We believe the continually strong pipeline speaks for itself in terms of both the rapidly growing
number of End2End opportunities we are pursuing and in the growing reputation that PFSweb has
earned for successfully implementing high quality and customizable solutions for our clients.
In line with this positive momentum, weve spent the last couple of quarters and expect to continue
making strategic investments in our staff, facilities and technology, both domestically and abroad.
It is through these investments that weve been able to support our existing client programs and
will be able to support the growth we expect from clients currently in the new business pipeline.
During the first half of 2011, we made significant additions to our technology development team as
well as other investments in our facilities and technology and operational infrastructure. This
includes the new food grade distribution facility, we opened at Memphis earlier this year that will
be used to support Starbucks, as well as other new CPG client programs we are targeting to launch
in the future.
Also were in the process of aggressively expanding our call center operations within the next few
months that will include the opening of a new larger facility in the Dallas area. A by-product of
this exciting expansion is that we do expect to record various one-time facility relocation costs
during the next several quarters.
We are targeting strong service fee revenue growth to continue in Q3 and Q4, but as I have
discussed the impact of this growth will be somewhat tempered in our financial results by the
higher cost necessary to be prepared to embrace our current and future clients growth forecasts.
Just to be clear, while were definitely making investments that will result in higher SG&A costs
in the near term, we believe those investments bode very well for us in terms of the financial
future of our business.
Again, were continuing to provide guidance that our Adjusted EBITDA for fiscal year 2011 is
targeted to be between $6 million and $7 million. With this information as a backdrop, Id like
Mike to take the call for a few minutes and give you some details in terms of our client programs.
Michael C. Willoughby, President & Chief Information Officer
Thank you, Mark, and good morning, everyone. As Mark just mentioned, were really excited about the
growth were experiencing in our service fee business for this quarter and the first half of 2011.
This growth is being driven by a number of factors, including the ramp-up of the number of new
clients launched over the past year, as well as from the organic growth of several of our
established clients. For me one of the highlights of this conference call is the announcement of
the launch of the new StarbucksStore.com website, which is powered by PFSwebs End2End eCommerce
We have referred to this client on previous conference calls as a well-known company in the
pre-packaged food and beverage category. So for those of you that follow us conference call to
conference call, that answers that question for you. The new website went live during the last week
in July and Starbucks announced the new site with a press release last Thursday. As indicated in
that press release the new site is a complete redesign of the prior site that makes shopping for
coffee, tea and merchandise easier and more convenient for the Starbucks customer. This site is
part of Starbucks growing digital presence and it offers an elevated Starbucks experience thats
consistent with the well-known and respected brand experience that Starbucks creates in its stores
throughout the world.
While the launch of the new eCommerce site is exciting in itself, theres some really great
eCommerce innovations within the new site that I think are worth mentioning, including a new
subscription service. With the subscription service in the site, registered customers can set up