1085869--3/31/2006--PERFICIENT

related topics

{stock, price, operating}

{acquisition, growth, future}

{system, service, information}

{condition, economic, financial}

{personnel, key, retain}

{cost, contract, operation}

{customer, product, revenue}

{product, market, service}

{competitive, industry, competition}

{interest, director, officer}

{financial, litigation, operation}

Risks Related to Our Business Prolonged economic weakness in the Internet software and services market could adversely affect our business, financial condition and results of operations. We may not be able to attract and retain information technology consulting professionals, which could affect our ability to compete effectively. Our success will depend on attracting and retaining senior management and key personnel. We may have difficulty in identifying and competing for strategic acquisition and partnership opportunities. Pursuing and completing potential acquisitions could divert management s attention and financial resources and may not produce the desired business results. The market for the information technology consulting services we provide is competitive, has low barriers to entry and is becoming increasingly consolidated, which may adversely affect our market position. Our business will suffer if we do not keep up with rapid technological change, evolving industry standards or changing customer requirements. A significant portion of our revenue is dependent upon building long-term relationships with our clients and our operating results could suffer if we fail to maintain these relationships. If we fail to meet our clients performance expectations, our reputation may be harmed. We may face potential liability to customers if our customers systems fail. The loss of one or more of our significant software partners would have a material adverse effect on our business and results of operations. Our quarterly operating results may be volatile and may cause our stock price to fluctuate. Our services revenues may fluctuate quarterly due to seasonality or timing of completion of projects. Our software revenue may fluctuate quarterly, leading to volatility in our results of operations. Our overall gross margin fluctuates quarterly based on our services and software revenue mix, which may cause our stock price to fluctuate. Our services gross margins are subject to fluctuations as a result of variances in utilization rates and billing rates. If we fail to complete fixed-fee contracts within budget and on time, our results of operations could be adversely affected. We may not be able to maintain our level of profitability. If we do not effectively manage our growth, our results of operations and cash flows could be adversely affected. We have recorded deferred offering costs in connection with the conversion of our registration statement into a shelf registration statement, and our inability to net these costs against the proceeds of future offerings from our shelf registration statement could result in a non-cash expense in our Statement of Operations in a future period. The Public Company Accounting Oversight Board, or PCAOB, is conducting an annual inspection of our external auditors BDO Seidman, LLP. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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1085869--3/31/2006--PERFICIENT_INC