Revenue during the quarter dropped 13.39 percent to $7.32 million from $8.46 million in the previous year period. Gross margin for the quarter contracted 603 basis points over the previous year period to 43.71 percent. Operating margin for the quarter stood at negative 23.47 percent as compared to a negative 22.69 percent for the previous year period.

Operating loss for the quarter was $1.72 million, compared with an operating loss of $1.92 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $0.95 million compared with $0.02 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 12.91 percent for the quarter compared to 0.27 percent in the last year period.

Brendan Reidy, chief executive officer of Top Image Systems, commented, "The transformation of our company continues and, though the process will take time, we are achieving early results which creates the foundation for a return to profitability and growth. We made progress against our three key priorities: protecting our core remittance and forms processing business; introducing continuous efficiency improvements into our operations; and making prudent investments in high-velocity cloud applications. We continue to carry out successful forms processing and receivables automation projects, to consolidate our operations and increase operating efficiency and to invest in the development of our eFLOW AP on-site and cloud-based solutions. I am confident that the end result will be the transformation of our company into a nimble, high-growth, cloud applications and services business to maximize shareholder value."