SEC Filings Section 16 Filings Only
 
PFSWEB INC filed this 8-K on 08/15/2011.
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<Q — Mark Argento — Craig-Hallum Capital Group LLC>: And you guys have proprietary software, are you developing the technology platform to be able to manage across all the — if it’s the company’s own website a third party website, I mean, you guys have technology to be able to start to do more that type of business?
<A — Mark Layton — Chairman & Chief Executive Officer>: The combination of those things and certainly our relationship with Demandware is important to begin with, one of the differentiators that we have is an integrator for Demandware. I think we’re — I’m certain we’re pretty much the largest integrator for Demandware in the world. And in terms of the developers that we have so, we distinguish ourselves from a competition, first of all, by the fact that we have more high-quality developers on the platform that know how to use it and we have developed a number of proprietary type capabilities around that.
So Mike mentioned the continuity program for Starbucks, as an example, we have other if you will apps that have our plug-ins that the Demandware technology that our competition can’t offer nor really can Demandware offer it directly or they can do it with in partnership with us but they couldn’t do it on their own.
So, we’re developing our own technology. Secondly to that is that we’ve developed hundreds of interfaces to third party technologies that allow whether it’s a payment processing method or a rating and review service or and on and on and on with that we’re building a library of technological interfaces that have — that allow the products that be enabled into the Demandware platform out there and use on the site that again is a differentiator for us.
We’re not setting out to try to be a large software development house if we could buy it, we’ll do that, but in many cases, the technology is not necessarily available or not to the quality standards that we would like. And so we’ll develop it in house in those cases from there. So, which you’ll see increasingly as a library of either our own proprietary technology of our third-party interfaces that we have created reseller agreements within there, bundled around the Demandware platform.
And that same concept can work with other software manufacturers’ products. Now there’s really not another strong SaaS player in the industry today. So this is where Demandware itself has a significant advantage in terms of the architecture design that they have for their platform and why we’re so keenly aligned with them in terms of where they are and where they’re going and it’s been a great partnership continues to be and both of us are benefiting significantly from it.
<Q — Mark Argento — Craig-Hallum Capital Group LLC>: Great. And just last question if you look at the service fee revenue the $21 million you guys did in the quarter, I know you kind of broke it up in new relationships, existing relationships. Maybe just step back a little bit, if we’re looking at the $21 million, of that $21 million how much is kind of what we’ll call production revenue meaning revenue generated from actually doing the fulfillment work versus say initial setup or pre-revenue or pre-production service fee revenue?
<A — Thomas Madden — EVP, Chief Financial & Accounting Officer>: I don’t have those exact numbers in front of me but I’ll estimate for you. I think that the total fulfillment revenue activity for the quarter would probably be approximately 50% of our overall revenue, 45% to 50% would be my expectation with — then call center following second as the second largest component.
<A — Michael Willoughby — President & Chief Information Officer>: And start-up revenue is not going to be a major.
<A — Thomas Madden — EVP, Chief Financial & Accounting Officer>: I’m sorry yes — startup revenue is not a significant component. We generally take that activity and defer it over the life of the contract for the startup activity.

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