Revenue during the quarter dropped 24.88 percent to $10.73 million from $14.28 million in the previous year period. Gross margin for the quarter contracted 1054 basis points over the previous year period to 53.03 percent. Operating margin for the quarter stood at negative 10.73 percent as compared to a positive 17.94 percent for the previous year period.

Operating loss for the quarter was $1.15 million, compared with an operating income of $2.56 million in the previous year period.

However, the adjusted operating income for the quarter stood at $0.63 million compared to $3.66 million in the prior year period. At the same time, adjusted operating margin contracted 1976 basis points in the quarter to 5.87 percent from 25.63 percent in the last year period.

“Our underlying fundamentals held strong and set the stage for a better 2017; however, in the fourth quarter, several factors continued to negatively impact our financial results,” said Zee Hakimoglu, president and chief executive officer. “The transition to our next generation professional audio conferencing platform has taken longer than projected. To stimulate customer interest and sales in the current generation products, we reduced pricing on the Converge Pro 1. While we successfully spurred sales, revenue was still lower than prior periods and it negatively impacted gross margin. An overall weak global economy, including pressures caused by an uncertain political climate in Europe and the U.S. elections, further aggravated infrastructure and capital equipment spending and dampened our 2016 fourth quarter sales.”