[October 23, 2017] |
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Tessco Reports Second-Quarter 2018 Financial Results
TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS), today reported
financial results for its second quarter of fiscal 2018, ended September
24, 2017.
Second-Quarter Highlights:
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Revenue increased 8% year over year to $145.1 million; fourth straight
quarter of year-over-year revenue growth
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Public carrier market sales grew 48% compared with last year's second
quarter
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All commercial markets grew year-over-year
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Overall revenue growth and expense management resulted in operating
margin of 2.2%, compared with 1.5% in last year's second quarter
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$0.21 EPS and $0.51 EBITDA per diluted share*; third straight quarter
of year-over-year growth
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Declared quarterly dividend of $0.20 per share
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Second Quarter
FY 2018
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Second Quarter
FY 2017
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First Quarter
FY 2018
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Revenue
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$145.1M
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$134.6M
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$140.0M
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Earnings per diluted share
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$0.21
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$0.12
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$0.08
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EBITDA per diluted share*
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$0.51
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$0.38
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$0.27
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Operating margin
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2.2%
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1.5%
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0.9%
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Cash balance
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$0.2M
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$10.8M
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$0.2M
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Line of credit balance outstanding
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$13.3M
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$0
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$8.3M
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* 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.
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Second-Quarter Revenue by Market:
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Year over Year
Q2 FY 2018 vs.
Q2 FY 2017
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Sequential
Q2 FY 2018 vs.
Q1 FY 2018
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Public Carrier
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48%
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3%
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Value-Added Resellers
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5%
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0%
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Government
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23%
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31%
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Private System Operators
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15%
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15%
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Retail
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(10)%
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(3)%
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Total
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8%
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4%
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"We executed on our profitability initiatives during the second quarter,
extending our recent trend of year-over-year top- and bottom-line
growth," said Murray Wright, President and Chief Executive Officer.
"Revenue grew in all commercial markets, including a 48% year-over-year
increase in revenue from the carrier market. The improved bottom-line
performance was a direct result of the revenue growth we are seeing in
the business, combined with our effective expense management. We believe
these improved bottom-line results are an indication of the operating
leverage potential the company possesses.
"We are executing on our strategic plan and are focused on balancing the
implementation of our go-to-market strategy with improved operating
efficiency," Wright continued. "We are leveraging a strong value
proposition and adding talent to our already dynamic team to further
accelerate results. There is strong momentum in our business, and we
look forward to building on our recent track record of sales growth and
improved profitability. Our focus on improving the customer experience
is enabling us to generate new opportunities, and we are encouraged
about our ability to drive success in the quarters to come."
Second-Quarter Fiscal 2018 Financial Results
For the fiscal 2018 second quarter, revenues totaled $145.1 million,
compared with $134.6 million for the second quarter of fiscal 2017. The
increase in revenues as compared to the prior-year period resulted
primarily from a significant increase in sales to the public carrier
ecosystem, although sales in all commercial markets grew.
Gross profit was $29.9 million for the second quarter of fiscal 2018, up
from $28.8 million for the same quarter of fiscal 2017. The
year-over-year increase in gross profit was primarily the result of
higher overall sales. Gross margin was 20.6% of revenue for the second
quarter of fiscal 2018, compared with 21.4% for last year's second
quarter. The decrease in gross margin was largely due to changes in
customer and product mix, including the increase in lower-margin sales
to the public carrier market.
Selling, general and administrative (SG&A) expenses were $26.7 million
for the second quarter of fiscal 2018, flat compared with the same
quarter of the prior year, despite normal variable cost increases in the
current year quarter, associated with the 8% revenue growth.
Net income and earnings per share (EPS) were $1.8 million and $0.21,
respectively, for the second quarter of fiscal 2018, compared with net
income and EPS of $1.0 million and $0.12, respectively, for the
prior-year second quarter.
Balance Sheet and Cash Flows
Increasing sales to the Company's public carrier customers at times
require significant investments in inventory. Therefore, increasing the
Company's positioning and market share with these customers requires
working capital investment. During the second quarter, sales to public
carrier customers increased 48% from last year's second quarter and
year-to-date sales in this market have increased 54% over last year.
