TODAY'S PAPER
51° Good Afternoon
51° Good Afternoon
BusinessTechnology

Firm whose founder pushed his CEO son to sell is exploring 'strategic options'

The board of TSR Inc. says it will consider a possible sale or other alternative, after the founder and largest shareholder sent a letter to his son expressing dissatisfaction with the Hauppauge firm's financial results.

TSR Inc., a computer staffing firm based in

TSR Inc., a computer staffing firm based in Hauppauge, says it is exploring a possible sale. Photo Credit: Steve Pfost

The board of TSR Inc., a provider of computer staffing services whose retired founder and largest shareholder last month called for the company's sale, has created a committee to consider a variety of strategic options.

In a government filing after Tuesday's market close, the Hauppauge company said two independent directors were named Monday to the special committee.

Shares of TSR closed flat Wednesday at $7.25. Twelve months ago the stock was trading at $4.90.

Founder Joseph F. Hughes and his wife, Winifred M. Hughes, both 86, sent a letter to the board of directors and their son Christopher Hughes, TSR's chief executive, last month saying the stock's closing price of $4.60 on June 22 did not "reflect its true value." They also expressed disappointment in the company's recent financial results.

Tuesday's government filing said that in addition to an outright sale, the company would consider a variety of options, including a merger, a consolidation, a securities sale, an asset sale, recapitalization, the sale or exchange of shares held by Joseph F. and Winifred M. Hughes, and the continued pursuit of the company's business plan.

The founder and his wife own 819,000 shares, or about 41.8 percent of TSR's common stock.

TSR, which in 2017 rejected a takeover bid worth $6.15 per share by Manhattan investment firm Zeff Capital LP, is Long Island's 32nd largest public company based on 2017 revenue of $62.6 million.

Besides Hauppauge, the 49-year-old company has offices in  Manhattan and Edison, New Jersey. The company provides computer staffing services to the utility, insurance, publishing, pharmaceutical and financial services industries.

More news