TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting services, today announced financial results for the fourth quarter ended May 31, 2012.
For the quarter ended May 31st, revenue increased 7.3% from the same quarter last year to $11.6 million. Net income (loss) attributable to TSR decreased from income of $92,000 in the prior year quarter to a loss of $48,000 in the current quarter. Additionally, net income (loss) per share decreased from income of $0.04 to a loss of $0.02.
For the year ended May 31st, revenue increased 14.9% from last year to $45.2 million. Net income (loss) attributable to TSR decreased from income of $197,000 in the prior year to a loss of $62,000 in the current year. Additionally, net income (loss) per share decreased from income of $0.10 to a loss of $0.03.
Joe Hughes, CEO, stated, “Our revenue increase of 7.3% for the fourth quarter was overshadowed by the net loss for the period. The increase in revenue resulted primarily from the average number of consultants on billing with customers increasing from 252 in the quarter ending May 31, 2011 to 266 in the quarter ending May 31, 2012. The net loss was primarily attributable to an increase of cost of sales as a percentage of revenue. The increase in cost of sales as a percentage of revenue resulted from far more demanding client specifications, billing rate reductions and other competitive pressures. These increased competitive pressures have negatively impacted our gross profit percentages, which pressures were evidenced in the current quarter by rate and margin reductions at several of our major financial services customers enacted in the third fiscal quarter. In addition, the increased expenses associated with hiring and training junior technical recruiters and the increase in expenses associated with the hiring of new sales professionals contributed to the net loss.”