"Sales activity is up in all three major offerings. However, when long-term capital investment commitments are required, the pipeline is slow to convert to signed contracts. The push to grow our business consulting and technical advisory services into the upper middle-market is closing in on this 'failure to launch' paralysis by providing critical decision-making assistance to C-level executives.
"We believe there is a fundamental shift in the consulting services marketplace. Typically, people costs are now the largest cost component of an IT project. However, it appears that customers are looking for companies that can simultaneously deliver integrated product- and knowledge-based solutions by bringing not only talented people, but targeted intellectual property that can serve as an accelerator to the project.
"As we move through 2013, we plan to continue investing in IP that enables us to capitalize on this shift. We believe that vertically focused IP, in combination with a deep understanding of product-based consulting services, will reinforce our brand and expand our channel influence.
"Highlighting this point, during the first quarter we acquired a Trade Promotions Management software solution from a software development company. We believe this software will augment our recently developed customer relationship management add-on module that provides enhanced channel management for the chemical, life sciences, pharmaceutical, food and consumer product goods manufacturing industries.
Ms. Singleton concluded: "Looking ahead, with sales activity increasing in all three major offerings, we believe that service revenue in the second quarter of 2013 will be up from the first quarter of 2013."
Conference Call and Webcast Information
Edgewater has scheduled a conference call today (Wednesday, May 1, 2013) at 10:00 a.m. Eastern time to discuss its first quarter 2013 results.
| Date: Wednesday, May 1, 2013
| Time: 10:00 a.m. Eastern Time
| Dial-in number: 1-877-713-9347
| Webcast: http://ir.edgewater.com/
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.