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
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.
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