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| TESSCO Announces Second Quarter Revenues and Earnings |
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Second Quarter Financial Highlights
HUNT VALLEY, Md.--(BUSINESS WIRE)--Oct. 30, 2007--TESSCO Technologies Incorporated (Nasdaq:TESS), a leading provider of the product and supply chain solutions needed to build, operate and use wireless systems, today announced its results for the second quarter ended September 30, 2007.
$ in millions, except Year-over-
per share figures Sequential year
Q2 FY08 Q1 FY08 Q2 FY07 change change
----------------------------------------------------------------------
Revenues $ 132.5 $ 124.4 $ 118.7 7% 12%
Gross Profit $ 28.7 $ 28.2 $ 30.0 2% -4%
Net Income $ 0.7 $ 0.9 $ 1.9 -17% -61%
EPS, diluted $ 0.13 $ 0.15 $ 0.29 -13% -55%
EBITDA $ 2.5 $ 2.7 $ 4.4 -7% -42%
EBITDA per diluted share $ 0.46 $ 0.48 $ 0.69 -4% -33%
----------------------------------------------------------------------
See discussion of EBITDA and reconciliation to net income below.
Commenting on the quarter, Chairman, President and CEO Robert B. Barnhill said, "During the quarter we continued to execute on the initiatives to expand our business into the new opportunities being created by the convergence of wireless voice, data and video, and to sell more of our existing product categories to more customers. Our results, however, fell short of our expectations. "In this quarter our earnings results were negatively impacted by the combined gross profit decline from a major customer for cellular retail accessories, and from a major OEM distribution relationship for cell phone repair parts. We are working diligently to improve our margins through shaping the product mix purchased, and procurement and operational productivity. The margin in our other businesses remained stable, and revenues from these core businesses increased 6 percent year-over-year and 9 percent sequentially, but not fast enough to offset the gross profit erosion from the two important, but concentrated relationships. While we are still experiencing overall market slowness, the hesitancy we have seen from our customers appears to be improving slightly. "Earnings were also impacted by investments in marketing, sales, and operational capability and capacity to support our growth initiatives. In this quarter we increased expenses to fund the start up of our new packaging center, and new branding and marketing programs." Mr. Barnhill continued, "We remain intensely focused on improving earnings through gross profit enhancement and expense reduction, and on reducing concentration by growing core customers and their monthly purchases. "As we look forward to the new fiscal year, we believe we will be in a strong position to capitalize on a strengthening market and emerging opportunities to accelerate revenues. On these revenues we are striving to improve gross profit margins, through pricing, procurement and operational initiatives, and contain fixed expenses. The net result should fuel excellent earnings growth. "TESSCO is the leader in delivering what, where and when customers need to build, operate, maintain or use wireless, with an extraordinary operational platform, depth of talent, and breadth of services. In the quarters to come, we look forward to leveraging our capabilities and assets to deliver earnings growth and success for our customers, manufacturers, team members and shareowners." Second Quarter Corporate Financial Results (all comparisons are to last year's second quarter unless indicated otherwise)
-- Revenues, gross profit and gross margin
Revenues reached $132.5 million and gross profit totaled $28.7
million. Gross margin was 21.6 percent compared to 25.3 percent
as a result of the change in our repair components business, as
well as product mix and obsolescence related to sales to our
accessory retail tier one carrier. Not including these two
arrangements, our gross margin was 23.8 percent in the second
quarter compared to 23.7 percent in the first quarter and 24.4
percent in the second quarter of last year.
-- Operating expenses
Operating expenses totaled $27.3 million, a 1.8 percent increase
resulting from marketing, sales, and operating costs to support
our growth initiatives.
-- Net income
Net income totaled $716,400, or $0.13 per diluted share, compared
with $1.9 million, or $0.29 per diluted share.
-- Inventory
Inventory turns improved to 9.8 from 6.0 driven largely by the
repair and components business with a large OEM changing to a
consignment model in the fourth quarter of last fiscal year.
