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.”
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 | Fiscal Year Ended | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
May 31, | May 31, | May 31, | May 31, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue, net | $ | 11,634,000 | $ | 10,844,0000 | $ | 45,215,000 | $ | 39,342,000 | ||||||||
| Operating expenses | 11,669,000 | 10,641,000 | 45,206,000 | 38,860,000 | ||||||||||||
| Income (loss) from operations | (35,000 | ) | 203,000 | 9,000 | 482,000 | |||||||||||
| Other income, net | 2,000 | 5,000 | 15,000 | 21,000 | ||||||||||||
| Pre-tax income (loss) | (33,000 | ) | 208,000 | 24,000 | 503,000 | |||||||||||
| Income taxes (benefit) | (2,000 | ) | 102,000 | 36,000 | 242,000 | |||||||||||
| Net income (loss) | (31,000 | ) | 106,000 | (12,000 | ) | 261,000 | ||||||||||
| Less: Net income attributable to | ||||||||||||||||
| noncontrolling interest | 17,000 | 14,000 | 50,000 | 64,000 | ||||||||||||
| Net income (loss) attributable to | ||||||||||||||||
| TSR, Inc. | $ | (48,000 | ) | $ | 92,000 | $ | (62,000 | ) | $ | 197,000 | ||||||
| Net income (loss) per TSR, Inc. | ||||||||||||||||
| common share | $ | (0.02 | ) | $ | 0.04 | $ | (0.03 | ) | $ | 0.10 | ||||||
| Weighted average common shares | ||||||||||||||||
| outstanding | 1,984,000 | 2,019,000 | 1,999,000 | 2,020,000 | ||||||||||||
Contacts:
John Sharkey, 631-231-0333
