TSR Inc. (NASD: TSRI), an information technology staffing firm, reported revenue rose 21.5 percent to $11.4 million in its fiscal first quarter ended Aug. 31. The Hauppauge, N.Y.-based firm reported gross margin fell to 16.8 percent from 18.2 percent in the year-ago quarter.

The company posted consolidated net income of $63,000, up 53.7 percent from consolidated net income of $41,000 in the same period last year.

“Although net income increased, expenses continue to increase due to increased recruiting and other costs resulting from more demanding client specifications, pricing and other competitive pressures, as well as increased costs relating to training entry level recruiters,” said CEO Joe Hughes. “The increased competitive pressures have also negatively impacted our gross profit percentages.”