I would say that the atmosphere that I feel
from our clients as it relates to results in traditional retail are pretty mustered, if you will, I mean theyre very guarded, I guess is a word I would use about what their expectations may be in traditional brick and mortar in the current
economic environment, but very bullish about their direct-to-consumer strategies. And frankly the other thing that this environment has done is it has allowed to break down some of the barrier concerns that manufacturers may have had in competing
with their traditional channels. And many of them have said I have to keep growing in order to insure my own financial health of our business. And as a result, I have to now basically stomach whatever concerns I may have had about how a traditional
retail partner may have reacted to the fact that Im going to compete with them direct online. Consumers are demanding it and manufacturers are responding to it. So I think the economic environment has actually provided a very its
a lot of components of the tailwind, I think that were seeing in the growth that were experiencing.
<Q Marco Rodriguez Stonegate Securities, Inc.>: Got it. And then in regard to the relocation cost that you
guys incurred in the quarter, you mentioned that youre expecting additional relocation costs over the next I think you said last next three quarters or so. Should we be expecting roughly the same level per quarter?
<A Thomas Madden PFSweb, Inc.>:
Hadnt really broken it out yet by quarter. There will be some level in each period. Some of it depends on the actual timing of when we do the relocation activities.
<A Mark Layton PFSweb, Inc.>: Yeah, I
would say Marco, you probably expect quarters one quarter one next year, based on our targeted timing right now will be heavier and some of that will spill into quarter two. Now the our targeted move dates right now are near the end of
Q1, so if we experience delays, some of those expenses may fall and actually shipped from one to two, so but thats kind of where were at right now.
<Q Marco Rodriguez Stonegate Securities, Inc.>: Okay. And then lastly with all the investing youre
doing here to ramp up for new clients that youve sign and expected new clients, is there an ability if something rather negative happens in the macro environment for you to pull that back rather quickly or do you have any commitments
associated with that investing youre currently doing?
<A Mark Layton PFSweb, Inc.>: Well, our model is we generally try to ensure that we have underlying client commitments for commitments that we make to facilities and things
along that line. Now the reality is, is that you cant do that with everything. So for example our headquarters facility is not a particular facility that can be tied to client contracts, because weve got basically our overhead
environment in there and our technology development. Our people costs are variable. We have to make a very calculated decision in terms of the intellectual knowledge that these people have. So we would certainly for some period of time, if there was
a sharp downturn, we would want to maintain as much of that experiences as we could, and weather the storm, if you will, to move on through things from there, because theyre very important in terms of our solution set and our ability to
deliver for clients going forward from there. But so we do have variability in our people aspects of things. Some facilities are fixed. Other facilities are tied to client contracts, so its a bit of mixture.
<Q Marco Rodriguez Stonegate Securities,
Inc.>: Got it. Thanks a lot guys.
Mark Layton PFSweb, Inc.>: Thank you, Marco.