Edgewater Technology, Inc.

TechAmerica 

2011 Classic Investor Conference

November 8, 2011

Exhibit 99.1

Safe Harbor Language

2

11/4/2011

This Presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and

Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning our strategy, revenue goals, growth including

acquisitions, profitability, EBITDA and financial position.  These forward-looking statements inherently involve certain risks and uncertainties,

although they are based on our current plans or assessments which are believed to be reasonable as of the date of this Presentation.  Factors that

may cause actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecasted, estimated, anticipated,

planned or budgeted in such forward-looking statements include, among others, the following possibilities: (1) failure to obtain new customers or

retain significant existing customers; (2) the loss of one or more key executives and/or employees; (3) changes in industry trends, such as a decline

in the demand for Business Intelligence (“BI”); Enterprise Performance Management (“EPM”) and Enterprise Resource Planning (“ERP”)

solutions, custom development and system integration services and/or declines in industry-wide information technology (“IT”) spending, whether

on a temporary or permanent basis and/or delays by customers in initiating new projects or existing project milestones; (4) inability to execute

upon growth objectives, including new services and growth in entities acquired by our Company; (5) adverse developments and volatility

involving economic, geopolitical or technology market conditions; (6) unanticipated events or the occurrence of fluctuations or variability in

critical accounting policies and estimates; (7) delays in, or the failure of, our sales pipeline being converted to billable work and recorded as

revenue; (8) inability to recruit and retain professionals with the high level of information technology skills and experience needed to provide our

services; (9) any changes in ownership of the Company or otherwise that would result in a limitation of the net operating loss carry forward under

applicable tax laws; (10) the failure of the marketplace to embrace advisory and product-based consulting services; and/or (11) failure to make a

successful claim against the Fullscope escrow account.  In evaluating these statements, you should specifically consider various factors described

above as well as the risks outlined under Item I “Business – Factors Affecting Finances, Business Prospects and Stock Volatility” in our 2010

Annual Report on Form 10-K filed with the SEC on March 31, 2011.  These factors may cause our actual results to differ materially from those

contemplated, projected, anticipated, planned or budgeted in any such forward-looking statements. 

Although we believe that the expectations in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity,

performance, growth, earnings per share or achievements.  However, neither we nor any other person assumes responsibility for the accuracy and

completeness of such statements.  Except as required by law, we undertake no obligation to update any of the forward-looking statements after the

date of this Presentation to conform such statements to actual results.

•

Founded in 1992

•

Publicly traded (NASDAQ: EDGW)

•

Public in 2002

•

Co-founders still with the Company

•

420+ employees; 75%+ billable

consultants

•

Large North American footprint

•

New UK presence

•

Focus on upper-middle and global

2000 markets

Edgewater Corporate Overview

Edgewater Offerings

Edgewater offers a comprehensive spectrum of services and

expertise to ensure the success of our engagements.

•

Excellence in Execution

•

Technology Excellence

•

Vertical Expertise

•

Client Focus

•

Adherence to

Operational Metrics

Core Competencies and Values

“Hire code experts with business expertise. Users should hire

firms like Edgewater Technology that provide developers with

expertise in the business function being automated. …”

-

Forrester Research

Sampling of Customers

Industry Stats

Independent

Study

Demonstrates

Productivity

Gains

and

ROI

of

243

Percent

for

Microsoft Dynamics CRM 2011

The Total Economic Impact Of Microsoft Dynamics CRM 2011,  Forrester

Research, May 2011

Made in the USA, Again: Manufacturing Is Expected to Return to America as

China’s Rising Labor Costs Erase Most Savings from Offshoring/Reinvestment

During the Next Five Years Could Usher in a ‘Manufacturing Renaissance’

as

the U.S. Becomes a Low-Cost Country Among Developed Nations, According to

Analysis by The Boston Consulting Group.  May 5, 2011

Billionaire Mario Gabelli and his funds led by GAMCO Asset Management Inc.

have reported a 19.4% stake in Edgewater Technology Inc. (NASDAQ: EDGW),

according to an SEC filing in March 2011

Why Edgewater?

