TSR Inc. swings to a loss amid shareholder challenge
The headquarters of TSR, a recruiting firm based in Hauppauge, on May 31, 2017. Credit: Steve Pfost
TSR Inc., a computer staffing provider whose management is grappling with a challenge from major shareholders, Friday swung to a loss for the second quarter.
The Hauppauge company reported a net loss of $97,000, or 5 cents per share, compared to net income of $227,000, or 12 cents per share, in the year-earlier quarter.
Revenue for the period ended Nov. 30 edged down to $16.4 million from $16.5 million in the previous year's period.
The 0.7 percent decline in revenue reflected a decrease in average billing rates for consultants, chief executive Christopher Hughes said in a statement. "An increase in selling, general and administrative expenses of $594,000 created the swing from profit to loss for the quarter."
Hughes attributed those higher expenses to stockholder lawsuits and a proxy dispute with major shareholders. Major shareholders have called for the sale of the company and have nominated two candidates to oppose a two-person slate backed by TSR management.
In November, TSR's management rejected a takeover bid by one of the dissident shareholders and in December said it plans to pursue a "strategic acquisition" instead.
Shares of TSR rose 2.8 percent Friday to close at $5.16. Twelve months ago the stock was trading at $7.24.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
Daughter arrested in fatal stabbing of mother ... Court rules on hefty red-light camera fees ... Macy's parade goes on despite rain ... What's up on LI
Daughter arrested in fatal stabbing of mother ... Court rules on hefty red-light camera fees ... Macy's parade goes on despite rain ... What's up on LI
