Revenue during the quarter dropped 4.69 percent to $47.34 million from $49.67 million in the previous year period. Gross margin for the quarter expanded 64 basis points over the previous year period to 32.30 percent. Operating margin for the quarter period stood at positive 2.22 percent as compared to a negative 0.20 percent for the previous year period.

Operating income for the quarter was $1.05 million, compared with an operating loss of $0.10 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $2.36 million compared with $3.17 million in the prior year period. At the same time, adjusted EBITDA margin contracted 139 basis points in the quarter to 4.99 percent from 6.38 percent in the last year period.

"We began fiscal 2017 with strong margins while focusing on initiatives to further improve top line growth and overall operating performance,” said Mark Messner, president and chief executive officer. “We posted a third quarter of positive EPS within the last twelve months and, given current demand trends, are optimistic about the quarters to come. While revenue was negatively impacted by a challenging brick and mortar retail environment, we saw double-digit sales expansion both online and internationally and took additional strategic measures to streamline our product development efforts. We feel confident that steps already taken will positively impact financial results through the remainder of 2017 and beyond."