TSR Inc. (NASDAQ: TSRI), a provider of IT and other staffing, reported revenue fell amid a decrease in the number of clerical and administrative contractors on billing with customers. The Hauppauge, New York-based firm said revenue of $19.7 million was down 18.8% year over year in its fiscal third quarter ended Feb. 29. However, the company is optimistic about the second half of its fiscal year.

“Our fiscal third quarter is traditionally the most challenging of the year,” CEO Thomas Salerno said in a press release.

“Workdays are reduced due to the holiday season, and payroll tax expenses are at their highest at the beginning of the calendar year,” Salerno said. “This year was particularly hard hit with mandatory furloughs of contractors during the holiday season.”

He also noted TSR is maintaining a focus on controlling costs.

“We continue to navigate an uncertain macroeconomic environment, but we are optimistic that revenue and income will be stronger in the second half of calendar 2024,” Salerno said. “The team continues to make progress with new customers, and I am proud of their effort to offer our legacy customers some of the best service in the business.”

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Share price

Shares in TSR were down 2.37% to $7.62 as of 10:27 a.m. Eastern time today. They were 27.65% above their 52-week low.