Accordingly, during this fiscal year, the Company experienced increases
in inventory and accounts receivable and a corresponding decrease in its
cash position, as well as increased borrowings on its line of credit. As
of September 24, 2017, cash and equivalents totaled $0.2 million, and
the outstanding balance on the Company's line of credit was $13.3
million. Cash flow used in operations was $16.8 million during the first
half of the 2018 fiscal year, primarily due to increases in inventory
and accounts receivable. Inventory increased by $9.2 million during the
first half of the fiscal year to $73.2 million as of September 24, 2017.
Trade accounts receivable increased $28.2 million in the first six
months of the year to $92.9 million.
On October 19, 2017, the Company expanded its previously existing
secured line of credit facility with SunTrust Bank, as Administrative
Agent and a lender, in an effort to ensure the ability to make increased
investments in its business. The expanded credit facility is evidenced
by an Amended and Restated Credit Agreement and other ancillary
documents, which provide for a borrowing limit increase from $35 million
to up to $75 million, on terms generally consistent with those
previously existing. The applicable borrowing base has, however, been
expanded to include not only eligible receivables but also eligible
inventory. The Company believes that the expanded credit facility will
allow for increased access to cash and will facilitate the Company's
efforts to make appropriate investments as needed to continue to grow.
Cash Dividend
The Company's Board of Directors has declared a quarterly cash dividend
of $0.20 per common share payable on November 22, 2017 to common
stockholders of record on November 8, 2017. 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 is not providing earnings guidance at this time for fiscal
2018.
Second-Quarter Fiscal 2018 Conference Call
Management will host a conference call to discuss second quarter 2018
results tomorrow, Tuesday, October 24, 2017 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
#93869172.
A live webcast of the conference call will be available at http://tesscotechnologies.gcs-web.com/investor-resources/events.
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 October 24, 2017 until 11:59 p.m. ET on October 31, 2017 by
calling 855-859-2056 (domestic) or 404-537-3406 (international) and
entering confirmation #93869172. An archived replay of the conference
call will also be available on the Company's website at http://tesscotechnologies.gcs-web.com/investor-resources/webcasts-and-presentations.
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.
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TESSCO Technologies Incorporated
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Consolidated Statements of Income (Unaudited)
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Fiscal Quarters Ended
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Six Months Ended
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September 24, 2017
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September 25, 2016
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June 25, 2017
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September 24, 2017
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September 25, 2016
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Revenues
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$
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145,083,500
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$
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134,633,800
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$
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140,010,800
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$
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285,094,300
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$
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263,493,800
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Cost of goods sold
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115,160,400
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105,878,200
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110,844,000
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226,004,400
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207,632,200
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Gross profit
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29,923,100
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28,755,600
