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EDGEWATER MORE THAN DOUBLES NET Featured

Shirley Singleton, Edgewater TechnologyEdgewater Technology turned in one of its better quarters with results for the third quarter ended September 30. This time, net income more than doubled on 5-percent rise in revenue. Net income for the most recently ended period was $1.8 million, compared $793,000. Revenue reached $25.4 million compared to $24.2 million a year earlier. Numbers were up across the board:

gross margin improved to 38 percent from 36.5 percent; utilization hit 71.1 percent, up from 69.5 percent; and adjusted EBITDA was 9.9 percent, up from 5.8 percent and DSO for accounts receivable dropped to 60 days from about 66 days. CEO Shirley Singleton said the only was miss was because customers delayed starting projects so consecutive service revenue did not rise. For the current quarter, Edgewater said the Wednesday December holidays may limit billable time so service revenue will probably be flat consecutively but  up year-over-year. Gross margin on software revenue shot up to 59.3 percent from 48.3 percent in last year's corresponding period. The company did not state the reason, but it probably relates to sales of Microsoft products in which Edgewater records net sales, not gross when Microsoft completes the transaction. Singleton noted success in Dynamics products this way: "Our ERP practice has some real nice manufacturing wins."

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