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  "documentTitle": "Edgewater Technology, Inc. (EDGW)",
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  "authorName": "Jim Chadwick",
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  "presentationDate": "2017-01-24 00:00:00",
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      "text": "Edgewater is significantly less profitable on a per employee basis than its peers, despite generating better gross profit per employee",
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      "text": "Edgewater's sub-par operating margins appear to be the result of: High SG&A expenses as a % of revenue; Low utilization rates.",
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      "text": "According to the Company's public filings, Edgewater allocates billable consultant expenses to cost of goods/services sold. Regardless of how costs are allocated, the Company's EBIT / EBITDA reveals the diagnosis that Edgewater is significantly less profitable.",
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      "text": "The excessive compensation paid to the CEO and CTO exacerbate SG&A issues. Edgewater shareholders are essentially paying for two CEOs.",
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      "text": "(1) Source: All data provided by CapIQ",
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