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29,166,800
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59,089,900
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55,861,600
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Selling, general and administrative expenses
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26,674,400
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26,709,500
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27,881,500
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54,555,900
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53,665,200
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Income from operations
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3,248,700
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2,046,100
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1,285,300
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4,534,000
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2,196,400
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Interest, net
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156,500
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17,200
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68,600
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225,100
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28,600
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Income before provision for income taxes
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3,092,200
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2,028,900
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1,216,700
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4,308,900
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2,167,800
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Provision for income taxes
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1,318,300
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1,034,700
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533,800
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1,852,100
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1,093,100
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Net income
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$
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1,773,900
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$
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994,200
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$
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682,900
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$
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2,456,800
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$
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1,074,700
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Basic earnings per share
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$
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0.21
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$
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0.12
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$
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0.08
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$
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0.29
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$
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0.13
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Diluted earnings per share
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$
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0.21
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$
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0.12
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$
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0.08
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$
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0.29
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$
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0.13
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TESSCO Technologies Incorporated
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Consolidated Balance Sheets
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September 24, 2017
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March 26, 2017
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(unaudited)
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(audited)
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$
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245,700
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$
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8,540,100
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Trade accounts receivable, net
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92,945,900
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64,778,900
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Product inventory
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73,229,000
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63,984,300
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Prepaid expenses and other current assets
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4,429,200
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3,864,100
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Total current assets
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170,849,800
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141,167,400
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Property and equipment, net
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13,091,100
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13,830,900
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Goodwill, net
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11,677,700
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11,677,700
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Other long-term assets
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7,419,300
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7,304,500
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Total assets
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$
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203,037,900
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$
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173,980,500
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current Liabilities:
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Trade accounts payable
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$
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69,170,600
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$
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53,581,400
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Payroll, benefits and taxes
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|
|
6,836,000
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|
|
|
|
6,772,100
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Income and sales tax liabilities
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|
|
|
1,756,100
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|
|
|
1,364,700
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Accrued expenses and other current liabilities
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|
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1,973,000
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|
|
|
2,228,200
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Revolving line of credit
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|
13,278,600
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|
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--
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Current portion of long-term debt
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|
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26,900
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|
|
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26,500
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Total current liabilities
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|
|
|
93,041,200
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|
63,972,900
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Deferred tax liabilities
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|
|
|
373,600
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|
|
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|
386,800
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Long-term debt, net of current portion
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|
|
16,100
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|
|
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29,800
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Other long-term liabilities
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|
|
|
1,749,600
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|
|
|
|
1,574,700
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Total liabilities
