Securities and Exchange Commission

Washington, DC 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) August 3, 2005

PERFICIENT, INC.

Delaware		001-15169		74-2853258
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1120 South Capital of Texas Highway, Suite 220, Building 3, Austin, Texas			78746
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code (512) 531-6000     

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     On August 3, 2005, Perficient, Inc. announced its financial results for the three and six months ended June 30, 2005. A copy of the press release issued on August 3, 2005 concerning the financial results is filed herewith as Exhibit 99.1.

     The information in this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.

USE OF NON-GAAP FINANCIAL INFORMATION

     To supplement our consolidated financial statements presented in accordance with generally accepted accounting principals (“GAAP”), Perficient uses non-GAAP measures, such as EBITDA and Cash Earnings Per Share, which are adjusted from results based on GAAP to exclude certain expenses. Perficient believes that these non-GAAP financial measures are important representations of a company’s financial performance and uses such non-GAAP information internally to evaluate and manage its operations. These non-GAAP measures are provided to enhance the user’s overall understanding of our financial performance, but are not intended to be regarded as an alternative to or more meaningful than GAAP measures. The non-GAAP measures presented may not be comparable to similarly titled measures presented by other companies.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits.

99.1

Perficient, Inc. Press Release issued on August 3, 2005 announcing financial results for the three and six months ended June 30, 2005.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit Index

Exhibit
Number		Description
99.1		Press release dated August 3, 2005, of the Registrant.

Exhibit 99.1

FOR IMMEDIATE RELEASE
Contact: Bill Davis
Perficient, Inc.
314-995-8822
bill.davis@perficient.com

PERFICIENT REPORTS SECOND QUARTER 2005 RESULTS

AUSTIN, Texas – Aug 3, 2005 – Perficient, Inc. (NASDAQ: PRFT) a leading information technology consulting firm in the central United States, today reported financial results for the quarter ended June 30, 2005.

Financial Highlights
For the second quarter ended June 30, 2005:

	•		Total revenue, including reimbursed expenses, was up 91% to $21.7 million compared to $11.3 million during the second quarter of 2004.
	•		Net income was up 101% to $1.6 million compared to $810 thousand during the second quarter of 2004.
	•		Diluted earnings per share were up 75% to $0.07 compared to $0.04 per share during the second quarter of 2004.
	•		Diluted cash earnings per share1 were up 40% to $0.07 compared to $0.05 per share during the second quarter of 2004.
	•		Gross margin for services revenue was 36.9% compared to 38.7% in the second quarter of 2004. Gross margin for software revenue was 14.0%, compared to 22.5% in the second quarter of 2004.
	•		EBITDA2 was up 96% to $3.2 million versus $1.6 million during the second quarter of 2004.

“Q2 was another great performance by Perficient,” said Jack McDonald, Perficient’s chairman and chief executive. “We continued to drive strong organic growth in services, which increased 23.9% on an annualized basis,” he added. “This was our ninth consecutive quarter of positive, growing EPS and our tenth consecutive quarter of positive, growing EBITDA. Demand for our services is strengthening and we’re adding sales and consulting resources in several major markets to capitalize on increasing opportunities.”

Other Q2 Highlights
Among other achievements in Q2 2005, Perficient:

— Completed the acquisition of iPath Solutions, Ltd., a Houston-based information technology consulting firm with approximately $8 million in annual revenues. The transaction increased Perficient’s headcount to more than 510 consulting, technology, sales and support professionals in 11 offices in the central US. (iPath contributed $470 thousand to Q2 revenues) ;

— Added new customer relationships with leading companies including: Agriliance, BHP, BMC, Centene, CenterPoint Energy, Department of Defense, Dynegy, Halliburton, HealthLink, Highmark, H&R Block, ISO New England, Marathon Oil, National Instruments, NCAA, New York Power Authority, Sysco Foods, The Ewing Marion Kauffman Foundation, Whole Foods Markets and many others;

— Received the Outstanding Revenue Growth Award from VARBusiness magazine as the fastest-growing solutions provider in North America in our size category;

— Secured a $28.5 million credit facility with Silicon Valley Bank and Key Bank to be used primarily to fund accretive acquisitions;

— Was selected to join the The Russell Microcap Index, an equity index comprised of the smallest 1,000 securities in the small-cap Russell 2000^® Index plus the next 1,000 companies, based on a ranking of all U.S. equities by market capitalization; and

— Perficient chairman and chief executive Jack McDonald won the central Texas Ernst and Young Entrepreneur of the Year Award.

Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.

The Company expects its Q3 2005 total revenue, including reimbursed expenses, to be in the range of $22.5 million to $24.0 million, comprised of $21.8 million to $23.0 million in services revenue, including reimbursed expenses, and $700 thousand to $1 million in revenue from sales of software. The Q3 2005 forecast range of services revenue would represent services revenue growth, including reimbursed expenses, of approximately 54% to 63% over the third quarter of 2004.

Conference Call Details
Perficient will host a conference call regarding second quarter 2005 financial results today at 4:30 p.m. Eastern.

WHAT: Perficient Second Quarter 2005 Results
WHEN: Wednesday, August 3, 2005, at 4:30 p.m. Eastern
CONFERENCE CALL NUMBERS: 866-700-0161 (U.S. and Canada) 617.213.8832 (International)
PARTICIPANT PASSCODE: 19460906
REPLAY TIMES: Wednesday, August 3, 2005, at 6:30 p.m. Eastern, through Wednesday, August 10, 2005
REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)
REPLAY PASSCODE: 34244926

About Perficient
Perficient is a leading information technology consulting firm serving Global 2000 and midsize companies in the central United States. Perficient helps clients gain competitive advantage by using Internet-based technologies to make their businesses more responsive to market opportunities and threats, strengthen relationships with customers, suppliers and partners, improve productivity and reduce information technology costs. Our solutions enable our clients to operate a real-time enterprise that dynamically adapts business processes and the systems that support them to the changing demands of an increasingly global, Internet-driven and competitive marketplace. Perficient is an award-winning “Premier Level” IBM business partner, a TeamTIBCO partner and a Microsoft Gold Certified Partner. For more information about Perficient, which has more than 510 professionals in the central United States and Canada, please visit www.perficient.com. IBM is a trademark of International Business Machines Corporation in the United States, other countries, or both.

Safe Harbor Statement
Safe Harbor Statement “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that are subject to risk and uncertainties, including, but not limited to, the impact of competitive services, demand for services like those provided by the company and market acceptance risks, fluctuations in operating results, cyclical market pressures on the technology industry, the ability to manage strains associated with the company’s growth, credit risks associated with the company’s accounts receivable, the company’s ability to continue to attract and retain high quality employees, accurately set fees for and timely complete its current and future client projects, and other risks detailed from time to time in the company’s filings with Securities and Exchange Commission, including the most recent Form 10-KSB and Form 10-Q.

Use of Non-GAAP Financial Information
To supplement our unaudited consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), Perficient uses non-GAAP measures, such as EBITDA and CEPS, which are adjusted from results based on GAAP to exclude certain expenses. Perficient believes these non-GAAP financial measures are important representations of a company’s financial performance and uses such non-GAAP information internally to evaluate and manage its operations. Management has provided information regarding EBITDA and CEPS to assist investors in analyzing Perficient’s financial position and results of operations. These non-GAAP measures are provided to enhance the users’ overall understanding of our financial performance, but are not intended to be regarded as an alternative to or more meaningful than GAAP measures. These non-GAAP measures presented may not be comparable to similarly titled measures presented by other companies. A reconciliation of EBITDA to income from operations and net income and a reconciliation of net income to adjusted net income for CEPS are included in the unaudited consolidated statements of operations attached to this release.

PERFICIENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2004				2005				2004				2005
		(unaudited)								(unaudited)
Revenue
Services		$	9,653,450			$	19,233,997			$	16,317,236			$	36,891,098
Software			1,071,766				1,393,302				2,402,242				2,800,158
Reimbursable expenses			602,928				1,033,485				981,093				1,693,678
Total revenue			11,328,144				21,660,784				19,700,571				41,384,934
Cost of revenue (excludes depreciation shown separately below)
Project personnel costs			5,868,854				11,626,782				9,563,997				22,547,278
Software costs			831,082				1,198,393				1,984,435				2,377,933
Reimbursable expenses			602,928				1,033,485				981,093				1,693,678
Other project related expenses			52,025				519,010				162,298				762,683
Total cost of revenue			7,354,889				14,377,670				12,691,823				27,381,572
Gross margin			3,973,255				7,283,114				7,008,748				14,003,362
Selling, general and administrative			2,341,285				4,090,638				4,193,956				7,824,821
EBITDA1			1,631,970				3,192,476				2,814,792				6,178,541
Depreciation			123,753				132,885				224,875				310,221
Amortization of intangibles			162,778				303,763				212,779				580,639
Income from operations			1,345,439				2,755,828				2,377,138				5,287,681
Interest income			539				6,256				637				7,919
Interest expense			(14,762	)			(121,264	)			(29,133	)			(233,768	)
Other			(193	)			9,292				1,899				8,129
Income before income taxes			1,331,023				2,650,112				2,350,541				5,069,961
Provision for income taxes			521,000				1,023,301				920,000				1,954,847
Net income		$	810,023			$	1,626,811			$	1,430,541			$	3,115,114
Basic net income per share		$	0.05			$	0.08			$	0.09			$	0.15
Diluted net income per share		$	0.04			$	0.07			$	0.08			$	0.13
Shares used in computing basic net income per share			17,312,707				21,529,502				15,906,432				21,345,581
Shares used in computing diluted net income per share			20,234,707				24,794,723				18,928,871				24,799,587
Reconciliation of GAAP diluted net income per share to CEPS2:
Net income		$	810,023			$	1,626,811			$	1,430,541			$	3,115,114
Amortization of intangibles			162,778				303,763				212,779				580,639
Stock compensation			12,300				59,157				24,768				118,314
Related tax effect			(68,530	)			(140,136	)			(92,976	)			(269,498	)
Adjusted net income for CEPS		$	916,571			$	1,849,595			$	1,575,112			$	3,544,569
CEPS2		$	0.05			$	0.07			$	0.08			$	0.14

PERFICIENT, INC.
CONSOLIDATED BALANCE SHEETS

		December 31,				June 30,
		2004				2005
ASSETS						(unaudited)
Current assets:
Cash		$	3,905,460			$	2,029,511
Accounts receivable, net			20,049,500				22,348,345
Other current assets			336,309				438,732
Total current assets			24,291,269				24,816,588
Net property and equipment			805,831				894,740
Net intangible assets			37,339,891				44,232,951
Other noncurrent assets			145,374				1,475,324
Total assets		$	62,582,365			$	71,419,603
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	6,927,523			$	1,614,770
Current portion of long term debt			1,135,354				1,291,431
Other current liabilities			6,750,968				6,212,760
Current portion of notes payable to related parties			243,847				234,899
Total current liabilities			15,057,692				9,353,860
Long term debt, net of current portion			2,676,027				8,019,032
Notes payable to related parties, net of current portion			226,279				—
Total liabilities			17,959,998				17,372,892
Stockholders’ equity:
Common stock			20,914				22,083
Additional paid-in capital			102,637,699				108,856,983
Deferred stock compensation			(1,656,375	)			(1,538,063	)
Accumulated other comprehensive loss			(57,837	)			(87,372	)
Accumulated deficit			(56,322,034	)			(53,206,920	)
Total stockholders’ equity			44,622,367				54,046,711
Total liabilities and stockholders’ equity		$	62,582,365			$	71,419,603