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, |
August 31, | |||||||||
| 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 | ||||||||
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Contacts:
John Sharkey, 631-231-0333
