CEO Shirley Singleton blamed the decreases on the faster pace of cloud migration spurred by Microsoft, a slowdown in service revenue and "underperformance" in the company's business in the United Kingdom. Because the debut of Dynamics 365 has some customers studying their migration to the cloud, CFO Timothy Oakes said the results was third-quarter sales included a higher amount of Dynamics AX maintenance renewal and CRM software renewals in the past. Despite the changes, Edgewater continues to close new business and Singleton described its product pipeline as stable. For the quarter, service revenue dropped to $27 million, down a half percent from $27.2 million, while software sales rose slightly to $2.09 million from $2.02 million. The problem with the service revenue was the decrease caused the company to miss its guidance.
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Edgewater Technology saw a steep drop in net income while revenue declined much less sharply for the third quarter ended September 30. Net income plummeted to $43,000 in the most recently ended quarter from slightly more than $1 million a year earlier. Revenue was $30.8 million, down 1.1 percent from $31.2 million in last year's corresponding period.