Unique Strategy

–

High value strategic services tailored to ‘C’

level execs

–

High barrier to entry

–

High revenue per billable resource

–

A Consolidator of the Key Technology Replacement Cycle Elements

Unique Positioning

–

Alternative to Big Solution Providers

–

Many Offerings are Synergistic and Ripe for Cross Selling

–

Both Channel and Solutions Driven

In Growth Mode

11/4/2011

10

Important Takeaways

Achieving Historical Service Revenue Highs

Growth through Organic & Strategic Acquisitive Activities

–

Recent double digit organic growth

–

Fullscope, Inc. –

December 31, 2009 / Dynamics AX ERP

–

Meridian Consulting International –

May 17, 2010 / Oracle HSF

–

Developing IP Assets (Dynamics AX Chemical Accelerator)

Undervalued

Grow Federal Tax-free

Fourth Quarter / Full Year 2011

February 29, 2012

Upcoming Earnings Call Information

11

11/4/2011

12

APPENDIX A:

Financial Information

11/4/2011

Q3’11 Financial Highlights

11/4/2011

13

Established All-Time High in Service Revenue

Double Digit Organic Revenue Growth

Improvement in gross margin, Adjusted EBITDA and EPS

$13.3 million in cash

–

Available for “tuck in”

acquisitions, internal growth initiatives and stock

repurchases

$4.2 million in Q3’11 cash flow generated from operations

$5.9 million year-to-date (9-months) 

Repurchased 1.2 million shares of common stock in Q3’11

–

Aggregate cost of $3.1 million

Q3’11 Financial Results

14

2011

2010

Change

2011

2010

Change

Total Revenue

25,048

$     

21,384

$  

17.1%

76,038

$     

65,009

$  

17.0%

Service Revenue

20,064

$     

18,075

$  

11.0%

58,398

$     

51,163

$  

14.1%

Total Gross Profit

9,366

$       

7,830

$    

19.6%

28,791

$     

23,121

$  

24.5%

Total Gross Margin %

37.4%

36.6%

37.9%

35.6%

Service Gross Profit

8,145

$       

7,038

$    

15.7%

22,490

$     

19,218

$  

17.0%

Service Gross Margin %

40.6%

38.9%

38.5%

37.6%

Adjusted EBITDA*

1,357

$       

515

$      

163.5%

5,394

$       

2,143

$    

151.7%

Adjusted EBITDA* %

5.4%

2.4%

7.1%

3.3%

Net Income

1,545

$       

(22,686)

$ 

106.8%

2,250

$       

(23,415)

$ 

109.6%

Net Income %

6.2%

(106.1)%

3.0%

(36.0)%

EPS (Fully Diluted)

0.13

$         

(1.86)

$    

107.0%

0.18

$         

(1.92)

$    

109.4%

(Dollar Amounts in Thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

* -

Adjusted EBITDA is a non-GAAP financial measure and includes stock-based compensation expense.

11/4/2011

Historical Revenue and Adjusted EBITDA*

•-

Adjusted EBITDA is a Non-GAAP financial measure.

(a) –

2011 Total Revenue and Adjusted EBITDA amounts reflect annualized year-to-date performance.

11/4/2011

15

(Amounts in Thousands)

$43,126

$60,083

$68,490

$74,743

$50,085

$88,545

$76,038

($2,500)

($500)

$1,500

$3,500

$5,500

$7,500

$9,500

$11,500

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

2005

2006

2007

2008

2009

2010

2011(YTD)

Annual Total Revenue

Adjusted EBITDA*

Average Annualized  Service Revenue Per Consultant*

16

* -

Adjusted for billable consultant utilization.

$261

$278

$300

$340

$348

$324

$329

$200

$220

$240

$260

$280

$300

$320

$340

$360

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005

2006

2007

2008

2009

2010

2011 (p)

Advisory/Tech

EPM

ERP

Avg Annual Rev Per Consultant

Annualized Service Revenue

per Consultant Vs Service Revenue Mix

(Dollar Amounts in thousands)

11/4/2011

11/4/2011

17

APPENDIX B:

Non-GAAP Financial Measures

Non-GAAP Financial Measures

18

11/4/2011

Edgewater reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Management believes, however,

that certain non-GAAP financial measures used in managing the Company’s business may provide users of this financial information with additional

meaningful comparisons between current results and prior reported results. Certain of the information set forth herein and certain of the information

presented by the Company from time to time may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities

and Exchange Commission. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure.  The

non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.  As noted in the footnote below,

the foregoing measures have limitations and do not serve as a substitute and should not be construed as a substitute for GAAP performance, but provide

supplemental information concerning our performance that our investors and we find useful.

