TSR, Inc., (Nasdaq: TSRI) a provider of computer programming consulting services, today announced financial results for the second quarter ended November 30, 2011.

For the quarter ended November 30th, revenue increased 13.9% from the same quarter last year to $11.1 million. Net income attributable to TSR decreased from $150,000 in the prior year quarter to $32,000 in the current quarter. Additionally, net income per share decreased from $0.07 to $0.02.

Joe Hughes, CEO, stated, "The increase in revenue for the second quarter of 13.9% resulted primarily from the average number of consultants on billing with customers increasing from 232 for the quarter ended November 30, 2010 to 265 for the current quarter. However, although revenue increased, expenses continue to increase at a greater rate than revenue due to increased recruiting and other costs resulting from more demanding client specifications, pricing and other competitive pressures, as well as increased costs relating to training entry level recruiters. The increased competitive pressures have also negatively impacted our gross profit percentages.

"The turmoil in the world economy, particularly the effects on financial institutions, has shown there is still significant uncertainty in the economic environment. Negotiating the business through these uncertain times has been and will continue to be a challenge."

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
November 30,
(unaudited)

   

Six Months Ended
November 30,
(unaudited)

   

2011

2010

2011

2010

Revenue, net $ 11,115,000 $ 9,757,000 $ 22,488,000 $ 19,121,000
 
Operating expenses   11,039,000   9,466,000   22,304,000   18,759,000
 
Income from operations 76,000 291,000 184,000 362,000
 
Other income, net   7,000   8,000   9,000   11,000
 
Pre-tax income 83,000 299,000 193,000 373,000
 
Income taxes   44,000   124,000   91,000   157,000
 

Net income

39,000

175,000

102,000

216,000

 

Less: Net income attributable to noncontrolling interest

 

7,000

  

25,000

  

23,000

  

44,000

 

Net income attributable to TSR, Inc.

$

32,000

$

150,000

$

79,000

$

172,000

 

Net income per TSR, Inc. common share

$

0.02

$

0.07

$

0.04

$

0.09

 
Weighted average common shares outstanding  

2,004,000

  

2,019,000

  

2,012,000

  

2,020,000

TSR, Inc.
John Sharkey, 631-231-0333