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U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

Form 11-K

     
þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2004

OR

     
o   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to __________

Commission file number: 001-15169

A. Full title of plan and the address of the plan, if different from that of the issuer named below:

The Perficient 401(k) Employee Savings Plan

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices:

Perficient, Inc.
1120 South Capital of Texas Highway, Building Three, Suite 220
Austin, Texas 78746

 
 

 

The Perficient 401(k) Employee Savings Plan

Financial Statements
and Supplemental Schedule

Years ended December 31, 2004 and 2003

Table of Contents

         
    1  
 
        
Financial Statements
        
 
        
    2  
    3  
    4  
 
        
Supplemental Schedule
        
 
        
    9  
 
        
Exhibits
     11  
 
        
    12  
 Consent of Wipfli LLP

 

Table of Contents

INDEPENDENT AUDITOR’S REPORT

The Trustees
The Perficient 401(k) Employee Savings Plan
Austin, Texas

We have audited the accompanying statements of net assets available for benefits of the Perficient 401(k) Employee Savings Plan as of December 31, 2004 and 2003, and the related statements of changes in net assets available for benefits for the years then ended. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of The Perficient 401(k) Employee Savings Plan as of December 31, 2004 and 2003, and the changes in its net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule (Schedule of Assets (Held at End of Year)) as of December 31, 2004, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

(-s- WILPFLI LLP)
Wipfli LLP

June 14, 2005
Eau Claire, Wisconsin

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The Perficient 401(k) Employee Savings Plan
Statements of Net Assets Available for Benefits
December 31, 2004 and 2003

                 
Assets   2004     2003  
 
 
                
Investments — At fair value:
                
Mutual funds
   $ 6,836,413     $ 4,862,601  
Employer securities
     273,172       62,815  
Participant loans
     46,410       50,031  
 
 
                
Total investments
   $ 7,155,995     $ 4,975,447  
 
 
                
Receivables:
                
Employer contributions
     12,072       0  
Participant contributions
     46,513       0  
Loan payments
     921       0  
 
 
                
Total receivables
     59,506       0  
 
 
                
NET ASSETS AVAILABLE FOR BENEFITS
   $ 7,215,501     $ 4,975,447  
 

See accompanying notes to financial statements.

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The Perficient 401(k) Employee Savings Plan
Statements of Changes in Net Assets Available for Benefits
Year ended December 31, 2004 and 2003

                 
    2004     2003  
 
 
                
Additions to net assets attributed to:
                
Investment income:
                
Net appreciation in fair value of investments
   $ 829,970     $ 587,596  
Participant loan interest
     1,459       2,864  
 
 
                
Net investment income
     831,429       590,460  
 
                
Contributions:
                
Employee
     1,503,302       885,554  
Employer
     244,241       142,994  
Rollover
     177,482       19,635  
 
 
                
Total contributions
     1,925,025       1,048,183  
 
                
Transfer from other Plans
     0       1,705,044  
 
 
                
Total additions
     2,756,454       3,343,687  
 
                
Deductions from net assets attributed to:
                
Benefits paid directly to participants
     515,726       291,076  
Administrative expenses
     674       237  
 
 
                
Total deductions
     516,400       291,313  
 
 
                
Net increase
     2,240,054       3,052,374  
 
                
Net assets available for benefits:
                
Beginning of year
     4,975,447       1,923,073  
 
 
                
End of year
   $ 7,215,501     $ 4,975,447  
 

See accompanying notes to financial statements.

3

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The Perficient 401(k) Employee Savings Plan
Notes to Financial Statements

1.   Description of Plan
 
    The following description of The Perficient 401(k) Employee Savings Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.
 
    General
 
    The Plan is a defined contribution plan covering substantially all employees of Perficient, Inc. (the “Company”) who are age 21 or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
 
    Contributions
 
    Each year participants may contribute up to 20% of their pretax annual compensation to any of the investment funds. Participants may also contribute amounts representing distributions from other qualified defined benefit or contribution plans. The Company may make matching contributions up to specified amounts at its discretion. The Company may not make a contribution to the Plan for any Plan year to the extent the contribution would exceed the participant’s maximum permissible amount. The matching contribution for 2004 and 2003 was 25% of the first 6% of eligible compensation deferred by the participant.
 
    Participant Accounts
 
    Each participant’s account is credited with the participant’s contribution and allocations of (a) the Company’s contribution and (b) Plan earnings. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
 
    Participant-Directed Investments
 
    All assets of the Plan are participant-directed investments.
 
    Participants have the option of directing their account balance to one or more different investment options. The investment options include various fixed and equity mutual funds and Perficient, Inc. common stock.

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    Vesting
 
    Participants are immediately vested in their contributions plus actual earnings thereon. The Company matching contributions plus earnings thereon vest based on years of service as follows:
     
    Nonforfeitable
Years of Service   Percentage
 
 
    
Less than 1
   0
1
   33
2
   66
3 or more
   100

    Payment of Benefits
 
    Participants are entitled to receive benefit payments at the normal retirement age of 65, in the event of the participant’s death or disability, or in the event of termination under certain circumstances other than normal retirement, disability or death, or if the participant reaches age 70 1/2 while still employed. Benefits may be paid in a lump-sum distribution or installment payments.
 
