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TESSCO Technologies Incorporated (NASDAQ:TESS), a leading provider to the wireless communication industry, today reported revenues of $226.3 million and net income of $4.8 million, or $0.59 per diluted share, for the third fiscal quarter ended December 25, 2011.
Chairman and CEO Robert Barnhill commented, “It was a great quarter, resulting in record revenues and earnings! Sales in our Retail segment surged 67 percent as our customers, including Tier 1 carrier customers, responded to consumers’ continued quest to equip their cell phones with new cases, chargers and head sets. Our Commercial segment continued to contribute strongly to our results as we supported the construction and maintenance of our customers’ wireless systems. We continued to deliver exceptional value to all our customers with growing profitability; operating profit margin reached 3.5 percent, a 35 percent increase compared to last year’s quarter.
“Fiscal year 2012 is indeed proving to be a remarkable year for TESSCO as we successfully leverage the many opportunities arising from the convergence of wireless and the internet, broaden our addressable market, and build profitability and productivity.
"Going forward, we expect continued explosion of smart mobility devices, the accelerated expansion and enhancement of the carrier networks to support the devices' insatiable demand for bandwidth, and the creation of new private wireless systems to transform the way we live, work and play. TESSCO is there, leveraging these trends and delivering the immediate, reliable availability of the product plus value chain solutions needed, at the lowest total cost. We continue our goal of driving shareowner value with intense focus on the success of our customers, manufacturers and team members."
Third-Quarter Fiscal 2012 Financial Results
For its fiscal 2012 third quarter, TESSCO’s revenue grew by 35 percent compared to last year’s third quarter and reached $226.3 million, while its gross profit grew by 17 percent and reached $39.5 million. The Company’s operating margin improved to 3.5 percent compared to 2.6 percent in last year’s third quarter.