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| MARCH 22, 2012 / 03:00PM GMT, PFSW - Q4 2011 PFSweb, Inc. Earnings Conference
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Marco Rodriguez Stonegate SecuritiesAnalyst
For 2012. Okay. And then with the growth of obviously about 20% for services fees, I mean back of the envelope right here doing the math, topline year
over year will decline, correct?
Tom Madden PFSweb, Inc.CFO & Chief Accounting Officer
Thats correct, but, again, one of the things we are talking about here a little bit is the service fee equivalent component. So if
you take a look at that service fee revenue, plus the gross profit dollar contribution from that Business and Retail Connect segment, you would still be in that approximately 20% growth range.
Marco Rodriguez Stonegate SecuritiesAnalyst
Okay. Then I was wondering in terms of the new client engagement that you have coming on in fiscal 2012 and the clients that are kind of winding down, if you will, can you give us a little bit better of a
sense of how you see those engagements kind of coming online and how some of them kind of conclude from like a quarterly perspective or a semi-annual perspective?
Mark Layton PFSweb, Inc.Chairman & CEO
I think
Mike alluded to Carters relationship. I think the plans in that right now on the fulfillment side are somewhere mid-year. But theres a lot of work to be done, so the dates could fluctuate, and I think were working in concert with
them.
So the exact timing of when that winds down is still gray, I guess, is the best way to put it as we go from there. I mean there are
certainly target dates in mind, but there is a lot of work to be done, and we certainly want to work closely with them to ensure that there is no minimizing any interruptions in their business from that end of that.
You know, the other amounts in there, as I mentioned in my prepared comments, are more just a statement of due course of business. On an annual basis, we
have client programs that conclude for various reasons whether its an acquisition or financial objectives change or maturing of the business. Mike mentioned the lifecycle weve traveled with Lancome over the years with that.
So were more making a statement in terms of due course and what we generally experience and expect to have happen with that. So the timing at this
point in time is not really determinable. If I was forecasting it, probably the safe thing to do is just cut down the middle and kind of plan it out halfway through the year.
Mike Willoughby PFSweb, Inc.President & CIO
And
then the new client implementations on the other side are just kind of go on throughout the year. Weve just already launched a couple of those new programs already this year and other contracts currently in process of being implemented,
so.
Marco Rodriguez Stonegate SecuritiesAnalyst
Okay. So it kind of sounds like youre not necessarily expecting any kind of wide swing on a quarterly basis based on any of the new client
engagements or ones that are kind of tailing off. Is that correct?
Mark Layton PFSweb, Inc.Chairman &
CEO
Repeat that for me again, Marco, will you, please?.
Marco Rodriguez Stonegate SecuritiesAnalyst
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