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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV