TSR, Inc. Reports Financial Results for the Third Quarter Ended February 28, 2013

  TSR, Inc. Reports Financial Results for the Third Quarter Ended February 28,
  2013

Business Wire

HAUPPAUGE, N.Y. -- April 8, 2013

TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting
services, today announced financial results for the third quarter ended
February 28, 2013.

For the quarter ended February 28th, revenue decreased 5.2% from the same
quarter last year to $10.5 million. Net loss attributable to TSR increased
from $93,000 in the prior year quarter to a loss of $255,000 in the current
quarter. Additionally, net loss per share increased from $0.05 to a loss of
$0.13.

Joe Hughes, CEO, stated, “Selling, general and administrative 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
decreased despite a small increase in contractors on billing with customers
due to a combination of reduced average billing rates for the contractors on
billing with customers and a lower number of billable workdays in the current
quarter as compared with the prior year quarter. The reduction in billing
rates for the current quarter resulted from a shift in the business mix as a
higher percentage of new placements have been with customers where there is
stronger competition due to managed vendor services programs.”

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.

                (Unaudited)                      (Unaudited)
                 Three Months Ended                Nine Months Ended
                 February, 28    February 29,     February 28,    February 29,
                 2013             2012             2013             2012
                                                                                 
Revenue, net     $ 10,515,000     $ 11,093,000     $ 32,364,000     $ 33,581,000
                                                                                 
Operating          10,892,000       11,233,000       33,113,000       33,536,000
expenses
                                                                                 
Income (loss)
from               (377,000   )     (140,000   )     (749,000   )     45,000
operations
                                                                                 
Other income       7,000            5,000            7,000            13,000
net
                                                                                 
Pre-tax income     (370,000   )     (135,000   )     (742,000   )     58,000
(loss)
                                                                                 
Income taxes       (116,000   )     (53,000    )     (232,000   )     38,000
(benefit)
                                                                                 
Consolidated
net income         (254,000   )     (82,000    )     (510,000   )     20,000
(loss)
                                                                   
Less: Net
income
attributable       1,000            11,000           21,000           34,000
to
noncontrolling
interest

Net loss
attributable     $ (255,000   )   $ (93,000    )   $ (531,000   )   $ (14,000    )
to
TSR, Inc.
Basic and
diluted net
loss per         $ (0.13      )   $ (0.05      )   $ (0.27      )   $ (0.01      )
TSR, Inc.
common share
                                                                                 
Weighted
average basic
and diluted        1,962,000        1,990,000        1,975,000        2,004,000
common shares
outstanding

Contact:

TSR, Inc.
John Sharkey
631-231-0333
 
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