Company: Inforte
Company Description: Inforte is a customer and demand management consultancy that helps clients improve customer interactions, revenue forecasting and profitability. Inforte creates strategies and implements technology solutions that enhance visibility, optimize customer and channel profitability, and integrate demand information with supply and resource planning processes.
Nomination Category: Individual Awards Categories
Nomination Sub Category: Best Finance Executive

Nomination Title: Nick Padgett, CFO

1. Tell the story about what this nominee achieved in 2002 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

   Under Chief Financial Officer Nick Padgett’s leadership, Inforte has become one of the few consulting firms that has survived the downturn and succeeded in a challenging industry while others have failed. Given that this has been the worst technology and consulting downturn in the history of the consulting industry, Inforte’s success is a remarkable achievement. Every other comparable public company (more than 30 in 2000) has warned or missed earnings repeatedly, while Inforte has met or beat every quarterly consensus EPS forecast since 2000.

   Today, only five or six of the 30 public companies are still even viable. Many are now out of business, having either been sold or filed for Chapter 11, and many are de-listed. Of the consulting companies that remain, Inforte has been one of the strongest performers on all key measures. Its revenue, while affected by the industry downturn, still has been very strong relative to its competitors and indicates market share gains.

   Padgett has invested a tremendous amount of time over the years in Inforte’s revenue forecasting processes, which enables it to gain visibility into revenue trends six months out--a much longer period of visibility than that used by Inforte’s competitors. This vision enables Padgett and the executive team to set accurate guidance with Wall Street and to work on revenue weaknesses, pricing strategies and cost planning. Adoption of a best practice operational forecast has enabled Padgett to accurately project where the quarter will end as it begins, and has enabled Inforte to maintain profitable or break-even results, and remain cash-flow positive for 19 consecutive quarters.

   Many companies set budgets that are severely over-inflated, which lead to missed earnings numbers, negative cash flow and unhappy investors. Under Padgett’s leadership, Inforte utilizes dynamic budgeting--a way of managing Inforte’s budget in real-time, each month, using exceptional forecasting and organizational techniques. By utilizing a dynamic budgeting strategy, Inforte has never missed a quarter, has improved shareholder returns AND reduced disruption to Inforte in a changing demand environment.

   Padgett has also been instrumental in making proactive decisions regarding Inforte’s cost base. Using its long-term visibility horizon, Inforte has been able to plan costs appropriately and bring those costs in line with changing revenue levels, further contributing to Inforte’s ability to stay profitable and cash-flow positive.

   In addition, Padgett is responsible for the implementation of several other financial best practices within the firm including:

   · Inforte is perceived by Wall Street as very open with investors – Padgett was instrumental in adding a mid-quarter earnings update to the investor schedule. Inforte now gives eight earnings updates per year. · Padgett and the Inforte executive team understand the importance of expectation setting and agree this practice allows the company to minimize surprises on Wall Street. · Padgett implemented a rigorous set of rules and guidelines for working with dot.com companies during the dot-com “boom” and ensured a significant down payment up front for services to be rendered. As a result, Inforte was not harshly affected by the dot.com bust, while most of its competitors struggled.

2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made above.
   To include a URL you must begin and end the URL with a square-bracket and include http://
   Example: [http://www.yourdomain.com]

   PRESS COVERAGE:
   
   October 11, 2002
   Inforte Posts Q3 Profit
   Crain’s Chicago Business
   http://www.chicagobusiness.com/cgi-bin/news.pl?id=6814
   
   August 2, 2002
   Interview with Nick Padgett
   Wall Street Transcript
   * Please note, we have sent a hard copy of this document by mail for your further
   consideration as there is no longer a direct link available online.
   
   June 28, 2002
   VARBusiness 500 Awards
   VARBusiness
   http://crn.channelsupersearch.com/news/VAR/36058.asp
   
   May 13, 2002
   Break Out the Black Ink
   BusinessWeek
   http://www.businessweek.com/@@YzaOfIYQGOnCrgQA/magazine/content/02_19/
   b3782604.htm -
   
   March 14, 2002
   An E-Consultant’s Run for Cover
   BusinessWeek
   http://www.businessweek.com/technology/content/mar2002/tc20020314_9505.htm
   
   April 27, 2001
   How to Beat the Soft Economy
   VARBusiness
   http://www.varbusiness.com/sections/News/breakingnews.asp?ArticleID=26143
   
   INDUSTRY ANALYST REPORTS:
   * Please note, to access the following documents in full you must be a paid client
   of the analyst firms. Therefore, we have sent hard copies of the documents by mail
   for your further consideration. Please acknowledge that this information is to be
   used in support of Inforte’s American Business Award submission only.
   
   Informed newsletter
   *In support of Inforte's winning strategies, Gartner has collaborated with Inforte
   on 'Informed,' a quarterly newsletter focusing on practical ideas in customer and
   demand management.
   November 2002
   http://www.gartner.com/gc/webletter/inforte/issue2/index.html
   
   Forrester Research
   October 2002
   Demand Forecasting Done Right (abstract)
   http://www.forrester.com/ER/Research/Report/Summary/0,1338,13474,00.html
   
   AMR Research
   October 16, 2002
   Inforte’s Quarterly Earnings Streak Continues (abstract)
   http://www.amrresearch.com/Content/view.asp?pmillid=15148&docid=9660
   
   AMR Research
   July 18, 2002
   Inforte Practices What It Preaches (abstract)
   http://www.amrresearch.com/Content/view.asp?pmillid=14536&docid=9209
   
   Gartner Group
   May 10, 2002
   Inforte Practices What It Preaches (abstract)
   www.gartner.com
   *Type “Inforte” in the search function. Select “Inforte Practices What It Preaches.”
   
   Forrester Research
   December 17, 2001
   Thriving in the Recession: Inforte (abstract)
   http://www.forrester.com/ER/Research/Brief/Excerpt/0,1317,14075,00.html
   
   
   PRESS RELEASES:
   
   October 11, 2002
   Inforte Q3 Results Exceed Guidance With Positive Free Cash Flow; Cash And
   Marketable Securities Now $6.13 Per Share
   http://www.inforte.com/press/news_releases/pr_newsrelease.asp?id=20021011
   
   September 10, 2002
   Inforte Corp. Provides Mid-Quarter Investor Update
   http://www.inforte.com/press/news_releases/pr_newsrelease.asp?id=20020910
   
   August 12, 2002
   Inforte Outlines Process for Capturing the Full Benefit of CRM Implementations
   http://www.inforte.com/press/news_releases/pr_newsrelease.asp?id=20020812
   
   July 12, 2002
   Inforte Corp. Reports Second Quarter Results
   http://www.inforte.com/press/news_releases/pr_newsrelease.asp?id=20020712
   

3. Provide a brief (up to 100 words) biography about this nominee:

   As Chief Financial Officer Nick Padgett is responsible for Inforte’s long-term financial strategy and serves on its Board of Directors. Under his leadership and strong financial management skills, Inforte has maintained profitable and cash-flow positive for 19 consecutive quarters. Prior to joining Inforte, Padgett served as an equity research analyst for William Blair & Company, where he conducted research, made stock recommendations and assisted emerging technology companies with equity financing. He was recognized as an expert in the areas of computer telephony and bar code/auto ID and was frequently quoted in the national business press.