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Tessco Reports Third-Quarter 2018 Financial Results

Quarterly Revenues of $146 Million
Earnings Per Share Increase to $0.19
Quarterly Dividend of $0.20 Per Share Continued

 

HUNT VALLEY, Md.--(BUSINESS WIRE)--Jan. 23, 2018-- TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS), today reported financial results for its third quarter of fiscal 2018, ended December 24, 2017.

Third-Quarter Highlights:

  • Revenue of $146.3 million
  • Revenue growth in government, value-added reseller and private system operator markets
  • Overall expense management contributed to operating margin of 1.5%, compared with 1.4% in the third quarter of fiscal 2017
  • Recorded benefit from new federal tax law of approximately $0.3 million
  • $0.19 EPS and $0.38 EBITDA per diluted share*
  • Company expects a profitable fourth quarter for the first time in three years, with year-over-year double-digit fourth-quarter revenue growth
  • Declared quarterly dividend of $0.20 per share
                         
       

Third Quarter
FY 2018

     

Third Quarter
FY 2017

     

Second Quarter
FY 2018

Revenue       $146.3M       $147.2M       $145.1M
Earnings per diluted share       $0.19       $0.15       $0.21
EBITDA per diluted share*       $0.38       $0.38       $0.51
Operating margin       1.5%       1.4%       2.2%
Cash balance       $0.0M       $8.4M       $0.2M

Line of credit balance outstanding

      $5.9M       $0.0M       $13.3M
                         

* EBITDA per diluted share and EBITDA (on which EBITDA per diluted share is based) are Non-GAAP financial measures. Non-GAAP financial measures indicated by an asterisk (*) either in the above chart or in the text of this press release are so indicated 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.

Third-Quarter Revenue by Market:

                 
       

Year over Year
Q3 FY 2018 vs.
Q3 FY 2017

     

Sequential
Q3 FY 2018 vs.
Q2 FY 2018

Public Carrier       (12)%       (17)%
Value-Added Resellers       8%       (4)%
Government       29%       (3)%
Private System Operators       8%       3%
Retail       (8)%       15%
Total       (1)%       1%
                 

“We executed well on our strategic initiatives during the third quarter, putting us on pace to finish the year with revenue growth and a significant increase in profitability,” said Murray Wright, President and Chief Executive Officer. “On the top line, sales were slightly down primarily due to the timing of orders in the carrier ecosystem. We expect this decline will be more than offset by increased sales in the fourth quarter, as the pipeline for this market is very strong. Outside of the carrier market, sales were up in the government, value-added reseller and private system operator markets. Our bottom-line growth was a direct result of improved operating leverage due to our successful productivity enhancements, as well as a lower effective tax rate resulting from the new tax law.

“As we approach the finish of the 2018 fiscal year, we are confident we will continue to execute our strategic plan,” Wright continued. “We are focused on balancing the implementation of our go-to-market strategy with improved operating efficiency. Our emphasis on improving the customer experience is generating increased opportunities. We are leveraging a strong value proposition, and we expect double-digit, year-over-year revenue growth in our fourth quarter. Unlike the previous two fourth quarters, we expect positive bottom-line earnings.”

Third-Quarter Fiscal 2018 Financial Results

For the fiscal 2018 third quarter, revenues totaled $146.3 million, compared with $147.2 million for the third quarter of fiscal 2017. Increases in sales to the Company’s government, value-added reseller and private system operator markets were offset by year-over-year declines in sales to the public carrier and retail markets.

Gross profit was $29.6 million for the third quarter of fiscal 2018, compared with $30.0 million for the same quarter of fiscal 2017. The slight decline in third quarter gross profit year over year was primarily the result of the decline in total sales. Gross margin was 20.2% of revenue for the third quarter of fiscal 2018, compared with 20.4% for last year’s third quarter.

As a result of the Company’s ongoing expense control initiatives and productivity enhancements, selling, general and administrative (SG&A) expenses decreased by $0.4 million to $27.4 million for the third quarter of fiscal 2018, from $27.9 million in the same quarter of the prior year.

Primarily as a result of the new tax law, the Company’s provision for income taxes declined from $0.8 million in last year’s third quarter to $0.5 million in this year’s third quarter.

Net income and earnings per share (EPS) were $1.6 million and $0.19, respectively, for the third quarter of fiscal 2018, compared with net income and EPS of $1.2 million and $0.15, respectively, for the prior-year third quarter.

