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,
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
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.
Fourth-Quarter Fiscal 2012 Conference Call
Management will host a conference call to discuss its fourth-quarter and
fiscal year 2012 results and its fiscal 2013 business outlook on
Thursday, May 3, 2012, at 10:00 a.m. ET. To participate in the
conference call, please call: 800-591-6944 (domestic call-in) or
617-614-4910 (international call-in) and reference code #92525103.
A live webcast of the conference call will be available at http://www.tessco.com/go/pressroom.
All participants should call or access the website approximately 10
minutes before the conference begins.
A telephone replay of the conference call will be available from 12:00
p.m. ET on May 3, 2012, until 11:59 p.m. ET on May 10, 2012, by calling
888-286-8010 (domestic) or 617-801-6888 (international) and entering
confirmation #91461789. An archived replay of the conference call will
also be available on the company's website.
TESSCO Technologies, (NASDAQ:TESS), is Your Total Source® to
build, use and maintain wireless systems. The convergence of wireless
and the Internet is revolutionizing the way we live and work. New
systems and applications are unlocking human potential at an
unprecedented rate. TESSCO is there, thinking in new ways for
exceptional outcomes. TESSCO architects and delivers, with innovation,
productivity and speed, the product and value chain solutions to
organizations responsible for building, operating and maintaining
wireless voice, data and video systems.
This press release contains forward-looking statements as to anticipated
results and future prospects. These forward-looking statements are based
on current expectations and analysis, and actual results may differ
materially. These forward-looking statements may generally be identified
by the use of the words "may," "will," "expects," "anticipates,"
"believes," "estimates," and similar expressions, but the absence of
these words or phrases does not necessarily mean that a statement is not
forward-looking. Forward-looking statements involve a number of risks
and uncertainties. Our actual results may differ materially from those
described in or contemplated by any such forward-looking statement for a
variety of reasons, including those risks identified in our most recent
Annual Report on Form 10-K and other periodic reports filed with the
Securities and Exchange Commission, under the heading "Risk Factors" and
otherwise. Consequently, the reader is cautioned to consider all
forward-looking statements in light of the risks to which they are
We are not able to identify or control all circumstances that could
occur in the future that may adversely affect our business and operating
results. Without limiting the risks that we describe in our periodic
reports and elsewhere, among the risks that could lead to a materially
adverse impact on our business or operating results are the following:
termination or non-renewal of limited duration agreements or
arrangements with our vendors and affinity partners that are typically
terminable by either party upon several months or otherwise relatively
short notice; loss of significant customers or relationships, including
affinity relationships; loss of customers as a result of consolidation
among the wireless communications industry; the strength of our
customers', vendors' and affinity partners' business; economic
conditions that may impact customers' ability to fund or pay for our
products and services; failure of our information technology system or
distribution system; technology changes in the wireless communications
industry; third-party freight carrier interruption; increased
competition; our inability to access capital and obtain financing as and
when needed; and the possibility that, for unforeseen reasons, we may be
delayed in entering into or performing, or may fail to enter into or
perform, anticipated contracts or may otherwise be delayed in realizing
or fail to realize anticipated revenues or anticipated savings.
TESSCO Technologies Incorporated
David Young, 410-229-1380