| [October 10, 2008] |
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TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2008 and Declares Quarterly Dividend of $0.05 Per Share
HAUPPAUGE, N.Y. --(Business Wire)-- TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting services, today announced financial results for the first quarter ended August 31, 2008.
For the quarter, which ended August 31st, revenue decreased 10.2% from the same quarter last year to $12.2 million. Consolidated net income decreased 51.9% from the comparable period to $215,000. Additionally, earnings per share decreased from $0.10 to $0.05 per share.
The Company also announced that the Board of Directors had declared a cash dividend of $0.05 per share for its first fiscal quarter. After careful consideration, the Board of Directors decided to decrease the quarterly dividend to $0.05 from $0.08 per share beginning with the quarter ending August 31, 2008. The dividend will be payable November 10, 2008 to shareholders of record as of October 24, 2008. This action will bring the dividend more in line with current earnings. The Board will reevaluate the dividend if there is a continued decline in earnings.
Joe Hughes, CEO, stated, "Revenue for the quarter ended August 31, 2008 decreased 10.2% from the prior year quarter. The decrease in revenue resulted primarily from the average number of consultants on billing with customers decreasing from 336 in the quarter ended August 31, 2007 to 299 in the quarter ended August 31, 2008. Net income decreased approximately 52% as customers have continued to reduce our margins and we have continued to invest in hiring new sales people to promote future growth."
"As a result of the current economic downturn, and the uncertainty in the financial services industry, the Company believes that it will continue to be impacted by decreases in IT spending resulting from economic conditions and that the impact is likely to be greater in the financial services industry. The Company derived approximately 20 percent of its revenues from banking and brokerage customers in fiscal 2008."
"One of the Company's financial services clients, Lehman Brothers Holding, Inc., recently filed for bankruptcy. The agreement relating to these services has been assumed in connection with the sale of Lehman's broker dealer subsidiary, and, as a result, the Company has received payment in full for amounts due through the date of the bankruptcy filing. However, the Company cannot predict the extent to which the Lehman bankruptcy or these conditions will affect the number of consultants on billing with customers."
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 current adverse conditions in the credit markets and current 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.
Based in Hauppauge, New York, TSR, Inc., provides information technology professionals to major corporations.
Three Months Ended
August 31,
2008 2007
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(unaudited) (unaudited)
Revenue, net $12,150,000 $13,525,000
Operating expenses 11,828,000 12,815,000
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Income from operations 322,000 710,000
Other income, net 58,000 85,000
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Pre-tax income 380,000 795,000
Income taxes 165,000 348,000
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Net income $ 215,000 $ 447,000
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Basic and diluted net income per common share $ 0.05 $ 0.10
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Weighted average number of basic and diluted
common shares outstanding 4,565,000 4,568,000
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