TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting services, today announced financial results for the fourth quarter and fiscal year ended May 31, 2013.
For the quarter ended May 31st, revenue increased 7.9% from the same quarter last year to $12.6 million. Net income attributable to TSR for the current quarter was $11,000 as compared to a net loss attributable to TSR of $48,000 in the prior year quarter. Additionally, net income per share for the current quarter was $0.01 compared to a loss of $0.02 per share in the prior year quarter.
For the year ended May 31st, revenue decreased 0.7% from last year to $44.9 million. Net loss attributable to TSR increased from a loss of $62,000 in the prior year to a loss of $520,000 in the current year. Additionally, net loss per share increased from a loss of $0.03 to a loss of $0.26.
Joe Hughes, CEO, stated, “Our revenue increase of 7.9% for the fourth quarter was the first sign of improved growth resulting from the efforts of our new hires in sales and recruiting. The increase in revenue resulted primarily from the average number of consultants on billing with customers increasing from 266 in the quarter ended May 31, 2012 to 301 in the quarter ended May 31, 2013. This increase was somewhat muted by a reduction in billing rates which resulted from a shift in the business mix. A higher percentage of new placements have been with customers where there is stronger competition due to managed services programs. The increase in net loss for the fiscal year was primarily attributable to an increase of selling, general and administrative expenses. These increased expenses are associated with hiring and training recent college graduates to become technical recruiters and the increase in expenses associated with the hiring of new sales professionals. Profitability will continue to be affected until such time as these new sales and recruiting hires contribute to a sufficient increase in revenue.”
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.
Three Months Ended | Fiscal Year Ended | ||||||||||||||
May 31, | May 31, | May 31, | May 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
| Revenue, net | $ | 12,550,000 | $ | 11,634,000 | $ | 44,914,000 | $ | 45,215,000 | |||||||
| Operating expenses | 12,517,000 | 11,680,000 | 45,630,000 | 45,217,000 | |||||||||||
| Income (loss) from operations | 33,000 | (46,000 | ) | (716,000 | ) | (2,000 | ) | ||||||||
| Other income, net | 5,000 | 2,000 | 13,000 | 15,000 | |||||||||||
| Pre-tax income (loss) | 38,000 | (44,000 | ) | (703,000 | ) | 13,000 | |||||||||
| Income taxes (benefit) | 18,000 | (13,000 | ) | (214,000 | ) | 25,000 | |||||||||
Net income (loss) | 20,000 | (31,000 | ) | (489,000 | ) | (12,000 | ) | ||||||||
Less: Net income attributable to noncontrolling interest | 9,000 | 17,000 | 31,000 | 50,000 | |||||||||||
| Net income (loss) attributable to TSR, Inc. | $ | 11,000 | $ | (48,000 | ) | $ | (520,000 | ) | $ | (62,000 | ) | ||||
| Net income (loss) per TSR, Inc. common share | $ | 0.01 | $ | (0.02 | ) | $ | (0.26 | ) | $ | (0.03 | ) | ||||
| Weighted average common shares outstanding | 1,962,000 | 1,984,000 | 1,971,000 | 1,999,000 | |||||||||||
Contacts:
John Sharkey, 631-231-0333
