1085869--3/5/2007--PERFICIENT

related topics

{stock, price, operating}

{acquisition, growth, future}

{customer, product, revenue}

{system, service, information}

{condition, economic, financial}

{personnel, key, retain}

{product, market, service}

{competitive, industry, competition}

{tax, income, asset}

{provision, law, control}

{cost, contract, operation}

{stock, price, share}

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. Pursuing and completing potential acquisitions could divert management's attention and financial resources and may not produce the desired business results. If we do not effectively manage our growth, our results of operations and cash flows could be adversely affected. 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. 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 business partners would have a material and 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 revenues may fluctuate quarterly, leading to volatility in our results of operations. Our overall gross margin fluctuates quarterly based on our services and software revenues mix, impacting our results of operations. 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. We have recorded deferred offering costs in connection with a shelf registration statement, and our inability to offset these costs against the proceeds of future offerings from our shelf registration statement could result in a non-cash expense in our Statement of Income in a future period. Risks Related to Ownership of Our Common Stock Our stock price has been volatile and may continue to fluctuate widely. Our officers, directors, and 5% and greater stockholders own a large percentage of our voting securities and their interests may differ from other stockholders. We may need additional capital in the future, which may not be available to us. The raising of any additional capital may dilute your ownership percentage in our stock. It may be difficult for another company to acquire us, and this could depress our stock price.

Full 10-K form ▸

1085869--3/5/2007--PERFICIENT_INC