----

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|   | x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended February 28, 2011 |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Transition report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Delaware State or other jurisdiction ofIncorporation or organization) |   | 13-2635899 (I.R.S. Employer Identification No.) |
|-----------------------------------------------------------------------|--------|-------------------------------------------------|

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| Large Accelerated Filer  o | Accelerated Filer  o | Non-Accelerated filer  o(Do not check if a smaller reporting company) | Smaller Reporting Company  x |
|---------------------------------|---------------------------|----------------------------------------------------------------------------|-----------------------------------|

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|       |                   |                                                                                        | Page   |   |
|------------|------------------------|---------------------------------------------------------------------------------------------|--------|--------|
| Part I.    | Financial Information: | Number                                                                                      |   |
|       |                   |                                                                                        |   |   |
|       | Item 1.                | Financial Statements:                                                                       |   |   |
|       |                   |                                                                                        |   |   |
|       |                   | Condensed Consolidated Balance Sheets –                                               |   |   |
|       |                   | February 28, 2011 and May 31, 2010                                                          | 3      |   |
|       |                   |                                                                                        |   |   |
|       |                   | Condensed Consolidated Statements of Operations –                                |   |   |
|       |                   | For the three months and nine months ended February 28, 2011 and 2010                       | 4      |   |
|       |                   |                                                                                        |   |   |
|       |                   | Condensed Consolidated Statements of Equity –                                         |   |   |
|       |                   | For the nine months ended February 28, 2011 and 2010                                        | 5      |   |
|       |                   |                                                                                        |   |   |
|       |                   | Condensed Consolidated Statements of Cash Flows –                                     |   |   |
|       |                   | For the nine months ended February 28, 2011 and 2010                                        | 6      |   |
|       |                   |                                                                                        |   |   |
|       |                   | Notes to Condensed Consolidated Financial Statements                                        | 7      |   |
|       |                   |                                                                                        |   |   |
|       | Item 2.                | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11     |   |
|       |                   |                                                                                        |   |   |
|       | Item 4T.               | Controls and Procedures                                                                     | 16     |   |
|       |                   |                                                                                        |   |   |
| Part II.   | Other Information      | 17                                                                                          |   |
|       |                   |                                                                                        |   |   |
|       | Item 6.                | Exhibits                                                                                    | 17     |   |
|       |                   |                                                                                        |   |   |
| Signatures |                   | 17                                                                                          |   |

----

| Part I.  | Financial Information Item 1. Financial Statements |
|---------------|----------------------------------------------------|

