CEO Shirley Singleton said in this week's earnings webcast that the decline "Reflects that we were not able to bring closure to several deals that were in process." Deals were not cancelled, but were delayed with start dates pushed out typically a month. Revenue growth, she said, was driven primarily by sales in the Oracle EPM unit. Net income for the June quarter dropped to $134,000, down 66.1 percent from $395,000 in last year's corresponding period. The bottom line was hurt by a $567,000 charge related to the embezzlement that was discovered at Fullscope, the Dynamics reseller that was acquired by Edgewater on Dec. 31, 2009. The embezzlement by a former employee was discovered after the acquisition was completed. The company had a $51,000 charge for the same item a year ago. Earnings were also hurt by a drop in gross margins, which fell to 34.8 percent from 39.5 percent a year ago. Revenue dropped to $27.2 million in the most recently ended quarter, down from $27.4 million the prior year. That drop also reflected $2.2 million in royalties from the sale of one of Fullscope's manufacturing applications to Microsoft in last year's second quarter. There was no royalty revenue this year. Singleton also said the company is "aggressively building a Microsoft CRM practice." While she said the unit had "doubled in size" she did not provide numbers