Revenue during the quarter went down marginally by 2.51 percent to $14 million from $14.36 million in the previous year period. Gross margin for the quarter expanded 254 basis points over the previous year period to 43.53 percent. Total expenses were 89.88 percent of quarterly revenues, down from 93.46 percent for the same period last year. This has led to an improvement of 358 basis points in operating margin to 10.12 percent.

Operating income for the quarter was $1.42 million, compared with $0.94 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $1.87 million compared with $1.41 million in the prior year period. At the same time, adjusted EBITDA margin improved 354 basis points in the quarter to 13.35 percent from 9.81 percent in the last year period.

Bart Shuldman, chairman and chief executive officer of TransAct, commented, "In the 2017 first quarter, we continued to benefit from the diversification of our business towards higher margin, higher value technology driven solutions. As a result, a 250 basis point year-over-year improvement in gross margin helped drive a 51% rise in net income, 63% growth in diluted EPS and a 36% increase in EBITDA."

Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 131 days for the last year period. Days sales outstanding were almost stable at 53 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 57 days for the quarter compared with 114 days for the previous year period. At the same time, days payable outstanding was almost stable at 35 days for the quarter, when compared with the previous year period.