Revenue during the quarter grew 11.13 percent to $407.24 million from $366.46 million in the previous year period. Gross margin for the quarter contracted 407 basis points over the previous year period to 66 percent. Operating margin for the quarter stood at negative 4.18 percent as compared to a negative 0.83 percent for the previous year period.

Operating loss for the quarter was $17.03 million, compared with an operating loss of $3.04 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $212.76 million compared with $184.62 million in the prior year period. At the same time, adjusted EBITDA margin improved 187 basis points in the quarter to 52.25 percent from 50.38 percent in the last year period.

chief executive officer and president Talbott Roche commented, "Our first quarter 2017 financial results benefited from a stronger rebound in U.S. retail open loop transaction dollar volume (TDV) relative to our forecast. We remain focused on rebuilding consumer awareness of open loop gift products at grocery distribution partners locations that recently became EMV compliant. In addition, our digital U.S. retail channels generated strong double digit TDV growth during the first quarter. Both international and incentives segment performance met our expectations."

Blackhawk Network Holdings projects revenue to be in the range of $2,148 million to $2,312 million for financial year 2017. Blackhawk Network Holdings projects adjusted revenue to be in the range of $1,028 million to $1,141 million for financial year 2017. For fiscal year 2017, Blackhawk Network Holdings expects net income to be in the range of $22 million to $26 million. For the fiscal year 2017, Blackhawk Network Holdings forecasts adjusted net income to be in the range of $91 million to $100 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.35 to $0.44. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.56 to $1.70 on adjusted basis.

The company has spent $32.78 million cash to meet investing activities during the quarter as against cash outgo of $122.27 million in the last year period.

The company has spent $1.04 million cash to carry out financing activities during the quarter as against cash inflow of $166.89 million in the last year period.

Cash and cash equivalents stood at $214.54 million as on Mar. 25, 2017, up 0.74 percent or $1.59 million from $212.95 million on Mar. 26, 2016.

Working capital remains negative
Working capital of Blackhawk Network Holdings Inc was negative $114.53 million on Mar. 25, 2017 compared with negative $302.16 million on Mar. 26, 2016. Current ratio was at 0.90 as on Mar. 25, 2017, up from 0.74 on Mar. 26, 2016.

Days sales outstanding went down to 52 days for the quarter compared with 53 days for the same period last year.

At the same time, days payable outstanding went down to 80 days for the quarter from 86 for the same period last year.