Final Transcript
May. 16. 2007 / 11:00AM ET, PFSW — Q1 2007 PFSweb, Inc. Earnings Conference Call
Mike Willoughby - Priority Fulfillment Services — President
As we said in the conference call, we’re really seeing great opportunities in all of our
vertical markets. The Riverbed contact as I alluded to provides some additional capabilities. Even
though we’ve done this postpone manufacturing or final assembly work for some other clients, what
we are doing for them as I said, takes us to a new level. So we think that opens opportunities for
us to work with other particularly high-tech manufacturing companies that need that same kind of
service whether it is loading code onto network appliances or doing final assembly work where you
are creating a final SKU from a raw good product.
So in that sector, in that vertical market with the high-tech manufactures we believe we have
additional opportunities and we have interests that’s represented within our sales pipeline there
particularly at the online retail vertical market. I alluded to the fact that research is showing
that the next really big growth opportunity is in Europe and that is being evidenced by what we are
seeing in our sales pipeline and that is where we are probably spending quite a bit of our time in
investment in marketing dollars looking to take advantage of that trend.
And that is also represented within our new business prospect sales pipeline where we see a lot of
opportunities in that area — online retailers either in North America, in successful North
American brands looking to expand into Europe or existing European brick and mortar stores or
multi-channel direct marketers that want to expand or open up new online retail stores.
So really just a lot of good signs out there for all our vertical markets for us to look at some
new business going forward.
John Fitzgerald - Bishop, Rosen — Analyst
Okay, a couple of things. The $15 million in cash, do you plan on sitting on that?
Tom Madden - PFSweb, Inc. — CFO
It has been a number that stayed relatively stable over the last several years so we’ve done a
good job of being able to generate incremental financing to support the growth that has occurred in
the business. Our goal would be to try to maintain a balance similar to that as we go forward. As
Mark alluded to earlier, things come up and as opportunities arise we will evaluate whether it’s
appropriate to use existing cash or identify either other financing or equity raising opportunities
(multiple speakers)
John Fitzgerald - Bishop, Rosen — Analyst
Okay. I just want to make sure. I mean the guys over at Google (inaudible) and [Smitty] just
bought a 767. I just wanted to make sure you weren’t planning on anything like that here.
One other question in here and I will let you go here. April, you said well let’s knock on wood on
that. You seem to indicate it is still proceeding further. The consumer seems to be starting to
drag his feet with all the various consumer spending pressures on them. What do you attribute why
you guys had stayed ahead of the curve here a little bit? Is it the betterment of the site, etc.?
Better marketing that you guys are bucking the trend I guess is what it comes down to.
Mark Layton - PFSweb, Inc. — CEO
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