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Edgewater Reports Second Quarter 2013 Results

WAKEFIELD, Mass., July 31, 2013 (GLOBE NEWSWIRE) -- Edgewater Technology, Inc. (Nasdaq:EDGW), a leading consulting firm that brings a blend of classic and product-based consulting services to its clients, reported financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  • 10% growth in second quarter 2013 sequential quarterly service revenue;
  • 25 new customers during the second quarter of 2013; and
  • Repurchased 201,345 shares of common stock at an aggregate purchase price of $852,000, or $4.23 per share.

Second Quarter 2013 Financial Results vs. Same Year-Ago Quarter

  • Total revenue was $27.9 million compared to $27.2 million;
  • Service revenue was $21.6 million compared to $21.6 million;
  • Gross profit was $10.0 million, or 36.0% of total revenue, compared to $9.5 million, or 34.8% of total revenue;
  • Gross profit margin related to service revenue was 37.7% compared to 39.5%;
  • Utilization was 75.0% compared to 73.2%;
  • Net income was $1.4 million, or $0.12 per diluted share, compared to net income of $134,000, or $0.01 per diluted share;
  • Adjusted EBITDA (a non-GAAP measure) was $2.4 million, or 8.7% of total revenue and $0.21 per diluted share (see "Non-GAAP Financial Measures" below for further discussion of this non-GAAP term), compared to adjusted EBITDA of $1.9 million, or 6.9% of total revenue and $0.16 per diluted share; and
  • Cash flow used in operating activities was $(1.4) million compared to cash flow provided by operating activities of $637,000.

First Half of 2013 Financial Results vs. Same Year-Ago Period

  • Total revenue was $51.4 million compared to $52.5 million;
  • Service revenue was $41.3 million compared to $43.4 million;
  • Gross profit was $17.2 million, or 33.4% of total revenue, compared to $18.0 million, or 34.4% of total revenue;
  • Gross profit margin related to service revenue was 35.2% compared to 38.4%;
  • Utilization was 72.5% compared to 74.3%;
  • Net income was $525,000, or $0.05 per diluted share, compared to net income of $309,000, or $0.03 per diluted share;
  • Adjusted EBITDA (a non-GAAP measure) was $2.6 million, or 5.1% of total revenue and $0.23 per diluted share (see "Non-GAAP Financial Measures" below for further discussion of this non-GAAP term), compared to adjusted EBITDA of $2.9 million, or 5.4% of total revenue and $0.24 per diluted share; and
  • Cash flow used in operating activities was $(3.6) million compared to cash flow used in operating activities of $(508,000).

Management Commentary

"We realized a healthy conversion of our sales pipeline to signed engagements in the second quarter after a challenging back half of 2012 that continued into the beginning of the year. This helped drive the improvement in our top and bottom lines for the quarter," said Shirley Singleton, Edgewater's chairman, president and CEO.

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