TSR Inc. (TSRI, Financial) filed Quarterly Report for the period ended 2009-08-31.
TSR INC. is primarily engaged in the business of providing contract computer programming services to its clients. They provide technical computer personnel to companies to supplement their in-house information technology capabilities. Tsr Inc. has a market cap of $8.3 million; its shares were traded at around $2.05 with a P/E ratio of 14.6 and P/S ratio of 0.2.
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Cost of sales for the quarter ended August 31, 2009, decreased $2,582,000 or
25.7% to $7,446,000 from $10,028,000 in the prior year period. The decrease in
cost of sales resulted primarily from the decrease in the number of consultants
on billing with clients. Cost of sales as a percentage of revenue decreased from
82.5% in the quarter ended August 31, 2008 to 81.9% in the quarter ended August
31, 2009. The decrease in cost of sales as a percentage of revenue was primarily
attributable to the significant reduction of consultants on billing with AT&T,
which has historically been the Company's lowest margin (highest cost of sales
as a percentage of revenue) business.
Selling, General and Administrative Expenses
-
Selling, general and administrative expenses consist primarily of expenses
relating to account executives, technical recruiters, facilities costs,
management and corporate overhead. These expenses decreased $274,000 or 15.2%
from $1,800,000 in the quarter ended August 31, 2008 to $1,526,000 in the
quarter ended August 31, 2009. This decrease was primarily attributable to a
reduction in the number of sales and recruiting personnel and lower commissions
paid to the remaining sales and recruiting personnel due to lower revenue.
Technical recruiters and account executives have been terminated in order to
lessen the impact of the Company's reduced level of business activity. However,
while selling, general and administrative expenses decreased, these expenses as
a percentage of revenue increased from 14.8% in the quarter ended August 31,
2008 to 16.8% in the quarter ended August 31, 2009 as a result of lower sales.
Income from Operations
-
Income from operations decreased $202,000 or 62.7% from $322,000 in the quarter
ended August 31, 2008 to $120,000 in the quarter ended August 31, 2009. The
decrease was primarily attributable to the reduced revenue from the decrease in
the number of consultants on billing with customers.
At August 31, 2009, the Company had working capital of $12,368,000 including
cash and cash equivalents of $3,859,000 as compared to working capital of
$12,288,000 including cash and cash equivalents of $4,075,000 at May 31, 2009.
The Company's working capital also included $4,513,000 and $4,509,000 of
marketable securities with maturities of less than one year at August 31, 2009
and May 31, 2009, respectively.
For the three months ended August 31, 2009, net cash used in operating
activities was $208,000 compared to cash used of $715,000 for the three months
ended August 31, 2008, or an increase of $507,000. The cash used in operating
activities primarily resulted from an increase in accounts receivable of
$404,000 offset by net income and an increase in accounts and other payables and
accrued expenses and other current liabilities of $115,000. The increase in
accounts receivable resulted primarily from several accounts extending their
payment terms from sixty to ninety days. The cash used by operating activities
in the three months ended August 31, 2008, resulted primarily from an increase
in accounts receivable.
Tabular Disclosure of Contractual Obligations
-
Payments Due By Period
Contractual Obligations Less than More than
- Total 1 Year 1-3 Years 3-5 Years 5 Years
- - - - -
Operating Leases.................... $1,123,000 $ 366,000 $ 600,000 $ 157,000 $ -
Employment Agreements............... 631,000 331,000 300,000 - -
- - - - -
Totals.............................. $1,754,000 $ 697,000 $ 900,000 $ 157,000 $ -
= = = = =
Page 14
TSR, INC. AND SUBSIDIARIES
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TSR INC. is primarily engaged in the business of providing contract computer programming services to its clients. They provide technical computer personnel to companies to supplement their in-house information technology capabilities. Tsr Inc. has a market cap of $8.3 million; its shares were traded at around $2.05 with a P/E ratio of 14.6 and P/S ratio of 0.2.
Highlight of Business Operations:
Cost of Sales-
Cost of sales for the quarter ended August 31, 2009, decreased $2,582,000 or
25.7% to $7,446,000 from $10,028,000 in the prior year period. The decrease in
cost of sales resulted primarily from the decrease in the number of consultants
on billing with clients. Cost of sales as a percentage of revenue decreased from
82.5% in the quarter ended August 31, 2008 to 81.9% in the quarter ended August
31, 2009. The decrease in cost of sales as a percentage of revenue was primarily
attributable to the significant reduction of consultants on billing with AT&T,
which has historically been the Company's lowest margin (highest cost of sales
as a percentage of revenue) business.
Selling, General and Administrative Expenses
-
Selling, general and administrative expenses consist primarily of expenses
relating to account executives, technical recruiters, facilities costs,
management and corporate overhead. These expenses decreased $274,000 or 15.2%
from $1,800,000 in the quarter ended August 31, 2008 to $1,526,000 in the
quarter ended August 31, 2009. This decrease was primarily attributable to a
reduction in the number of sales and recruiting personnel and lower commissions
paid to the remaining sales and recruiting personnel due to lower revenue.
Technical recruiters and account executives have been terminated in order to
lessen the impact of the Company's reduced level of business activity. However,
while selling, general and administrative expenses decreased, these expenses as
a percentage of revenue increased from 14.8% in the quarter ended August 31,
2008 to 16.8% in the quarter ended August 31, 2009 as a result of lower sales.
Income from Operations
-
Income from operations decreased $202,000 or 62.7% from $322,000 in the quarter
ended August 31, 2008 to $120,000 in the quarter ended August 31, 2009. The
decrease was primarily attributable to the reduced revenue from the decrease in
the number of consultants on billing with customers.
At August 31, 2009, the Company had working capital of $12,368,000 including
cash and cash equivalents of $3,859,000 as compared to working capital of
$12,288,000 including cash and cash equivalents of $4,075,000 at May 31, 2009.
The Company's working capital also included $4,513,000 and $4,509,000 of
marketable securities with maturities of less than one year at August 31, 2009
and May 31, 2009, respectively.
For the three months ended August 31, 2009, net cash used in operating
activities was $208,000 compared to cash used of $715,000 for the three months
ended August 31, 2008, or an increase of $507,000. The cash used in operating
activities primarily resulted from an increase in accounts receivable of
$404,000 offset by net income and an increase in accounts and other payables and
accrued expenses and other current liabilities of $115,000. The increase in
accounts receivable resulted primarily from several accounts extending their
payment terms from sixty to ninety days. The cash used by operating activities
in the three months ended August 31, 2008, resulted primarily from an increase
in accounts receivable.
Tabular Disclosure of Contractual Obligations
-
Payments Due By Period
Contractual Obligations Less than More than
- Total 1 Year 1-3 Years 3-5 Years 5 Years
- - - - -
Operating Leases.................... $1,123,000 $ 366,000 $ 600,000 $ 157,000 $ -
Employment Agreements............... 631,000 331,000 300,000 - -
- - - - -
Totals.............................. $1,754,000 $ 697,000 $ 900,000 $ 157,000 $ -
= = = = =
Page 14
TSR, INC. AND SUBSIDIARIES
Read the The complete Report