Year to date, net income and earnings per share were $4.0 million and $0.48, respectively, compared to $2.3 million and $0.28 in the same period of fiscal 2017. Revenue and gross profit increased 5% and 3%, respectively, over the same period.

Balance Sheet and Cash Flows

As of December 24, 2017, the outstanding balance on the Company’s line of credit was $5.9 million. Cash flow used in operations was $7.3 million during the first nine months of the 2018 fiscal year, primarily due to increases in inventory and accounts receivable. Inventory increased by $2.5 million during the first nine months of the fiscal year to $66.5 million as of December 24, 2017. Trade accounts receivable increased $20.3 million in the first nine months of the year to $85.0 million. During the third quarter, inventory and trade accounts receivable both decreased sequentially, resulting in cash provided by operations for the quarter of $9.5 million. The Company expects inventory and the balance on its line of credit to grow during the fourth quarter as it continues to implement new strategic programs with significant carrier customers while also building inventory for the spring building season.

Cash Dividend

The Company’s Board of Directors has declared a quarterly cash dividend of $0.20 per common share payable on February 28, 2018 to common stockholders of record on February 14, 2018. Any future declaration of dividends, and the establishment of record and payment dates, is subject to future determinations of the Board of Directors.

Business Outlook

The Company currently anticipates double-digit year-over-year revenue growth and to be profitable in its fiscal 2018 fourth quarter.

Forecasting future results or trends 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.

Third-Quarter Fiscal 2018 Conference Call

Management will host a conference call to discuss third quarter 2018 results tomorrow, Wednesday, January 24, 2018 at 8:30 a.m. ET. To participate in the conference call, please call: 855-319-5921 (domestic call-in) or 503-343-6034 (international call-in) and reference code #6563009.

A live webcast of the conference call will be available on the Events page of the Company’s website. 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 January 24, 2018 until 11:59 p.m. ET on January 31, 2018 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #6563009. An archived replay of the conference call will also be available on the Company's website.

Non-GAAP Information

EBITDA and EBITDA per diluted share are measures used by management to evaluate the Company’s ongoing operations, and to provide a general indicator of the Company's 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. EBITDA per diluted share is defined as EBITDA divided by Tessco’s diluted weighted average shares outstanding.

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 these Non-GAAP measures may not be comparable to other similarly titled measures of other companies. Neither EBITDA nor EBITDA per diluted share is a recognized term under GAAP, and EBITDA 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. Additionally, neither EBITDA nor EBITDA per diluted share is intended to be a measure of free cash flow for management's discretionary use, as certain cash requirements, such as interest payments, tax payments and debt service requirements, are not reflected.

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

About TESSCO Technologies Incorporated (NASDAQ: TESS)

TESSCO Technologies Incorporated (NASDAQ: TESS) is a value-added technology distributor, manufacturer and solutions provider. Tessco was founded more than 30 years ago with a commitment to deliver industry-leading products, knowledge, solutions and customer service and supports customers in the public and private sector. Tessco supplies more than 50,000 products from 400 of the industry’s top manufacturers in mobile communications, Wi-Fi, Internet of Things, wireless backhaul and more. Tessco is a single source for outstanding customer experience, expert knowledge and complete end-to-end solutions for the wireless industry. For more information, visit www.tessco.com.

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 either directly or indirectly as a result of consolidation among large wireless services carriers and others within the wireless communications industry; the strength of our customers', vendors' and affinity partners' business; negative or adverse economic conditions, including those adversely affecting consumer confidence or consumer or business spending or otherwise adversely impacting our vendors or customers, including their access to capital or liquidity, or our customers' demand for, or ability to fund or pay for, the purchase of our products and services; our dependence on a relatively small number of suppliers and vendors, which could hamper our ability to maintain appropriate inventory levels and meet customer demand; 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 or technological failures, which could lead to significant inventory obsolescence and/or our inability to offer key products that our customers demand; third-party freight carrier interruption; increased competition from competitors, including manufacturers or national and regional distributors of the products we sell and the absence of significant barriers to entry which could result in pricing and other pressures on profitability and market share; 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; transitional and other risks associated with acquisitions of companies that we may undertake in an effort to expand our business; claims against us for breach of the intellectual property rights of third parties; product liability claims; our inability to protect certain intellectual property, including systems and technologies on which we rely; our inability to hire or retain for any reason our key professionals, management and staff; 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       Nine Months Ended
       

December 24,
2017

     

December 25,
2016

     

