Revenue for the first quarter was $25.3 million, a rise of 7.2 percent from $23.6 million in last year’s corresponding period. Service revenue represents the overwhelming portion of the company’s income. That segment had $21.8 million in revenue, up 10.6 percent from $19.7 million a year earlier. Edgewater, which resells through its Fullscope operations, has recently begun handling Dynamics CRM. CEO Shirley Singleton said the company was having success in cross selling Dynamics AX and CRM. “We are seeing traction in those two things cross selling each other in the process and discrete manufacturing space,” she said.  The drop in net income stemmed from a decline in gross margins, which fell to 33.9 percent from 36.4 percent for the compared quarters. The company said the change stemmed from the costs of hiring 18 billable consultants and the absence of $535,000 of Fullscope’s process contracts-related royalty revenue. Singleton said the hiring occurred because of the increasing size of Oracle deals the company is seeing.