Edgewater Technology Inc. (EDGW, Financial) filed Quarterly Report for the period ended 2009-03-31.
Edgewater Technology Inc. is an e-business consulting and systems integration firm that specializes in providing middle-market companies with tailored solutions for today's Internet-centric environment. Edgewater has taken a partnership approach with its clients targeting strategic mission-critical applications. Edgewater Technology services its client base by leveraging a combination of leading-edge technologies and proven reengineering techniques provided by its network of national solutions centers strategically positioned across the United States. Edgewater Technology Inc. has a market cap of $32.3 million; its shares were traded at around $2.65 with a P/E ratio of 13.3 and P/S ratio of 0.4.
Cash used in operating activities was $2.4 million and $3.7 million for the three months ended March 31, 2009 and 2008, respectively. Net cash used during the three months ended March 31, 2009 was largely attributable to the $2.1 million current quarter payout of the Companys 2008 performance-based bonus plan payments associated with year end accrued payroll- and commission-related liabilities and an $0.8 million increase in prepaid expenses primarily attributable to the first quarter renewal of the Companys annual insurance policies. These outflows were offset by cash inflows related to depreciation and amortization expense of $0.7 million and stock-based compensation expense of $0.3 million.
Net cash used during the three months ended March 31, 2008 was largely attributable to the current quarter payout of the Companys 2007 performance-based bonus plan, $1.3 million in payments associated with year end accrued payroll- and commission-related liabilities, and a $0.8 million increase in accounts receivable balances. These outflows were offset by cash inflows related to stock-based compensation expense of $0.5 million and depreciation and amortization expense of $1.0 million.
Net cash (used in) provided by investing activities was $(1.6) million and $1.7 million during the three months ended March 31, 2009 and 2008, respectively. Cash used in investing activities for the three months ended March 31, 2009 was attributable to $1.6 million in net purchases of marketable securities during the period. Cash provided by investing activities for the three months ended March 31, 2008 was attributable to $1.9 million in net redemptions of marketable securities, which were offset by current quarter capital expenditures and cash outlays related to other direct costs associated with our December 2007 acquisition of Vertical Pitch.
Net cash (used in) provided by financing activities was $(0.03) million and $0.2 million for the three months ended March 31, 2009 and 2008, respectively. The net cash used in financing activities during the three months ended March 31, 2009 is attributable to combined current period outflows of cash totaling $0.15 million related to both our capital lease obligations and repurchases of 35,800 shares of our common stock under our Stock Repurchase Program. These outflows were offset by proceeds of $0.12 million in connection with issuances made under the Companys employee stock purchase program. The net cash provided by financing activities in each of the reported three-month period ended March 31, 2008 is directly attributable to the cash received from stock option exercises and proceeds from the employee stock purchase program. Additionally, the Company repurchased 500 shares of its common stock at an aggregate purchase value of $3 thousand.
Our combined cash and cash equivalents decreased by $4.1 million and $1.9 million during the three-month periods ended March 31, 2009 and 2008, respectively. These net changes to the Companys reported cash and cash equivalent balances are reflective of the sources and uses of cash described above. The aggregate of cash, cash equivalents and marketable securities was $22.1 million and $18.9 million as of March 31, 2009 and 2008, respectively.
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Edgewater Technology Inc. is an e-business consulting and systems integration firm that specializes in providing middle-market companies with tailored solutions for today's Internet-centric environment. Edgewater has taken a partnership approach with its clients targeting strategic mission-critical applications. Edgewater Technology services its client base by leveraging a combination of leading-edge technologies and proven reengineering techniques provided by its network of national solutions centers strategically positioned across the United States. Edgewater Technology Inc. has a market cap of $32.3 million; its shares were traded at around $2.65 with a P/E ratio of 13.3 and P/S ratio of 0.4.
Highlight of Business Operations:
Depreciation and Amortization Expense. Depreciation and amortization expense decreased $0.3 million, or 32.2%, to $0.7 million in the quarter ended March 31, 2009 compared to $1.0 million in the quarter ended March 31, 2008. Amortization expense was $0.5 million and $0.8 million during the three-month periods ended March 31, 2009 and 2008, respectively. The current quarter decrease in amortization expense is primarily a result of the $1.4 million of intangible asset impairment charges recorded in 2008, which reduced current year amortization expense.Cash used in operating activities was $2.4 million and $3.7 million for the three months ended March 31, 2009 and 2008, respectively. Net cash used during the three months ended March 31, 2009 was largely attributable to the $2.1 million current quarter payout of the Companys 2008 performance-based bonus plan payments associated with year end accrued payroll- and commission-related liabilities and an $0.8 million increase in prepaid expenses primarily attributable to the first quarter renewal of the Companys annual insurance policies. These outflows were offset by cash inflows related to depreciation and amortization expense of $0.7 million and stock-based compensation expense of $0.3 million.
Net cash used during the three months ended March 31, 2008 was largely attributable to the current quarter payout of the Companys 2007 performance-based bonus plan, $1.3 million in payments associated with year end accrued payroll- and commission-related liabilities, and a $0.8 million increase in accounts receivable balances. These outflows were offset by cash inflows related to stock-based compensation expense of $0.5 million and depreciation and amortization expense of $1.0 million.
Net cash (used in) provided by investing activities was $(1.6) million and $1.7 million during the three months ended March 31, 2009 and 2008, respectively. Cash used in investing activities for the three months ended March 31, 2009 was attributable to $1.6 million in net purchases of marketable securities during the period. Cash provided by investing activities for the three months ended March 31, 2008 was attributable to $1.9 million in net redemptions of marketable securities, which were offset by current quarter capital expenditures and cash outlays related to other direct costs associated with our December 2007 acquisition of Vertical Pitch.
Net cash (used in) provided by financing activities was $(0.03) million and $0.2 million for the three months ended March 31, 2009 and 2008, respectively. The net cash used in financing activities during the three months ended March 31, 2009 is attributable to combined current period outflows of cash totaling $0.15 million related to both our capital lease obligations and repurchases of 35,800 shares of our common stock under our Stock Repurchase Program. These outflows were offset by proceeds of $0.12 million in connection with issuances made under the Companys employee stock purchase program. The net cash provided by financing activities in each of the reported three-month period ended March 31, 2008 is directly attributable to the cash received from stock option exercises and proceeds from the employee stock purchase program. Additionally, the Company repurchased 500 shares of its common stock at an aggregate purchase value of $3 thousand.
Our combined cash and cash equivalents decreased by $4.1 million and $1.9 million during the three-month periods ended March 31, 2009 and 2008, respectively. These net changes to the Companys reported cash and cash equivalent balances are reflective of the sources and uses of cash described above. The aggregate of cash, cash equivalents and marketable securities was $22.1 million and $18.9 million as of March 31, 2009 and 2008, respectively.
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