News Release

View printer-friendly version

<< Back

TESSCO Reports Fiscal Year and Fourth-Quarter 2016 Financial Results

Reaffirms Quarterly Dividend of $0.20 Per Share

HUNT VALLEY, Md.--(BUSINESS WIRE)--May 9, 2016-- TESSCO Technologies Incorporated (NASDAQ: TESS), a leading supplier for the product and value chain solutions that enable organizations to build, use, maintain and resell wireless voice, data, video, connectivity and control systems, today reported financial results for its fiscal 2016 and fourth quarter of fiscal 2016, ended March 27, 2016.

Fiscal Year Highlights:

  • TESSCO’s ongoing strategic transformation is progressing and will accelerate in the new year to drive the company’s evolution from a wireless carrier transaction-centric supplier, to a consultative, end-to-end solutions provider that enables the deployment of wireless connectivity systems for private, as well as public, network operators
  • Net income of $5.3 million, or diluted earnings per share (EPS) of $0.65
  • Adjusted diluted earnings per share, excluding a charge related to non-recurring software licensing fees1, was $0.76*
  • Retail market revenues grew by 14%
  • Public carrier market revenue declined 30% as carrier hesitancy continued
  • Strong year-end balance sheet

Fourth-Quarter Highlights:

  • Net loss of $2.0 million, or (loss) per share of $(0.24)
  • Adjusted net loss of $1.1 million* or (loss) per share of $(0.13)*, excluding charge related to non-recurring software licensing fees1; meets low end of guidance range
  • Quarterly dividend of $0.20 per share declared
                                   
         

Fiscal Year
2016

   

Fiscal Year
2015

   

Fourth Quarter
FY 2016

   

Fourth Quarter
FY 2015

   

Third Quarter
FY 2016

Revenue         $530.7M    

$549.6M

    $114.2M     $113.0M     $139.5M
EPS         $0.65     $1.04     $(0.24)     $(0.03)     $0.35
Adjusted EPS*         $0.76     $1.08     $(0.13)     $0.01     $0.35
EBITDA per share*         $1.67     $2.28     $(0.24)     $0.10     $0.72
Operating margin         1.7%     2.6%     (2.8%)     (0.2%)     3.4%
Cash balance         $16.9M     $7.5M     $16.9M     $7.5M     $7.5M
Line of credit balance         $0     $0     $0     $0     $0
                                   

*EBITDA, EBITDA per share, adjusted net income excluding charge related to non-recurring software licensing fees, and adjusted EPS excluding charge related to non-recurring software licensing fees (also referred to in the chart above as “Adjusted EPS” as applicable to the 2016 fiscal year and fourth quarter) are each Non-GAAP financial measures. In addition, references to 2015 fiscal year and fourth quarter EPS excluding a restructuring charge relating to severance costs, (also referred to in the chart above as “Adjusted EPS” for those periods), is also a Non-GAAP measure. These Non-GAAP measures are indicated by an asterisk (*) in this press release, as a means to direct the reader to the discussion of Non-GAAP Information below and the reconciliation of Non-GAAP to GAAP results included as an exhibit to this press release.

Fiscal Year 2016 and Fourth-Quarter Revenue Results:

                       
         

Year over Year
FY 2016 vs.
FY 2015

   

Year over Year
Q4 FY 2016 vs.
Q4 FY 2015

   

Sequential
Q4 FY 2016 vs.
Q3 FY 2016

                       
Public Carrier         (30.0%)     (29.0%)     (29.2%)
Commercial Resellers         (3.1%)     5.4%     (8.3%)
Government         4.8%     (13.9%)     (34.1%)
Private System Operators         (1.3%)     (0.9%)     (12.9%)
Retail         13.7%     20.6%     (18.8%)
Total         (3.4%)     1.1%     (18.2%)
                       

“Fiscal year 2016 presented TESSCO with significant revenue challenges due to the continued decline in cellular carrier purchases, which were down 30% year over year,” said Robert Barnhill, Founder, Chairman, President and Chief Executive Officer. “With the exception of strong results in our retail market, we did not achieve the revenue growth we had anticipated from the rest of the business. At the same time, we have been making progress throughout the year on many of our strategic transformations required to respond to the new realities in wireless, and to respond to changes in customer behavior and expectations. We ended the year with a strong balance sheet, continued the $0.20 per share quarterly dividend payments and maintained a deep commitment to regain profitable growth.

