Edgewater Shows Net Income Up 142 Percent

Edgewater Technology Inc., the Wakefield, Mass., e-technology business formerly of Fayetteville, said today 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” means 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.

Shares of Edgewater (Nasdaq: EDGW) were trading at $4.25 today after closing at $4.24 on Tuesday.