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EDGEWATER EDGES DOWN IN LAST YEAR Featured

Jeff Rutherford, Edgewater TechnologyEdgewater Technology saw its loss balloon and revenue drop in its last full year as a company. The company will become part of Alithya when a merger is expected to be completed in the third quarter. Edgewater lost $29.1 million for the year ended December 31, compared to $2.8 million in red ink for 2016.

Most of the loss for 2017 was from a $19.6-million provision for income taxes, compared to slightly more than $5 million the prior year. Cutting into operating results was a $4.2-million severance for three former executives. Those were former CEO Shirley Singleton and chief technology officer David Clancy in the March 2017 quarter and Robin Ranzal-Knowles, former head of Edgewater-Ranzal in the September quarter. Edgewater has been headed by acting CEO Jeff Rutherford since Singleton’s departure. Revenue for the most recent ended year of $111.8 million was 11.8-percent lower than $126.5 million in 2016. Revenue from Microsoft Dynamics AX continued to improve. Software revenue was 10.5 percent of the total in 2017, 8.3 percent in 2016 and 9.3 percent in 2015. Edgewater attributed the revenue decrease in part to a drop in billable consultant utilization “driven by the performance of the EPM business unit and the customer hesitation to move to cloud based solutions within that space.”

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