-- Receivables
Days sales outstanding increased from 33 to 38 partially due to
the timing of sales during the various quarters to our tier one
carrier.
-- Cash
At quarter end, our cash balance was $2.4 million and the balance
outstanding on our revolving line of credit was $4.4 million.
Operating cash flow for the quarter totaled $1.9 million. Also,
during the quarter, we repurchased 346,107 shares for
approximately $4.8 million under our expanded stock buyback
program. The buyback during the quarter represented
approximately 6 percent of the shares outstanding at the
beginning of the quarter.
Second Quarter Line of Business Operational Results (all comparisons are to last year's second quarter unless indicated otherwise): Network Infrastructure Equipment Revenues totaled $42.3 million, decreasing 2.4 percent, as a result of lower sales of broadband products. Gross margin in this line of business remained relatively flat as buyers decreased by 1.1 percent and purchases per buyer declined by 1.2 percent. Mobile Devices and Accessories Revenues totaled $67.9 million, increasing 27.3 percent as a result of increases in sales of cellular accessories to resellers and users. Gross profit in this line of business declined as a result of product mix and obsolescence related to sales to our major carrier customer. The gross margin to other customers was flat. These customers grew by 9.7 percent and their monthly purchases increased by 9.8 percent. Installation, Test and Maintenance Revenues totaled $22.3 million, a 1.5 percent increase. Gross profit margin decreased to 21.5 percent from 34.8 percent as a result of the previously announced restructured relationship of the repair and components business, as the gross profit returned to historical levels as we previously advised. The gross margin for the non-repair parts portion of this line of business was 24.0 percent. Buyers in this line of business were essentially flat and purchases per buyer increased by 2.1 percent. Acquisitions NetForce Solutions, a provider of technical and sales training solutions to the wireless, telecommunications, and networking industries was acquired on July 2, 2007. NetForce has been integrated into the TESSCO training business and will complement the GigaWave business acquired last year. This acquisition furthers our ability to meet the significant increase in demand for technical and sales training in wireless and telecommunications.
Key Recognitions and Events
-- The TESSCO Wireless Guide recently won the Silver Print
Channel Award in the Syndicated/Co-op category during the 22nd
Annual Multichannel Merchant Awards (MCM Awards), presented by
MULTICHANNEL MERCHANT. The MCM Awards honor the finest
business-to-business and business-to-consumer marketers from
the catalog and e-commerce industry, and are the height of
achievement for catalog and Web merchants. TESSCO's ability to
exceed industry standards for merchandising, marketing,
service, production, and creativity, ultimately earned the
Company a prestigious Silver Award for 2007.
-- TESSCO recently received the Motorola Wireless Broadband
Distributor of the Year Award for fiscal year 2007, for
demonstrating the highest year-over-year sales growth of their
products. During a ceremony on October 2, 2007 at the 2007
Motorola Channel Summit in Palm Springs, Florida, TESSCO was
recognized as a top supplier of Motorola Canopy(R) products
and solutions.
-- In October, TESSCO hosted a VAR and Video Surveillance
Symposium - a two-day event during which Value-Added Reseller
customers were educated in new trends in the wireless market,
as well as in WiMax, Wi-Fi and WLAN. The Symposium also
included hands-on experience with video surveillance
applications and provided a forum to the VARs to discuss
current issues and opportunities to increase value add in the
market.
-- In October, TESSCO was named to Forbes' elite list of
America's Best Small Companies for 2007 for its proven ability
to demonstrate a consistent pattern of positive sales and
profit growth. Inclusion on the Forbes annual list requires
companies to meet a series of rigorous financial benchmarks as
of October 1, 2007, including a share price above $5.00,
annual sales between $5 million and $750 million ("small" by
Forbes' standards), and positive sales and net profit growth
over the last twelve-month and five-year periods.
