SITO MOBILE, LTD (SITO) saw its loss widen to $3.06 million, or $0.15 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.17 million, or $0.07 a share.

Revenue during the quarter surged 32.98 percent to $6.64 million from $5 million in the previous year period. Gross margin for the quarter contracted 96 basis points over the previous year period to 51.69 percent. Operating margin for the quarter stood at negative 40.92 percent as compared to a negative 28.02 percent for the previous year period.

Operating loss for the quarter was $2.72 million, compared with an operating loss of $1.40 million in the previous year period.

"We are hitting our stride at SITO Mobile and our results demonstrate that we are building a sound foundation for growth and shareholder value creation. Our 33% revenue growth for Q1 was a solid start for the year. That, combined with strong momentum coming into Q2, begins what we believe will be a record quarter, leading to another excellent year for SITO Mobile," said Rory O’Connell, Interim chief executive officer of SITO Mobile. "We are growing our customer base, campaign volume and average campaign dollars. We are growing in our established vertical markets including retail, automotive and consumer products and we are also expanding in entertainment, tourism and state and local government markets. On this strong foundation, we believe the second quarter will deliver revenues in the range of $10-$13 million."

Days sales outstanding went down to 52 days for the quarter compared with 58 days for the same period last year.