Shutterfly (SFLY) saw its loss widen to $33.19 million, or $0.98 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $29.44 million, or $0.85 a share. On the other hand, adjusted net loss for the quarter narrowed to $28.17 million, or $0.84 a share from a loss of $29.44 million or $0.85 a share, a year ago.

Revenue during the quarter grew 5.65 percent to $191.97 million from $181.71 million in the previous year period. Gross margin for the quarter contracted 130 basis points over the previous year period to 38.87 percent. Operating margin for the quarter stood at negative 25.92 percent as compared to a negative 23.01 percent for the previous year period.

Operating loss for the quarter was $49.76 million, compared with an operating loss of $41.81 million in the previous year period.

Adjusted EBITDA for the quarter stood at negative $1.92 million compared to negative $2.55 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 1 percent for the quarter compared to negative 1.40 percent in the last year period.

"In the first quarter, we announced a major initiative to simplify our business over the course of 2017, focusing our resources on our industry-leading Shutterfly and Tiny Prints Consumer brands and our Enterprise business, and bringing all of our Consumer brands together on a single platform," said Christopher North, president and chief executive officer. "I'm pleased to report that we're making good progress in both the restructuring and the migration to a single platform, and remain on track to complete migration prior to our peak season in the fourth quarter."

For the second-quarter 2017, Shutterfly expects revenue to be in the range of $205 million to $212 million. The company expects operating loss to be in the range of $24.50 million to $21 million. The company projects diluted earnings per share to be in the range of $0.55 to $0.50. 

For fiscal year 2017, Shutterfly expects revenue to be in the range of $1,135 million to $1,165 million. The company expects operating income to be in the range of $48.50 million to $68.50 million. The company projects diluted earnings per share to be in the range of $0.45 to $0.80.

Shutterfly has spent $72.39 million cash to meet operating activities during the quarter as against cash outgo of $82.61 million in the last year period.

The company has spent $31.14 million cash to meet investing activities during the quarter as against cash outgo of $15.14 million in the last year period. It has incurred net capital expenditure of $11.05 million on net basis during the quarter, down 41.01 percent or $7.68 million from year ago period.

The company has spent $24.18 million cash to carry out financing activities during the quarter as against cash outgo of $45.20 million in the last year period.

Cash and cash equivalents stood at $161.52 million as on Mar. 31, 2017, up 10.69 percent or $15.60 million from $145.92 million on Mar. 31, 2016.