Edgewater views Adjusted EBITDA as an important indicator of performance, consistent with the manner in which management measures and

forecasts the Company’s performance.  We believe Adjusted EBITDA measures are important performance metrics because they facilitate the analysis of

our results, exclusive of certain non-cash items, including items which do not directly correlate to our existing business, providing specialty IT services. 

For instance, the exit of our former significant unrelated operations in 2000 and 2001 created significant net operating loss carry-forwards and deferred

tax assets, and the tax provisions that we take under GAAP, for which there is no corresponding federal tax payment obligation for us, and the

adjustments that we make to our deferred tax asset, based on the prospects and anticipated future profitability of our ongoing operations, can be

significant and can obscure, either significantly, or in part, period-to-period changes in our core operating results. Likewise, we incur direct transaction

costs related to acquisitions which are expensed in our GAAP financial statements.  Our Adjusted EBITDA calculation excludes the effects of direct

acquisition-related costs to facilitate an understanding of comparative period-to-period changes in our core operating results. Similarly, we incurred, and

have excluded from our Adjusted EBITDA calculation, costs associated with the Fullscope Embezzlement Issue as we believe that the non-recurring

nature of the costs associated with this issue makes comparison of our current and historical financial results difficult. 

We believe that Adjusted EBITDA metrics provide qualitative insight into our current performance; we use these measures to evaluate our results

the performance of our management team and our management’s entitlement to incentive compensation; and we believe that making this information

available to investors enables them to view our performance the way that we view our performance and thereby gain a meaningful understanding of our

core operating results, in general, and from period to period.

11/4/2011

19

Reconciliation to Non-GAAP Measures

1-

Adjusted

EBITDA

is

a

Non-GAAP

performance

measure

and

is

not

intended

to

be

a

performance

measure

that

should

be

regarded

as

an

alternative

to,

or more meaningful than, either GAAP Operating Income or GAAP Net Income.  The Adjusted EBITDA measure presented may not be comparable to

similarly titled measures presented by other companies.  Adjusted EBITDA is defined as net income less interest income and other, net, plus taxes,

depreciation and amortization, adjustments to contingent consideration earned, goodwill impairment charges, direct acquisition costs and the Fullscope

Embezzlement Issue costs.

(Q3'11 YTD)

2005

2006

2007

2008

2009

2010

2011

Reconciliation

of

GAAP

Net

Income

to

Adjustmed

EBTIDA

1

(Non-GAAP):

Reported GAAP Net Income

1,600

$   

3,203

$   

8,810

$   

(47,018)

$

(3,839)

$  

(23,688)

$

2,250

$    

Add: Income Tax Provision

850

2,105

(2,896)

712

(1,047)

21,511

651

Add: Loss from Discontinued Operations

(325)

0

0

0

0

0

0

Add: Goodwill and Impairment Charge

0

0

0

48,594

0

0

0

Add: Deprecation & Amortization Expense

1,046

1,755

2,448

3,771

2,694

4,023

2,123

Add: Changes in Contingent Earnout Consideration

0

0

0

0

0

100

94

Add: Direct Acquisition Costs

0

0

0

0

617

451

0

Add: Fullscope Embezzlement Costs

0

0

0

0

0

1,137

126

Less: Interest Income and other expense, net

(1,054)

(1,283)

(1,599)

(503)

(122)

(34)

150

Adjusted EBITDA

2,117

$   

5,780

$   

6,763

$   

5,556

$   

(1,697)

$  

3,500

$   

5,394

$    

11/4/2011

20

APPENDIX C:

Service Offering Case Studies

Aggressive

Timelines for

System,

Process, and

Staff Migration

Establish PMO

Data

Migration and

Integration

Leading food

manufacturer

and distributor

Methodology

for System

integration

Acquisition

Change

Management

Phase 1:

Enterprise

Data Strategy

Phase 2:

Pre-Production

Implementation

Comprehensive

Cancer Center

Phase 3:

Production

Implementation

Enterprise Data

Warehouse to

Support

Personalized

Medicine

China

Western Europe,

Middle & East

Africa

Central &

Eastern Europe

Latin America 

North America

Asia Pacific

Leading Global

Beauty Company

Master P &L