Perficient Inc. Q1 2008 Earnings Call Transcript

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2008-05-27 15:42:15.0

Tags: Perficient Inc.

Question-and-Answer Session

Operator

(Operator Instructions)

Our first question comes from the line of Colin Gillis from Canaccord Adams. Please proceed.

Colin Gillis - Canaccord Adams

Hi. Good morning, guys.

Jack McDonald

Good morning.

Colin Gillis - Canaccord Adams

So the pace of business is clearly accelerating, I mean do you find that your customers are now more inclined to spend their budgets, that budgets are not being reduced?

Jack McDonald

It's been interesting to me in the number of conversations over the past quarter, is that you talk to CIO's, you talk to division heads, and presidents within Global 2000 companies, and you are seeing a continuation of strategic IT investments. Our clients are being impacted by globalization and the internet. They're accessing global markets. They're not completely beholden to the domestic economic cycles. And you do see not only a continuation of spending but the nature of the spending, I think, is important. It's strategic not -- you're not seeing a massive shift to cost rationalization, which one would typically associate with a slowing market.

So, again, no guarantees out there. We don't have the perfect crystal ball, but we're seeing the numbers improve and the background, the environment in terms of what we're hearing from clients supports that. Jeff do you want to address that as well?

Jeff Davis

Yeah. I think you hit the nail on the head, Jack. Really, we're not seeing clear indications of a strong change. I mean there is a couple of pockets that we're seeing some slowdown, we've seen also some strengthening in areas, such as healthcare, energy and other sectors that are actually decent growth sectors for us right now. So I would say, if anything we've seen some improvement over the last four or five months.

Colin Gillis - Canaccord Adams

But Jeff, looking out at the landscaping, is there any other spot you would want to be plugged into besides (inaudible)?

Jeff Davis

I think I'm satisfied with where we are at right now. These again are, I think, very strategic technologies, technologies support very strategic initiatives, we're seeing a lot more or so in integration initiative getting kicked off. And these are things that CIO's and business folks alike understand that they need to get on with. They're meaningful differentiators for their business. Their competitors are doing it. And there's still a significant amount of demand and spend there. And we're in the middle of that.

 

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