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|
|
|
95,180,500
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|
|
|
|
65,964,200
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Shareholders' Equity:
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Preferred stock
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--
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|
--
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Common stock
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|
|
|
98,800
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|
|
|
|
98,400
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Additional paid-in capital
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|
|
|
59,801,300
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|
|
|
|
59,006,000
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Treasury stock, at cost
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|
|
|
(57,502,400
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)
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|
|
|
(57,437,600
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)
|
Retained earnings
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|
|
|
105,459,700
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|
|
|
|
106,349,500
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Total shareholders' equity
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|
|
|
107,857,400
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|
|
|
|
108,016,300
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|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
203,037,900
|
|
|
|
$
|
173,980,500
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Reconciliation of Net Income to Earnings Before Interest, Taxes
and Depreciation and
|
Amortization (EBITDA) (Unaudited)
|
|
|
|
|
Fiscal Quarters Ended
|
|
|
Six Months Ended
|
|
|
|
September 24, 2017
|
|
|
September 25, 2016
|
|
|
June 25, 2017
|
|
|
September 24, 2017
|
|
|
September 25, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income as reported
|
|
|
$
|
1,773,900
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|
|
$
|
994,200
|
|
|
$
|
682,900
|
|
|
$
|
2,456,800
|
|
|
$
|
1,074,700
|
Add:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
1,318,300
|
|
|
|
1,034,700
|
|
|
|
533,800
|
|
|
|
1,852,100
|
|
|
|
1,093,100
|
Interest, net
|
|
|
|
156,500
|
|
|
|
17,200
|
|
|
|
68,600
|
|
|
|
225,100
|
|
|
|
28,600
|
Depreciation and amortization
|
|
|
|
1,041,400
|
|
|
|
1,098,900
|
|
|
|
989,600
|
|
|
|
2,031,000
|
|
|
|
2,275,600
|
EBITDA
|
|
|
$
|
4,290,100
|
|
|
$
|
3,145,000
|
|
|
$
|
2,274,900
|
|
|
$
|
6,565,000
|
|
|
$
|
4,472,000
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation
|
|
|
|
254,300
|
|
|
|
76,600
|
|
|
|
247,600
|
|
|
|
501,900
|
|
|
|
192,400
|
EBITDA, adjusted
|
|
|
$
|
4,544,400
|
|
|
$
|
3,221,600
|
|
|
$
|
2,522,500
|
|
|
$
|
7,066,900
|
|
|
$
|
4,664,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA per diluted share
|
|
|
$
|
0.51
|
|
|
$
|
0.38
|
|
|
$
|
0.27
|
|
|
$
|
0.78
|
|
|
$
|
0.54
|
Adjusted EBITDA per diluted share
|
|
|
$
|
0.54
|
|
|
$
|
0.39
|
|
|
$
|
0.30
|
|
|
$
|
0.84
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Supplemental Results Summary (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 24, 2017
|
|
|
Three Months Ended
September 25, 2016
|
|
|
Growth Rates Compared to
Prior Year Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Revenues
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
Public Carrier
|
|
|
$
|
27,423
|
|
|
|
$
|
-
|
|
|
|
$
|
27,423
|
|
|
|
$
|
18,532
|
|
|
|
$
|
-
|
|
|
|
$
|
18,532
|
|
|
|
48.0
|
%
|
|
|
-
|
|
|
|
48.0
|
%
|
Government
|
|
|
|
11,025
|
|
|
|
|
-
|
|
|
|
|
11,025
|
|
|
|
|
8,990
|
|
|
|
|
-
|
|
|
|
|
8,990
|
|
|
|
22.6
|
%
|
|
|
-
|
|
|
|
22.6
|
%
|
Private System Operators
|
|
|
|
24,207
|
|
|
|
|
-
|
|
|
|
|
24,207
|
|
|
|
|
20,990
|
|
|
|
|
-
|
|
|
|
|
20,990
|
|
|
|
15.3
|
%
|
|
|
-
|
|
|
|
15.3
|
%
|
Value-Added Resellers
|
|
|
|
34,951
|
|
|
|
|
-
|
|
|
|
|
34,951
|
|
|
|
|
33,409
|
|
|
|
|
-
|
|
|
|
|
33,409
|
|
|
|
4.6
|
%
|
|
|
-
|
|
|
|
4.6
|
%
|
Retail
|
|
|
|
-
|
|
|
|
|
47,478
|
|
|
|
|
47,478
|
|
|
|
|
-
|
|
|
|
|
52,713
|
|
|
|
|
52,713
|
|
|
|
-
|
|
|
|
(9.9
|
%)
|
|
|
(9.9
|
%)
|
Total revenues
|
|
|
$
|
97,606
|
|
|
|
$
|
47,478
|
|
|
|
$
|
145,084
|
|
|
|
$
|
81,921
|
|
|
|
$
|
52,713
|
|
|
|
$
|
134,634
|
|
|
|
19.1
|
%
|
|
|
(9.9
|
%)
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Gross Profit
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
Public Carrier
|
