This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TESSCO Pre-Announces Record Annual Results And Expected Change In Relationship With Largest Customer

TESSCO Technologies Incorporated (NASDAQ:TESS), a leading provider to the wireless communications industry, today announced that for fiscal year 2012, ended April 1, 2012, it expects to deliver record revenue of $733 million, a 21% increase compared to fiscal 2011, and record earnings of $2.03, a 60% annual increase. For its fourth fiscal quarter, the company expects revenues to grow by 50% compared to the prior-year quarter, reaching approximately $195 million, and earnings per diluted share to grow by 105%, reaching approximately $0.43. Final results will be released after the market closes on Wednesday, May 2, 2012.

The company now anticipates the low-margin third-party logistics relationship with its largest customer, a tier one wireless carrier, to begin to transition in the second quarter of fiscal 2013 and to be fully terminated at some point during TESSCO’s third fiscal quarter, resulting in a significant reduction in revenues and a lesser relative impact on overall profits. During and after the transition, TESSCO looks forward to continuing its strong relationship supporting this customer’s other programs and supplying proprietary Ventev ® products.

Based on the expected relationship change and continued growth of revenues and profitability in TESSCO’s core commercial and retail customer segments, the company expects diluted earnings per share to be in the range of $1.80 to $2.15 for its fiscal year ending March 31, 2013.

The company’s Board of Directors approved a 20 percent increase in its quarterly cash dividend to $0.18 per common share. The quarterly dividend will be payable on May 23, 2012 to holders of record on May 9, 2012.

As of April 1, 2012, the company’s cash balance totaled approximately $18.2 million and there was no balance outstanding on the revolving line of credit.

TESSCO will hold a conference call to discuss its fiscal year 2012 results, fiscal 2013 business outlook and related business matters on Thursday, May 3, 2012. Conference call details are provided below.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs