The founder and largest shareholder of TSR Inc., a Hauppauge-based provider of computer staffing services, has asked his son, the current chairman and chief executive, to sell the company, according to government filings released Tuesday.
Shares of TSR climbed nearly 30 percent Tuesday to close at $7.80. The stock was trading at $5.30 12 months ago.
The letter requesting the sale said that Joseph F. Hughes and his wife, Winifred M. Hughes, both 86, own 41.8 percent, or 819,000 shares, of TSR's common stock.
The letter was sent to the board of directors and to Christopher Hughes, who became chairman and CEO when Joseph F. Hughes retired on July 5, 2017. Christopher Hughes was 56 as of the company's most recent proxy filing, Sept. 22.
The letter said that based on Friday's closing price of $4.60 per share, the company's "stock is trading at a price that does not accurately reflect its true value" and that the company's financial results for the nine months ended May 31 "are a disappointment."
The company has not reported its results for the quarter and nine months ended May 31.
"While the board needs to conduct an appropriate process in evaluating my request to sell the company, time is of the essence," the letter said.
The letter, signed by James Hughes, brother of CEO Christopher Hughes, was sent on behalf of Joseph F. Hughes and Winifred M. Hughes, the filing said. A copy of the letter included in the filing indicates it was faxed.
A TSR spokesman said the company would have no further comment beyond the government filings.
TSR is Long Island's 32nd largest public company based on 2017 revenue of $62.6 million.
In the quarter ended Feb. 28, the company posted a net loss of $18,846, or a penny per share, on revenue of $15.1 million. That compared to a net loss of $68,401, or 3 cents per share, on revenue of $15.4 million in the period a year ago.
In May 2017, TSR rejected a takeover bid worth $6.15 per share by Manhattan investment firm Zeff Capital LP.
TSR, founded in 1969, has offices in Hauppauge, Manhattan, and Edison, New Jersey, and serves the utility, insurance, publishing, pharmaceutical and financial services industries.