Bridgeline Digital (BLIN) saw its loss narrow to $0.53 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1 million, or $0.20 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.16 million, or $0.01 a share from a loss of $0.64 million or $0.12 a share, a year ago. 

Revenue during the quarter dropped 5.60 percent to $3.99 million from $4.23 million in the previous year period. Gross margin for the quarter expanded 402 basis points over the previous year period to 57.04 percent. Operating margin for the quarter stood at negative 11.19 percent as compared to a negative 16 percent for the previous year period.

Operating loss for the quarter was $0.45 million, compared with an operating loss of $0.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $0.02 million compared with $0.02 million in the prior year period. At the same time, adjusted EBITDA margin contracted 4 basis points in the quarter to 0.55 percent from 0.59 percent in the last year period.  

"Bridgeline continues to strengthen in fiscal 2017 with another quarter of license growth, improved gross margin, and positive Adjusted EBITDA," said Ari Kahn, Bridgeline’s president and chief executive officer. "Strategic product innovations over the past year have enabled Bridgeline to expand the value it delivers to existing customers by launching new sites across their organizations and even connecting their Bridgeline-powered e-commerce sites to the customers with Internet of Things technologies."

For the third-quarter, Bridgeline Digital expects revenue to be in the range of $3.90 million to $4.10 million.                                             

Days sales outstanding went up to 53 days for the quarter compared with 51 days for the same period last year.

At the same time, days payable outstanding was almost stable at 58 days for the quarter, when compared with the previous year period.