Exhibit 27.1
TSR, INC. REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED
MAY 31, 2005
Hauppauge, NY (July 26, 2005)---TSR, Inc., (Nasdaq:TSRI) a provider of computer
programming consulting services, today announced financial results for the
fourth quarter and fiscal year ended May 31, 2005.
For the quarter, which ended May 31st, revenues decreased 7% from the same
quarter last year to $12.5 million. Consolidated net income decreased 5% from
the comparable period to $519,000. Additionally, basic and diluted earnings per
share decreased from $0.12 to $0.11.
For the full year, revenues decreased 0.5% from the prior year to $51.4 million.
Consolidated net income increased 1.0% from the prior year to $2,145,000.
Earnings per share remained at $0.47.
Joe Hughes, CEO, stated, "Revenues decreased 7% in the fourth quarter primarily
due to a reduction in the average number of consultants on billing with clients
from 382 in the prior year quarter to 357 in the quarter ended May 31, 2005, and
additional discounts given to clients. Net income decreased at a rate of only 5%
because the decrease in revenues was offset, to some extent, by a decrease in
the income tax rate. Additionally, the previously disclosed rate reduction for
our largest customer was not enacted until the end of the quarter. Therefore, it
did not have a significant impact on this quarter's results and we have not yet
determined the impact this will have in the first quarter of fiscal 2006".
Mr. Hughes added, "For the fiscal year, although revenues decreased slightly,
net income increased from $2,124,000 to $2,145,000 primarily due to decreased
selling, general and administrative expenses".
Certain statements contained herein are forward-looking statements, as defined
in the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from those set forth in the forward-looking statements due to
known and unknown risks and uncertainties, including but not limited to those
described in the Company's filings under the Securities Exchange Act of 1934.
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TSR, INC. REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED
MAY 31, 2005 (CONTINUED)
Based in Hauppauge, New York, TSR, Inc., provides information technology
professionals to major corporations and state and local government agencies.
Three Months Ended Year Ended
May 31, May 31,
2005 2004 2005 2004
----- ----- ---- ----
Revenues .............................. $12,492,000 $13,421,000 $51,444,000 $51,725,000
Operating expenses .................... 11,653,000 12,435,000 47,809,000 48,029,000
----------- ----------- ----------- -----------
Income from operations ................. 839,000 986,000 3,635,000 3,696,000
Other income .......................... 53,000 13,000 111,000 63,000
----------- ----------- ----------- -----------
Pre-tax income ......................... 892,000 999,000 3,746,000 3,759,000
Income taxes .......................... 373,000 453,000 1,601,000 1,635,000
----------- ----------- ----------- -----------
Net income ............................. $ 519,000 $ 546,000 $ 2,145,000 $ 2,124,000
=========== =========== =========== ===========
Basic and diluted net income per common
share ................................. $ 0.11 $ 0.12 $ 0.47 $ 0.47
=========== =========== =========== ===========
Weighted average number of basic common
shares outstanding .................... 4,568,000 4,568,000 4,568,000 4,546,000
=========== =========== =========== ===========
Weighted average number of diluted
common shares outstanding ............. 4,570,000 4,570,000 4,570,000 4,551,000
=========== =========== =========== ===========
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