TSR, Inc. Reports Financial Results for the Second Quarter Ended November 30, 2012

  TSR, Inc. Reports Financial Results for the Second Quarter Ended November
  30, 2012

Business Wire

HAUPPAUGE, N.Y. -- January 9, 2013

TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting
services, today announced financial results for the second quarter ended
November 30, 2012.

For the quarter ended November 30th, revenue decreased 5.0% from the same
quarter last year to $10.6 million. Net income (loss) attributable to TSR
decreased from income of $32,000 in the prior year quarter to a loss of
$182,000 in the current quarter. Additionally, net income (loss) per share
decreased from income of $0.02 to a loss of $0.09.

Joe Hughes, CEO, stated, “Expenses continue to increase as part of our plan
for internal growth. These include the costs relating to an increase in the
number of recruiting and sales personnel and costs associated with our
recruiting training program. Losses will be incurred until such time as these
recruiting trainees and new sales hires contribute to a sufficient increase in
revenue. Revenue for the quarter was impacted by the loss of billable workdays
for our contractors on billing with customers due to the effects of tropical
storm Sandy.”

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 success of the
Company’s plan for internal growth, 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, 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.

Based in Hauppauge, New York, TSR, Inc., provides information technology
professionals to major corporations.

                     Three Months Ended            Six Months Ended
                                                
                     November 30,                  November 30,
                     (unaudited)                   (unaudited)
                                                   
                     2012          2011           2012          2011
                                                                  
Revenue, net         $ 10,560,000   $ 11,115,000   $ 21,849,000   $ 22,488,000
                                                                  
Operating expenses   10,819,000     11,039,000     22,221,000     22,304,000
                                                                  
Income (loss) from   (259,000)      76,000         (372,000)      184,000
operations
                                                                  
Other income         (1,000)        7,000          1,000          9,000
(loss), net
                                                                  
Pre-tax income       (260,000)      83,000         (371,000)      193,000
(loss)
                                                                  
Income taxes         (79,000)       44,000         (116,000)      91,000
(benefit)
                                                                  
Consolidated net     (181,000)      39,000         (255,000)      102,000
income (loss)
                                                                  
Less: Net income                                                 
attributable to
noncontrolling       1,000          7,000          21,000         23,000
interest
                                                               
Net income (loss)
attributable to
TSR, Inc.            $ (182,000)    $ 32,000       $ (276,000)    $ 79,000
                                                                  
Basic and diluted
net income (loss)    $ (0.09)       $ 0.02         $ (0.14)       $ 0.04
per TSR, Inc.
common share
                                                                  
Weighted average
basic and diluted    1,980,000      2,004,000      1,981,000      2,012,000
common shares
outstanding

Contact:

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