“Our fourth-quarter performance was disappointing. While the fourth quarter is seasonally our weakest, we were impacted by customer uncertainty in a difficult macroeconomic environment. We experienced a 29% year-over-year decline in the carrier market and small declines in some of our other markets. Our earnings were also impacted by an unanticipated, non-recurring charge resulting from a multi-year license usage compliance audit by one of our major software providers. After negotiation, we were successful in reaching an agreement to resolve the matter.

“As we enter fiscal 2017, we are beginning to see new opportunities and sales in all of our markets. We are focusing on market share growth, expansion in the non-carrier markets, new customer development, offer expansion, margin improvement and expense management. In addition, we launched a CEO succession plan. We are now engaged in a search for a new CEO with experience in achieving superior, profitable growth through innovative marketing and sales and productive operations. We expect a new CEO to be hired sometime during fiscal 2017. In the meantime, I remain the CEO, firmly dedicated to driving performance. Once the new CEO is retained, I will become the Executive Chairman, committed to working with the new CEO to take TESSCO to a new level of success in the exploding world of wireless connectivity.

“While short-term results have not met our expectations, TESSCO’s ongoing strategic transformation is progressing. In the New Year, we are accelerating our transformation to drive our evolution from a wireless carrier transaction-centric supplier, to a consultative, end-to-end solutions provider that enables the deployment of wireless voice, data, video, connectivity and control systems for private, as well as public, network operators. All of us at TESSCO are energized and accountable to make the right things happen to achieve the level of success and growth of shareowner value we all expect,” Barnhill concluded.

Fiscal Year 2016 Financial Results

For the 2016 fiscal year, revenues totaled $530.7 million, compared with $549.6 million in fiscal 2015.

Gross profit was $112.0 million in fiscal 2016, compared with $117.6 million in fiscal 2015.

Selling, general and administrative (SG&A) expenses were $102.9 million in fiscal 2016, including the $1.5 million charge related to non-recurring software licensing fees1. This compares with $103.3 million in fiscal 2015, which included a $0.6 million fourth quarter restructuring charge related to severance costs.

Net income and earnings per share were $5.3 million and $0.65, respectively, for fiscal 2016. Excluding the impact of the $1.5 million software licensing charge1, adjusted net loss and adjusted earnings per share totaled $6.3 million* and $0.76*, respectively, for fiscal 2016, compared with actual net loss and earnings per share of $8.6 million and $1.04, respectively for fiscal year 2015, or $9.0 million* and $1.08* excluding the $0.6 million fourth quarter restructuring charge.

Fourth-Quarter Fiscal 2016 Financial Results

For the fiscal 2016 fourth quarter, revenues totaled $114.2 million, compared with $113.0 million in the fourth quarter of fiscal 2015 and $139.5 million in the third quarter of fiscal 2015.

Gross profit was $23.0 million for the fourth quarter of fiscal 2016, compared with $24.3 million for the same quarter of fiscal 2015 and $29.5 million for the third quarter of fiscal 2016. The year-over-year decline in gross profit was primarily the result of changes in product and customer mix. Gross margin was 20.2% of revenue, compared with 21.5% for last year’s fourth quarter and 21.1% for the third quarter of fiscal 2016.

Selling, general and administrative (SG&A) expenses were $26.2 million in the fourth quarter of fiscal 2016, including the $1.5 million charge related to the non-recurring software licensing fees1. This compares with $24.6 million in the same quarter of the prior year, including a $0.6 million restructuring charge related to severance costs, and compares to $24.7 million in the third quarter of fiscal 2016.

Net loss and loss per share were $(2.0 million) and $(0.24) for the fourth quarter of fiscal 2016. Excluding the impact of the $1.5 million software licensing charge1, adjusted net loss and adjusted loss per share totaled $(1.1 million)* and $(0.13)*, respectively, for the fourth quarter of fiscal 2016, compared with net loss and earnings (loss) per share of $(0.2 million) and $(0.03), or $0.1 million* and $0.01*, respectively, excluding the $0.6 million restructuring charge, for the prior-year quarter, and compared with net income and earnings per share of $2.9 million and $0.35, respectively, for the third quarter of fiscal 2016.

