PFSW

[hyhl]

I do like the way PFSW behaves during the market downturn, like today and last Friday.

However,  I become more and more worried about the alleged "major US retailer".

Not sure what is going on. October is almost over. The site still has not gone alive!!

Just in time for the holiday season? I guess they will actually miss it.

I do not think they deliberately wait until the ER to accounce the news. It is not a secret to keep. Once the site is ready, the customers should know ASAP. Otherwise who is going to make the purchase??


David, could you please explain why you think both the revenue and profit in the 3rd quarter will increase? Only based on ecost? In the past year, the 3rd quarter is usually the weakest quarter.



However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season.

[David Randolph]

I do like the way PFSW behaves during the market downturn, like today and last Friday.

Yes, but volume is low and two days are meaningless in the bigger scheme of things.

However,  I become more and more worried about the alleged "major US retailer".

Not sure what is going on. October is almost over. The site still has not gone alive!!

Just in time for the holiday season? I guess they will actually miss it.

I do not think they deliberately wait until the ER to accounce the news. It is not a secret to keep. Once the site is ready, the customers should know ASAP. Otherwise who is going to make the purchase??

It's not a big deal. Probably it doesn't represent more than 3% of the total revenue of a single quarter. Perhaps they mentioned it at the conference call just because they wanted to show they work with some larger companies. Anyway, I don't think there's a single "major US retailer" without an internet presence these days.

David, could you please explain why you think both the revenue and profit in the 3rd quarter will increase? Only based on ecost? In the past year, the 3rd quarter is usually the weakest quarter.

I'm not sure if revenue and profit will increase in Q3, what I see is a positive trend in revenues and profits. A positive trend doesn't imply there will be growth every quarter, in a linear way. Rarely there's linearity in company's fundamental trends.

But I believe they will raise 2007 guidance, or at least confirm that they're very optimistic about the 4th quarter and 2008.

However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season.

Listen, I'm going to write Investor Relations asking if Microlife is the "major US retailer" or what's going on there. They're usually quick to answer and then I'll let you know.

I'll keep holding PFSW for the long term.

[hyhl]

   I agree with you on this. I am not sure what they are trying to claim. 

Anyway, I don't think there's a single "major US retailer" without an internet presence these days.

[hyhl]

I check the price of the electronic products in ecost, few of them are cheaper than Amazon. Plus Amazon has free shipping. Why should we buy from ecost then?

[David Randolph]

I check the price of the electronic products in ecost, few of them are cheaper than Amazon. Plus Amazon has free shipping. Why should we buy from ecost then?

Thanks for this question hyhl

I think only the people who bought $27 M of products from www.ecost.com in the 2nd quarter (compared with $21.6 M in Q1) could answer it.

Also, don't forget PFSW is a $63 M market cap company, compared with AMZN which is a $37 B company. So, PFSW doesn't have to be better than AMZN to rise (if it became better it would rise more than 500 fold), it just needs to keep improving its own revenues and profits.

I'll continue holding PFSW for the long term.

[hyhl]

Please see below for the email response from Tom Madden,

Microlife is not the new retailer client we referred to in our prior disclosures.  As always, in announcing any new client relationship, PFSweb is subject to the client's approval for when, and if, any press release can be made.

Thanks for your investment in PFSweb.

Tom Madden
PFSweb CFO

[David Randolph]

Please see below for the email response from Tom Madden,

Microlife is not the new retailer client we referred to in our prior disclosures.  As always, in announcing any new client relationship, PFSweb is subject to the client's approval for when, and if, any press release can be made.

Thanks for your investment in PFSweb.

Tom Madden
PFSweb CFO

Thanks for the valuable information hyhl, it's good to know Microlife isn't the "major US retailer" and that good news is still to be released.

Other than this information there weren't any developments for PFSW yesterday, as the stock continues to trade along its 50 days SMA (red line in the chart below). I'll keep holding PFSW for the long term.

[David Randolph]

PFSW's 3rd quarter earnings will be out on November 13th:

• PFSweb to Report 2007 Third Quarter Results on November 13th
Business Wire (Tue, Oct 30)

I enjoy their very informative conference calls ... and like GIGM does, they usually file an SEC form with the conference call transcript.

Perhaps they'll now be in a position to raise full year guidance.

I'll keep holding PFSW for the long term.

[David Randolph]

PFSW fell 9.4% yesterday without any valid reason in my opinion. The way I see it, PFSW, selling more than $100 M a quarter, will only need to earn $2 M in one quarter to be a $4 stock. And I think this will happen, not in Q3 2007, but probably in Q3 2008.

So I'll keep holding PFSW for the long term, while I ignore short term fluctuations.

[David Randolph]

PFSW has so much potential that I'm willing to take the risk of seeing a 50% plus profit turn into a loss. In PFSW's case and at this point, plus or minus 50% don't mean much in the bigger scheme of things.

The question now is: Is PFSW on track to profit $2 M a quarter and become a $200 M market cap company ($3.44 a share)?

I believe that if one reads the 2nd quarter conference call transcript the answer is yes!

I'll keep holding PFSW for the long term.

[hyhl]

I have read all their recent CC transcripts. I agree that PFSW looks very promising from what they claimed in the CCs. However, are you so sure of the integrity of the management team?

PFSW has so much potential that I'm willing to take the risk of seeing a 50% plus profit turn into a loss. In PFSW's case and at this point, plus or minus 50% don't mean much in the bigger scheme of things.

The question now is: Is PFSW on track to profit $2 M a quarter and become a $200 M market cap company ($3.44 a share)?

I believe that if one reads the 2nd quarter conference call transcript the answer is yes!

I'll keep holding PFSW for the long term.

[David Randolph]

I have read all their recent CC transcripts. I agree that PFSW looks very promising from what they claimed in the CCs. However, are you so sure of the integrity of the management team?

Four main reasons:

1 - The 2nd quarter already showed a remarkable improvement, there's real revenue and net income growth, not just talk;
2 - PFSW's Q2 CC transcript is probably the most detailed I've ever seen, they gave us several objective metrics to measure the business's financial trends;
3 - If management wanted to artificially pump the stock price they would have raised full year revenue and EBITDA guidance, but instead they just said, in the CC and not in the press release, that they want to over deliver instead of over promising;
4 - There weren't any insider sales.

We'll see if Q3 shows some more improvement, I believe so.

I'll keep holding PFSW for the long term.

[hyhl]

Thank you!

BTW, do you know why the 2nd quarter revenue of ecost has increased a lot? Any particular reasons? Is it only attributed to their hard work?

I have read all their recent CC transcripts. I agree that PFSW looks very promising from what they claimed in the CCs. However, are you so sure of the integrity of the management team?

Four main reasons:

1 - The 2nd quarter already showed a remarkable improvement, there's real revenue and net income growth, not just talk;
2 - PFSW's Q2 CC transcript is probably the most detailed I've ever seen, they gave us several objective metrics to measure the business's financial trends;
3 - If management wanted to artificially pump the stock price they would have raised full year revenue and EBITDA guidance, but instead they just said, in the CC and not in the press release, that they want to over deliver instead of over promising;
4 - There weren't any insider sales.

We'll see if Q3 shows some more improvement, I believe so.

I'll keep holding PFSW for the long term.

[David Randolph]

Thank you!

BTW, do you know why the 2nd quarter revenue of ecost has increased a lot? Any particular reasons? Is it only attributed to their hard work?

You're welcome hyhl

Well, it sure wasn't a seasonal effect and I don't think there was any one time item impacting www.ecost.com sales, because nothing was mentioned and eCost's business model doesn't favor that.

I guess eCost sales rising from $21.6 M to $27.1 M, from Q1 2007 to Q2 2007 was largely due to they having more products for sale and making better advertising. Management said, over the latest CC that they're not going to do $35 M in sales in Q3, but even though they didn't provide any quarterly guidance, they looked confident that sales have continued to grow in Q3, from $27.1 M to, say ... $30 M?

This would be nice, especially if they are profitable sales. What PFSW needs now is a profit margin expansion, the revenue level is already quite satisfactory.

I'll keep holding PFSW for the long term.

[Rmagos]

I picked this yesterday, besides a little late, I think it is important news for the stock...

PLANO, Texas--(BUSINESS WIRE)--October 29, 2007--PFSweb, Inc. (NASDAQ: PFSW), a
global provider of business process outsourcing (BPO) solutions for both
online and traditional commerce, today announced it was named to Deloitte &
Touche s Technology Fast 500 list, ranking as the 409th fastest growing
company in North America.

The Deloitte Technology Fast 500 is a ranking of the fastest growing
technology, media, telecommunications and life sciences companies in North
America based on percentage fiscal year revenue growth over five years (2002 
2006). During this period, PFSweb achieved revenue growth of approximately 336
percent.

We are honored to be included in Deloitte's prestigious Technology Fast 500 as
one of the fastest growing companies in North America over the past five years.
We feel that our business process outsourcing solutions and eCOST.com
businesses are in exciting markets providing opportunities for further growth,
stated Mark Layton, Chairman and CEO of PFSweb.

More information on the Technology Fast 500 is available at
http://www.fast500.com/.