Stock Buyback Program
During the quarter, 346,107 shares of common stock were repurchased for approximately $4.8 million. To date 2,140,974 shares have been purchased under this program since it began in May 2003 at a total cost of approximately $28.3 million, or $13.20 per share. Up to 254,593 shares now remain available for repurchase from time to time in the open market, by block purchase, or through negotiated transactions, or possibly other transactions managed by broker-dealers. Purchases are funded from working capital and/or the Company's credit facility. No timetable has been set for the completion of the program. On September 30, 2007, approximately 5.1 million shares of common stock were outstanding. Business Outlook The outlook below assumes, among other things, that trends we are experiencing in our markets will improve, and that we will continue investment in marketing, sales and operations that should accelerate the expansion of our business. In addition, the nature of our business is that we typically ship products within several days after booking orders, so the lack of an order backlog makes it inherently difficult to forecast future results. We expect third quarter earnings per share to be significantly better than the second quarter, but our visibility into our fourth quarter is limited at this time. Subject to the foregoing, we are currently expecting earnings per share for the last six months of fiscal 2008 to be in the range of $0.35 to $0.45. As earnings per share for the first six months totaled $0.28, we are expecting earnings per share for fiscal year 2008 will be in the range of $0.63 to $0.73. Rule 10b5-1 Stock Trading Plan On November 1, 2007, the Company's Chairman, President and CEO Robert B. Barnhill expects to replace the recently expired Rule 10b5-1 plan that he had previously adopted in November 2006 with a new Rule 10b5-1 stock trading plan to sell an additional portion of his company stock over time as part of his tax and estate planning. The stock trading plan will be adopted in accordance with guidelines specified by Rule 10b5-1 under the Securities Exchange Act of 1934 and TESSCO's policies regarding stock transactions. Under the terms of the new Rule 10b5-1 plan, Mr. Barnhill may sell shares of his company stock from time to time over term of the plan, up to a maximum of 200,000 shares, which represents a small portion of his current holdings. These transactions under Mr. Barnhill's new Rule 10b5-1 plan will be disclosed publicly through Form 4 filings with the Securities and Exchange Commission. The Form 4 filings will also be available through TESSCO's Web site, TESSCO.com. Conference Call A conference call will be held on October 31, 2007 at 10:00 a.m. EDT to discuss the financial results for the second quarter of fiscal year 2008. The conference call will also be available via Web cast by visiting: http://www.tessco.com/go/pressroom. TESSCO expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts, and others. At these meetings, TESSCO may reiterate the Business Outlook published in this press release. At the same time, TESSCO will keep this press release and Business Outlook publicly available on its Web site (www.tessco.com). However, the Business Outlook published in this press release reflects only the Company's current best estimate and the Company assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time. Non-GAAP Information EBITDA, a measure used by management to evaluate its ongoing operations and as an indicator of its operating cash flow (in conjunction with its cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges) is defined as income from operations, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization. Management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Because not all companies use identical calculations, the Company's presentation of EBITDA may not be comparable to other similarly titled measures of other companies. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. EBITDA per diluted share is also a non-GAAP calculation defined as EBITDA divided by the Company's diluted weighted average shares outstanding. Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not reflect certain cash requirements such as interest payments, tax payments and debt service requirements. The amounts shown for EBITDA as presented herein differ from the amounts calculated under the definition of EBITDA used in the Company's debt instruments. The definition of EBITDA as used in the Company's debt instruments is further adjusted for certain cash and non-cash charges/credits, including stock compensation expense, and is used to determine compliance with financial covenants and the ability to engage in certain activities such as incurring additional debt. A reconciliation of the Company's non-GAAP to GAAP results is included as an exhibit to this release. About TESSCO: TESSCO Technologies Incorporated is a provider of the product and supply chain solutions needed to build, operate and use wireless systems. TESSCO is committed to delivering, fast and complete, the product needs of wireless system operators, program managers, contractors, resellers, and self-maintained utility, transportation, enterprise and government organizations. As Your Total Source(R) provider of mobile and fixed-wireless network infrastructure products, mobile devices and accessories, and installation, test and maintenance equipment and supplies, TESSCO assures customers of on-time availability, while streamlining their supply chain process and lowering inventories and total costs. To learn more, please visit TESSCO.com. Forward-Looking Statements This press release, including the statements of Robert Barnhill, 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 subject. 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 which are typically terminable by either party upon several months notice; loss of significant customers or relationships, including affinity relationships; loss of customers either directly or indirectly as a result of consolidation among large wireless service carriers and others within the wireless communications industry; the strength of the customers', vendors' and affinity partners' business; economic conditions that may impact customers' ability to fund or pay for the purchase of our products and services, including credit risk; our dependence on a relatively small number of suppliers and vendors, which could hamper our ability to maintain appropriate inventory levels and meet customer demand; failure of our information technology system or distribution system; technology changes in the wireless communications industry, which could lead to significant inventory obsolescence and/or our inability to offer key products that our customers demand; third-party freight carrier interruption; increased competition from competitors, including manufacturers or national and regional distributors of the products we sell and the absence of significant barriers to entry which could result in pricing and other pressures on profitability and market share; our inability to access capital and obtain financing as and when needed; transitional and other risks associated with acquisitions of companies that we may undertake in an effort to expand our business; 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; our inability to protect certain intellectual property, including systems and technologies on which we rely; and our inability to hire or retain for any reason our key professionals, management and staff.
TESSCO Technologies Incorporated
Consolidated Statements of Income
Fiscal Quarters Ended
----------------------------------------
September 30, September 24,
2007 July 1, 2007 2006
------------- ------------ -------------
(unaudited) (unaudited) (unaudited)
Revenues $ 132,518,300 $124,430,100 $ 118,655,700
Cost of goods sold 103,837,700 96,269,100 88,625,800
------------- ------------ -------------
Gross profit 28,680,600 28,161,000 30,029,900
Selling, general and
administrative expenses 27,340,000 26,668,800 26,855,800
------------- ------------ -------------
Income from operations 1,340,600 1,492,200 3,174,100
Interest, net 115,900 60,900 180,500
------------- ------------ -------------
Income before provision
for income taxes 1,224,700 1,431,300 2,993,600
Provision for income taxes 508,300 565,300 1,137,600
------------- ------------ -------------
Net income $ 716,400 $ 866,000 $ 1,856,000
============= ============ =============
Basic earnings per share $ 0.13 $ 0.16 $ 0.30
Diluted earnings per share $ 0.13 $ 0.15 $ 0.29
