Information technology staffing provider TSR Inc. (NASD: TSRI) reported revenue rose 17.2% year over year to $14.2 million in its fiscal third quarter ended Feb. 28. The Hauppauge, N.Y.-based firm reported net loss attributable to TSR narrowed to $85,000 from $91,000 in the prior-year’s third quarter.

The increase in revenue resulted primarily from an increase in the average number of consultants on billing with customers. This number rose to 353 from 308 in the year-ago quarter, according to CEO Joe Hughes.

Quote

“The current year quarter was affected by an increase in cost of sales as a result of utilizing a higher percentage of employees, with their related payroll costs, rather than utilizing subcontractors to perform services for our customers,” Hughes said. “Reliance on employees rather than subcontractors is a function of changing customer requirements. Although we are experiencing a gradual increase in revenue, profitability will continue to be affected until such time as these new sales and recruiting hires generate a sufficient increase in revenue.”

Share price and market cap

Shares in TSR fell 10.95% to $4.31 in early afternoon trading today and TSR had a market cap of $8.46 million, according to Yahoo!