MAY 14, 2012 / 03:00PM GMT, PFSW - Q1 2012 PFSweb, Inc. Earnings Conference Call
Mike Willoughby - PFSweb, Inc. - President, CIO
Sure. Hey Mark, this is Mike. So the terminology that we’re using is client programs, which can be or give the client a certain
geography or a certain brand under, say, a common corporate umbrella just so we make sure we stay consistent quarter to quarter. The number of client programs that we’re currently operating that are live is 62. Of those 62, 22 of those are
End2End and 40 are either single-silo or multiple silos, but don’t include reselling the e-commerce technology platform. So 35% are End2End and 65% are either these multi-silo or, as I said, single-silo.
Mark Argento - Craig-Hallum Capital Group - Analyst
How many parent company relationships do you have in the 62?
Mike
Willoughby - PFSweb, Inc. - President, CIO
So generally, it’s difficult to group it in just because of the way that
certain companies structure themselves, but on the order of 30 to 35 of those are top level, sort of corporate enterprise type agreements.
Mark Argento - Craig-Hallum Capital Group - Analyst
Great. That’s helpful. Then in terms of the pipeline of new business or RFP activity, any metrics you could put to that or color you could provide us there?
Mike Willoughby - PFSweb, Inc. - President, CIO
Sure. So we quoted around $50 million in new business pipeline. Average annual contract value is the way we measure it. Interestingly, apparel and accessories continues to be our number one vertical
within our pipeline, followed by health and beauty. That’s been very consistent over the past couple of years. Currently in our pipeline, or actually the number three spot, is now home and housewares, which reflects a couple of opportunities
that are specializing in that and also a couple of opportunities where the product mix is predominantly home and housewares. That moves right now CPG, including food and beverage and nonfood products into the number four slot. I don’t expect
that to be a trend that continues. I think it’s probably just a quarter, maybe one or two quarters where we’ve seen that blip. But it’s interesting to see that move up into the number three spot, which is good for us. It’d be
nice to add that vertical, a couple of key clients in that particular product segment, so it’s kind of an exciting development for us.
Mark Argento - Craig-Hallum Capital Group - Analyst
I know in the past, or in 2011, and you guys were focused on some larger food and beverage clients, I think some of which you’ve landed, one of course Starbucks. Any color on some of the unnamed
clients there, and are you ramping — actively ramping there? Is that a growth area for you?
Mike Willoughby -
PFSweb, Inc. - President, CIO
Well, I think last quarter we did announce that two branded sites for a large CPG food manufacturer went
live during the holiday season. This last quarter would have included a full quarter of service fee revenue from that client, although it is ramping up as the business grows. So, we would expect a full year of contribution from them, but also a full
year of increasing growth contribution from them.
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