark Argento Craig-Hallum Capital Group LLC>: Good thanks, nice quarter and looks
like you guys are continuing some nice incremental progress at the services business. Specifically
around that I know youd mentioned that you had 15 new, I think its new is it new programs that
youre launching maybe you could just kind of clarify that number for me a little bit?
<A Michael Willoughby President & Chief Information Officer>: Sure. So when we refer to
a client program, its a specific, usually geographic program deployed. So for instance if we have
a global client, we sign a master agreement with them, then we launch a U.S. and a Canadian and a
Western European site we would count those as three separate client programs under one master
agreement.
<Q Mark Argento Craig-Hallum Capital Group LLC>: Okay.
<A Mark Layton Chairman & Chief Executive Officer>: And we view it that way, Mark,
simply because each one of them is while the technology backbone is common, the look and feel of
the interface is different in order to deal with the localization requirements in each of the
countries. And thats true across brands as well. So we may have a you look at Procter & Gamble
relationship that Mike discussed in there, I mean there are a number of client programs within that
that are distinct either geographies or brands within that.
<A Michael Willoughby President & Chief Information Officer>: And generally were going
to be deploying a separate project team for the launch of each program. So, from our perspective
the bandwidth that we have in order to launch new client programs, one of those teams would be
taken up by a new client program. So, if we say weve 15 client programs in progress, generally it
means that we have 15 project teams deployed to launch those.
<Q Mark Argento Craig-Hallum Capital Group LLC>: Got it. Okay, thats helpful. And you
said within the 15 is one of the a major packaged foods guy and the beverage programs are two of
the 15, is that right?
<A Michael Willoughby President & Chief Information Officer>: Thats correct.
<Q Mark Argento Craig-Hallum Capital Group LLC>: Okay. Maybe you can better help me
understand the whole beverage/eCommerce. I mean, are you actually going to be a direct-to-consumer
model here or is it a B2B or what do you have going on or what potentially does this thing look
like?
<A Michael Willoughby President & Chief Information Officer>: The program is an End2End
direct-to-consumer program and products are pre-packaged. So, shelf stable type products like you
see on a grocery store shelf, for instance, direct-to-consumer.
<Q Mark Argento Craig-Hallum Capital Group LLC>: Got you. And is it actually I
assume its a beverage type of liquid product?
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