TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended May 31, 2013

  TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year
  Ended May 31, 2013

Business Wire

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

TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting
services, today announced financial results for the fourth quarter and fiscal
year ended May 31, 2013.

For the quarter ended May 31st, revenue increased 7.9% from the same quarter
last year to $12.6 million. Net income attributable to TSR for the current
quarter was $11,000 as compared to a net loss attributable to TSR of $48,000
in the prior year quarter. Additionally, net income per share for the current
quarter was $0.01 compared to a loss of $0.02 per share in the prior year
quarter.

For the year ended May 31st, revenue decreased 0.7% from last year to $44.9
million. Net loss attributable to TSR increased from a loss of $62,000 in the
prior year to a loss of $520,000 in the current year. Additionally, net loss
per share increased from a loss of $0.03 to a loss of $0.26.

Joe Hughes, CEO, stated, “Our revenue increase of 7.9% for the fourth quarter
was the first sign of improved growth resulting from the efforts of our new
hires in sales and recruiting. The increase in revenue resulted primarily from
the average number of consultants on billing with customers increasing from
266 in the quarter ended May 31, 2012 to 301 in the quarter ended May 31,
2013. This increase was somewhat muted by a reduction in billing rates which
resulted from a shift in the business mix. A higher percentage of new
placements have been with customers where there is stronger competition due to
managed services programs. The increase in net loss for the fiscal year was
primarily attributable to an increase of selling, general and administrative
expenses. These increased expenses are associated with hiring and training
recent college graduates to become technical recruiters and the increase in
expenses associated with the hiring of new sales professionals. Profitability
will continue to be affected until such time as these new sales and recruiting
hires contribute to a sufficient increase in revenue.”

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 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 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             Fiscal Year Ended
                                                 
                 May 31,       May 31,          May 31,         May 31,
                 2013           2012             2013             2012
                                                                  
Revenue, net     $ 12,550,000   $ 11,634,000     $ 44,914,000     $ 45,215,000
                                                                  
Operating         12,517,000    11,680,000     45,630,000     45,217,000 
expenses
                                                                  
Income (loss)
from               33,000         (46,000    )     (716,000   )     (2,000     )
operations
                                                                  
Other income,     5,000         2,000          13,000         15,000     
net
                                                                  
Pre-tax income     38,000         (44,000    )     (703,000   )     13,000
(loss)
                                                                  
Income taxes      18,000        (13,000    )    (214,000   )    25,000     
(benefit)
                                                                  
Net income         20,000         (31,000    )     (489,000   )     (12,000    )
(loss)
                                                                               
Less: Net
income
attributable      9,000         17,000         31,000         50,000     
to
noncontrolling
interest
                                                                               
Net income
(loss)           $ 11,000       $ (48,000    )   $ (520,000   )   $ (62,000    )
attributable
to TSR, Inc.
                                                                               
Net income
(loss) per       $ 0.01         $ (0.02      )   $ (0.26      )   $ (0.03      )
TSR, Inc.
common share
                                                                  
Weighted
average common    1,962,000     1,984,000      1,971,000      1,999,000  
shares
outstanding

Contact:

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