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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 2014, ended June 30, 2013. For the quarter, revenues totaled $144.1 million and earnings per diluted share were $0.51.
“We started our new fiscal year with strong core revenue growth,” said Chairman and CEO Robert B. Barnhill, Jr. “Earnings matched last year’s first quarter without the benefit of the former third-party logistics (3PL) relationship that contributed $70.0 million in revenue and $5.4 million in gross profit to our results a year ago. We have fully transitioned out of that low-margin 3PL relationship, allowing us to focus exclusively on being the Total Source of the product-solutions to build, use and maintain wireless systems.
“During the quarter, we were particularly effective in achieving an 87 percent revenue increase from our public network operator customers. This strong growth was a result of both the carriers’ aggressive spend to enhance their systems and our success in expanding our market share. Sales of our Ventev
® products, which we design and manufacture to fulfill unmet market needs, grew 37 percent over last year’s first quarter. We expect Ventev to be a major contributor to our revenue and margin growth as we go forward.
“Our business is now strategically stronger, with higher margins and low customer concentration. As we pursue the many opportunities resulting from the convergence of wireless and the Internet, our goal is to accelerate the expansion of our customer base and relationships, the introduction of new products and solutions, and the enhancement of margins and returns.”
First-Quarter Fiscal 2014 Financial Results
For our fiscal 2014 first quarter, revenues totaled $144.1 million as compared to last year’s first quarter’s $192.4 million including the 3PL relationship, and $122.4 million excluding that relationship. Core revenues grew 18 percent from the prior year period. The public carrier market produced 87 percent revenue growth; the commercial dealer and reseller market produced 14 percent growth; and the retailer, independent dealer agent, and carrier market produced 4 percent growth. Revenues from the private and government system operator market decreased by 6 percent. Also, sales of our Ventev design and manufacturing division, which supplies products into all of our markets, grew 37 percent.