MAY 14, 2012 / 03:00PM GMT, PFSW - Q1 2012 PFSweb, Inc. Earnings Conference Call
For our Retail and Business Connect segment, we expect product revenue to
decline year-over-year for the remainder of 2012 to approximately $115 million to $125 million for the year. This decline, which is somewhat higher than what we communicated in March, is a result of the continued restructuring and reorganization
activities of our primary client in this business. We believe the impact of these revenue reductions will be partially offset by the improving gross margin percentages we currently expect to earn in this business during the year with an overall
target of approximately 8% as compared to approximately 7% in 2011.
On an overall aggregate basis, with the various business segment
components I just discussed, we are continuing to target an increase to our service fee equivalent revenue of approximately 20% for 2012, as compared to 2011, and an improvement in adjusted EBITDA to $8 million to $10 million.
Now, I’d like to call back over to Mark for some closing comments.
Mark Layton - PFSweb, Inc. - Chairman, CEO
Great, thank you,
Tom. I hope our prepared remarks today have provided you some good insight into the advancements of our business and the significant growth opportunities that we believe PFSweb has as we head into the rest of 2012.
Seeing the success in the launch of great client names like L’Oreal and Elizabeth Arden, Columbia Sportswear, Salomon and so many others, and
watching many of these clients’ businesses experience strong growth as a result of the new technology platform, marketing programs and site features that have been implemented is very rewarding, not only for our clients but for all of us here
at PFSweb. It’s fun times, lots of stuff going on, we look forward to continuing to update you on our progress.
That concludes our
prepared comments this morning. And operator, we are now available for questions.
QUESTION AND ANSWER
Operator
(Operator Instructions). Mark
Argento, Craig-Hallum.
Mark Argento - Craig-Hallum Capital Group - Analyst
Congrats on a nice quarter.
Mark Layton - PFSweb, Inc. - Chairman, CEO
Thank you.
Mark Argento - Craig-Hallum Capital Group - Analyst
Just a couple questions. First, on the services customer roster there, could you just remind me if you have in front of you total
number of customers and if you could split that between the End2End and the maybe one-off, or specific services, if you have that handy?
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