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Edgewater Reports Record First Quarter 2014 Results

WAKEFIELD, Mass., April 30, 2014 (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 first quarter ended March 31, 2014.

First Quarter 2014 Highlights

  • Total revenue increased 18% to $27.6 million
  • Service revenue increased 19% to $23.5 million
  • Gross profit margin related to service revenue increased by 650 basis points to 38.9%
  • Secured first time engagements with 24 new customers
  • Adjusted EBITDA increased by $1.8 million to $2.0 million

First Quarter 2014 Financial Results vs. Year-Ago Quarter

  • Total revenue was $27.6 million compared to $23.5 million in the first quarter of 2013
  • Service revenue was $23.5 million compared to $19.7 million in the first quarter of 2013
  • Gross profit was $10.1 million, or 36.6 % of total revenue, compared to $7.1 million, or 30.4% of total revenue, in the first quarter of 2013
  • Gross profit margin related to service revenue was 38.9% compared to 32.4% in the first quarter of 2013
  • Utilization was 78.0% compared to 69.0% in the first quarter of 2013
  • Net income was $711,000, or $0.06 per diluted share, compared to a net (loss) of $(889,000), or $(0.08) per diluted share, in the first quarter of 2013
  • Adjusted EBITDA (a non-GAAP measure) was $2.0 million, or 7.1% of total revenue and $0.16 per diluted share (see "Non-GAAP Financial Measures" below for further discussion of this non-GAAP term), compared to adjusted EBITDA of $198,000, or 0.8% of total revenue and $0.02 per diluted share, in the first quarter of 2013
  • Cash flow used in operating activities was $2.7 million compared to cash flow used in operating activities of $2.2 million during the first quarter of 2013

Management Commentary

"A rise in customer demand coupled with disciplined staff management enabled us to achieve these record first quarter results," commented Shirley Singleton, Edgewater's chairman, president and CEO. "Quarterly service revenue, which grew on both a year-over-year and sequential basis, drove our significant improvement in billable consultant utilization as well as our service revenue gross margins, adjusted EBITDA and bottom line.

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