Edgewater Technology (EDGW) saw its loss narrow to $3.43 million, or $0.28 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.64 million, or $0.40 a share.
Revenue during the quarter grew 4.78 percent to $29.77 million from $28.42 million in the previous year period. Gross margin for the quarter expanded 583 basis points over the previous year period to 40.23 percent. Operating margin for the quarter period stood at positive 5.08 percent as compared to a negative 2.38 percent for the previous year period.
Operating income for the quarter was $1.51 million, compared with an operating loss of $0.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.09 million compared with $1.62 million in the prior year period. At the same time, adjusted EBITDA margin improved 467 basis points in the quarter to 10.38 percent from 5.70 percent in the last year period.
"In 2016, Edgewater posted 11% service revenue growth. Furthermore, the Company achieved significantly improved gross margins, service revenue gross margins, utilization, and Adjusted EBITDA," stated Shirley Singleton, Edgewater’s chairman, president and chief executive officer. "We made significant strides with respect to expanding our cloud revenue-based service offerings, with cloud-based service revenue representing 19% of our service revenue in 2016, as compared to 15% in 2015.
Operating cash flow improves significantlyEdgewater Technology has generated cash of $6.57 million from operating activities during the year, up 101.44 percent or $3.31 million, when compared with the last year. The company has spent $0.47 million cash to meet investing activities during the year as against cash outgo of $24.47 million in the last year.
Cash flow from financing activities was $1.62 million for the year, down 74.97 percent or $4.84 million, when compared with the last year.
Cash and cash equivalents stood at $19.69 million as on Dec. 31, 2016, up 64.37 percent or $7.71 million from $11.98 million on Dec. 31, 2015.
Working capital increases sharply
Edgewater Technology has recorded an increase in the working capital over the last year. It stood at $22.53 million as at Dec. 31, 2016, up 51.56 percent or $7.66 million from $14.87 million on Dec. 31, 2015. Current ratio was at 1.94 as on Dec. 31, 2016, up from 1.58 on Dec. 31, 2015.
Debt remains stableTotal debt remained stable at $5 million as on Dec. 31, 2016, when compared with the last year. Long-term debt remained stable at $5 million as on Dec. 31, 2016, when compared with the last year. Total debt was 4.77 percent of total assets as on Dec. 31, 2016, compared with 4.65 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.07 as on Dec. 31, 2016, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
