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IT Staffing Firm Says Storm Lowered Revenue

January 10 2013

IT staffing provider TSR Inc. (NASD: TSRI) reported Superstorm Sandy negatively impacted revenue in its fiscal second quarter ended Nov. 30. The Hauppauge, N.Y.-based firm reported second-quarter revenue fell 5 percent to $10.6 million from the second quarter of the previous fiscal year.

“The company experienced a decrease in the number of billable work days due to electrical and flooding issues at several of its major customer locations in the New York Tri-State area due to tropical storm Sandy,” TSR wrote in a filing with the U.S. Securities and Exchange Commission.

TSR’s gross margin slipped to 16.6 percent in the second quarter from 17.0 percent in the year-ago quarter.

Net loss for the fiscal second quarter was $182,469 compared to net income of $31,703 in the second quarter of last year. Selling, general and administrative expenses rose 11.0 percent to $2.0 million even as revenue fell.

“Expenses continue to increase as part of our plan for internal growth,” CEO Joe Hughes said. “These include the costs relating to an increase in the number of recruiting and sales personnel and costs associated with our recruiting training program. Losses will be incurred until such time as these recruiting trainees and new sales hires contribute to a sufficient increase in revenue.”

For the second quarter ended Nov. 30, 2012, compared with the same period in 2011
Revenue: $10.6 million, -5.0 percent
Net loss: $182,469 vs. net income of $31,703


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