Date centre facility and technology firm TSS Inc (OTCMKTS:TSSI) was another company that was in the news cycle yesterday after it announced its financial results for the first fiscal quarter that had ended on March 31, 2022.
Market Action
On Monday, TSSI stock ended flat at $0.4232 with 25 shares, compared to its average volume of 6.4K shares. The stock moved within a range of $0.4232 – 0.4232 after opening trade at $0.4232.
Earnings Recap
It may be a good idea for investors to take a look at some of the highlights so that they can make their minds up about the TSS stock one way or another. It should be noted that the numbers are unaudited. The company’s revenues remained unchanged at $5.2 million and the flattening of revenues is perhaps something that analysts are expected to take note of.
However, in this context, it is also necessary to keep in mind that reseller revenues in the quarter actually declined to $1.7 million in the quarter from $2.2 million in the prior year period. That being said, the gross margins in the latest reported quarter stood at 32% and recorded an improvement from the gross margins of 25% in the prior year quarter.
The operating losses however went down considerably to $173,000 in the first fiscal quarter of 2022 from an operating loss of as much as $607,000 in Q1 2021.
Key Quote
“We saw some improvement in supply chain shortages during the first quarter that allowed us to improve on our results compared to last year,” said Anthony Angelini, President and Chief Executive Officer of TSS. “Our facilities and reseller businesses saw improved profit in the first quarter. We anticipate the supply situation will continue to improve throughout the balance of 2022. Based on this improvement and our backlog of projects, we expect a significant improvement in our revenue and profitability throughout the year.”
Traders Note
TSSI stock is trading below the 20-Day and 50-Day Moving averages of $0.43 and $0.43 respectively. Moreover, the stock is trading is the neutral zone with RSI stands at 49.
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