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"As we look to the remainder of 2002 and into 2003, we will continue to focus our efforts on quality performance for our clients, on controlling costs, and on revenue growth," Layton emphasized. "We believe these combined actions will help us reach our goal of sustainable profitability. We are focused on executing the following mix of strategies for our business to meet this goal:
Ensuring high quality performance for our clients, first and foremost;
Growing our revenue base through growth in our existing client relationships and through strategically focused marketing initiatives to add new clients;
Hiring, training and retaining high quality professionals who can design, implement and execute expert business solutions for our prospective clients;
Inventing new technology and operational capabilities that clearly differentiate PFSweb from its competitors;
Controlling overhead costs while we focus on adding new business that should result in reducing our own excess infrastructure; and
Seeking strategic alliances, partners and opportunities that will enhance our growth and profitability objectives."
"We continue to see profitable results from our affiliate, Supplies Distributors," Madden added. "For the quarter ended June 30, 2002, PFSweb recognized $0.4 million of equity in earnings of our unconsolidated affiliate. In addition, due to strong working capital performance, Supplies Distributors was able to repay $3.0 million of its subordinated debt balance to PFSweb. We continue to explore the ability to obtain financing for a portion of PFSweb`s remaining subordinated balance with this affiliate."
Layton closed by adding, "I continue to be optimistic about the future for PFSweb. We are a young company with outstanding growth prospects. We offer a suite of products that are in high demand, business solutions designed by a team of world-class professionals and technology tools that differentiate us well from the pack of traditional outsource providers."
PFSweb will hold a conference call today at 4:00 p.m. Central Time. To ensure attendance on today`s call, plan to dial in by 3:50 p.m. to 973/582-2741. Ask to be placed on the PFSweb Earnings Release Conference Call. Two hours after the conference, a recorded playback can be heard for 14 days at 973/341-3080, using the confirmation number 3407460. Check www.pfsweb.com and our July 30, 2002 investor conference call press release for more details on the call.
About PFSweb, Inc.
When the world`s brand names need proven, fast and secure business infrastructure to enable traditional and e-commerce strategies, they choose PFSweb for comprehensive outsourcing solutions. The PFSweb team of experts designs diverse solutions for clients around a flexible core business infrastructure. PFSweb provides solutions that include: professional consulting services, order management, web-enabled customer contact centers, customer relationship management, international distribution services, kitting and assembly services, managed web hosting and site design, billing and collection services and ERP information interfacing utilizing the Entente Suite(SM).
Our services are available for a multitude of industries and company types, including such clients as International Business Machines (NYSE:IBM), Adaptec (Nasdaq:ADPT), the U.S. Mint, the Smithsonian Institution, Avaya Communication (NYSE:AV), Dell (Nasdaq:DELL), Lancome, a cosmetics division of L`Oreal International (ADR:LORLY), Xerox (NYSE:XRX), Thomson multimedia (NYSE:TMS), Pharmacia&Upjohn; (NYSE:PHA), Nokia (NYSE:NOK), Hewlett-Packard (NYSE:HPQ), and Roots. The matters discussed in this news release (except for historical information) and, in particular, information regarding future revenue, earnings and business plans and goals, consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and are subject to and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, our ability to retain and expand relationships with existing clients and attract new clients; our reliance on the fees generated by the transaction volume or product sales of our clients; our reliance on our clients` projections or transaction volume or product sales; our client mix and the seasonality of their business; our ability to finalize pending contracts; the impact of strategic alliances and acquisitions; trends in the market for our services; trends in e-commerce; whether we can continue and manage growth; changes in the trend toward outsourcing; increased competition; our ability to generate more revenue and achieve sustainable profitability; effects of changes in profit margins; the customer concentration of our business; the unknown effects of possible system failures and rapid changes in technology; trends in government regulation both foreign and domestic; foreign currency risks and other risks of operating in foreign countries; potential litigation involving our e-commerce intellectual property rights; our dependency on key personnel; our ability to raise additional capital; our guarantees of the working capital indebtedness of our affiliate, Supplies Distributors; the continued listing of our common stock on the NASDAQ SmallCap Market; and our relationship with and separation from Daisytek, our former parent corporation. A description of these factors, as well as other factors, which could affect the Company`s business, is set forth in the Company`s Prospectus dated December 2, 1999 and Form 10-K for the nine-month transition period ended December 31, 2001. In addition, some forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. 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. There may be additional risks that we do not currently view as material or that are not presently known.
To find out more about PFSweb, Inc. (Nasdaq:PFSW), visit our website at www.pfsweb.com. The PFSweb web site is not part of this release. PFSweb is a registered trademark. Entente Suite is a service mark of PFSweb. All rights reserved.