    Forfeited Accounts
 
    In accordance with the Plan provisions, the forfeitures of participants leaving the Plan are reallocated to the remaining participants. Forfeitures during the years ended December 31, 2004 and 2003, were $11,754 and $4,569, respectively.
 
    Participant Loans
 
    Upon written application of a participant, the Plan may make a loan to the participant. Participants are allowed to borrow no less than $1,000 and no greater than the lesser of 50% of the participant’s vested account balance, or $50,000. Loans are amortized over a maximum of 60 months unless used to purchase the participant’s principal residence and repayment is made through payroll deductions. The amount of the loan is deducted from the participant’s investment accounts and bears interest at a rate commensurate with local rates for similar plans.

2.   Summary of Significant Accounting Policies
 
    Basis of Presentation
 
    The financial statements of the Plan have been prepared on the accrual basis of accounting, except for benefit payments, which are reported when paid.
 
    Valuation of Investments
 
    Investments in mutual funds and employer securities are stated at fair value, which is determined based on quoted market prices. Participant loans are stated at cost, which approximates fair value.

5

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    Estimates
 
    The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

3.   Investments
 
    The following investments represented 5% or more of the Plan’s net assets available for benefits at December 31, 2004:
         
    Current  
    Value  
 
 
        
Janus Worldwide Fund
   $ 468,379  
Janus Twenty Fund
     515,131  
T. Rowe Price Mid Cap Growth Fund
     955,561  
T. Rowe Price Small Cap Stock Fund
     668,028  
Hartford Index Fund
     510,270  
Hartford Money Market HLS
     932,052  

    During the years ended December 31, 2004 and 2003, the Plan’s investments (including investments purchased, sold, or held during the year) appreciated in fair value as follows:
                 
    2004     2003  
 
 
                
General Insurance Account
   $ 0     $ 1,742  
Mutual funds
     679,823       554,770  
Employer securities
     150,147       31,084  
 
 
   $ 829,970     $ 587,596  
 

4.   Income Tax Status
 
    The Plan’s latest determination letter is dated August 7, 2001, in which the Internal Revenue Service stated the Plan, as then designed, was in compliance with the application requirements of the Internal Revenue Code. Effective January 1, 2002, the Plan was amended and restated to comply with applicable law changes. Perficient, Inc. believes the Plan currently is designed and being operated in compliance with the applicable requirements of the Internal Revenue Code and that, therefore, the Plan qualifies under Section 401(a) and the related trust is tax-exempt as of December 31, 2004. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

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5.   Plan Termination
 
    Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.

6.   Party-In-Interest Transactions
 
    As of December 31, 2004 and 2003, the Plan held 178,957 and 95,323 shares, respectively, of Perficient, Inc. common stock. Total outstanding Perficient, Inc. common stock was approximately 21 million shares.
 
    During the years ended December 31, 2004 and 2003, the Plan had the following transactions involving the Perficient, Inc. common stock investment:
                 
    2004     2003  
 
                
 
Shares purchased
     402,585       61,697  
Shares sold
     318,951       64,739  
Cost of shares purchased
   $ 367,257     $ 31,079  
Gain (loss) realized on shares sold
   $ 20,804     $ (13,871 )

    Certain Plan investments are shares of mutual funds managed by Hartford Life Insurance Company. Hartford Life Insurance Company is the custodian as defined by the Plan; therefore, these transactions qualify as party-in-interest.
 
    The Plan is administered by trustees consisting of officers and employees of the Company. The Company pays all administrative expenses of the Plan.

7.   Risks and Uncertainties
 
    The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

8.   Plan Mergers
 
    During 2003, two 401(k) plans were merged into The Perficient 401(k) Employee Savings Plan for companies acquired by Perficient, Inc. in 2002. On July 16, 2003, $1,208,302 was transferred into the Plan from the Javelin Solutions, Inc. 401(k) Plan. On December 22, 2003, $496,742 was transferred into the Plan from the Primary Webworks, Inc. 401(k) Plan.
 
    During 2004, Perficient, Inc. acquired Genisys Consulting, Inc. and Meritage Technologies, Inc. As a result of these acquisitions, the Genisys, Inc. 401(k) Plan and Meritage Technologies, Inc. 401(k) Plan will be merged into The Perficient 401(k) Employee Savings Plan with an effective date of January 1, 2005. The approximate value of the two plans to be transferred in 2005 is $4.98 million.

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9.   Subsequent Event
 
    Effective January 1, 2005, the Plan changed custodians and Plan administrators from Hartford Life Insurance Company to the Principal Life Insurance Company.

