Edgewater Technology saw a sharp rise in service revenue, accompanied by a drop in software revenue for the second quarter ended June 30. But the end result of operations was a 21.4-percent rise in earnings as this week the company reported net income of $1.7 million, up from $1.4 million in last year’s corresponding period. Total revenue reached $29.2 million for the most recently ended period, a 4.7-percent increase from $27.9 million a year earlier.
Service revenue rose to $24.5 million, an increase of 13.4 percent from $21.6 million.
Software revenue dropped to $2.5 million, down 43 percent from $4.3 million.
Part of that drop reflects the fact that the year-ago figures included a significant amount of revenue from the sale of an Edgewater product to Microsoft. However, CFO Timothy Oakes noted the fact that some Dynamics AX deals are reported as gross sales and others as net sales means that Microsoft revenue can fluctuate. The company also noted its alliance with three international Dynamics resellers, announced this month, to form Absolute Process Partners, a partnership that serves about 150 Microsoft Dynamics AX process manufacturing customers. The other VARs are Edan Business Solutions in Belgium, KCS.net in Germany and Sable Systems in New Zealand.