<A Mark Layton Chairman & Chief Executive Officer>: No, thats coming about because the
worlds changing in terms of the way, I mean, the simple thing you can look at today 99% of these
eCommerce transactions originate from a PC today. As we sit back and look at this over the next
several years, that number is, we believe will decline significantly. And as mobile transactions
come to play in other electronic widgets, if you will, come about whether that might be a seat-back
device at a stadium or something in a cab, an electronic billboard, a shelf talker various ways the
consumers can interact with brands and potentially purchase products.
What we see is that an ability to facilitate electronic commerce transactions if you will across
channel partners. Some of which will continue to result in shipments from our own facilities and
interactions with our own call center others of which might facilitate transactions between various
retail locations out there in order to be certain that the brand still captures the sale and
doesnt lose it to a competitor.
So this is several years out, but with that, then you sit back and say well how does our revenue
model evolve around that and there will be things more oriented around potential rev-share
agreements and things along that basis and there that would go, this is a perfectly a
hypothetical example Ill give you here but lets assume for a minute that we moved $2 billion of
overall commerce facilitated $2 billion in overall commerce. Today, almost all of that moves
through would move through one of our facilities and the customer interactions would be with one
of our call center agents. Fast forward five years, lets just say that we may facilitate $10
billion of commerce and $3 billion of that moves through our facilities and $7 billion of that is
facilitated across various channels will mean we might not actually hold the inventory for the
client at all or handle the interaction there may not be an interaction required.
But we might be able to gain a rev share of that other $7 billion because we facilitated through
our technologies and our, both proprietary and our technology interface relationships that I
described earlier in there those particular transactions. So its a new revenue source for us,
if you will almost a new product area that we can offer that we see the opportunity for going
<Q Glenn Primack Broadview Advisors LLC>: So your return on invested capital looking
out I dont know, sort of three to five years goes up dramatically, if that kind of takes place?
<A Mark Layton Chairman & Chief Executive Officer>: If that hypothetical example takes
place, that would we would assume that would happen, yes.
<Q Glenn Primack Broadview Advisors LLC>: Okay. Last one with Barrons writing that
piece couple of weeks ago on Amazon, I dont know if you saw it or not, but the whole. Yes, theyre
growing revenue, but theyre having to put that much more into infrastructure. Can you just kind of
compare and contrast on what youre going through, I mean you guys started as big distributors,
they kind of started as not. And so, is there something thats similar or you wont even kind of
view that as a comparable-type company?
<A Michael Willoughby President & Chief Information Officer>: So, I dont Im not
familiar with the piece that youre referring to. When we look at Amazon we look at them in two
different ways, one is as a potential competitor because they have a fulfillment by Amazon type of
They arent really a competitor to us because their infrastructure and their go-to-market strategy
is really targeted to small and medium businesses with a pretty generic fulfillment and eCommerce
offering whereas our vertical markets demand a highly customized, very robust offering across the
So if you look at their sort of outsourced business, we dont see them as a competitor and the
infrastructure that they built is really built for this large volume of products across a large
number of small-to-medium businesses.