Cash Dividend

TESSCO’s Board of Directors declared a quarterly cash dividend of $0.20 per common share payable on June 8, 2016 to holders of record on May 25, 2016. Any future declaration of dividends, and the establishment of record and payment dates, is subject to future determinations of the Board of Directors.

1Non-Recurring Software License Charge

During the fourth quarter of fiscal 2016, TESSCO received the results of a software license audit conducted by a major software provider. After significant negotiations, the Company settled the audit for $1.5 million, which was accrued in the fourth quarter and will be paid in the first quarter of fiscal 2017. The ongoing annual cost from the results of this audit is minimal.

The adjusted net income and adjusted earnings (loss) per share amounts included in this release, when excluding (for fiscal year and fourth quarter 2016 amounts) the $1.5 million charge related to the non-recurring software licensing fees, or when excluding (for fiscal year and fourth quarter 2015 amounts) the $0.6 million restructuring charge related to severance costs, are each non-GAAP numbers and are presented here because we believe these charges to be infrequent and, therefore, not indicative of our operating performance.

Business Outlook

The Company is not providing earnings guidance at this time for fiscal 2017 due to the uncertainty that persists primarily in the carrier market. While the Company expects both revenue and earnings to increase sequentially for the first quarter of fiscal 2017 as compared to the fourth quarter of fiscal 2016, those results are expected to be lower than in the first quarter of fiscal 2016, primarily because of continued carrier market pressure, pricing pressure in the retail market and the impact of recent talent investments. TESSCO may provide financial guidance later in the fiscal year as visibility improves.

Forecasting future results is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. The nature of the business is that TESSCO typically ships products within several days after booking orders. The lack of an order backlog makes it even more difficult to forecast future results. The Business Outlook published in this press release reflects only the Company’s current best estimate and it assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time.

Fourth-Quarter Fiscal 2016 Conference Call

Management will host a conference call to discuss fourth-quarter 2016 results tomorrow, May 10, 2016 at 8:30 a.m. ET. To participate in the conference call, please call: 877-311-4347 (domestic call-in) or 484-653-6779 (international call-in) and reference code #89690838.

A live webcast of the conference call will be available at www.tessco.com/go/corporatepresentations. All participants should call or access the website approximately 10 minutes before the conference begins.

A telephone replay of the conference call will be available from 11:30 a.m. ET on May 10, 2016 until 11:59 p.m. ET on May 17, 2016 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #89690838. An archived replay of the conference call will also be available on the Company's website at www.tessco.com/go/corporatepresentations.

Non-GAAP Information

EBITDA is used by management to evaluate the Company’s ongoing operations and as a general indicator of its operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

EBITDA is defined as income from operations, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization.

Adjusted net income and adjusted EPS, excluding the charge related to the non-recurring software licensing fees (for 2016 fiscal year and fourth quarter amounts), are presented because we believe the non-recurring software licensing fees to be infrequent and not indicative of our operating performance.

Net income (loss) and EPS, net of restructuring charges (for 2015 fiscal year and fourth quarter amounts) are presented because we believe the severance costs to be infrequent and not indicative of our operating performance.

Management believes EBITDA and EBITDA per share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Because not all companies use identical calculations, the Company’s presentation of each of these Non-GAAP measures may not be comparable to other similarly titled measures of other companies. Management also believes the adjusted (Non-GAAP) calculations of net income and earnings per share are useful to investors as they remove the impact of infrequent and unusual charges for non-recurring software licensing fees and non-recurring charges related to severance costs. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. EBITDA per diluted share is also a non-GAAP calculation defined as EBITDA divided by TESSCO’s diluted weighted average shares outstanding. Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not reflect certain cash requirements such as interest payments, tax payments and debt service requirements. The amounts shown for EBITDA as presented herein differ from the amounts calculated under the definition of EBITDA used in our loan agreements. The definition of EBITDA as used in our loan agreements is further adjusted for certain cash and non-cash charges/credits, including stock compensation expense, and is used to determine compliance with financial covenants and the ability to engage in certain activities such as incurring additional debt.

A reconciliation of Non-GAAP to GAAP results is included as an exhibit to this release.

