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TSR Inc. Reports Operating Results (10-Q)

January 08, 2010 | About:
10qk

10qk

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TSR Inc. (TSRI) filed Quarterly Report for the period ended 2009-11-30.

Tsr Inc. has a market cap of $9.3 million; its shares were traded at around $2.3 with a P/E ratio of 20.9 and P/S ratio of 0.2.

Highlight of Business Operations:

Cost of sales for the quarter ended November 30, 2009, decreased $1,813,000 or 19.2% to $7,654,000 from $9,467,000 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 82.1% in the quarter ended November 30, 2008 to 81.9% in the quarter ended November 30, 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.

Income from operations decreased $203,000 or 54.5% from $373,000 in the quarter ended November 30, 2008 to $170,000 in the quarter ended November 30, 2009. The decrease was primarily attributable to the reduced revenue from the decrease in the number of consultants on billing with customers.

Cost of sales for the six months ended November 30, 2009, decreased $4,394,000 or 22.5% to $15,101,000 from $19,495,000 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 82.3% in the six months ended November 30, 2008 to 81.9% in the six months ended November 30, 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.

Income from operations decreased $405,000 or 58.3% from $695,000 in the six months ended November 30, 2008 to $290,000 in the six months ended November 30, 2009. The decrease was primarily attributable to the reduced revenue from the decrease in the number of consultants on billing with customers.

At November 30, 2009, the Company had working capital of $12,475,000 including cash and cash equivalents of $4,310,000 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 $3,515,000 and $4,509,000 of marketable securities with maturities of less than one year at November 30, 2009 and May 31, 2009, respectively.

For the six months ended November 30, 2009, net cash used in operating activities was $754,000 compared to cash provided by operating activities of $78,000 for the six months ended November 30, 2008, or an increase of $832,000. The cash used in operating activities primarily resulted from an increase in accounts receivable of $857,000 offset by net income and an increase in accounts and other payables and accrued expenses and other current liabilities of $98,000. The increase in accounts receivable resulted primarily from additional accounts extending their payment terms from sixty to ninety days. The cash provided by operating activities in the six months ended November 30, 2008, resulted primarily from net income.

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10qk
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