IT staffing firm TSR Inc. (NASDAQ: TSRI) reported revenue fell 5.0% in its fiscal fourth quarter ended May 31. However, gross margin improved.
| (US$) | Q4 2020 | Q4 2019 | % change |
| Net revenue | $14,796,000 | $15,574,000 | -5.0% |
| Gross margin | 16.4% | 15.0% | |
| Net income/loss attributable to TSR | $421,000 | ($601,000) | nm |
Fourth-quarter revenue fell because of a decrease in the average number of consultants on billing with customers, the company stated. Selling, general and administrative expenses decreased by $1,1 million for the quarter due to a significant decrease in legal expenses which had been incurred in connection with litigation and a contested proxy solicitation.
Operating income for the current quarter was $350,000 as compared to an operating loss of $855,000 in the prior-year quarter.
The company benefited from a tax provision of the CARES Act that allows for the carryback of net operating losses, which resulted in net income of $421,000 in the fourth quarter of the current fiscal year compared with a loss of $601,000 in the prior-year quarter.
“Like the whole US economy, the landscape for our services remains uneven and unpredictable,” CEO Thomas Salerno said.
TSR in a separate filing reported it received loan proceeds of $6.7 million under the Paycheck Protection Program. The two-year PPP loan is being made through JPMorgan Chase Bank N.A. at an annual interest rate of 0.98%.
Full fiscal-year results
| (US$ thousands) | FY 2020 | FY 2019 | % change |
| Net revenue | $59,121 | $63,340 | -6.7% |
| Gross profit | $9,178 | $9,825 | -6.6% |
| Gross margin | 15.5% | 15.5% | |
| Net loss attributable to TSR | ($1,126) | ($1,336) | nm |
Share price and market cap
Shares in TSR were up 13.18% to $4.98 as of 1:43 p.m. Eastern time; there were up 88.64% above their 52-week low. The company had a market cap of $8.6 million.