Chicago-based Technology Solutions Co. announced after market close Tuesday a loss in earnings driven by one-time costs and investments aimed at making the company profitable. Despite the reported loss, the shares rose 5 percent to close at $4.20, a day after the earnings release.

The 19-year-old business solutions company had a net loss of $2.27 million, or 89 cents per diluted share, in the quarter ended Sept. 30, compared with a loss of $2.34 million, or 93 cents per diluted share, in the year-earlier period. The company has not reported a profit since the fourth quarter of 2002.

There are no analysts that cover the company.

Technology Solutions’ revenues declined 38 percent from the same period the previous year to $6.2 million this quarter.

Despite a net loss, Technology Solutions said it still remains optimistic about its future.

“We are three quarters into our turnaround efforts,” Technology Solutions CEO Milton Silva-Craig said in a press release. “Although our top line performance is not up to our expectations, we are making considerable progress in several areas.”

The company said they have reduced cash burn and income loss this quarter and expect it to continue in following quarters. It also said many of its one-time costs and investments required for its turnaround have already been made, which will help reduce expenses as Technology Solutions moves forward.

Technology Solutions also said it has prepared a new offering – data management – and it is ready to be marketed to its clients. Additionally, its visual performance management solution is ready for pilot trials.

Third, the health care channel partner the company signed this past quarter, McKesson Healthcare, has begun to generate revenue, according to Technology Solutions.

Technology Solutions also said it had recently hired a new chief financial officer, Tim Rogers, and is expecting his leadership to have a significant impact on the company.

Lastly, the company’s re-branding is ready and will be launched soon.

“In short, many of the significant steps we believe are required to restructure and reposition the business have been completed,” Silva-Craig said in the press release. “These steps should better position the business to begin its new phase focused on growth.”

The net loss for the first nine months of the year was $8 million, or $3.15 per diluted share, on sales of $17.9 million, compared with a net loss of $3.6 million, or $1.44 per diluted share, on sales of $29.7 million during the same period in 2006.

The 52-week high and low were $8.90 and $3.37.