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EDGEWATER REVS TAKE BEATING IN 2009

Results for Dynamics reseller Fullscope weren't included in the 2009 results for its new parent, Edgewater Technology since its acquisition was effective after the year closed. But I'm sure Edgewater can't get those numbers of the books quick enough as the company’s revenue dropped by 32.1 percent for the year ended December 31. Revenue for 2009 was $50.1 million, down from $73.7 million the prior year.
The 2009 loss was $3.8 million, sharply down from $47 million for 2008. However, the year ago numbers reflected an impairment charge and this year’s don’t. Since Fullscope had 2009 revenue of about $27 million, the addition of its results, along with an improving economy, ought to help the next financials for the Wakefield, Mass.-based business. CEO Shirley Singleton said the fourth quarter was a good one for her company with utilization up and the sales pipeline improving. The greatest part of Edgewater's income is service revenue, which was $46.1 million for 2009, down from $68.1 million a year earlier. The addition of Fullscope, a top Dynamics AX reseller, will diversify revenue, although Fullscope is expected to contribute about $12 million in service revenue. Edgewater had reduced head count because of the soft market and had 160 billable consultants at the end of 2009, down from 241 a year earlier. The Fullscope team brings that back to 242.
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