Reclassification of Items in Statement of Income and Supplemental Results Summary

Prior to the third quarter of fiscal 2016, the Company classified indirect costs relieved from inventory upon a sale as selling, general and administrative expenses, as opposed to cost of goods sold. The financial results presented in this release correctly reflect indirect costs relieved from inventory as cost of goods sold for all periods. The accompanying Consolidated Statements of Income and Supplemental Results Summary have been adjusted to correct this immaterial error in the classification of indirect inventory costs in the income statement. This resulted in an increase in cost of goods sold, and a corresponding decrease in selling, general and administrative expenses, of $3.4 million and $13.3 million for the three- and twelve-month periods ended March 29, 2015, respectively. These corrections have no impact on previously reported revenues, operating margin, EBITDA, net income, earnings per share or on previously reported Consolidated Balance Sheets or Consolidated Statements of Cash Flows.

About TESSCO Technologies Incorporated (NASDAQ: TESS)

The convergence of wireless and the Internet is revolutionizing the way we live, work and play. New systems and applications are creating challenges and opportunities at an unprecedented rate.

TESSCO is there ‒ enabling organizations to capitalize on the opportunities in wireless by providing Your Total Source® of end-to-end solutions. TESSCO delivers the knowledge, and product and supply chain solutions required to build, use and maintain, wireless voice, data, video, connectivity and control systems.

Forward-Looking Statements

This press release contains forward-looking statements as to anticipated results and future prospects. These forward-looking statements are based on current expectations and analysis, and actual results may differ materially. These forward-looking statements may generally be identified by the use of the words "may," "will," "expects," "anticipates," "believes," "estimates," and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. Forward-looking statements involve a number of risks and uncertainties. Our actual results may differ materially from those described in or contemplated by any such forward-looking statement for a variety of reasons, including those risks identified in our most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission, under the heading "Risk Factors" and otherwise. Consequently, the reader is cautioned to consider all forward-looking statements in light of the risks to which they are subject.

We are not able to identify or control all circumstances that could occur in the future that may adversely affect our business and operating results. Without limiting the risks that we describe in our periodic reports and elsewhere, among the risks that could lead to a materially adverse impact on our business or operating results are the following: termination or non-renewal of limited duration agreements or arrangements with our vendors and affinity partners that are typically terminable by either party upon several months or otherwise relatively short notice; loss of significant customers or relationships, including affinity relationships; loss of customers as a result of consolidation among the wireless communications industry; the strength of our customers', vendors' and affinity partners' business; economic conditions that may impact customers' ability to fund or pay for our products and services; changes in customer and product mix that affect gross margin; effect of “conflict minerals” regulations on the supply and cost of certain of our products; failure of our information technology system or distribution system; system security or data protection breaches; technology changes in the wireless communications industry; fourth-party freight carrier interruption; increased competition; our relative bargaining power and inability to negotiate favorable terms with our vendors and customers; our inability to access capital and obtain financing as and when needed; claims against us for breach of the intellectual property rights of fourth parties; product liability claims; and the possibility that, for unforeseen or other reasons, we may be delayed in entering into or performing, or may fail to enter into or perform, anticipated contracts or may otherwise be delayed in realizing or fail to realize anticipated revenues or anticipated savings.

                 

TESSCO Technologies Incorporated

Consolidated Statements of Income (Unaudited)

                 
          Fiscal Quarters Ended     Fiscal Year Ended
         

March 27,
2016

 

March 29,
2015

 

December 27,
2015

   

March 27,
2016

 

March 29,
2015

                             
Revenues         $ 114,154,100     $ 112,962,200     $ 139,510,700     $ 530,682,100   $ 549,619,000
Cost of goods sold           91,135,200       88,650,400       110,057,300       418,716,200     431,980,500
Gross profit           23,018,900       24,311,800       29,453,400       111,965,900     117,638,500
Selling, general and administrative expenses           26,202,100       23,983,100       24,742,400       102,932,300     102,686,700

Restructuring Charge

          --       573,400       --       --     573,400
Income (loss) from operations           (3,183,200 )     (244,700 )     4,711,000       9,033,600     14,378,400
Interest, net           12,400       28,200       55,500       161,300     167,300
Income (loss) before provision for income taxes           (3,195,600 )     (272,900 )     4,655,500       8,872,300     14,211,100
Provision for income taxes           (1,205,800 )     (41,000 )     1,768,800       3,531,800     5,576,800
Net income (loss)         $ (1,989,800 )   $ (231,900 )   $ 2,886,700     $ 5,340,500   $ 8,634,300
                             
