TSR Inc. (NASDAQ: TSRI) released financial results for its F4Q2016 and F2016 that showed improvements in revenue and earnings for both periods. But is what the management said about the latest results and the future of the company that is more interesting.
The CEO of TSR Inc. (NASDAQ: TSRI), Joseph F. Hughes, said that what is happening in the company currently is only a gradual increase in sales. But he hinted that sales improvement should be more robust in the future as recent investments in sales force and recruiting begin to pay off in greater measure.
The CEO also said that improvement in profitability will remain limited until sales growth picks up pace.
What happened in F4Q?
TSR Inc. (NASDAQ: TSRI) didn’t fare badly in F4Q2016. The company generated revenue of $15.5 million, which increased 3.6% over the same quarter a year ago. The company generated $15.7 million in revenue in F3Q2016. EPS in the quarter also improved to $0.09 from $0.06.
What about the year?
As for F2016, revenue of $61 million increased 6.3% over the previous year. EPS of $0.20 in the fiscal year improved from $0.10 in the prior year.
What supported the gains for TSR Inc. (NASDAQ: TSRI)?
TSR Inc. (NASDAQ: TSRI)’s CEO Hughes said that increase in revenue was supported by hiring in sales and recruiting. An increase in daily average rates that are charged on consultants was also cited as another support for topline improvement in the reported results.
The results were also impacted by the number of consultants that are on billing with customers. The average number of consultants on billing rose to about 350 in F4Q2016 ended May 31 compared to 347 consultants in the same period a year ago.
Though these increases have only brought gradual growth in topline figures so far, TSR Inc. (NASDAQ: TSRI) sees more robust growth in the future.
TSR Inc. (NASDAQ: TSRI) had cash of $3.6 million at the end of the previous quarter compared to cash of $3.8 million compared to year-ago quarter.