|  ASSETS                                                                                                                                                                                                                                                |   | February 28,2011 |             |   | May 31,2010 |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------------|--------|------------------|---------|
|                                                                                                                                                                                                                                                        |   | (Unaudited)      |             |   | (Note 1)         |    |
| Current Assets:                                                                                                                                                                                                                                             |   |             |             |   |             |    |
|        Cash and cash equivalents                                                                                                                                                                                         |   | $                | 2,929,263        |   |             | $       | 5,669,972 |   |
|        Certificates of deposit and marketable securities                                                                                                                                                                 |   |             | 4,015,017        |   |             |    | 3,015,389 |   |
|        Accounts receivable, net of allowance for doubtful accounts of $202,000 in 2011 and 2010                                                                                                                          |   |             | 8,475,180        |   |             |    | 6,507,741 |   |
|        Other receivables                                                                                                                                                                                                 |   |             | 4,420            |   |             |    | 3,957 |   |
|        Prepaid expenses                                                                                                                                                                                                  |   |             | 70,857           |   |             |    | 94,604 |   |
|        Prepaid and recoverable income taxes                                                                                                                                                                              |   |             | 69,539           |   |             |    | 115,721 |   |
|        Deferred income taxes                                                                                                                                                                                             |   |             | 90,000           |   |             |    | 90,000 |   |
|               Total Current Assets                                                                                                                                                    |   |             | 15,654,276       |   |             |    | 15,497,384 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| Certificates of deposit and marketable securities Equipment and leasehold improvements, net of accumulated depreciation                                                                                                                                     |   |             | 250,000          |   |             |    | — |   |
|        and amortization of $432,766 and $427,804                                                                                                                                                                         |   |             | 11,525           |   |             |    | 9,558 |   |
| Other assets                                                                                                                                                                                                                                                |   |             | 49,653           |   |             |    | 49,653 |   |
| Deferred income taxes                                                                                                                                                                                                                                       |   |             | 51,000           |   |             |    | 55,000 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| Total Assets                                                                                                                                                                                                                                                |   | $                |  16,016,454 |   |             | $  |  15,611,595 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                                                      |   |             |             |   |             |    |   |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| Current Liabilities:                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
|        Accounts and other payables                                                                                                                                                                                       |   | $                | 255,192          |   |             | $       | 259,448 |   |
|        Accrued expenses and other current liabilities                                                                                                                                                                    |   |             | 1,631,127        |   |             |    | 1,291,160 |   |
|        Advances from customers                                                                                                                                                                                           |   |             | 1,480,690        |   |             |    | 1,491,490 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
|               Total Current Liabilities                                                                                                                                               |   |             | 3,367,009        |   |             |    | 3,042,098 |   |
| Commitments and contingencies Equity:                                                                                                                                                                                                                  |   |             |             |   |             |    |   |   |
|        Preferred stock, $1 par value, authorized 500,000 shares; none issued                                                                                                                                             |   |             | —          |   |             |    | — |   |
|        Common stock, $.01 par value, authorized 12,500,000 shares; issued 3,114,163 shares,               2,019,091 and 2,024,794 outstanding |   |             | 31,142           |   |             |    | 31,142 |   |
|        Additional paid-in capital                                                                                                                                                                                        |   |             | 5,102,868        |   |             |    | 5,102,868 |   |
|        Retained earnings                                                                                                                                                                                                 |   |             | 20,766,343       |   |             |    | 20,661,190 |   |
|                                                                                                                                                                                                                                                        |   |             | 25,900,353       |   |             |    | 25,795,200 |   |
|        Less: Treasury stock, 1,095,072 and 1,089,369 shares, at cost                                                                                                                                                     |   |             | 13,279,263       |   |             |    | 13,253,523 |   |
|               Total TSR, Inc. Equity                                                                                                                                                  |   |             | 12,621,090       |   |             |    | 12,541,677 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| Noncontrolling Interest                                                                                                                                                                                                                                     |   |             | 28,355           |   |             |    | 27,820 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| Total Equity                                                                                                                                                                                                                                                |   |             | 12,649,445       |   |             |    | 12,569,497 |   |
|                                                                                                                                                                                                                                                        |   |             |             |   |             |    |   |   |
| Total Liabilities and Equity                                                                                                                                                                                                                                |   | $                |  16,016,454 |   |             | $       |  15,611,595 |   |

----

|                                                                   |   |  Three Months EndedFebruary 28,  |            |                 | Nine Months EndedFebruary 28,  |   |
|------------------------------------------------------------------------|--------|--------------------------------------------|-----------------|----------------------|-------------------------------------|--------|
|                                                                   |   | 2011                                       |            |                 | 2010                                |   |   | 2011 |   |   | 2010 |   |
| Revenue, net                                                           |   | $                                          | 9,377,193       |                 |                                | $      | 8,960,808 |   |   | $ | 28,498,069 |   |   | $ | 27,393,451 |   |
|                                                                   |   |                                       |            |                 |                                |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                          |   |                                       | 7,743,291       |                 |                                |   | 7,419,281 |   |   |   | 23,253,726 |   |   |   | 22,520,244 |   |
| Selling, general and administrative expenses                           |   |                                       | 1,717,039       |                 |                                |   | 1,543,943 |   |   |   | 4,965,180 |   |   |   | 4,585,988 |   |
|                                                                   |   |                                       | 9,460,330       |                 |                                |   | 8,963,224 |   |   |   | 28,218,906 |   |   |   | 27,106,232 |   |
| Income (loss) from operations                                     |   |                                       | (83,137         | )                    |                                |   | (2,416 | ) |   |   | 279,163 |   |   |   | 287,219 |   |
|                                                                   |   |                                       |            |                 |                                |   |   |   |   |   |   |   |   |   |   |   |
| Other income:                                                          |   |                                       |            |                 |                                |   |   |   |   |   |   |   |   |   |   |   |
|     Interest and dividend income                   |   |                                       | 4,714           |                 |                                |   | 6,223 |   |   |   | 15,953 |   |   |   | 38,695 |   |
|     Unrealized gain on marketable securities, net  |   |                                       | 250             |                 |                                |   | 1,064 |   |   |   | 40 |   |   |   | 3,848 |   |
|                                                                   |   |                                       |            |                 |                                |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                      |   |                                       | (78,173         | )                    |                                |   | 4,871 |   |   |   | 295,156 |   |   |   | 329,762 |   |
| Provision (recovery) for income taxes                                  |   |                                       | (17,000         | )               |                                |   | 8,000 |   |   |   | 140,000 |   |   |   | 149,000 |   |
| Consolidated net income (loss)                                    |   |                                       | (61,173         | )               |                                |   | (3,129 | )  |   |   | 155,156 |   |   |   | 180,762 |   |
| Less: Net income attributable to noncontrolling interest               |   |                                       |  (5,647    | )                    |                                |   |     (2,607 | )     |   |   | (50,003 | )     |   |   | (43,427 | )     |
| Net income (loss) attributable to TSR, Inc.                            |   | $                                          | (66,820         | )     |                                | $      | (5,736 | )     |   | $ | 105,153 |   |   | $ | 137,335 |   |
|                                                                   |   |                                       |            |                 |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net income (loss) per TSR, Inc. common share    |   | $                                          | ( 0.03          | )     |                                | $      | ( 0.00 | )     |   | $ | 0.05 |   |   | $ | 0.07 |   |
| Weighted average number of basic and diluted common shares outstanding |   |                                       |  2,019,091 |                 |                                |   |  2,025,244 |   |   |   |  2,019,775 |   |   |   |  2,025,244 |   |

