~ Company will announce official Q2 results, host conference call on
July 30 ~
Perficient,
Inc. (NASDAQ: PRFT) (“Perficient”), a leading information technology
and management consulting firm serving Global 2000® and other large
enterprise customers throughout North America, today reported updated
preliminary revenue estimates for the quarter ended June 30, 2015, and
updated full year revenue and adjusted earnings per share guidance.
Financial Highlights
For the quarter ended June 30, 2015, revenue is expected to be in the
range of $108.2 million to $109.2 million and comprised of:
-
Services revenue, including reimbursed expenses, in the range of
$100.8 million to $101.8 million; and
-
Software and hardware revenue expected to be approximately $7.4
million.
The preliminary revenue results for the three months ended June 30,
2015, are below the previously announced revenue guidance range of
$110.5 million to $120.9 million and services revenue guidance,
including reimbursed expenses, of $104.5 million to $109.9 million. The
reduction is primarily the result of unexepected customer delays in
contract execution and project startups, including a delay in the ramp
up of a large health care engagement.
“While we are disappointed in the slower than anticipated start to 2015,
we are encouraged by bookings and backlog that support improved results
in the second half,” said Jeff Davis, Perficient CEO and President.
“Given the preliminary second quarter results, we are updating full year
revenue and adjusted earnings per share guidance.”
Perficient is also revising its full year 2015 revenue guidance range,
from $470 million to $495 million to $455 million to $475 million, and
its 2015 adjusted earnings per share guidance range, from $1.38 to $1.49
to $1.15 to $1.25.
Conference Call and Webcast
Perficient will host a conference call on Thursday, July 30, 2015, at 10
a.m. Eastern, to discuss the company's second quarter 2015 results. The
company's news release containing the results will be made available
before the call.
The conference call can be accessed via Perficient’s website, www.perficient.com,
under the Investor Relations section or directly at http://phx.corporate-ir.net/phoenix.zhtml?c=83872&p=irol-irhome.
Analysts and investors who want to ask questions during the Q&A session
can access the call as follows:
Toll-Free: 800-884-5695
International: 617-786-2960
Passcode:
62080438
Investors are advised to dial in at least 10 minutes prior to the call
to register.
The preliminary financial results in this press release reflect
management’s estimates based solely upon information currently available
and are subject to the completion of Perficient’s quarter-end financial
closing procedures. These preliminary financial results are not a
comprehensive statement of the company’s financial results for the
quarter ended June 30, 2015, and should not be considered a substitute
for unaudited financial statements for the three and six months ended
June 30, 2015, once they become available. Actual results may vary
materially from these estimated ranges based on a number of factors, and
investors should not place undue reliance upon these preliminary
estimates. The company plans to announce its complete results for the
quarter ended June 30, 2015, on July 30, 2015.
About Perficient
Perficient is a leading information technology and management consulting
firm serving Global 2000 and enterprise customers throughout North
America. Perficient delivers digital experience, business optimization
and industry solutions that enable clients to improve productivity and
competitiveness; strengthen relationships with customers, suppliers and
partners; and reduce costs. Perficient’s professionals serve clients
from a network of offices across North America and offshore locations in
India and China. Traded on the Nasdaq Global Select Market, Perficient
is a member of the Russell 2000 index and the S&P SmallCap 600 index.
Perficient is an award-winning Premier Level IBM business partner, a
Microsoft National Service Provider and Gold Certified Partner, an
Oracle Platinum Partner, and a Platinum Salesforce Cloud Alliance
Partner. For more information, visit www.perficient.com.
Safe Harbor Statement
Some of the statements contained in this news release that are not
purely historical statements discuss future expectations or state other
forward-looking information related to financial results and business
outlook for 2015. Those statements are subject to known and unknown
risks, uncertainties, and other factors that could cause the actual
results to differ materially from those contemplated by the statements.
The forward-looking information is based on management’s current intent,
belief, expectations, estimates, and projections regarding our company
and our industry. You should be aware that those statements only reflect
our predictions. Actual events or results may differ
substantially. Important factors that could cause our actual results to
be materially different from the forward-looking statements include (but
are not limited to) those disclosed under the heading “Risk Factors” in
our annual report on Form 10-K for the year ended December 31, 2014 and
the following:
(1) the possibility that our actual results do not meet the projections
and guidance contained in this news release;
(2) the impact of the general economy and economic uncertainty on our
business;
(3) risks associated with the operation of our business generally,
including:
a) client demand for our services and solutions;
b) maintaining a balance of our supply of skills and resources with
client demand;
c) effectively competing in a highly competitive market;
d) protecting our clients’ and our data and information;
e) risks from international operations including fluctuations in
exchange rates;
f) obtaining favorable pricing to reflect services provided;
g) adapting to changes in technologies and offerings;
h) risk of loss of one or more significant software vendors; and
i) the recent implementation of our new Enterprise Resource Planning
system;
(4) legal liabilities, including intellectual property protection and
infringement or the disclosure of personally identifiable information;
(5) risks associated with managing growth organically and through
acquisitions; and
(6) the risks detailed from time to time within our filings with the
Securities and Exchange Commission.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance, or achievements. This
cautionary statement is provided pursuant to Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The forward-looking statements in this
release are made only as of the date hereof and we undertake no
obligation to update publicly any forward-looking statement for any
reason, even if new information becomes available or other events occur
in the future.
