TESSCO Technologies Incorporated (NASDAQ:TESS), a leading provider to the wireless communications industry, today reported record annual revenues of $733 million for the fiscal year ended April 1, 2012 and record earnings per diluted share of $2.03. For the fourth fiscal quarter ended April 1, 2012, revenues were $195 million and earnings per diluted share reached $0.43.
“Our outstanding fourth quarter capped a truly extraordinary year for TESSCO,” said Chairman and CEO Robert Barnhill. “Throughout fiscal 2012, our team members substantially increased productivity while providing exceptional value to all our customers and suppliers as we expanded our relationships with the many organizations that build, use and maintain wireless systems. In the process, we set numerous performance records for TESSCO and delivered strong returns for our shareholders.
“Last week we announced that we now expect to transition out of the low-margin third-party logistics (3PL) relationship with our largest customer, a tier one wireless carrier. We anticipate that this transition will begin in the second quarter of fiscal 2013 and be fully terminated at some point during our third fiscal quarter. During and after the transition, TESSCO looks forward to continuing our strong relationship supporting this customer's other programs and supplying our proprietary developed and manufactured Ventev (R) products.
“Our excellent relationship with this customer has evolved considerably over the years as their business requirements shifted from high value-added partnership needs to primarily a 3PL relationship. We have worked closely with them to support their business evolution and assure their success. This upcoming change will enable us to shift the considerable focus that this large relationship required to the rest of our core business, so that our undivided attention, talent and resources will be focused squarely on the exciting opportunities that are developing every day from the convergence of wireless and the internet. These opportunities leverage our company’s exceptional ability to architect and deliver, with innovation, productivity and speed, the product and value chain solutions that our customers need.