|
|
$
|
3,777
|
|
|
|
$
|
-
|
|
|
|
$
|
3,777
|
|
|
|
$
|
3,236
|
|
|
|
$
|
-
|
|
|
|
$
|
3,236
|
|
|
|
16.7
|
%
|
|
|
-
|
|
|
|
16.7
|
%
|
Government
|
|
|
|
2,412
|
|
|
|
|
-
|
|
|
|
|
2,412
|
|
|
|
|
2,092
|
|
|
|
|
-
|
|
|
|
|
2,092
|
|
|
|
15.3
|
%
|
|
|
-
|
|
|
|
15.3
|
%
|
Private System Operators
|
|
|
|
5,054
|
|
|
|
|
-
|
|
|
|
|
5,054
|
|
|
|
|
4,613
|
|
|
|
|
-
|
|
|
|
|
4,613
|
|
|
|
9.6
|
%
|
|
|
-
|
|
|
|
9.6
|
%
|
Value-Added Resellers
|
|
|
|
8,942
|
|
|
|
|
-
|
|
|
|
|
8,942
|
|
|
|
|
9,223
|
|
|
|
|
-
|
|
|
|
|
9,223
|
|
|
|
(3.1
|
%)
|
|
|
-
|
|
|
|
(3.1
|
%)
|
Retail
|
|
|
|
-
|
|
|
|
|
9,738
|
|
|
|
|
9,738
|
|
|
|
|
-
|
|
|
|
|
9,592
|
|
|
|
|
9,592
|
|
|
|
-
|
|
|
|
1.5
|
%
|
|
|
1.5
|
%
|
Total gross profit
|
|
|
$
|
20,185
|
|
|
|
$
|
9,738
|
|
|
|
$
|
29,923
|
|
|
|
$
|
19,164
|
|
|
|
$
|
9,592
|
|
|
|
$
|
28,756
|
|
|
|
5.3
|
%
|
|
|
1.5
|
%
|
|
|
4.1
|
%
|
% of revenues
|
|
|
|
20.7
|
%
|
|
|
|
20.5
|
%
|
|
|
|
20.6
|
%
|
|
|
|
23.4
|
%
|
|
|
|
18.2
|
%
|
|
|
|
21.4
|
%
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Supplemental Results Summary (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 24, 2017
|
|
|
|
Three Months Ended
September 25, 2016
|
|
|
|
Growth Rates Compared to Prior Year
Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Station Infrastructure
|
|
|
$
|
59,448
|
|
|
$
|
52,502
|
|
|
|
13.2%
|
Network Systems
|
|
|
|
29,180
|
|
|
|
21,461
|
|
|
|
36.0%
|
Installation, Test and Maintenance
|
|
|
|
7,679
|
|
|
|
6,881
|
|
|
|
11.6%
|
Mobile Device Accessories
|
|
|
|
48,777
|
|
|
|
53,790
|
|
|
|
(9.3%)
|
Total revenues
|
|
|
$
|
145,084
|
|
|
$
|
134,634
|
|
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Station Infrastructure
|
|
|
$
|
14,086
|
|
|
$
|
13,453
|
|
|
|
4.7%
|
Network Systems
|
|
|
|
3,921
|
|
|
|
3,421
|
|
|
|
14.6%
|
Installation, Test and Maintenance
|
|
|
|
1,433
|
|
|
|
1,376
|
|
|
|
4.1%
|
Mobile Device Accessories
|
|
|
|
10,483
|
|
|
|
10,506
|
|
|
|
(0.2%)
|
Total gross profit
|
|
|
$
|
29,923
|
|
|
$
|
28,756
|
|
|
|
4.1%
|
% of revenues
|
|
|
|
20.6%
|
|
|
|
21.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Supplemental Results Summary (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 24, 2017
|
|
|
Three Months Ended
June 25, 2017
|
|
|
Growth Rates Compared to
Prior Year Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Revenues
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
Public Carrier
|
|
|
$
|
27,423
|
|
|
|
$
|
-
|
|
|
|
$
|
27,423
|
|
|
|
$
|
26,598
|
|
|
|
$
|
-
|
|
|
|
$
|
26,598
|
|
|
|
3.1
|
%
|
|
|
-
|
|
|
|
3.1
|
%
|
Government
|
|
|
|
11,025
|
|
|
|
|
-
|
|
|
|
|
11,025
|
|
|
|
|
8,445
|
|
|
|
|
-
|
|
|
|
|
8,445
|
|
|
|
30.6
|
%
|
|
|
-
|
|
|
|
30.6
|
%
|
Private System Operators
|
|
|
|
24,207
|
|
|
|
|
-
|
|
|
|
|
24,207
|
|
|
|
|
21,042
|
|
|
|
|
-
|
|
|
|
|
21,042
|
|
|
|
15.0
|
%
|
|
|
-
|
|
|
|
15.0
|
%
|
Value-Added Resellers
|
|
|
|
34,951
|
|
|
|
|
-
|
|
|
|
|
34,951
|
|
|
|
|
35,040
|
|
|
|
|
-
|
|
|
|
|
35,040
|
|
|
|
(0.3
|
%)
|
|
|
-
|
|
|
|
(0.3
|
%)
|
Retail
|
|
|
|
-
|
|
|
|
|
47,478
|
|
|
|
|
47,478
|
|
|
|
|
-
|
|
|
|
|
48,886
|
|
|
|
|
48,886
|
|
|
|
-
|
|
|
|
(2.9
|
%)
|
|
|
(2.9
|
%)
|
Total revenues
|
|
|
$
|
97,606
|
|
|
|
$
|
47,478
|
|
|
|
$
|
145,084
|
|
|
|
$
|
91,125
|
|
|
|
$
|
48,886
|
|
|
|
$
|
140,011
|
|
|
|
7.1
|
%
|
|
|
(2.9
|
%)
|
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Gross Profit
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
Public Carrier
|
|
|
$
|
3,777
|
|
|
|
$
|
-
|
|
|
|
$
|
3,777
|
|
|
|
$
|
4,128
|
|
|
|
$
|
-
|
|
|
|
$
|
4,128
|
|
|
|
(8.5
|
%)
|
|
|
-
|
|
|
|
(8.5
|
%)
|
Government
|
|
|
|
2,412
|
|
|
|
|
-
|
|
|
|
|
2,412
|
|
|
|
|
2,004
|
|
|
|
|
-
|
|
|
|
|
2,004
|
|
|
|
20.4
|
%
|
|
|
-
|
|
|
|
20.4
|
%
|
Private System Operators
|
|
|
|
5,054
|
|
|
|
|
-
|
|
|
|
|
5,054
|
|
|
|
|
4,607
|
|
|
|
|
-
|
|
|
|
|
4,607
|
|
|
|
9.7
|
%
|
|
|
-
|
|
|
|
9.7
|
%
|
Value-Added Resellers
|
|
|
|
8,942
|
|
|
|
|
-
|
|
|
|
|
8,942
|
|
|
|
|
8,961
|
|
|
|
|
-
|
|
|
|
|
8,961
|
|
|
|
(0.2
|
%)
|
|
|
-
|
|
|
|
(0.2
|
%)
|
Retail
|
|
|
|
-
|
|
|
|
|
9,738
|
|
|
|
|
9,738
|
|
|
|
|
-
|
|
|
|
|
9,467
|
|
|
|
|
9,467
|
|
|
|
-
|
|
|
|
2.9
|
%
|
|
|
2.9
|
%
|
Total gross profit
|
|
|
$
|
20,185
|
|
|
|
$
|
9,738
|
|
|
|
$
|
29,923
|
|
|
|
$
|
19,700
|
|
|
|
$
|
9,467
|
|
|
|
$
|
29,167
|
|
|
|
2.5
|
%
|
|
|
2.9
|
%
|
|
|
2.6
|
%
|
% of revenues
|
|
|
|
20.7
|
%
|
|
|
|
20.5
|
%
|
|
|
|
20.6
|
%
|
|
|
|
21.6
|
%
|
|
|
|
19.4
|
%
|
|
|
|
20.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Supplemental Results Summary (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 24,
