Edgewater Quarterly Figures Rise
by April 30, 2001 12:00 am 55 views
Edgewater Technology Inc., the Wakefield, Mass., e-technology business, announced that revenue was up 9 percent to $7.7 million and net income up 142 percent to $4.7 million for its “continuing operations” in the quarter that ended March 31.
In this case, “continuing operations” refers to the company’s e-solutions business based in Wakefield.
Formerly StaffMark Inc., the corporation has divested itself of five of its six divisions. The money from spinning off the Robert Walters division on the London stock exchange and selling the other four divisions brought in about $476 million that was used to pay off debt and refocus on the technology business in Massachusetts. The corporation, which had 220 offices around the globe and annual revenue of more than $1 billion in 1998, is in the process of moving its headquarters from Fayetteville to Wakefield.
Gross profit from continuing operations during the first quarter was $3.5 million, or 45.5 percent of revenues, compared to $3.7 million, or 52.4 percent of revenues during the same period in 2000. That amount reflects the loss of about $400,000 due to a shooting that occurred Dec. 26 at the company’s Wakefield office.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $100,000 for the first quarter, compared to $500,000 in the first quarter of 2000. The company said the lower EBITDA reflects “increased expenditures in sales, marketing, personnel and development centers relating to the company’s expansion efforts.”
Edgewater Technology Inc. sold its ClinForce clinical trials division in March for $31 million.
Clete Brewer, chairman and CEO, said, “We have completed the divestiture of all non-strategic businesses, repaid our debt, repurchased over 60 percent of our outstanding common stock and built a strong balance sheet. Edgewater Technology is now a pure consulting and solutions company, helping companies integrate their everyday operations with the Internet.”
Shirley Singleton, president and CEO of Edgewater’s e-solutions division, said the business has $13.5 million coming from a “backlog” in work. Coupled with the first quarter’s $7.7 million in revenue, Edgewater has “visibility of over $21 million in revenue for fiscal year 2001,” she said, and more than $11 million for fiscal 2002.