8

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Supplemental Schedule

The Perficient 401(k) Employee Savings Plan
FEIN: 74-2853258; Plan No. 001
Schedule of Assets (Held at End of Year)
December 31, 2004

Form 5500, Schedule H, Part IV, Line 4(i)

                     
(a)   (b)   (c)   (d)   (e)  
        Description          
Party-in-Interest   Identity of Issue   of Asset   Cost   Current Value  
 
 
                    
*
   Hartford Life Insurance Company:                
 
  
Index Fund
   Mutual fund   **   $ 510,270  
 
  
Bond Fund
   Mutual fund   **     26,771  
 
  
Money Market
   Mutual fund   **     932,052  
 
  
Capital Appreciation
   Mutual fund   **     127,531  
 
  
High Yield
   Mutual fund   **     22,058  
 
  
Disciplined Equity
   Mutual fund   **     1,983  
 
  
Global Health
   Mutual fund   **     78,113  
 
   American Century:                
 
  
Ultra Fund
   Mutual fund   **     256,619  
 
  
Income and Growth Fund
   Mutual fund   **     287,412  
 
   Janus:                
 
  
Worldwide
   Mutual fund   **     468,379  
 
  
Twenty
   Mutual fund   **     515,131  
 
  
Balanced
   Mutual fund   **     316,264  
 
   T. Rowe Price:                
 
  
Mid Cap Growth Fund
   Mutual fund   **     955,561  
 
  
Small Cap Stock Fund
   Mutual fund   **     668,028  
 
   Putnam:                
 
  
High Yield Advantage Fund
   Mutual fund   **     205,293  
 
  
International Equity
   Mutual fund   **     5,390  
 
  
Equity Income
   Mutual fund   **     17,555  
 
   American Funds:                
 
  
Investment Company of America
   Mutual fund   **     60,002  
 
  
Growth Fund of America
   Mutual fund   **     53,164  
 
  
Balanced
   Mutual fund   **     58,826  
 
   Oppenheimer:                
 
  
Global Health
   Mutual fund   **     125,376  
 
  
Quest Balanced
   Mutual fund   **     13,263  
 
  
Developing Markets
   Mutual fund   **     349,823  
 
   Alliance Bernstein Technology   Mutual fund   **     19,250  

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Supplemental Schedule

The Perficient 401(k) Employee Savings Plan
FEIN: 74-2853258; Plan No. 001
Schedule of Assets (Held at End of Year)
December 31, 2004

Form 5500, Schedule H, Part IV, Line 4(i)

                     
(a)   (b)   (c)   (d)   (e)  
        Description          
Party-in-Interest   Identity of Issue   of Asset   Cost   Current Value  
 
 
                    
 
   MFS:                
 
  
New Discovery Fund
   Mutual fund   **     31,913  
 
  
Global Equity
   Mutual fund   **     2,165  
 
  
Strategic Value
   Mutual fund   **     19,426  
 
   AIM:                
 
  
Basic Value
   Mutual fund   **     18,721  
 
  
Real Estate
   Mutual fund   **     193,803  
 
   Eaton Vance:                
 
  
Utilities
   Mutual fund   **     35,619  
 
  
Worldwide Health Sciences
   Mutual fund   **     40,976  
 
   Federal International High Income   Mutual fund   **     38,766  
 
   Franklin Templeton:                
 
  
Conservative Target
   Mutual fund   **     12,206  
 
  
Growth Target
   Mutual fund   **     5,228  
 
  
Moderate Target
   Mutual fund   **     4,217  
 
   PIMCO:                
 
  
PEA Renaissance
   Mutual fund   **     188,582  
 
  
Total Return
   Mutual fund   **     107,312  
 
   Fidelity Advisor Mid Cap   Mutual fund   **     63,365  
 
 
                    
 
  
Total mutual funds
       **     6,836,413  
 
                    
 
   Perficient, Inc.   Employer securities   **     273,172  
 
                    
 
   Participant Loans   Interest rate of 4% - 7.   5% **     46,410  
 
 
                    
 
   Total investments           $ 7,155,995  
 
 
                    
 
   * Indicates a part-in-interest as defined by ERISA.            
 
   **Cost omitted for participant-directed investments.            

See Independent Auditor’s Report.

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EXHIBITS

     
Exhibit    
Number   Description
23.1
   Consent of Wipfli LLP

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

The Perficient 401(k) Employee Savings Plan

         
     
  /s/ MICHAEL D. HILL    
Date: June 29, 2005  Michael D. Hill   
  Chief Financial Officer   
 

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EXHIBIT INDEX

     
Exhibit    
Number   Description
23.1
   Consent of Wipfli LLP

exv23w1
 

EXHIBIT 23.1

CONSENT OF INDEPENDENT AUDITORS

We consent to the incorporation by reference in the Registration Statement on Form S-8 (File No. 333-44854) of Perficient, Inc. of our report dated June 14, 2005, with respect to the financial statements and schedule of the Perficient, Inc. 401(k) Employee Savings Plan included in this Annual Report on
Form 11-K for the year ended December 31, 2004.

(-s- WIPFLI LLP)
Wipfli LLP

June 24, 2005
Eau Claire, Wisconsin

14