TSR, a Hauppauge-based provider of computer programming consulting services, said fourth-quarter and full-year revenue fell due to lower average billing rates and increased legal fees.
The company said revenue for the quarter ended May 31, 2019 declined 4.9 percent to $15.6 million. In part due to lower sales, TSR took a $601,000 fourth-quarter loss, down from $137,000 income a year ago.
Revenue for the year fell 2.5 percent to $63.3 million, as the company took a $1,336,000 loss compared to $486,000 income for the prior year.
CEO Christopher Hughes attributed the weaker performance to a “decrease in average billing rates for consultants ” and to “a higher discount plan put in place for a major customer.”
Cost of sales decreased, but at a lower rate, he said, resulting in thinner gross margins. Selling, general and administrative expenses increased by $932,000 for the quarter and $2,201,000 for the year.
Hughes attributed that to “a significant increase in professional and advisory fees in connection with various stockholder lawsuits.”
The company engaged in a legal fight concerning a proxy solicitation relating to its 2018 annual meeting, which was postponed as a result of lawsuits.