TSR, Inc. (TSRI) - 500 Beiträge pro Seite

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Profile:TSR, Inc. and its subsidiaries provide contract computer programming services to commercial customers, and state and local government agencies located primarily in the Metropolitan New York area, New England, and the Mid-Atlantic region. It offers staffing services in the areas of mainframe and mid-range computer operations, personal computers and client-server support, Internet and e-commerce operations, voice and data communications, and help desk support. The company provides its services principally through offices located in New York, New York; Edison, New Jersey; and Long Island, New York. The company was founded in 1969 and is based in Hauppauge, New York.

http://www.tsrconsulting.com/

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TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended May 31, 2007
Friday August 3, 5:00 pm ET


HAUPPAUGE, N.Y.--(BUSINESS WIRE)--TSR, Inc., (Nasdaq:TSRI - News) a provider of computer programming consulting services, today announced financial results for the fourth quarter and fiscal year ended May 31, 2007.
For the quarter, which ended May 31st, revenues increased 5.7% from the same quarter last year to $12.9 million. Consolidated net income was $335,000 or $0.07 per share for the current quarter compared with a loss of $33,000 in the prior year quarter. The prior year results were effected by a reserve of $900,000 established to settle claims against the Company by the New York City Department of Education. Without the reserve, the prior year's net income for the quarter would have been $437,000 or $0.10 per share.

For the full year, revenues increased 3.3% from the prior year to $49.7 million. Consolidated net income increased $1,393,000 or $0.30 per share compared to $1,214,000 or $0.27 per share in the prior year. Without the reserve, net income for the prior year would have been $1,684,000 or $0.37 per share.

The Company also announced that the Board of Directors had declared a cash dividend of $0.08 per share for its fiscal fourth quarter. The dividend will be payable on September 12, 2007 to shareholders of record as of August 24, 2007.

Joe Hughes, CEO, stated, " After eliminating the effects of the reserve in the prior year, net income for the fourth quarter and fiscal year decreased 23.3% and 17.3%, respectively. The decreases resulted primarily from new and increased discount programs at major customers and the expenses associated with hiring additional account executives and technical recruiters to address increasing competition."

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.

Based in Hauppauge, New York, TSR, Inc. provides information technology professionals to major corporations.

Three Months Ended Year Ended
May 31, May 31,
(unaudited)
2007 2006 2007 2006
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Revenues $12,913,000 $12,220,000 $49,689,000 $48,109,000

Operating expenses 12,455,000 12,488,000 47,764,000 46,400,000
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Income (loss) from
operations 458,000 (268,000) 1,925,000 1,709,000

Other income 98,000 86,000 409,000 279,000
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Pre-tax income (loss) 556,000 (182,000) 2,334,000 1,988,000

Income taxes
(recovery) 221,000 (149,000) 941,000 774,000
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Net income (loss) $ 335,000 $ (33,000) $ 1,393,000 $ 1,214,000
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Basic and diluted net
income (loss) per
common share $ 0.07 $ (0.01) $ 0.30 $ 0.27
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Weighted average
number of basic
common shares
outstanding 4,568,000 4,568,000 4,568,000 4,568,000
=========== =========== =========== ===========
Weighted average
number of diluted
common shares
outstanding 4,568,000 4,568,000 4,568,000 4,568,000
=========== =========== =========== ===========



Contact:
TSR, Inc.
John Sharkey, 631-231-0333

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Source: TSR, Inc.

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TSR, Inc.: My Favorite Microcap
Posted on Aug 16th, 2007 with stocks: TSRI

Michael Goode submits: There are those that say that microcaps are inherently risky. They are wrong. There are those that say that stocks with low prices (ie, below $5) are inherently risky. They are wrong. There are those that say that OTC BB, pink sheets, or unlisted stocks are inherently risky. They are wrong. (Although, to be fair, most unlisted stocks are not good investments; but that does not mean that being unlisted makes a stock a bad investment.)

For example, I am aware of a couple private companies based near my hometown that I would love to own (if the price were fair), even though they are private (for the record, both are closely held by only a couple people). As long as I don’t overpay and get ownership in a good company, it doesn’t matter to me if the company is small, the stock is hard to sell, or the financials are not filed with the SEC. As long as I can get my hands on the financial statements and I can trust them, I have no problem owning tiny or illiquid companies. Neither should you.

Perhaps my favorite tiny company (with a market cap of only $18 million) that you can buy is TSR Inc (TSRI), currently trading at just over $4.00. TSR Inc. is a staffing company in New York for computer programmers and related professionals. A large chunk of the company is still owned by its founder, who has also recently bought stock on the open market at around $4 per share. I should note that the founder, Joseph Hughes, has previously been successful when trading TSR’s stock - he sold a large number of shares back in 2004 when TSR’s stock was much higher.

The company sports a book value of $3.05 per share, and most of that is in the form of cash, short-term treasury bills, and short-term receivables. I estimate that the company has a liquidation value of $13 million (compared to a $18.6 million market cap), meaning that in a worst-case scenario I would not expect to lose more than 31% of an investment at the current price. The company, currently going through tough times, remains profitable (even excluding interest on its large cash hoard). The most recent quarter's earnings were satisfactory, at $0.07 per share ($0.30 per share for the year). If the company were to utilize its excess cash to fund a special dividend or to buy back stock, while its operations improved modestly to historic norms, the stock could easily increase 50% or more in value. Even without operational improvement the stock is worth 20% above current levels. In the meantime, the stock’s nice 8% dividend yield is nice (although keep in mind that the payout yield is over 100%, so some of that dividend currently represents return of capital).

One thing to keep in mind when buying or selling this or any other microcap is to place limit orders and to be mindful of the bid/ask spread. For example, TSRI often has a bid/ask spread of around $0.10, meaning that you would pay $0.10 more to buy the stock than you would get if you immediately turned around and sold that stock. For this reason, you should only invest in such companies if you intend to hold them as long term investments.