Edgewater Technology Inc. (EDGW, Financial) filed Annual Report for the period ended 2011-12-31.
Edgewater Tech has a market cap of $40.3 million; its shares were traded at around $3.57 with a P/E ratio of 35.5 and P/S ratio of 0.4.
Gross Profit. Gross profit in 2011 increased by $6.6 million, or 20.6%, to $38.7 million, as compared to $32.1 million in 2010. Gross profit, as a percentage of total revenue (which we generally refer to as gross margin) improved to 37.8%, as compared to 36.2% in 2010.
Revenue. Total revenue increased by $38.5 million, or 76.8%, to $88.5 million for the year ended December 31, 2010 from $50.1 million for the year ended December 31, 2009. Of the $38.5 million increase in 2010 total revenue, service revenue increased by $22.7 million, or 49.3%, to $68.8 million, as compared to service revenue of $46.1 million in 2009.
Selling, General and Administrative Expense (SG&A). SG&A expenses increased 64.4% to $30.3 million, as compared to SG&A expenses of $18.4 million in 2009. The comparative periodic increases in SG&A expenses during the year ended December 31, 2010 is reflective of the incremental impact upon SG&A expenses associated with the Fullscope Acquisition, the Meridian Acquisition, a $950 thousand non-routine charge related to a potential pre-acquisition sales and use tax exposure associated with the Fullscope Embezzlement Issue and an increase in core SG&A expenses as a result of the growth, during 2010, in our Core Service Offerings. SG&A expenses, as a percentage of total revenue was 34.2% and 36.8% in 2010 and 2009, respectively.
As of December 31, 2011, we had cash and cash equivalents of $10.3 million, a $570 thousand decrease from the December 31, 2010 balance of $10.9 million. During the year ended December 31, 2011, the Company made cash payments of $3.2 million for the repurchase of common stock and $2.7 million in settlement of the Fullscope contingent earnout. Working capital, which is defined as current assets less current liabilities, increased $2.7 million, to $16.9 million, as of December 31, 2011, as compared to $14.2 million as of December 31, 2010. Historically, we have used our operating cash flows, available cash and periodic sales of our common stock to finance ongoing operations and business combinations. We believe that our cash and cash equivalents will be sufficient to finance our working capital needs for at least the next twelve months. We periodically reassess the adequacy of our liquidity position, taking into consideration current and anticipated operating cash flow, anticipated capital expenditures, and possible business combinations. The pace at which we will either generate or consume cash will be dependent upon future operations and the level of demand for our services on an ongoing basis. See Item 1Business, Potential Future Strategies, Transactions and Changes.
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Edgewater Tech has a market cap of $40.3 million; its shares were traded at around $3.57 with a P/E ratio of 35.5 and P/S ratio of 0.4.
Highlight of Business Operations:
Revenue. Total revenue increased by $13.9 million, or 15.7%, to $102.4 million for the year ended December 31, 2011 from $88.5 million for the year ended December 31, 2010. Of the $13.9 million increase in 2011 total revenue, service revenue increased by $10.4 million, or 15.1%, to $79.2 million, as compared to service revenue of $68.8 million in 2010.Gross Profit. Gross profit in 2011 increased by $6.6 million, or 20.6%, to $38.7 million, as compared to $32.1 million in 2010. Gross profit, as a percentage of total revenue (which we generally refer to as gross margin) improved to 37.8%, as compared to 36.2% in 2010.
Revenue. Total revenue increased by $38.5 million, or 76.8%, to $88.5 million for the year ended December 31, 2010 from $50.1 million for the year ended December 31, 2009. Of the $38.5 million increase in 2010 total revenue, service revenue increased by $22.7 million, or 49.3%, to $68.8 million, as compared to service revenue of $46.1 million in 2009.
Selling, General and Administrative Expense (SG&A). SG&A expenses increased 64.4% to $30.3 million, as compared to SG&A expenses of $18.4 million in 2009. The comparative periodic increases in SG&A expenses during the year ended December 31, 2010 is reflective of the incremental impact upon SG&A expenses associated with the Fullscope Acquisition, the Meridian Acquisition, a $950 thousand non-routine charge related to a potential pre-acquisition sales and use tax exposure associated with the Fullscope Embezzlement Issue and an increase in core SG&A expenses as a result of the growth, during 2010, in our Core Service Offerings. SG&A expenses, as a percentage of total revenue was 34.2% and 36.8% in 2010 and 2009, respectively.
As of December 31, 2011, we had cash and cash equivalents of $10.3 million, a $570 thousand decrease from the December 31, 2010 balance of $10.9 million. During the year ended December 31, 2011, the Company made cash payments of $3.2 million for the repurchase of common stock and $2.7 million in settlement of the Fullscope contingent earnout. Working capital, which is defined as current assets less current liabilities, increased $2.7 million, to $16.9 million, as of December 31, 2011, as compared to $14.2 million as of December 31, 2010. Historically, we have used our operating cash flows, available cash and periodic sales of our common stock to finance ongoing operations and business combinations. We believe that our cash and cash equivalents will be sufficient to finance our working capital needs for at least the next twelve months. We periodically reassess the adequacy of our liquidity position, taking into consideration current and anticipated operating cash flow, anticipated capital expenditures, and possible business combinations. The pace at which we will either generate or consume cash will be dependent upon future operations and the level of demand for our services on an ongoing basis. See Item 1Business, Potential Future Strategies, Transactions and Changes.
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