----

|                                                    |   | Shares ofcommonstock |            |   | Commonstock |   |          | Additionalpaid-incapital |   |   | Retainedearnings |   |   | Treasurystock |          |   | Non-controllingInterest |   |          | Totalequity |   |
|---------------------------------------------------------|--------|----------------------|-----------------|--------|-------------|--------|---------------|--------------------------|--------|--------|------------------|--------|--------|---------------|---------------|--------|-------------------------|--------|---------------|-------------|--------|
| Balance at May 31, 2009                                 |   |                 | 6,228,326       |   |        | $      | 62,283        |                     |   | $      | 5,071,727        |   |   | $             | 20,517,707    |   |                    | $      | (13,251,231   | )           |   | $ | 17,636 |   |   | $ | 12,418,122 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Reverse stock split 1:2                                 |   |                 | (3,114,163      | )      |        |   | (31,141       | )                        |   |   | 31,141           |   |   |          | —       |   |                    |   | —       |        |   |   | — |   |   |   | — |   |
| Adjusted May 31, 2009                                   |   |                 | 3,114,163       |   |        |   | 31,142        |                     |   |   | 5,102,868        |   |   |          | 20,517,707    |   |                    |   | (13,251,231   | )           |   |   | 17,636 |   |   |   | 12,418,122 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Net income attributable to noncontrolling interest      |   |                 |  —   |   |        |   |  — |                     |   |   |  —    |   |   |          |  — |   |                    |   |  — |        |   |   |  43,427 |   |   |   |  43,427 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Distribution to noncontrolling interest                 |   |                 |  —   |   |        |   |  — |                     |   |   |  —    |   |   |          |  — |   |                    |   |  — |        |   |   | (39,461 | ) |   |   | (39,461 | ) |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Net income attributable toTSR, Inc.                     |   |                 |  —   |   |        |   |  — |                     |   |   |  —    |   |   |          |  137,335 |   |                    |   |  — |        |   |   |  — |   |   |   |  137,335 |   |
| Balance at February 28, 2010                            |   |                 |  3,114,163 |   |        | $      | 31,142        |                     |   | $      | 5,102,868        |   |   | $             | 20,655,042    |   |                    | $      | (13,251,231   | )           |   | $ | 21,602 |   |   | $ | 12,559,423 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Balance at May 31, 2010                                 |   |                 | 6,228,326       |   |        | $      | 62,283        |                     |   | $      | 5,071,727        |   |   | $             | 20,661,190    |   |                    | $      | (13,253,523   | )           |   | $ | 27,820 |   |   | $ | 12,569,497 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Reverse stock split 1:2                                 |   |                 | (3,114,163      | )      |        |   | (31,141       | )                        |   |   | 31,141           |   |   |          | —       |   |                    |   | —       |        |   |   | — |   |   |   | — |   |
| Adjusted May 31, 2010                                   |   |                 | 3,114,163       |   |        |   | 31,142        |                     |   |   | 5,102,868        |   |   |          | 20,661,190    |   |                    |   | (13,253,523   | )           |   |   | 27,820 |   |   |   | 12,569,497 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Net income attributable to noncontrolling interest |   |                 |  —   |   |        |   |  — |                     |   |   |  —    |   |   |          |  — |   |                    |   |  — |        |   |   |  50,003 |   |   |   |  50,003 |   |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Distribution to noncontrolling interest                 |   |                 |  —   |   |        |   |  — |                     |   |   |  —    |   |   |          |  — |   |                    |   |  — |        |   |   | (49,468 | ) |   |   | (49,468 | ) |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Purchases of treasury stock                             |   |                 | —         |   |        |   |  — |                     |   |   |  —    |   |   |          |  — |   |                    |   | (25,740       | )           |   |   |  — |   |   |   | (25,740 | ) |
|                                                    |   |                 |            |   |        |   |          |                     |   |   |             |   |   |          |          |   |                    |   |          |        |   |   |   |   |   |   |   |   |
| Net income attributable toTSR, Inc.                     |   |                 |  —   |   |        |   |  — |                     |   |   |  —    |   |   |          |  105,153 |   |                    |   |  — |        |   |   |  — |   |   |   |  105,153 |   |
| Balance at February 28, 2011                            |   |                 | 3,114,163       |   |        | $      | 31,142        |                     |   | $      | 5,102,868        |   |   | $             | 20,766,343    |   |                    | $      | (13,279,263   | )           |   | $ | 28,355 |   |   | $ | 12,649,445 |   |