September 24,
2017

     

December 24,
2017

     

December 25,
2016

                                                   
Revenues       $ 146,260,300       $ 147,198,400       $ 145,083,500       $ 431,354,600       $ 410,692,200
Cost of goods sold         116,660,500         117,229,800         115,160,400         342,664,900         324,862,000
Gross profit         29,599,800         29,968,600         29,923,100         88,689,700         85,830,200
Selling, general and administrative expenses         27,413,200         27,860,700         26,674,400         81,969,100         81,525,900
Income from operations         2,186,600         2,107,900         3,248,700         6,720,600         4,304,300
Interest, net         114,500         37,100         156,500         339,600         65,700
Income before provision for income taxes         2,072,100         2,070,800         3,092,200         6,381,000         4,238,600
Provision for income taxes         501,900         843,100         1,318,300         2,354,000         1,936,200
Net income       $

1,570,200

      $ 1,227,700       $ 1,773,900       $

4,027,000

      $ 2,302,400
                                                   
Basic earnings per share       $ 0.19       $ 0.15       $ 0.21       $ 0.48       $ 0.28
Diluted earnings per share       $ 0.19       $ 0.15       $ 0.21       $ 0.48       $ 0.28
                                                   
                 

TESSCO Technologies Incorporated
Consolidated Balance Sheets

                 
       

December 24,
2017

     

March 26,
2017

        (unaudited)       (audited)
                     
ASSETS                    
Current Assets:                    
Cash and cash equivalents       $ 42,400       $ 8,540,100
Trade accounts receivable, net         85,036,300         64,778,900
Product inventory         66,500,600         63,984,300
Prepaid expenses and other current assets         4,544,100         3,864,100
Total current assets         156,123,400         141,167,400
                     
Property and equipment, net         12,976,000         13,830,900
Goodwill, net         11,677,700         11,677,700
Other long-term assets         7,192,000         7,304,500
Total assets       $ 187,969,100       $ 173,980,500
                     
LIABILITIES AND SHAREHOLDERS’ EQUITY                    
Current Liabilities:                    
Trade accounts payable       $ 62,383,300       $ 53,581,400
Payroll, benefits and taxes         6,141,500         6,772,100
Income and sales tax liabilities         2,389,600         1,364,700
Accrued expenses and other current liabilities         1,074,200         2,228,200
Revolving line of credit         5,937,100         -
Current portion of long-term debt         26,900         26,500
Total current liabilities         77,952,600         63,972,900
                     
Deferred tax liabilities         344,500         386,800
Long-term debt, net of current portion         9,400         29,800
Other long-term liabilities         1,541,800         1,574,700
Total liabilities         79,848,300         65,964,200
                     
Shareholders’ Equity:                    
Preferred stock         -         -
Common stock         98,900         98,400
Additional paid-in capital         60,170,800         59,006,000
Treasury stock, at cost         (57,503,000)         (57,437,600)
Retained earnings         105,354,100         106,349,500
Total shareholders’ equity         108,120,800         108,016,300
                     

Total liabilities and shareholders' equity

      $ 187,969,100       $ 173,980,500
                     
 

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

                 
       

Fiscal Quarters Ended

      Nine Months Ended
       

December 24,
2017

     

December 25,
2016

     

September 24,
2017

     

December 24,
2017

     

December 25,
2016

                                                   
Net Income as reported       $ 1,570,200       $ 1,227,700       $ 1,773,900       $ 4,027,000       $ 2,302,400
Add:                                                  
Provision for income taxes         501,900         843,100         1,318,300         2,354,000         1,936,200
Interest, net         114,500         37,100         156,500         339,600         65,700
Depreciation and amortization         999,700         1,085,600         1,041,400         3,030,700         3,361,200
EBITDA       $ 3,186,300       $ 3,193,500       $ 4,290,100       $ 9,751,300       $ 7,665,500
Add:                                                  
Stock based compensation         243,500         98,700         254,300         745,400         291,100
EBITDA, adjusted       $ 3,429,800       $ 3,292,200       $ 4,544,400       $ 10,496,700       $ 7,956,600
                                                   
EBITDA per diluted share       $ 0.38       $ 0.38       $ 0.51       $ 1.16       $ 0.92
Adjusted EBITDA per diluted share       $ 0.41       $ 0.39       $ 0.54       $ 1.25       $ 0.96
                                                   
 

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

                                                             
       

Three Months Ended
December 24, 2017

     