Basic earnings (loss) per share         $ (0.24 )   $ (0.03 )   $ 0.35     $ 0.65   $ 1.05
Diluted earnings (loss) per share         $ (0.24 )   $ (0.03 )   $ 0.35     $ 0.65   $ 1.04
                             
                 

TESSCO Technologies Incorporated

Consolidated Balance Sheets

                 
          March 27, 2016     March 29, 2015
          (unaudited)     (audited)
                 
ASSETS                
Current Assets:                
Cash and cash equivalents         $ 16,882,800       $ 7,524,000  
Trade accounts receivable, net           58,315,700         59,572,100  
Product inventory           53,903,900         72,363,600  
Prepaid expenses and other current assets           6,164,700         10,868,900  
Total current assets           135,267,100         150,328,600  
                 
Property and equipment, net           19,895,400         21,111,800  
Goodwill, net           11,684,700         11,684,700  

Deferred tax assets

          --         495,900  
Other long-term assets           2,816,400         2,619,600  
Total assets         $ 169,663,600       $ 186,240,600  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current Liabilities:                
Trade accounts payable         $ 41,986,100       $ 51,804,200  
Payroll, benefits and taxes           4,927,900         5,531,900  
Income and sales tax liabilities           1,456,800         1,832,400  
Accrued expenses and other current liabilities           3,874,100         8,688,500  
Revolving line of credit           --         --  
Current portion of long-term debt           251,100         250,700  
Total current liabilities           52,496,000         68,107,700  
                 
Deferred tax liabilities           626,900         --  
Long-term debt, net of current portion           1,706,500         1,957,500  
Other long-term liabilities           2,306,900         3,033,300  
Total liabilities           57,136,300         73,098,500  
                 
Shareholders’ Equity:                
Preferred stock           --         --  
Common stock           97,600         96,100  
Additional paid-in capital           58,113,800         56,517,600  
Treasury stock, at cost           (57,245,200 )       (56,307,900 )
Retained earnings           111,561,100         112,836,300  
Total shareholders’ equity           112,527,300  

 

    113,142,100  
                 

Total liabilities and shareholders’ equity

        $ 169,663,600       $ 186,240,600  
                 
                 

TESSCO Technologies Incorporated

Reconciliation of Net Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited)

                 
          Fiscal Quarters Ended     Fiscal Years Ended
         

March 27,
2016

 

March 29,
2015

 

December 27,
2015

   

March 27,
2016

 

March 29,
2015

          (unaudited)   (unaudited)   (unaudited)     (unaudited)   (unaudited)
                             
Operating income (loss) as reported         $ (3,183,200 )   $ (244,700 )   $ 4,711,000     $ 9,033,600   $ 14,378,400
Restructuring charge or non-recurring charge           1,543,300       573,400       --       1,543,300     573,400
Operating income, as adjusted         $ (1,639,900 )   $ 328,700     $ 4,711,000     $ 10,576,900   $ 14,951,800
                             
                             
Net income, as reported         $ (1,989,800 )   $ (231,900 )   $ 2,886,700     $ 5,340,500   $ 8,634,300
Restructuring or non-recurring charge, net of tax           929,000       354,932       --       929,000     354,932
Net income as adjusted         $ ( 1,060,800 )   $ 123,032     $ 2,886,700     $ 6,269,500   $ 8,989,232
                             
                             
Diluted EPS, as reported         $ (0.24 )   $ (0.03 )   $ 0.35     $ 0.65   $ 1.04
Restructuring or non-recurring charge           0.11       0.04       --       0.11     0.04
Diluted EPS, adjusted         $ (0.13 )   $ 0.01     $ 0.35     $ 0.76   $ 1.08
                             
                             
Net Income as reported         $ (1,989,800 )   $ (231,900 )   $ 2,886,700     $ 5,340,500   $ 8,634,300
Add:                            
                             
Provision for income taxes           (1,205,800 )     (41,000 )     1,768,800       3,531,800     5,576,800
                             
