Edgewater Technology roared out of the second quarter ended June 30 with revenue of $23.4 million, up 94 percent from $12 million in last year’s corresponding period. While it lost $90,000 that was sharper lower than $1.3 million in red ink a year earlier. And $562,000 was taken off earnings in what were termed non-routine operating expenses associated with its acquisition of Meridian Consulting International.
Edgewater also saw another $200,000 in expenses from alleged embezzlement by a Fullscope employee earlier this year. That amount includes the stolen funds and legal costs. An employee was arrested last month. Fullscope is a major Microsoft Dynamics AX reseller that Edgewater acquired on December 31. With overall revenue up, service revenue was $17.4 million, up 57.9 percent from $11 million a year earlier. In that respect, Edgewater was different than many software vendors who said service revenue lagged because of weak sales in prior quarters. CEO Shirley Singleton was very optimistic. "If you extract to Q4 I think we are going to have a banner year," she commented in an earnings Webcast yesterday. One reason Edgewater benefitted from the Fullscope purchase was that in the past, Edgewater often lost business because it wasn’t able to provide a complete range of services, such as installation of ERP packages. Meanwhile, the company says the first purchase of custom systems in more than a year, which executives interpreted as a very positive sign because customers are showing the willingness to risk money need for customization.