2017
|
|
|
Three Months Ended
June 25, 2017
|
|
|
Growth Rates Compared to Prior Year
Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Base Station Infrastructure
|
|
|
$
|
59,448
|
|
|
$
|
59,070
|
|
|
0.6%
|
Network Systems
|
|
|
|
29,180
|
|
|
|
23,837
|
|
|
22.4%
|
Installation, Test and Maintenance
|
|
|
|
7,679
|
|
|
|
6,993
|
|
|
9.8%
|
Mobile Device Accessories
|
|
|
|
48,777
|
|
|
|
50,111
|
|
|
(2.7%)
|
Total revenues
|
|
|
$
|
145,084
|
|
|
$
|
140,011
|
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
Base Station Infrastructure
|
|
|
$
|
14,086
|
|
|
$
|
14,057
|
|
|
0.2%
|
Network Systems
|
|
|
|
3,921
|
|
|
|
3,829
|
|
|
2.4%
|
Installation, Test and Maintenance
|
|
|
|
1,433
|
|
|
|
1,419
|
|
|
1.0%
|
Mobile Device Accessories
|
|
|
|
10,483
|
|
|
|
9,862
|
|
|
6.3%
|
Total gross profit
|
|
|
$
|
29,923
|
|
|
$
|
29,167
|
|
|
2.6%
|
% of revenues
|
|
|
|
20.6%
|
|
|
|
20.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Supplemental Results Summary (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 24, 2017
|
|
|
Six Months Ended
September 25, 2016
|
|
|
Growth Rates Compared to
Prior Year Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Revenues
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
Public Carrier
|
|
|
$
|
54,021
|
|
|
|
$
|
-
|
|
|
|
$
|
54,021
|
|
|
|
$
|
35,110
|
|
|
|
$
|
-
|
|
|
|
$
|
35,110
|
|
|
|
53.9
|
%
|
|
|
-
|
|
|
|
53.9
|
%
|
Government
|
|
|
|
19,470
|
|
|
|
|
-
|
|
|
|
|
19,470
|
|
|
|
|
18,842
|
|
|
|
|
-
|
|
|
|
|
18,842
|
|
|
|
3.3
|
%
|
|
|
-
|
|
|
|
3.3
|
%
|
Private System Operators
|
|
|
|
45,249
|
|
|
|
|
-
|
|
|
|
|
45,249
|
|
|
|
|
41,295
|
|
|
|
|
-
|
|
|
|
|
41,295
|
|
|
|
9.6
|
%
|
|
|
-
|
|
|
|
9.6
|
%
|
Value-Added Resellers
|
|
|
|
69,991
|
|
|
|
|
-
|
|
|
|
|
69,991
|
|
|
|
|
67,700
|
|
|
|
|
-
|
|
|
|
|
67,700
|
|
|
|
3.4
|
%
|
|
|
-
|
|
|
|
3.4
|
%
|
Retail
|
|
|
|
-
|
|
|
|
|
96,364
|
|
|
|
|
96,364
|
|
|
|
|
-
|
|
|
|
|
100,547
|
|
|
|
|
100,547
|
|
|
|
-
|
|
|
|
(4.2
|
%)
|
|
|
(4.2
|
%)
|
Total revenues
|
|
|
$
|
188,731
|
|
|
|
$
|
96,364
|
|
|
|
$
|
285,095
|
|
|
|
$
|
162,947
|
|
|
|
$
|
100,547
|
|
|
|
$
|
263,494
|
|
|
|
15.8
|
%
|
|
|
(4.2
|
%)
|
|
|
8.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Gross Profit
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
|
|
Commercial
|
|
|
Retail
|
|
|
Total
|
Public Carrier
|
|
|
$
|
7,905
|
|
|
|
|
-
|
|
|
|
|
7,905
|
|
|
|
$
|
6,253
|
|
|
|
$
|
-
|
|
|
|
$
|
6,253
|
|
|
|
26.4
|
%
|
|
|
-
|
|
|
|
26.4
|
%
|
Government
|
|
|
|
4,416
|
|
|
|
|
-
|
|
|
|
|
4,416
|
|
|
|
|
4,232
|
|
|
|
|
-
|
|
|
|
|
4,232
|
|
|
|
4.3
|
%
|
|
|
-
|
|
|
|
4.3
|
%
|
Private System Operators
|
|
|
|
9,661
|
|
|
|
|
-
|
|
|
|
|
9,661
|
|
|
|
|
9,179
|
|
|
|
|
-
|
|
|
|
|
9,179
|
|
|
|
5.3
|
%
|
|
|
-
|
|
|
|
5.3
|
%
|
Value-Added Resellers
|
|
|
|
17,903
|
|
|
|
|
-
|
|
|
|
|
17,903
|
|
|
|
|
18,506
|
|
|
|
|
-
|
|
|
|
|
18,506
|
|
|
|
(3.3
|
%)
|
|
|
-
|
|
|
|
(3.3
|
%)
|
Retail
|
|
|
|
-
|
|
|
|
|
19,205
|
|
|
|
|
19,205
|
|
|
|
|
-
|
|
|
|
|
17,692
|
|
|
|
|
17,692
|
|
|
|
-
|
|
|
|
8.6
|
%
|
|
|
8.6
|
%
|
Total gross profit
|
|
|
$
|
39,885
|
|
|
|
|
19,205
|
|
|
|
|
59,090
|
|
|
|
$
|
38,170
|
|
|
|
$
|
17,692
|
|
|
|
$
|
55,862
|
|
|
|
4.5
|
%
|
|
|
8.6
|
%
|
|
|
5.8
|
%
|
% of revenues
|
|
|
|
21.1
|
%
|
|
|
|
19.9
|
%
|
|
|
|
20.7
|
%
|
|
|
|
23.4
|
%
|
|
|
|
17.6
|
%
|
|
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TESSCO Technologies Incorporated
|
Supplemental Results Summary (in thousands) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 24, 2017
|
|
|
|
Six Months Ended September 25, 2016
|
|
|
Growth Rates Compared to Prior Year
Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Base Station Infrastructure
|
|
|
$
|
118,518
|
|
|
$
|
104,897
|
|
|
13.0%
|
Network Systems
|
|
|
|
53,017
|
|
|
|
39,891
|
|
|
32.9%
|
Installation, Test and Maintenance
|
|
|
|
14,672
|
|
|
|
15,636
|
|
|
(6.2%)
|
Mobile Device Accessories
|
|
|
|
98,888
|
|
|
|
103,070
|
|
|
(4.1%)
|
Total revenues
|
|
|
$
|
285,095
|
|
|
$
|
263,494
|
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
Base Station Infrastructure
|
|
|
$
|
28,143
|
|
|
$
|
26,881
|
|
|
4.7%
|
Network Systems
|
|
|
|
7,750
|
|
|
|
6,319
|
|
|
22.6%
|
Installation, Test and Maintenance
|
|
|
|
2,852
|
|
|
|
2,944
|
|
|
(3.1%)
|
Mobile Device Accessories
|
|
|
|
20,345
|
|
|
|
19,718
|
|
|
3.2%
|
Total gross profit
|
|
|
$
|
59,090
|
|
|
$
|
55,862
|
|
|
5.8%
|
% of revenues
|
|
|
|
20.7%
|
|
|
|
21.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171023006413/en/
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