----

|                                                                                                                                                               |   | Nine Months Ended February 28, |           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------------|
|                                                                                                                                                               |   | 2011                           |           |   | 2010 |   |
| Cash flows from operating activities:                                                                                                                              |   |                           |           |   |   |   |
|        Consolidated net income                                                                                                  |   | $                              | 155,156        |   |   | $ | 180,762 |   |
|                                                                                                                                                               |   |                           |           |   |   |   |   |   |
|      Adjustments to reconcile consolidated net income to net cash used in operating activities:                                           |   |                           |           |   |   |   |   |   |
|               Depreciation and amortization                                                  |   |                           | 4,962          |   |   |   | 10,280 |   |
|               Unrealized gain on marketable securities, net                                  |   |                           | (40            | ) |   |   | (3,848 | ) |
|               Deferred income taxes                                                          |   |                           | 4,000          |   |   |   | 44,000 |   |
|                                                                                                                                                               |   |                           |           |   |   |   |   |   |
|       Changes in operating assets and liabilities:                                                                                   |   |                           |           |   |   |   |   |   |
|               Accounts receivable                                                            |   |                           | (1,967,439     | ) |   |   | (588,502 | ) |
|               Other receivables                                                              |   |                           | (463           | ) |   |   | 11,589 |   |
|               Prepaid expenses                                                               |   |                           | 23,747         |   |   |   | 533 |   |
|               Prepaid and recoverable income taxes                                           |   |                           | 46,182         |   |   |   | (21,169 | ) |
|               Accounts and other payables and accrued expenses and other current liabilities |   |                           | 335,711        |   |   |   | (106,870 | ) |
|               Advances from customers                                                        |   |                           | (10,800        | )     |   |   | 56,900 |   |
| Net cash used in operating activities                                                                                                                              |   |                           | (1,408,984     | )    |   |   | (416,325 | )   |
| Cash flows from investing activities:                                                                                                                              |   |                           |           |   |   |   |   |   |
|        Proceeds from maturities of marketable securities                                                                        |   |                           | 4,097,242      |   |   |   | 3,997,133 |   |
|        Purchases of marketable securities                                                                                       |   |                           | (5,346,830     | ) |   |   | (2,749,191 | ) |
|        Purchases of equipment and leasehold improvements                                                                        |   |                           | (6,929         | )   |   |   | (2,284 | )     |
| Net cash provided by (used in) investing activities                                                                                                                |   |                           | (1,256,517     | )   |   |   | 1,245,658 |   |
|                                                                                                                                                               |   |                           |           |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                              |   |                           |           |   |   |   |   |   |
|        Purchases of treasury stock       Distribution to noncontrolling interest             |   |                           | (25,740(49,468 | ))    |   |   | —(39,461 | )    |
| Net cash used in financing activities                                                                                                                              |   |                           | (75,208        | )     |   |   | (39,461 | )      |
|                                                                                                                                                               |   |                           |           |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                               |   |                           | (2,740,709     | ) |   |   | 789,872 |   |
| Cash and cash equivalents at beginning of period                                                                                                                   |   |                           | 5,669,972      |   |   |   | 4,075,213 |   |
| Cash and cash equivalents at end of period                                                                                                                         |   | $                              | 2,929,263      |   |   | $ | 4,865,085 |   |
|                                                                                                                                                               |   |                           |           |   |   |   |   |   |
| Supplemental disclosures of cash flow data:                                                                                                                        |   |                           |           |   |   |   |   |   |
|        Income taxes paid                                                                                                        |   | $                              | 92,000         |   |   | $ | 126,000 |   |

----

|                                     |   | February 28,2011 |             |   | May 31,2010 |   |
|------------------------------------------|--------|------------------|------------------|--------|-------------|--------|
| Cash in banks                            |   | $                | 393,316          |   |        | $      | 2,171,031 |   |
| Money market fundsUS Treasury securities |   |             | 2,535,947— |   |        |   | 2,499,327  999,614 |   |
|                                     |   | $                | 2,929,263        |   |        | $      | 5,669,972 |   |

----

| February 28, 2011       |   | Level 1 |      |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|-------------------------|--------|---------|-----------|--------|---------|--------|-----------|---------|--------|--------|---------|--------|
|                    |   |    |      |   |    |   |      |    |   |   |    |   |
| US Treasury Securities  |   | $       | 2,497,841 |   |    | $      | —   |    |   |   | — |   |   | $ | 2,497,841 |   |
| Certificates of Deposit |   |    | —   |   |    |   | 1,750,000 |    |   |   | — |   |   |   | 1,750,000 |   |
| Equity Securities       |   |    | 17,176    |   |    |   | —   |    |   |   | — |   |   |   | 17,176 |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
|                    |   | $       | 2,515,017 |   |    | $      | 1,750,000 |    |   | $      | — |   |   | $ | 4,265,017 |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
| May 31, 2010            |   | Level 1 |      |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
| US Treasury Securities  |   | $       | 1,498,253 |   |    | $      | —   |    |   | $      | — |   |   | $ | 1,498,253 |   |
| Certificates of Deposit |   |    | —   |   |    |   | 1,500,000 |    |   |   | — |   |   |   | 1,500,000 |   |
| Equity Securities       |   |    | 17,136    |   |    |   | —   |    |   |   | — |   |   |   | 17,136 |   |
|                    |   |    |      |   |    |   |      |    |   |   |    |   |   |   |   |   |
|                    |   | $       | 1,515,389 |   |    | $      | 1,500,000 |    |   | $      | — |   |   | $ | 3,015,389 |   |

