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Edgewater Reports First Quarter 2013 Results

Stocks in this article: EDGW

WAKEFIELD, Mass., May 1, 2013 (GLOBE NEWSWIRE) -- Edgewater Technology, Inc. (Nasdaq:EDGW), a leading consulting firm that brings a blend of classic consulting and product-based consulting services to its clients, reported financial results for the first quarter ended March 31, 2013.

First Quarter 2013 Highlights

  • Repurchased 164,000 shares of common stock at an aggregate purchase price of $661,000, or $4.03 per share; and
  • Acquired a Microsoft Dynamics-based Trade Promotion Management software asset and intellectual property.

First Quarter 2013 Financial Results

  • Total revenue was $23.5 million compared to $25.3 million in the first quarter of 2012;
  • Service revenue was $19.7 million compared to $21.8 million in the first quarter of 2012;
  • Gross profit was $7.1 million, or 30.4% of total revenue, compared to $8.6 million, or 33.9% of total revenue, in the first quarter of 2012;
  • Gross profit margin related to service revenue was 32.4% compared to 37.4% in the first quarter of 2012;
  • Utilization was 69.0% compared to 75.4% in the first quarter of 2012;
  • Net loss was $(889,000), or $(0.08) per diluted share, compared to net income of $175,000, or $0.02 per diluted share, in the first quarter of 2012;
  • Adjusted EBITDA (a non-GAAP measure) was $198,000, or 0.8% of total revenue and $0.02 per diluted share (see "Non-GAAP Financial Measures" below for further discussion of this non-GAAP term), compared to adjusted EBITDA of $990,000, or 3.9% of total revenue and $0.09 per diluted share, in the first quarter of 2012; and
  • Cash flow used in operating activities was $(2.2) million compared to cash flow used in operating activities of $(1.1) million during the first quarter of 2012.

Management Commentary

"First quarter 2013 service revenue was essentially flat, finishing up 1% sequentially. The softness in signings we experienced in the second half of 2012 did not provide the backlog necessary to lift first quarter service revenue," commented Shirley Singleton, Edgewater's chairman, president and CEO. "As mentioned in our last earnings call, we did see a flurry of signings, particularly in our classic consulting and enterprise performance management (EPM) offerings, in the second half of the first quarter. In fact, we secured engagements with 21 new customers during the quarter, primarily within business and technical advisory, as well as some solid EPM projects.

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