Software revenue was $2.1 million, up from $2 million. For the first time, the company broke out the numbers on revenue from Microsoft Enterprise Application sales via which Microsoft handles the sale of Dynamics AX and the reseller receives net margin. CFO Timothy Oakes said there were four of these during the first quarter that produced $678,000 in software contribution margin. That more than made up for the $460,000 a year ago from a product sold to Microsoft, which no longer provides revenue to Edgewater. Oakes and Singleton also said that companies' replacement of older financial systems was a factor. "A lot of the software is long in the tooth," Oakes said.Last modified on Friday, 02 May 2014
MANUFACTURING LIFTS EDGEWATER'S Q1 Featured
Edgewater Technology, which owns Dynamics reseller Fullscope, rebounded to a profit of $711,000 for the first quarter ended March 31, compared to a loss of $889,000 a year ago. In this week's earnings webcast, CEO Shirley Singleton said the company's bet on "manufacturing coming back to the United States" was one of the factors behind a strong performance. Revenue for the most recently ended period was $27.6 million, up 18 percent, from $23.5 million in last year's corresponding period.
Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.