About Non-GAAP Financial Information
This news release includes non-GAAP financial measures. For a
description of these non-GAAP financial measures, including the reasons
management uses each measure, please see the section entitled “About
Non-GAAP Financial Measures.”
About Non-GAAP Financial Measures
Perficient provides non-GAAP financial measures for adjusted earnings
per share data as supplemental information regarding Perficient’s
business performance. Perficient believes that these non-GAAP financial
measures are useful to investors because they provide investors with a
better understanding of Perficient’s past financial performance and
future results. Perficient’s management uses these non-GAAP financial
measures when it internally evaluates the performance of Perficient’s
business and makes operating decisions, including internal operating
budgeting, performance measurement, and the calculation of bonuses and
discretionary compensation. Management excludes stock-based compensation
related to employee stock options and restricted stock awards, the
amortization of intangible assets, acquisition costs, adjustments to the
fair value of contingent consideration, and income tax effects of the
foregoing, when making operational decisions.
Perficient believes that providing the non-GAAP financial measures to
its investors is useful because it allows investors to evaluate
Perficient’s performance using the same methodology and information used
by Perficient’s management.
Non-GAAP financial measures are subject to inherent limitations because
they do not include all of the expenses included under GAAP and because
they involve the exercise of discretionary judgment as to which charges
are excluded from the non-GAAP financial measure. However, Perficient’s
management compensates for these limitations by providing the relevant
disclosure of the items excluded in the calculation adjusted earnings
per share. In addition, some items that are excluded from adjusted
earnings per share can have a material impact on cash. Management
compensates for these limitations by evaluating the non-GAAP measure
together with the most directly comparable GAAP measure. Perficient has
historically provided non-GAAP financial measures to the investment
community as a supplement to its GAAP results to enable investors to
evaluate Perficient’s business performance in the way that management
does. Perficient’s definition may be different from similar non-GAAP
financial measures used by other companies and/or analysts.
The non-GAAP adjustments, and the basis for excluding them, are outlined
below:
Amortization of Intangible Assets
Perficient has incurred expense on amortization of intangible assets
primarily related to various acquisitions. Management excludes these
items for the purposes of calculating adjusted earnings per share.
Perficient believes that eliminating this expense from its non-GAAP
financial measures is useful to investors because the amortization of
intangible assets can be inconsistent in amount and frequency, and is
significantly impacted by the timing and magnitude of Perficient’s
acquisition transactions, which also vary substantially in frequency
from period to period.
Acquisition Costs
Perficient incurs transaction costs related to acquisitions which are
expensed in its GAAP financial statements. Management excludes these
items for the purposes of calculating adjusted earnings per share.
Perficient believes that excluding these expenses from its non-GAAP
financial measures is useful to investors because these are expenses
associated with each transaction, and are inconsistent in amount and
frequency causing comparison of current and historical financial results
to be difficult.
Adjustments to Fair Value of Contingent Consideration
Perficient is required to remeasure its contingent consideration
liability related to acquisitions each reporting period until the
contingency is settled. Any changes in fair value are recognized in
earnings. Management excludes these items for the purposes of
calculating adjusted earnings per share. Perficient believes that
excluding these adjustments from its non-GAAP financial measures is
useful to investors because they are related to acquisitions, and are
inconsistent in amount and frequency from period to period.
Stock-Based Compensation
Perficient incurs stock-based compensation expense under Financial
Accounting Standards Board Accounting Standards Codification Topic 718, Compensation
– Stock Compensation. Perficient excludes this item for the purposes
of calculating adjusted earnings per share because it is a non-cash
expense, which Perficient believes is not reflective of its business
performance. The nature of stock-based compensation expense also makes
it very difficult to estimate prospectively, since the expense will vary
with changes in the stock price and market conditions at the time of new
grants, varying valuation methodologies, subjective assumptions, and
different award types, making the comparison of current results with
forward-looking guidance potentially difficult for investors to
interpret. The tax effects of stock-based compensation expense may also
vary significantly from period to period, without any change in
underlying operational performance, thereby obscuring the underlying
profitability of operations relative to prior periods. Perficient
believes that non-GAAP measures of profitability, which exclude
stock-based compensation are widely used by analysts and investors.
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