------------- ------------ -------------
Basic weighted average shares
outstanding 5,328,100 5,419,300 6,155,300
Diluted weighted average
shares outstanding 5,538,600 5,694,400 6,338,000
------------- ------------ -------------
Six Months Ended
----------------------------
September 30, September 24,
2007 2006
------------- -------------
(unaudited) (unaudited)
Revenues $ 256,948,400 $ 230,596,000
Cost of goods sold 200,106,800 172,481,000
------------- -------------
Gross profit 56,841,600 58,115,000
Selling, general and administrative
expenses 54,008,800 51,823,900
------------- -------------
Income from operations 2,832,800 6,291,100
Interest, net 176,800 335,800
------------- -------------
Income before provision for income
taxes 2,656,000 5,955,300
Provision for income taxes 1,073,600 2,245,900
------------- -------------
Net income $ 1,582,400 $ 3,709,400
============= =============
Basic earnings per share $ 0.29 $ 0.60
Diluted earnings per share $ 0.28 $ 0.58
------------- -------------
Basic weighted average shares outstanding 5,374,400 6,213,000
Diluted weighted average shares
outstanding 5,616,500 6,375,800
------------- -------------
TESSCO Technologies Incorporated
Consolidated Balance Sheets
September 30, April 1, 2007
2007
------------- -------------
(audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 2,390,800 $ 4,176,300
Trade accounts receivable, net 54,899,300 44,859,600
Product inventory 50,360,400 37,448,800
Deferred tax asset 3,460,100 3,460,100
Prepaid expenses and other current
assets 3,693,100 1,959,500
------------- -------------
Total current assets 114,803,700 91,904,300
Property and equipment, net 24,003,000 24,256,300
Goodwill, net 5,056,400 5,008,300
Other long-term assets 2,788,900 2,513,800
------------- -------------
Total assets $146,652,000 $123,682,700
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $ 71,453,400 $ 47,257,700
Payroll, benefits and taxes 3,026,800 6,658,500
Income and sales taxes 2,909,500 2,960,800
Accrued expenses and other current
liabilities 1,165,800 1,143,800
Revolving line of credit 4,384,400 --
Current portion of long-term debt 358,300 356,200
------------- -------------
Total current liabilities 83,298,200 58,377,000
Deferred tax liability 2,700,400 2,700,400
Long-term debt, net of current portion 4,023,500 4,203,200
Other long-term liabilities 1,505,400 1,250,800
------------- -------------
Total liabilities 91,527,500 66,531,400
------------- -------------
Shareholders' Equity:
Preferred stock -- --
Common stock 78,000 75,800
Additional paid in capital 30,182,200 27,463,700
Treasury stock, at cost (33,454,300) (27,216,200)
Retained earnings 58,316,600 56,806,300
Accumulated other comprehensive income 2,000 21,700
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Total shareholders' equity 55,124,500 57,151,300
------------- -------------
Total liabilities and shareholder's
equity $146,652,000 $123,682,700
============= =============
TESSCO Technologies Incorporated
Reconciliation of Net Income to Earnings Before Interest, Taxes and
Depreciation and Amortization (EBITDA)
Fiscal Quarters Ended Six Months Ended
------------------------------------------------------
September July 1, September September September
30, 2007 2007 24, 2006 30, 2007 24, 2006
---------- ---------- ---------- ---------- ----------
Net income $ 716,400 $ 866,000 $1,856,000 $1,582,400 $3,709,400
Add:
Provision for
income taxes 508,300 565,300 1,137,600 1,073,600 2,245,900
Interest, net 115,900 60,900 180,500 176,800 335,800
Depreciation
and
amortization 1,203,400 1,229,900 1,182,200 2,433,300 2,320,300
---------- ---------- ---------- ---------- ----------
EBITDA $2,544,000 $2,722,100 $4,356,300 $5,266,100 $8,611,400
========== ========== ========== ========== ==========
EBITDA per
diluted share $ 0.46 $ 0.48 $ 0.69 $ 0.94 $ 1.35
========== ========== ========== ========== ==========
Diluted
weighted
average shares
outstanding 5,538,600 5,694,400 6,338,000 5,616,500 6,375,800
========== ========== ========== ========== ==========
TESSCO Technologies Incorporated
Supplemental Revenue and Gross Profit Results Summary
Mobile Installation,
(Amounts in Network Devices and Test and
Thousands) Infrastructure Accessories Maintenance Total
-------------- ------------ ------------- ----------
Quarter Ended
September 30,