Three Months Ended
December 25, 2016

     

Growth Rates Compared to
Prior Year Period

                                                             
MarketRevenues       Commercial   Retail   Total       Commercial   Retail   Total       Commercial   Retail   Total
                                                 
Public Carrier       $ 22,721   $ -   $ 22,721       $ 25,851   $ -   $ 25,851       (12.1%)   -   (12.1%)
Government         10,680     -     10,680         8,250     -     8,250       29.5%   -   29.5%
Private System Operators         24,844     -     24,844         22,927     -     22,927       8.4%   -   8.4%
Value Added Resellers         33,557     -     33,557         31,069     -     31,069       8.0%   -   8.0%
Retail         -     54,458     54,458         -     59,101     59,101       -   (7.9%)   (7.9%)
Total revenues       $ 91,802   $ 54,458   $ 146,260       $ 88,097   $ 59,101   $ 147,198       4.2%   (7.9%)   (0.6%)
                                                             
                                                             
Market Gross Profit       Commercial   Retail   Total       Commercial   Retail   Total       Commercial   Retail   Total
                                                 
Public Carrier       $ 3,178   $ -   $ 3,178       $ 4,070   $ -   $ 4,070       (21.9%)   -   (21.9%)
Government         2,256     -     2,256         1,843     -     1,843       22.4%   -   22.4%
Private System Operators         5,305     -     5,305         4,902     -     4,902       8.2%   -   8.2%
Value Added Resellers         8,512     -     8,512         8,712     -     8,712       (2.3%)   -   (2.3%)
Retail         -     10,349     10,349         -     10,442     10,442       -   (0.9%)   (0.9%)
Total gross profit       $ 19,251   $ 10,349   $ 29,600       $ 19,527   $ 10,442   $ 29,969       (1.4%)   (0.9%)   (1.2%)
% of revenues         21.0%     19.0%     20.2%         22.2%     17.7%     20.4%                
                                                             
 

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

                                 
               

Three Months
Ended
December 24,
2017

     

Three Months
Ended
December 25,
2016

     

Growth Rates
Compared to
Prior Year
Period

                                 

Product Revenues

                         
      Base Station Infrastructure       $ 57,282     $ 52,193       9.8%
      Network Systems         24,024       25,242       (4.8%)
      Installation, Test and Maintenance         9,255       9,633       (3.9%)
      Mobile Device Accessories         55,699       60,130       (7.4%)
      Total revenues       $ 146,260     $ 147,198       (0.6%)
                                 

Product Gross Profit

                         
      Base Station Infrastructure       $ 13,280     $ 13,857       (4.2%)
      Network Systems         3,420       3,186       7.3%
      Installation, Test and Maintenance         1,759       1,594       10.4%
      Mobile Device Accessories         11,141       11,332       (1.7%)
      Total gross profit       $ 29,600     $ 29,969       (1.2%)
      % of revenues         20.2%       20.4%        
                                 
 

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

                                                             
       

Three Months Ended
December 24, 2017

     

Three Months Ended
September 24, 2017

     

Growth Rates Compared to
Prior Period

                                                             
MarketRevenues       Commercial   Retail   Total       Commercial   Retail   Total       Commercial   Retail   Total
                                                 
Public Carrier       $ 22,721   $ -   $ 22,721       $ 27,423   $ -   $ 27,423       (17.1%)   -   (17.1%)
Government         10,680     -     10,680         11,025     -     11,025       (3.1%)   -   (3.1%)
Private System Operators         24,844     -     24,844         24,207     -     24,207       2.6%   -   2.6%
Value Added Resellers         33,557     -     33,557         34,951     -     34,951       (4.0%)   -   (4.0%)
Retail         -     54,458     54,458         -     47,478     47,478       -   14.7%   14.7%
Total revenues       $ 91,802   $ 54,458   $ 146,260       $ 97,606   $ 47,478   $ 145,084       (5.9%)   14.7%   0.8%
                                                             
                                                             
Market Gross Profit       Commercial   Retail   Total       Commercial   Retail   Total       Commercial   Retail   Total
                                                 
