TSR Inc.'s founder and former CEO is pushing the IT staffing and consulting firm to find a buyer for the business, according to an SEC filing. The company's stock surged 28 percent on the news.
Although annual revenues appear to be approaching $65 million, the company's current stock valuation is roughly $15.3 million, according to Yahoo Finance.
Founder and former CEO James Hughes, in a letter to TSR Inc., asserted that the company's recent stock price does not accurately reflect the company's true value. Moreover, TSR Inc.'s reported sales and earnings for the first nine months of the fiscal year ending May 31, 2018 are a disappointment, he alleged.
Former TSR Inc. CEO: Shareholder Advocate?
James Hughes retired from the company in July 2017 and still holds a major stake in the business. His son, Christopher Hughes, was named CEO at the time of the founder's 2017 exit.
Fast forward to present day and the former CEO is pushing for a company sale. James Hughes letter to the company stated:
"I ask that you immediately pursue a sale of TSRI. I believe that while the Board needs to conduct an appropriate process in evaluating my request to sell the company, time is of the essence and your prompt consideration of this proposal is requested."
The Company has provided a copy of the letter to the members of its Board of Directors for review, according to the SEC filing. Other than that, TSR Inc. has not publicly commented about the request.
TSR Inc.'s Original Visionary
James Hughes founded TSR Inc. in 1969 when he developed a mainframe programming language. By 1980, the company acquired a consulting services arm. That led to key data center relationships with the likes of American Express, which stretched into the 1990s, according to the company. And in 2001, TSR pushed into IT contract services for SAP and business intelligence customers.
For the first nine months of 2018, TSR's revenues were $48.6 million -- up from $45.7 million during the corresponding period in 2017, according to an SEC filing. Also, net income was $349,331 during the first nine months of 2018, up from $205,693 during the corresponding period in 2017, according to the SEC filing.
