TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2018.

HAUPPAUGE, N.Y.–(BUSINESS WIRE)–TSR, Inc. (Nasdaq:TSRI), a provider of computer programming consulting
services, today announced financial results for the first quarter ended
August 31, 2018.

For the quarter ended August 31, 2018, revenue decreased 2.7% from the
same quarter last year to $16.6 million. Net income attributable to TSR
for the current quarter was $38,000 as compared to $141,000 in the prior
year quarter. Additionally, net income per share for the current quarter
was $0.02 compared to $0.07 per share in the prior year quarter.

Christopher Hughes, CEO, stated, “Our revenue decreased 2.7% for the
first quarter reflecting a decrease in consultants on billing with
customers and a higher discount plan put in place for a major customer.
The overall average number of consultants on billing with customers
decreased from 394 for the quarter ended August 31, 2017 to 389 for the
quarter ended August 31, 2018, while the average number of computer
programming consultants decreased from 341 in the quarter ended August
31, 2017 to 329 in the current quarter. The 389 consultants on billing
for the current quarter include an equivalent 60 administrative workers,
compared with an equivalent 53 administrative workers in the prior year
quarter. While selling, general and administrative expenses decreased,
they were higher than expected due to a significant increase in
professional and advisory fees.”

Certain statements contained herein, including statements as to the
Company’s plans, future prospects and future cash flow requirements 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 success of the Company’s plan for internal growth, the
impact of adverse economic conditions on client spending which has a
negative impact 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 such as the use of vendor management
companies in connection with the consultant procurement process; the
increase in customers moving IT operations offshore 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
 

August 31,
2018

   

August 31,
2017

Revenue, net $ 16,581,000 $ 17,037,000
 
Cost of Sales 13,985,000 14,193,000
Selling, general and
administrative expenses   2,520,000     2,568,000
Total operating expenses   16,505,000     16,761,000
 
Income from operations 76,000 276,000
 
Other income (loss), net   (1,000 )   2,000
 
Pre-tax income 75,000 278,000
 
Income tax provision   19,000     118,000
 
Consolidated net income 56,000 160,000
 
Less: Net income attributable to

noncontrolling interest

 

18,000

   

19,000

 
Net income attributable to

TSR, Inc.

$

38,000

 

$

141,000

 
Net income per TSR, Inc.

common share

$

0.02

 

$

0.07

 
Weighted average common shares outstanding  

1,962,000

   

1,962,000

 

Contacts

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

leverton

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