Revenue during the quarter went down marginally by 0.94 percent to $15.04 million from $15.18 million in the previous year period. Gross margin for the quarter expanded 71 basis points over the previous year period to 17.22 percent. Total expenses were 98.37 percent of quarterly revenues, up from 98.26 percent for the same period last year. That has resulted in a contraction of 11 basis points in operating margin to 1.63 percent.

Operating income for the quarter was $0.24 million, compared with $0.26 million in the previous year period.

Joe Hughes, chief executive officer, stated, “Our revenue for the quarter ended November 30, 2016 decreased $142,000 from the prior year comparable quarter. While the overall average number of consultants on billing with customers increased from approximately 350 for the quarter ended November 30, 2015 to 368 for the quarter ended November 30, 2016, the average number of computer programming consultants decreased from 350 in the quarter ended November 30, 2015 to 326 in the current quarter. The 368 consultants on billing for the current quarter include 42 administrative workers that we placed with two large customers at billing rates substantially lower than those charged for computer programming consultants. We did not make any placements of administrative workers in the prior year quarter. We made these placements of administrative workers at the customers’ specific requests. We charge lower daily billing rates for the administrative workers, but also pay lower rates to the administrative workers. As a result of the placement of administrative workers and the decrease in the average number of computer programming consultants in the current quarter, our cost of sales decreased as compared to the prior year quarter. We have not yet determined whether we will provide administrative placements on a more widespread basis in the future.”