The statements made during today's call are made only as of the date of today's call and the Company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.

With that, I will now turn the call over to Shirley.

Shirley Singleton

Thanks, Paul. Good morning, everyone. In Q2 Edgewater demonstrated solid momentum in service revenue, I was really happy to see us put up another quarter of double-digit organic growth, that service revenue increased 16% from, a year-ago Q2, 2011 and all of that growth was organic.

The other piece that I'm really pleased about is the gross margin on service revenue improved to just under 40% – 39.5%, up from 36% and some change in same quarter last year. If I have to put my finger on where the primary driver of growth is coming from, it's in our Oracle EPM unit. We do have other patches within the organization that are growing, but the EPM business is the primary driver of growth.

At the end of the second quarter of 2012, and actually it's on the last date, Tim, right? June 30th, Microsoft acquired our Fullscope Process Industries 2, solution and we like to call it PI2, internally. So if you hear us say that, that's what we're talking about. And they are going to incorporate our – PI2, solution into their core Dynamics AX product.

Their desire to purchase this and incorporate it into their core product, actually, I believe showcases our expertise and proficiency in identifying and building solutions for the channel and it is a testament to our relationship with Microsoft and that they trust us and offer to – even buy our software modules.

But before I comment further I'd like to turn it over to you, Tim, and we can get into the financial details and then, it'll come back to me, and I'll give you some additional highlights of what occurred during the quarter. Tim?

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