TSR, Inc. TSRI, a provider of computer programming consulting services, today announced financial results for the second quarter ended November 30, 2019.
For the quarter ended November 30, 2019, revenue decreased 7.1% from the same quarter last year to $15.2 million. Net income attributable to TSR for the current quarter was $62,000 as compared to net loss attributable to TSR of $97,000 in the prior year quarter. Additionally, net income per share for the current quarter was $0.03 compared to net loss per share of $0.05 in the prior year quarter.
Christopher Hughes, CEO, stated, "Despite revenue decreasing 7.1% for the first quarter, the Company managed to achieve profitability. The revenue decrease was due to a decrease in average billing rates for IT consultants on billing with customers resulting from a shift in business mix with fewer placements for high end skills across the customer base. Cost of sales decreased at a lower percentage rate than revenue, yielding a decrease in gross margin, but the Company remained profitable. Selling, general and administrative expenses decreased by $496,000 for the quarter. The decrease in SG&A was due to a decrease in professional and advisory fees of $393,000 in connection with the settlement of various lawsuits and the contested proxy solicitation relating to our 2018 annual meeting, which had been rescheduled and was held on October, 22, 2019."
The Company will file its 10Q today with further details at www.sec.gov.
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 statements concerning the success of the Company's plan for growth, both internal and through the previously announced pursuit of suitable acquisition candidates; 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; the Company's ability to adapt to changing market conditions; the risks, uncertainties and expense of the legal proceedings to which the Company is a party; 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 |
 | Six Months Ended |
|||||||||||
 |
 | November 30, 2019 |
 | November 30, 2018 |
 | November 30, 2019 |
 | November 30, 2018 |
|||||||
Revenue, net |
 | $ |
15,234,000 |
 | $ |
16,402,000 |
 |
 | $ |
30,180,000 |
 |
 | $ |
32,983,000 |
 |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Cost of Sales |
 |  |
12,784,000 |
 |  |
13,644,000 |
 |
 |  |
25,455,000 |
 |
 |  |
27,628,000 |
 |
Selling, general and administrative expenses |
 |  |
2,386,000 |
 |  |
2,882,000 |
 |
 |  |
5,575,000 |
 |
 |  |
5,403,000 |
 |
 |
 |  |
15,170,000 |
 |  |
16,526,000 |
 |
 |  |
31,030,000 |
 |
 |  |
33,031,000 |
 |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Income (loss) from operations |
 |  |
64,000 |
 |  |
(124,000 |
) |
 |  |
(850,000 |
) |
 |  |
(48,000 |
) |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Other income (loss), net |
 |  |
12,000 |
 |  |
6,000 |
 |
 |  |
19,000 |
 |
 |  |
5,000 |
 |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Pre-tax income (loss) |
 |  |
76,000 |
 |  |
(118,000 |
) |
 |  |
(831,000 |
) |
 |  |
(43,000 |
) |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Provision for (benefit from) income taxes |
 |  8,000 |
 |  (31,000 |
) |
 |  (239,000 |
) |
 |  (12,000 |
) |
||||
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Consolidated net income (loss) |
 |  |
68,000 |
 |  |
(87,000 |
) |
 |  |
(592,000 |
) |
 |  |
(31,000 |
) |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Less: Net income attributable to noncontrolling interest |
 |  |
 6,000 |
 |  |
 10,000 |
 |
 |  |
10,000 |
 |
 |  |
28,000 |
 |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Net income (loss) attributable to TSR, Inc. |
 |  $ |
62,000 |
 |  $ |
(97,000 |
) |
 | $ |
(602,000 |
) |
 | $ |
(59,000 |
) |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Basic and dilutes net income (loss) per TSR, Inc. common share |
 |  $ |
0.03 |
 |  $ |
(0.05 |
) |
 | $ |
(0.31 |
) |
 | $ |
(0.03 |
) |
 |
 |  |
 |  |
 |  |
 |  |
|||||||
Basic and diluted weighted average common shares outstanding |
 |  |
 1,962,000 |
 |  |
 1,962,000 |
 |
 |  |
1,962,000 |
 |
 |  |
1,962,000 |
 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200113005711/en/
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