"During the second quarter, we secured first-time engagements with 25 new customers, compared to 21 in the previous quarter, which helped to drive 10% sequential growth in our quarterly service revenue. Both our EPM and Classic Consulting service offerings posted strong sequential quarterly growth while ERP, our third major offering, had a strong sales quarter.
"Our strategy to design and build intellectual property to augment our mix of strategic offerings is having a positive impact on our lead generation and overall sales activity. During the second quarter, Edgewater unveiled two cloud-based applications, which has ignited numerous sales calls and other marketing activities. We expect to identify, build and introduce critical IP, specifically in the healthcare, insurance and manufacturing space.
"Given the positive momentum we are experiencing in our sales pipeline across all of our major offerings, we anticipate a sequential increase in service revenue in the third quarter."
Conference Call and Webcast Information
Edgewater has scheduled a conference call today (Wednesday, July 31, 2013) at 10:00 a.m. Eastern time to discuss its second quarter 2013 results.
| Date: Wednesday, July 31, 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.
A replay of the conference call can be accessed via Edgewater's investor relations web site at
or by dialing 1-855-859-2056 (Conference ID#: 16567621) after 1:00 p.m. Eastern time through August 14, 2013.
Edgewater Technology, Inc. (Nasdaq:EDGW) is a strategic consulting firm delivering a blend of classic and product-based consulting services. Edgewater addresses the market both vertically by industry and horizontally by product and technology specialty, providing its client base with a wide range of business and technology solutions. As one of the largest IT consulting firms based in New England, the company works with clients to reduce costs, improve processes and increase revenue through the judicious use of technology. Edgewater's brand names include Edgewater Technology, Edgewater Ranzal and Edgewater Fullscope. To learn more, please visit
This Press Release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our expected third quarter 2013 service revenue, improvements in sales pipeline activity, conversion of our sales pipeline to signed contracts, and future benefits of intellectual property investments in 2013. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on our current plans or assessments which are believed to be reasonable as of the date of this Press Release. Factors that may cause actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecasted, estimated, anticipated, planned or budgeted in such forward-looking statements include, among others, the following possibilities: (1) failure to obtain new customers or retain significant existing customers; (2) the loss of one or more key executives and/or employees; (3) changes in industry trends, such as a decline in the demand for Enterprise Resource Planning and Enterprise Performance Management solutions, custom development and system integration services and/or declines in industry-wide information technology spending, whether on a temporary or permanent basis and/or delays by customers in initiating new projects or existing project milestones; (4) inability to execute upon growth objectives, including new services and growth in entities acquired by our Company; (5) adverse developments and volatility involving geopolitical or technology market conditions; (6) unanticipated events or the occurrence of fluctuations or variability in the matters identified under "Critical Accounting Policies" in our 2012 Annual Report on Form 10-K; (7) delays in, or the failure of, our sales pipeline being converted to billable work and recorded as revenue; (8) termination by clients of their contracts with us or inability or unwillingness of clients to pay for our services, which may impact our accounting assumptions; (9) inability to recruit and retain professionals with the high level of information technology skills and experience needed to provide our services; (10) failure to expand outsourcing services to generate additional revenue; (11) any changes in ownership of the Company or otherwise that would result in a limitation of the net operating loss carry forward under applicable tax laws; (12) the failure of the marketplace to embrace advisory and product-based consulting services; (13) changes in our utilization levels; and/or (14) failure to make a successful claim against the Fullscope escrow account. In evaluating these statements, you should specifically consider various factors described above as well as the risks outlined under "Part I - Item IA Risk Factors" in our 2012 Annual Report on Form 10-K filed with the SEC on March 8, 2013. These factors may cause our actual results to differ materially from those contemplated, projected, anticipated, planned or budgeted in any such forward-looking statements.