WAKEFIELD, Mass., July 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 second quarter ended June 30, 2014.
Second Quarter 2014 Highlights
- Service revenue increased 14% to a record $24.5 million;
- Introduced Fullscope EDGE for AX, intellectual property designed to complement existing functionality in Microsoft Dynamics AX 2012 enterprise resource planning;
- Recognized as 2014 Microsoft Dynamics Industry Partner of the Year;
- Received the inaugural 2014 Customer Reference Excellence Award from the U.S. Microsoft Dynamics Customer Reference Team; and
- Received $1.9 million in connection with the successful resolution of Fullscope Acquisition-related escrow claims.
Second Quarter 2014 Financial Results vs. Same Year-Ago Quarter
- Total revenue was $29.2 million compared to $27.9 million;
- Service revenue was $24.5 million compared to $21.6 million;
- Gross profit was $10.9 million, or 37.3% of total revenue, compared to $10.0 million, or 36.0% of total revenue;
- Gross profit margin related to service revenue was 40.5% compared to 37.7%;
- Utilization was 77.6% compared to 75.0%;
- Net income was $1.7 million, or $0.13 per diluted share, compared to net income of $1.4 million, or $0.12 per diluted share;
- Adjusted EBITDA (a non-GAAP measure) was $2.7 million, or 9.4% 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 $2.4 million, or 8.7% of total revenue and $0.21 per diluted share; and
- Cash flow provided by operating activities was $3.5 million compared to cash flow used in operating activities of $(1.4) million.
- Total revenue was $56.8 million compared to $51.4 million;
- Service revenue was $48.0 million compared to $41.3 million;
- Gross profit was $21.0 million, or 36.9% of total revenue, compared to $17.2 million, or 33.4% of total revenue;
- Gross profit margin related to service revenue was 39.7% compared to 35.2%;
- Utilization was 77.8% compared to 72.5%;
- Net income was $2.4 million, or $0.19 per diluted share, compared to net income of $525,000, or $0.05 per diluted share;
- Adjusted EBITDA (a non-GAAP measure) was $4.7 million, or 8.3% of total revenue and $0.36 per diluted share, compared to adjusted EBITDA of $2.6 million, or 5.1% of total revenue and $0.23 per diluted share; and
- Cash flow provided by operating activities was $819,000 compared to cash flow used in operating activities of $(3.6) million.
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