Interest, net           12,400       28,200       55,500       161,300     167,300
Depreciation and amortization           1,161,700       1,090,400       1,229,800       4,730,000     4,583,600
EBITDA         $ (2,021,500 )   $ 845,700     $ 5,940,800     $ 13,763,600   $ 18,962,000
Add:                            
                             
Stock based compensation           218,400       214,300       110,900       729,100     1,161,300
Restructuring charge or non-recurring charge           1,543,300       573,400       --       1,543,300     573,400
EBITDA, adjusted         $ (259,800 )   $ 1,633,400     $ 6,051,700     $ 16,036,000   $ 20,696,700
                             
EBITDA per diluted share         $ (0.24 )   $ 0.10     $ 0.72     $ 1.67   $ 2.28
                             
Adjusted EBITDA per diluted share         $ (0.03 )   $ 0.20     $ 0.73     $ 1.95   $ 2.49
                             
 
TESSCO Technologies Incorporated
Supplemental Results Summary (in thousands) (Unaudited)
                             
           

Quarter
Ended
March 27,
2016

     

Quarter
Ended
December 27,
2015

     

Growth Rates
Compared to
Prior Period

                             

Market Revenues

                         
Public Carriers, Contractors & Program Managers      

 

$

15,836

     

 

$

22,381

        (29.2 %)
Government System Operators           6,495           9,849         (34.1 %)
Private System Operators           18,851           21,634         (12.9 %)
Commercial Dealers & Resellers           29,877           32,566         (8.3 %)
Retailer, Independent Dealer Agents & Carriers           43,095           53,081         (18.8 %)
Total revenues      

 

$

114,154

     

 

$

139,511

        (18.2 %)
                             

Market Gross Profit

                         
Public Carriers, Contractors & Program Managers      

 

$

2,670

     

 

$

3,678

        (27.4 %)
Government System Operators           1,453           2,220         (34.5 %)
Private System Operators           4,308           5,093         (15.4 %)
Commercial Dealers & Resellers           7,492           8,706         (13.9 %)
Retailer, Independent Dealer Agents & Carriers           7,096           9,756         (27.3 %)
Total gross profit      

 

$

23,019

     

 

$

29,453

        (21.8 %)
% of revenues          

20.2

%

        21.1

%

       
                             
 
TESSCO Technologies Incorporated
Supplemental Results Summary (in thousands) (Unaudited)
                               
             

Quarter
Ended
March 27,
2016

     

Quarter
Ended
March 29,
2015

     

Growth Rates
Compared to
Prior Year Period

                               

Market Revenues

                           
Public Carriers, Contractors & Program Managers        

 

$

15,836

     

 

$

22,308

        (29.0 %)
Government System Operators             6,495           7,547         (13.9 %)
Private System Operators             18,851           19,020         (0.9 %)
Commercial Dealers & Resellers             29,877           28,345         5.4 %
Retailer, Independent Dealer Agents & Carriers             43,095           35,742         20.6 %
Total revenues        

 

$

114,154

     

 

$

112,962

        1.1 %
                               

Market Gross Profit

                           
Public Carriers, Contractors & Program Managers        

 

$

2,670

     

 

$

3,909

       

(31.7

%)

Government System Operators             1,453           1,608         (9.6 %)
Private System Operators             4,308           4,534         (5.0 %)
Commercial Dealers & Resellers             7,492           7,409         1.1 %
Retailer, Independent Dealer Agents & Carriers             7,096           6,852         3.6 %
Total gross profit        

 

$

23,019

     

 

$

24,312

        (5.3 %)
% of revenues            

20.2

%

        21.5

%

       
                               
 
TESSCO Technologies Incorporated
Supplemental Results Summary (in thousands) (Unaudited)
                           
           

Fiscal Year
Ended
March 27,
2016

     

Fiscal Year
Ended
March 29,
2015

   

Growth Rates
Compared to
Prior Year Period

                           

Market Revenues

                       
Public Carriers, Contractors & Program Managers      

 

$

89,171

     

 

$

127,426

      (30.0 %)
Government System Operators           33,009           31,495       4.8 %
Private System Operators           85,563           86,725       (1.3 %)
Commercial Dealers & Resellers           129,986           134,195       (3.1 %)
Retailer, Independent Dealer Agents & Carriers           192,953           169,778       13.7 %
Total revenues      

