Moderator: Garth Russell
08-09-12/11:00 a.m. ET
Confirmation # 11911131
These programs are for new or existing clients that span multiple
industries as we have continued to benefit from the emergence of several large product categories that are continuing to accelerate growth in the web commerce space. These categories include fashion, health and beauty and consumer packaged goods or
These new programs combined with the organic growth that were experiencing from existing clients
will help us achieve the targeted results indicated in our revised 2012 guidance.
So with that update on
growth and R&D investments, Ill turn the call back over to Tom for a review of our financial results for the quarter.
||Thank you Mike and good morning everyone. Once again, I will provide further insight into our financial results for the June quarter reported earlier today as well as
further details on our outlook for the rest of 2012. |
While total consolidated revenue for
PFSweb in the quarter ended June 30, 2012, remained relatively consistent with the prior year, we generated significant growth in our service fee business that was partially offset by reduction in product revenue.
Our service fee revenue business grew approximately $7.4 million or 35 percent in the June quarter over the prior year.
Of this more than $7 million increase year over year in service fees, approximately $4 million was derived
from new client activity applicable to client programs implemented over the past 12 months and approximately $3 million came from the net growth of existing client programs.
The overall increase in our service fee revenue offset a decrease in our Business and Retail Connect segment which
includes our Supplies Distributors operations.
Revenue for business and retail connect was $29.6 million
for the second quarter of 2012 as compared to $38.8 million for the 2011 second quarter.