TSR Inc. (NASDAQ: TSRI), a provider of IT and other staffing, reported revenue fell 14.1% in its fiscal first quarter ended Aug. 31. The decrease was largely driven by a decline in clerical and administrative contractors on assignment.

The Hauppauge, New York-based company had 81 clerical and administrative contractors on assignment at the end of the first quarter — down from 216 a year ago, according to a regulatory filing. IT contractors also fell to 438 in the first quarter from 464 in the year-ago quarter.

However, gross margin improved and net income rose, CEO Thomas Salerno noted in a press release.

“We continued to focus on our more specialized and higher margin IT business and are seeing solid results from our fledgling permanent placement business,” Salerno said. “As always, we continue to focus on controlling costs, which has helped us increase profitability in the current quarter.”

TSR also continues to navigate the uncertain macroeconomic environment, but the company is optimistic revenue and income will grow in the long run, he said.

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