 

$

530,682

     

 

$

549,619

      (3.4 %)
                           

Market Gross Profit

                       
Public Carriers, Contractors & Program Managers      

 

$

15,155

     

 

$

20,915

      (27.5 %)
Government System Operators           7,713           7,535       2.4 %
Private System Operators           20,601           20,866       (1.3 %)
Commercial Dealers & Resellers           33,781           34,948       (3.3 %)
Retailer, Independent Dealer Agents & Carriers           34,717           33,375       4.0 %
Total gross profit      

 

$

111,967

     

 

$

117,639

      (4.8 %)
% of revenues           21.1 %         21.4 %      
                           
 
TESSCO Technologies Incorporated
Supplemental Results Summary (in thousands) (Unaudited)
                             
           

Quarter
Ended
March 27,
2016

     

Quarter
Ended
December 27,
2015

     

Growth Rates
Compared to
Prior Period

                             

Product Revenues

                         
Base station infrastructure      

 

$

44,935

     

 

$

51,571

        (12.9 %)
Network systems           16,939           22,922         (26.1

%)

Installation, test and maintenance           7,455           9,851        

(24.3

%)

Mobile device accessories           44,825           55,167         (18.7 %)
Total revenues      

 

$

114,154

     

 

$

139,511

        (18.2 %)
                             

Product Gross Profit

                         
Base station infrastructure      

 

$

10,471

     

 

$

13,381

        (21.7 %)
Network systems           2,693           3,717         (27.5 %)
Installation, test and maintenance           1,423           1,687         (15.6 %)
Mobile device accessories           8,432           10,668         (21.0 %)
Total gross profit      

 

$

23,019

     

 

$

29,453

        (21.8 %)
% of revenues           20.2 %         21.1 %        
                             
TESSCO Technologies Incorporated
Supplemental Results Summary (in thousands) (Unaudited)
                         
       

Quarter
Ended
March 27,
2016

     

Quarter
Ended
March 29,
2015

     

Growth Rates
Compared to
Prior Year Period

                         

Product Revenues

                     
Base station infrastructure  

 

$

44,935

     

 

$

46,488

        (3.3 %)
Network systems       16,939           18,060         (6.2 %)
Installation, test and maintenance       7,455           8,267         (9.8 %)
Mobile device accessories       44,825           40,147         11.7 %
Total revenues  

 

$

114,154

     

 

$

112,962

        1.1 %
 

 

                     

Product Gross Profit

                     
Base station infrastructure  

 

$

10,471

     

 

$

11,317

        (7.5 %)
Network systems       2,693           2,645         1.8 %
Installation, test and maintenance       1,423           1,669         (14.7 %)
Mobile device accessories       8,432           8,681         (2.9 %)
Total gross profit  

 

$

23,019

     

 

$

24,312

        (5.3 %)
% of revenues       20.2 %         21.5 %        
                       
 
TESSCO Technologies Incorporated
Supplemental Results Summary (in thousands) (Unaudited)
                         
       

Fiscal Year
Ended
March 27,
2016

     

Fiscal Year
Ended
March 29,
2015

     

Growth Rates
Compared to
Prior Year Period

                         

Product Revenues

                     
Base station infrastructure  

 

$

206,604

     

 

$

224,135

        (7.8 %)
Network systems       83,480           96,399         (13.4 %)
Installation, test and maintenance       34,936           41,790         (16.4 %)
Mobile device accessories       205,662           187,295         9.8 %
Total revenues  

 

$

530,682

     

 

$

549,619

        (3.4 %)
                         

Product Gross Profit

                     
Base station infrastructure  

 

$

51,610

     

 

$

55,732

        (7.4 %)
Network systems       12,893           13,549         (4.8 %)
Installation, test and maintenance       6,607           8,351         (20.9 %)
Mobile device accessories       40,857           40,007         2.1 %
Total gross profit  

 

$

111,967

     

 

$

117,639

        (4.8 %)
% of revenues       21.1 %         21.4 %        
                         

 

Source: TESSCO

TESSCO Technologies Incorporated
Aric Spitulnik, 410-229-1419
Chief Financial Officer
spitulnik@tessco.com
or
Sharon Merrill
David Calusdian, 617-542-5300
TESS@investorrelations.com