TSR, Inc. Reports Financial Results for the First Quarter Ended August 31, 2007 and Declares Quarterly Dividend of $0.08 Per Share

Business Wire, Oct 12, 2007

HAUPPAUGE, N.Y. -- TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting services, today announced financial results for the first quarter ended August 31, 2007.

For the quarter ended August 31st, revenues increased 9.3% from the same quarter last year to $13.5 million. Consolidated net income increased slightly from the comparable period to $447,000. Additionally, earnings per share remained at $0.10.

The Company also announced that the Board of Directors had declared a cash dividend of $0.08 per share for its first fiscal quarter. The dividend will be payable November 15, 2007 to shareholders of record as of October 29, 2007. Additionally, the Company announced that it plans to continue to pay a quarterly dividend at its current rate of $0.08 per share during the Company's fiscal 2008 year.

Joe Hughes, CEO, stated, "Revenues increased 9.3% and income from operations increased 13.1% in the quarter ended August 31, 2007 over the prior year quarter. While we experienced a slight decline in the number of consultants on billing with clients, our income from operations increased primarily due to a change in business mix toward higher level skills which allowed the Company to increase its average billing rates to customers. However, net income did not increase as expected due to a greater effective income tax rate in the quarter ending August 31, 2007 as compared to the prior year period. The tax rate in the quarter ended August 31, 2006 had been reduced because actual taxes in the prior years had been less than estimated."

Certain statements contained herein, including statements as to the Company's plans, 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 risks relating to the extent to which market conditions for the Company's contract computer consulting services will continue to adversely affect the Company's business and the Company's ability to adapt to changing market conditions; the concentration of the Company's business with certain customers, uncertainty as to the Company's ability to maintain its relations with existing customers and other risks and uncertainties 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.

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