Edgewater (EDGW) Reports Preliminary Q2 Revenue of $30.5M

Edgewater Technology, Inc. (NASDAQ: EDGW) (Edgewater), a leading consulting firm that brings a blend of classic and product-based consulting services to its clients, announced today that the company expects to report service revenue of approximately $24.6 million, which is essentially flat on a year-over-year basis. Total revenue for the quarter ended June 30, 2015 is expected to be approximately $30.5 million, including approximately $4.1 million in software-related revenue. All reported preliminary revenue amounts are subject to the completion of our standard quarterly review procedures.

(Street sees Q2 revenue of $31.98 million)

The lower than expected second quarter 2015 service revenue performance resulted from slower than anticipated project starts on EPM/BI engagements signed in the first half of 2015. The delay in project starts will also negatively impact our billable consultant utilization and operating performance during the second quarter of 2015.

"For the second quarter of 2015, we expect to report 9% growth in our sequential quarterly service revenue, with 4% coming from our core offerings and 5% coming from our latest acquisition," commented Shirley Singleton, Edgewater's chairman, president and CEO. "The recently acquired Zero2Ten business performed nicely, with a significant number of net new customer engagements.

"Sales continue to be strong and backlog continues to build. Project start delays, primarily within our EPM/BI service offering, limited our ability to deliver year-over-year growth in second quarter service revenue. Delays in project starts resulted primarily from customers electing to expand their upcoming EPM/BI project(s) and upgrade to an "enterprise suite" model, creating larger deal sizes and a slowing of the project launch process. The ultimate timing of these project starts has made resource planning very difficult, especially since the larger projects are expected to start off slowly and then ramp up later in the second half of 2015.

"Given the current challenging project start environment, we are modifying our annual guidance and anticipate that we will see low single-digit service revenue growth for the full year 2015."

Edgewater will hold a conference call on Wednesday, July 29, 2015 at 10:00 a.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2015. The company will issue its financial results in a press release prior to the call.

Date: Wednesday, July 29, 2015 Time: 10:00 a.m. Eastern time Dial-in number: 1-877-303-6235 Webcast: http://ir.edgewater.com/

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

Edgewater's news release containing the second quarter 2015 financial results will be released prior to the market opening on the day of the call. A replay of the conference call can be accessed via Edgewater's investor relations web site at http://ir.edgewater.com/ or by dialing 1-404-537-3406 (Conference ID#: 77903894) after 1:00 p.m. Eastern time on the same day through Wednesday, August 12, 2015.

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