Papa Murphy's Holdings, Inc. (FRSH) swung to a net loss for the quarter ended Apr. 03, 2017. The company has made a net loss of $5.41 million, or $ 0.32 a share in the quarter, against a net profit of $0.64 million, or $0.04 a share in the last year period.

Revenue during the quarter dropped 3 percent to $31.99 million from $32.98 million in the previous year period. Gross margin for the quarter contracted 165 basis points over the previous year period to 65.19 percent. Operating margin for the quarter stood at negative 24.83 percent as compared to a positive 7.04 percent for the previous year period.

Operating loss for the quarter was $7.94 million, compared with an operating income of $2.32 million in the previous year period.

Jean Birch, board bhair and interim chief executive officer of Papa Murphy's Holdings, Inc., stated, "We firmly believe that the key to long-term and sustainable growth of shareholder value is an engaged and thriving franchise base. Obviously, the overall results of our national cable TV test were disappointing, but these learnings reinforce our focus on facilitating growth for our franchise owners through local store marketing, product innovation and improved customer convenience. The progress we've made on our refranchising strategy, along with our recent restructuring, will allow us to more effectively manage our resources in support of our franchise owners. We believe we now have the right people focused on the right things to return this business to sustained growth and profitability, creating long-term value for all of our stakeholders."

For the fiscal year 2017, Papa Murphy's Holdings, Inc. expects revenue to decline by 2 percent.