Revenue during the quarter dropped 12.01 percent to $39.79 million from $45.22 million in the previous year period. Gross margin for the quarter contracted 289 basis points over the previous year period to 63.61 percent. Operating margin for the quarter stood at negative 13.51 percent as compared to a positive 3.89 percent for the previous year period.

Operating loss for the quarter was $5.38 million, compared with an operating income of $1.76 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $2.82 million compared with $4.48 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.09 percent for the quarter compared to 9.90 percent in the last year period.

Bob Whitman, chairman and chief executive officer, commented, "Our fiscal first quarter is an important staging quarter in which we make significant investments in growing our sales and delivery forces, marketing, developing new offerings, and building strong sales pipelines that form the basis for growth through the balance of the year. We were very pleased to have achieved significant year-over-year growth in the amount of All Access Passes invoiced during the first quarter, including a very high renewal rate for those All Access Passes sold in last year’s first quarter. We were also pleased that our sales pipelines grew significantly during the quarter, and that a significant start to the conversion of those pipelines began in December. As a result of the foundation laid the first quarter, we expect our results for fiscal 2017 to fall within our previously provided guidance range, specifically, that the sum of reported Adjusted EBITDA plus the change in deferred revenue, less certain costs, will fall between $35 million and $38 million."