Interim CEO Jeffrey Rutherford noted, "Our second quarter 2017 service revenue projection continues to reflect the disruption we are experiencing from customers contemplating their adoption strategy for cloud-based applications." During the week's earnings webcast, the company noted both Oracle and Microsoft are pushing customers to the cloud. Edgewater ended the quarter with a head count of 361 total billable resources, including 20 contractors, compared to a billable headcount of 425, including 44 contractors, a year earlier, in line with expectations for the current quarter. Software revenue for the first quarter was $2.5 million, up 24.7 percent from slightly more than $2 million a year earlier. Service revenue dropped to $25.1 million for the quarter, down 10.9 percent from $28.2 million. The company said Ranzal, the Oracle business, represented  54 percent of service revenue; Fullscope, the Microsoft business, 33 percent; and classic consulting was 13 percent. Also contributing to the loss was $3,371,000 paid in executive severance. Insurgents, who ousted incumbent board members, pledged to drop CEO Shirley Singleton and chief technology officer David Clancy. Singleton's exit was announced in March and Clancy is no longer listed on the company's web page.