CEO Shirley Singleton said software sales were lighter than expected. She said service revenue hit a record, but warned software would remain weak as the fourth quarter has fewer billing days and holiday shutdowns and delays would also have an impact. In a recent earnings webcast, Singleton said the company will try to maintain the double-digit increase in service revenue reported this year. She said the company has difficultly predicting the relationship between software and service sales, "Microsoft is coming to us with inflight projects and helping us complete those projects," she said. That means Edgewater does not receive the sales revenue. Singleton also noted some Microsoft sales are at the enterprise level. Previously, the company has noted that on those sales it recognizes the net profit, not gross sales.
TAXES CUT EDGEWATER NET Featured
Edgewater Technology saw its net income for the third quarter ended September 30 drop by 81.6 percent from a year ago on a steep rise in taxes. The company had a tax provision of $714,000 for the most recently ended period, up from $74,000 a year earlier. As a result, net income dropped to $976,000, down from $1.8 million in last year's third quarter. Revenue for the company, which owns Dynamics VAR Fullscope, hit $28.7 million, an increase of 13.1 percent from $25.4 million in last year's corresponding period.
