Computer programming consulting services company TSR, Inc. (NASDAQ:TSRI) is a top ten NASDAQ gainer on Wednesday, riding high on financial results from the company's second quarter of fiscal 2018 ended November 30, 2017.
Benefiting from an increased number of IT contractors to its clients, revenue rose 9.8% to $16.52 million from $15.04 million in the year prior quarter. For the six months through November, revenue rose to $33.55 million from $30.29 million in the first half of fiscal 2017.
Net profit improved to $227,000 during the quarter compared to $126,000 in the year prior quarter. On a per share basis (1.962 million outstanding), net income rang in at 12 cents per share, doubling the 6 cents per share in Q2 fiscal 2017. Profits were up during the first half of the fiscal year also, but to a lesser extent. During the first two quarters of the year, TSR recorded net income of $368,000, or 19 cents per share, versus $274,000, or 14 cents per share, a year earlier.
TSR CEO Christopher Hughes noted that even though gross profit as a percentage of revenue decreased, a decrease in selling, general and administrative expenses, along with the increased revenue, resulted in an increase in net income.
Investors cheered the jump in profits, sending shares from Tuesday's close at $5.85 to as high as $8.41 in Wednesday morning trading, marking the highest level for the stock since June 13, 2017. As of about 1:30 PM EST, shares have given some back, but are still holding a gain of 26.5% on the day at $7.40.
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