TSR Inc. (TSRI) filed Quarterly Report for the period ended 2010-11-30.

Tsr Inc. has a market cap of $9.9 million; its shares were traded at around $4.88 with a P/E ratio of 81.4 and P/S ratio of 0.3.

Highlight of Business Operations:

Cost of sales for the quarter ended November 30, 2010, increased $200,000 or 2.6% to $7,854,000 from $7,654,000 in the prior year period. The increase in cost of sales resulted primarily from the increase in the number of consultants on billing with clients. Cost of sales as a percentage of revenue decreased from 81.9% in the quarter ended November 30, 2009 to 80.5% in the quarter ended November 30, 2010. The decrease in cost of sales as a percentage of revenue was primarily attributable to a reduced discount structure at one of the Company s major accounts.

Income from operations increased $122,000 from $170,000 in the quarter ended November 30, 2009 to $292,000 in the quarter ended November 30, 2010. The increase was primarily attributable to the increase in revenue and the reduced discount structure at a major client.

Cost of sales for the six months ended November 30, 2010, increased $409,000 or 2.7% to $15,510,000 from $15,101,000 in the prior year period. The increase in cost of sales resulted primarily from the increase in the number of consultants on billing with clients. Cost of sales as a percentage of revenue decreased from 81.9% in the six months ended November 30, 2009 to 81.1% in the six months ended November 30, 2010. The decrease in cost of sales as a percentage of revenue was primarily attributable to a reduced discount structure at one of the Company s major accounts.

Income from operations increased $72,000 from $290,000 in the six months ended November 30, 2009 to $362,000 in the six months ended November 30, 2010. The increase was primarily attributable to the increase in revenue and the reduced discount structure at a major client.

At November 30, 2010, the Company had working capital (total current assets in excess of total current liabilities) of $12,643,000 including cash and cash equivalents and certificates of deposit and marketable securities of $7,365,000 as compared to working capital of $12,455,000 including cash and cash equivalents and certificates of deposit and marketable securities of $8,685,000 at May 31, 2010.

For the six months ended November 30, 2010, net cash used in operating activities was $1,285,000 compared to cash used in operating activities of $754,000 for the six months ended November 30, 2009, or an increase in cash used in operating activities of $531,000. The cash used in operating activities primarily resulted from an increase in accounts receivable of $1,886,000. The increase in accounts receivable resulted primarily from additional customers extending their payment terms from sixty to ninety days. The cash used in operating activities in the six months ended November 30, 2009, resulted primarily from an increase in accounts receivable.

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