TSR, Inc. Reports Financial Results For The Third Quarter Ended February 29, 2012

TSR, Inc., (Nasdaq: TSRI) a provider of computer programming consulting services, today announced financial results for the third quarter ended February 29, 2012.

For the quarter ended February 29th, revenue increased 18.3% from the same quarter last year to $11.1 million. Net loss attributable to TSR increased from $67,000 in the prior year quarter to $93,000 in the current quarter. Additionally, net loss per share increased from $0.03 to $0.05.

Joe Hughes, CEO, stated, “Our revenue increase of 18.3% for the third quarter was overshadowed by an increase of 38.8% in the net loss for the period. The increase in revenue resulted primarily from the average number of consultants on billing with customers increasing from 238 in the quarter ending February 28, 2011 to 270 in the quarter ending February 29, 2012. The increase in the net loss was primarily attributable to an increase of cost of sales as a percentage of revenue and also to the increased expenses associated with hiring and training junior technical recruiters. 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.”

Certain statements contained herein, including statements as to the Company’s plans, are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties, including but not limited to the following: the impact of adverse economic conditions on the Company’s business; risks relating to the competitive nature of the markets for contract computer programming services; the extent to which market conditions for the Company’s contract computer programming services will continue to adversely affect the Company’s business; the concentration of the Company’s business with certain customers; uncertainty as to the Company’s ability to maintain its relations with existing customers and expand its business; the impact of changes in the industry and the Company’s ability to adapt to changing market conditions and other risks and uncertainties described in the Company’s filings under the Securities Exchange Act of 1934. The Company is under no obligation to publicly update or revise forward-looking statements.

Based in Hauppauge, New York, TSR, Inc., provides information technology professionals to major corporations.

 

Three Months Ended
 

Nine Months Ended

(unaudited)

(unaudited)

February, 29
 

February 28,

February 29,
 

February 28,

2012

2011

2012

2011
Revenue, net $ 11,093,000 $ 9,377,000 $ 33,581,000 $ 28,498,000
 
Operating expenses 11,233,000   9,460,000   33,536,000   28,219,000  
 
Income (loss) from operations (140,000 ) (83,000 ) 45,000 279,000
 
Other income, net 5,000   5,000   13,000   16,000  
 
Pre-tax income (loss) (135,000 ) (78,000 ) 58,000 295,000
 
Income taxes (benefit) (53,000 ) (17,000 ) 38,000   140,000  
 

Net income (loss)

(82,000

)

(61,000

)

20,000

155,000
 

Less: Net income attributable to noncontrolling interest

11,000

6,000

34,000

50,000
 

Net income (loss) attributable to TSR, Inc.

$

(93,000

)

$

(67,000

)

$

(14,000

)

$

105,000
 
 
Net income (loss) per TSR, Inc. common share

$

(0.05

)

$

(0.03

)

$

(0.01

)

$

0.05
 
 
Weighted average common shares outstanding

1,990,000
 

2,019,000
 

2,004,000
 

2,020,000
 

Copyright Business Wire 2010

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