Public Carrier       $ 3,178   $ -   $ 3,178       $ 3,777   $ -   $ 3,777       (15.9%)   -   (15.9%)
Government         2,256     -     2,256         2,412     -     2,412       (6.5%)   -   (6.5%)
Private System Operators         5,305     -     5,305         5,054     -     5,054       5.0%   -   5.0%
Value Added Resellers         8,512     -     8,512         8,942     -     8,942       (4.8%)   -   (4.8%)
Retail         -     10,349     10,349         -     9,738     9,738       -   6.3%   6.3%
Total gross profit       $ 19,251   $ 10,349   $ 29,600       $ 20,185   $ 9,738   $ 29,923       (4.6%)   6.3%   (1.1%)
% of revenues         21.0%     19.0%     20.2%         20.7%     20.5%     20.6%                
                                                             
 

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

                                   
             

Three Months
Ended
December 24,
2017

     

Three Months
Ended
September 24,
2017

     

Growth Rates
Compared to
Prior Period

                                   

Product Revenues

                           
      Base Station Infrastructure       $ 57,282       $ 59,448       (3.6%)
      Network Systems         24,024         29,180       (17.7%)
      Installation, Test and Maintenance         9,255         7,679       20.5%
      Mobile Device Accessories         55,699         48,777       14.2%
      Total revenues       $ 146,260       $ 145,084       0.8%
     

 

                           

Product Gross Profit

                           
      Base Station Infrastructure       $ 13,280       $ 14,086       (5.7%)
      Network Systems         3,420         3,921       (12.8%)
      Installation, Test and Maintenance         1,759         1,433       22.7%
      Mobile Device Accessories         11,141         10,483       6.3%
      Total gross profit       $ 29,600       $ 29,923       (1.1%)
      % of revenues         20.2%         20.6%        
                                   
 

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

                                                             
       

Nine Months Ended
December 24, 2017

     

Nine Months Ended
December 25, 2016

     

Growth Rates Compared to
Prior Year Period

                                                             
MarketRevenues       Commercial   Retail   Total       Commercial   Retail   Total       Commercial   Retail   Total
                                                 
Public Carrier       $ 76,742   $ -   $ 76,742       $ 60,961   $ -   $ 60,961       25.9%   -   25.9%
Government         30,150     -     30,150         27,092     -     27,092       11.3%   -   11.3%
Private System Operators         70,093     -     70,093         64,222     -     64,222       9.1%   -   9.1%
Value Added Resellers         103,548     -     103,548         98,769     -     98,769       4.8%   -   4.8%
Retail         -     150,822     150,822         -     159,648     159,648       -   (5.5%)   (5.5%)
Total revenues       $ 280,533   $ 150,822   $ 431,355       $ 251,044   $ 159,648   $ 410,692       11.7%   (5.5%)   5.0%
                                                             
                                                             
Market Gross Profit       Commercial   Retail   Total       Commercial   Retail   Total       Commercial   Retail   Total
                                                 
Public Carrier       $ 11,083   $ -   $ 11,083       $ 10,323   $ -   $ 10,323       7.4%   -   7.4%
Government         6,672     -     6,672         6,075     -     6,075       9.8%   -   9.8%
Private System Operators         14,966     -     14,966         14,081     -     14,081       6.3%   -   6.3%
Value Added Resellers         26,415     -     26,415         27,218     -     27,218       (3.0%)   -   (3.0%)
Retail         -     29,554     29,554         -     28,134     28,134       -   5.0%   5.0%
Total gross profit       $ 59,136   $ 29,554   $ 88,690       $ 57,697   $ 28,134   $ 85,831       2.5%   5.0%   3.3%
% of revenues         21.1%     19.6%     20.6%         23.0%     17.6%     20.9%                
                                                             
 

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

                                   
               

Nine Months
Ended
December 24,
2017

       

Nine Months
Ended
December 25,
2016

     

Growth Rates
Compared to
Prior Year
Period

                                   

Product Revenues

                           
      Base Station Infrastructure       $ 175,800       $ 157,090       11.9%
      Network Systems         77,041         65,133       18.3%
      Installation, Test and Maintenance         23,927         25,269       (5.3%)
      Mobile Device Accessories         154,587         163,200       (5.3%)
      Total revenues       $ 431,355       $ 410,692       5.0%
     

 

                           

Product Gross Profit

                           
      Base Station Infrastructure       $ 41,423       $ 40,738       1.7%
      Network Systems         11,170         9,505       17.5%
      Installation, Test and Maintenance         4,611         4,538       1.6%
      Mobile Device Accessories         31,486         31,050       1.4%
      Total gross profit       $ 88,690       $ 85,831       3.3%
      % of revenues         20.6%         20.9%        
                                   

 

Source: TESSCO Technologies Incorporated

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