----

|  February 28, 2011Current |   |  AmortizedCost |      |   | GrossUnrealizedHoldingGains |   |    | GrossUnrealizedHoldingLosses |   |   |  RecordedValue |   |
|--------------------------------|--------|---------------------|-----------|--------|-----------------------------|--------|---------|------------------------------|--------|--------|---------------------|--------|
| US Treasury Securities         |   | $                   | 2,497,841 |   |                        | $      | — |                         |   | $      | —             |   |   | $ | 2,497,841 |   |
| Certificates of Deposit        |   |                | 1,500,000 |   |                        |   | — |                         |   |   | —             |   |   |   | 1,500,000 |   |
| Equity Securities              |   |                | 16,866    |   |                        |   | 310     |                         |   |   | —             |   |   |   | 17,176 |   |
|                           |   | $                   | 4,214,707 |   |                        | $      | 310     |                         |   | $      | —             |   |   | $ | 4,215,017 |   |
| Long - Term                    |   |                |      |   |                        |   |    |                         |   |   |                |   |   |   |   |   |
| Certificates of Deposit        |   | $                   | 250,000   |   |                        | $      | — |                         |   | $      | —             |   |   | $ | 250,000 |   |

|  May 31, 2010Current |   |  AmortizedCost |      |   | GrossUnrealizedHoldingGains |   |    | GrossUnrealizedHoldingLosses |   |   |  RecordedValue |   |
|---------------------------|--------|---------------------|-----------|--------|-----------------------------|--------|---------|------------------------------|--------|--------|---------------------|--------|
| US Treasury Securities    |   | $                   | 1,498,253 |   |                        | $      | — |                         |   | $      | —             |   |   | $ | 1,498,253 |   |
| Certificates of Deposit   |   |                | 1,500,000 |   |                        |   | — |                         |   |   | —             |   |   |   | 1,500,000 |   |
| Equity Securities         |   |                | 16,866    |   |                        |   | 270     |                         |   |   | —             |   |   |   | 17,136 |   |
|                      |   | $                   | 3,015,119 |   |                        | $      | 270     |                         |   | $      | —             |   |   | $ | 3,015,389 |   |

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| Part I.  | Financial Information Item 2. |
|---------------|-------------------------------|

|                                         |   | (Dollar amounts in thousands) Three Months Ended |   |
|----------------------------------------------|--------|--------------------------------------------------|--------|
|                                         |   | February 28, 2011                                |   |   | February 28, 2010 |   |
|                                         |   |  Amount                                     |   |   | % ofRevenue |   |   |  Amount |   |   | % ofRevenue |   |
| Revenue, net                       |   | $                                                | 9,377  |   |   |   | 100.0 | % |   | $ | 8,961 |   |   |   | 100.0 | % |
| Cost of sales                                |   |                                             | 7,743  |   |   |   | 82.6 | % |   |   | 7,419 |   |   |   | 82.8 | % |
| Gross profit                                 |   |                                             | 1,634  |   |   |   | 17.4 | % |   |   | 1,542 |   |   |   | 17.2 | % |
|                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses |   |                                             | 1,717  |   |   |   | 18.3 | % |   |   | 1,544 |   |   |   | 17.2 | % |
| Loss from operations                         |   |                                             | (83    | ) |   |   | (0.9 | )% |   |   | (2 | ) |   |   | (0.0 | )% |
|                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                            |   |                                             | 5      |   |   |   | 0.1 | % |   |   | 7 |   |   |   | 0.1 | % |
| Income (loss) before income taxes            |   |                                             | (78    | ) |   |   | (0.8 | )% |   |   | 5 |   |   |   | 0.1 | % |
| Provision for (recovery of) income taxes     |   |                                             | (17    | ) |   |   | (0.2 | )% |   |   | 8 |   |   |   | 0.1 | % |
| Consolidated net loss                        |   | $                                                | (61    | ) |   |   | (0.6 | )% |   | $ | (3 | ) |   |   | (0.0 | )% |

