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TESSCO Technologies Incorporated (NASDAQ:TESS), a leading provider of the product and value chain solutions required to build, use and maintain wireless broadband systems, today announced its results for the first quarter of fiscal year 2013, ended July 1, 2012.
“We started our new fiscal year with solid results and an intense focus on profitable revenue and productivity growth,” commented Chairman and CEO Robert Barnhill. “In this quarter, revenues in our core markets grew six percent over last year’s first quarter. Our goal is to greatly accelerate this growth despite the continued choppiness we see in our markets, especially with our enterprise, transportation and energy customers.
“The transition out of the high-revenue, low-margin third-party (3PL) logistics business with a key customer is progressing according to schedule. As we discussed last quarter, we continue to expect that exiting this business will enable us to further realign resources to intensify our focus on TESSCO’s core business and build on the many exciting opportunities in wireless broadband.
“We believe our leverage of these opportunities, being created by the convergence of wireless and the Internet, will allow us to overcome the challenges of the transition and the economy, and to drive improved profitability.”
First-Quarter Fiscal 2013 Financial Results
For the company’s fiscal 2013 first quarter, revenue reached $192 million, an 18 percent increase compared to last year’s first quarter. Excluding Tier 1 carrier retail customers, revenues grew by $6 million, or 6 percent, compared to the prior year quarter. The public systems operator market produced 10 percent revenue growth; the commercial dealer and reseller market produced 9 percent growth; the private and government systems market experienced a 5 percent decline; and the retailer, dealer agent and Tier 2/3 carrier market produced 10 percent growth. Tier 1 carrier retail revenue increased by 41 percent, mostly attributable to the temporary expansion of our low-margin 3PL relationship with the major Tier 1 carrier customer.