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.
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