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|                                         |   | (Dollar amounts in thousands) Nine Months Ended |   |
|----------------------------------------------|--------|-------------------------------------------------|--------|
|                                         |   | February 28, 2011                               |   |   | February 28, 2010 |   |
|                                         |   |  Amount                                    |   |   |  % ofRevenue |   |   | Amount |   |   |  % ofRevenue |   |
| Revenue, net                            |   | $                                               | 28,498 |   |   |   | 100.0 | % |   | $ | 27,393 |   |   |   | 100.0 | % |
| Cost of sales                                |   |                                            | 23,254 |   |   |   | 81.6 | % |   |   | 22,520 |   |   |   | 82.2 | % |
| Gross profit                                 |   |                                            | 5,244  |   |   |   | 18.4 | % |   |   | 4,873 |   |   |   | 17.8 | % |
|                                         |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses |   |                                            | 4,965  |   |   |   | 17.4 | % |   |   | 4,586 |   |   |   | 16.8 | % |
| Income from operations                       |   |                                            | 279    |   |   |   | 1.0 | % |   |   | 287 |   |   |   | 1.0 | % |
|                                         |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income, net                            |   |                                            | 16     |   |   |   | 0.0 | % |   |   | 43 |   |   |   | 0.2 | % |
| Income before income taxes                   |   |                                            | 295    |   |   |   | 1.0 | % |   |   | 330 |   |   |   | 1.2 | % |
| Provision for income taxes                   |   |                                            | 140    |   |   |   | 0.5 | % |   |   | 149 |   |   |   | 0.5 | % |
| Consolidated net income                      |   | $                                               | 155    |   |   |   | 0.5 | % |   | $ | 181 |   |   |   | 0.7 | % |

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|                    |   | Payments Due By Period |      |
|-------------------------|--------|------------------------|-----------|
| Contractual Obligations |   | Total                  |      |   | Less than1 Year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | More than5 Years |   |
| Operating Leases        |   | $                      | 923,000   |   |   | $ | 361,000 |   |   | $ | 430,000 |   |   | $ | 132,000 |   |   | $ | — |   |
| Employment Agreements   |   |                   | 1,056,000 |   |   |   | 488,000 |   |   |   | 350,000 |   |   |   | 218,000 |   |   |   | — |   |
| Totals                  |   | $                      | 1,979,000 |   |   | $ | 849,000 |   |   | $ | 780,000 |   |   | $ | 350,000 |   |   | $ | — |   |

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|                                                                                                                                                   | TSR Inc.     |                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------------------------|
|                                                                                                                                                   | (Registrant) |                                |
|                                                                                                                                                   |         |                                |
|                                                                                                                                                   |         |                                |   |
| Date:                      April 1, 2011 | By:          | /s/ J.F. Hughes                |   |
|                                                                                                                                                   |         | J.F. Hughes, Chairman and President |   |
|                                                                                                                                                   |         | Title                          |   |
|                                                                                                                                                   |         |                                |   |

|                                                                                                                                                   |   |                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| Date:                      April 1, 2011 | By:    | /s/ John G. Sharkey                                            |   |
|                                                                                                                                                   |   | John G. Sharkey, Vice President Finance and Chief Financial Officer |   |
|                                                                                                                                                   |   |                                                                |   |
|                                                                                                                                                   |   |                                                                |   |

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