2007:
Commercial /
Government
Revenue:
Public
Carriers and
Network
Operators $ 11,471 $ 568 $ 3,420 $ 15,459
Resellers 18,289 60,878 2,281 81,448
Users and
Governments 12,494 3,520 16,626 32,640
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Revenue 42,254 64,966 22,327 129,547
Consumer Revenue -- 2,971 -- 2,971
-------------- ------------ ------------- ----------
Total Revenue $ 42,254 $ 67,937 $ 22,327 $132,518
============== ============ ============= ==========
Commercial /
Government Gross
Profit:
Public
Carriers and
Network
Operators $ 2,801 $ 160 $ 834 $ 3,795
Resellers 4,513 11,040 663 16,216
Users and
Governments 3,214 1,103 3,313 7,630
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Gross Profit 10,528 12,303 4,810 27,641
Consumer Gross
Profit -- 1,040 -- 1,040
-------------- ------------ ------------- ----------
Total Gross
Profit $ 10,528 $ 13,343 $ 4,810 $ 28,681
============== ============ ============= ==========
Change from the Quarter Ended September 24, 2006:
Commercial /
Government
Revenue:
Public
Carriers and
Network
Operators (3.3%) (5.8%) 13.4% (0.2%)
Resellers 5.8% 28.2% (13.3%) 20.9%
Users and
Governments (11.6%) (0.5%) 1.7% (4.0%)
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Revenue (2.4%) 25.9% 1.5% 10.8%
Consumer Revenue -- 67.3% -- 67.3%
-------------- ------------ ------------- ----------
Total Revenue (2.4%) 27.3% 1.5% 11.7%
============== ============ ============= ==========
Commercial /
Government Gross
Profit:
Public
Carriers and
Network
Operators (4.8%) (16.7%) 3.3% (3.7%)
Resellers (1.4%) 17.4% 8.7% 11.1%
Users and
Governments (4.2%) 3.8% (46.9)% (28.4%)
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Gross Profit (3.2%) 15.4% (37.1%) (5.3%)
Consumer Gross
Profit -- 23.4% -- 23.4%
-------------- ------------ ------------- ----------
Total Gross
Profit (3.2%) 16.0% (37.1%) (4.5%)
============== ============ ============= ==========
Change from the Quarter Ended July 1, 2007:
Commercial /
Government
Revenue:
Public
Carriers and
Network
Operators 0.4% (2.2%) 31.2% 5.8%
Resellers 4.1% 6.7% (4.3%) 5.8%
Users and
Governments 14.2% 8.5% 1.1% 6.6%
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Revenue 5.8% 6.7% 4.2% 6.0%
Consumer Revenue -- 35.4% -- 35.4%
-------------- ------------ ------------- ----------
Total Revenue 5.8% 7.7% 4.2% 6.5%
============== ============ ============= ==========
Commercial /
Government Gross
Profit:
Public
Carriers and
Network
Operators 4.6% (2.4%) 23.2% 7.9%
Resellers 7.3% (3.2%) (17.1%) (1.2%)
Users and
Governments 14.0% 4.0% (4.7%) 3.7%
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Gross Profit 8.5% (2.6%) (2.9%) 1.3%
Consumer Gross
Profit -- 19.1% -- 19.1%
-------------- ------------ ------------- ----------
Total Gross
Profit 8.5% (1.2%) (2.9%) 1.8%
============== ============ ============= ==========
Mobile Installation,
(Amounts in Network Devices and Test and
Thousands) Infrastructure Accessories Maintenance Total
-------------- ------------ ------------- ----------
Six Months Ended
September 30,
2007:
Commercial /
Government
Revenue:
Public
Carriers and
Network
Operators $ 22,896 $ 1,149 $ 6,026 $ 30,071
Resellers 35,856 117,926 4,664 158,446
Users and
Governments 23,437 6,763 33,065 63,265
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Revenue 82,189 125,838 43,755 251,782
Consumer Revenue -- 5,166 -- 5,166
-------------- ------------ ------------- ----------
Total Revenue $ 82,189 $ 131,004 $ 43,755 $256,948
============== ============ ============= ==========
Commercial /
Government Gross
Profit:
Public
Carriers and
Network
Operators $ 5,478 $ 324 $ 1,511 $ 7,313
Resellers 8,718 22,449 1,463 32,630
Users and
Governments 6,034 2,164 6,788 14,986
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Gross Profit 20,230 24,937 9,762 54,929
Consumer Gross
Profit -- 1,913 -- 1,913
-------------- ------------ ------------- ----------
Total Gross
Profit $ 20,230 $ 26,850 $ 9,762 $ 56,842
============== ============ ============= ==========
Change from the Six Months Ended September 24, 2006:
Commercial /
Government
Revenue:
Public
Carriers and
Network
Operators (5.0%) (8.7%) (17.1%) (7.8%)
Resellers 9.7% 37.9% (12.0%) 28.3%
Users and
Governments (3.0%) 0.0% (17.9%) (11.2%)
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Revenue 1.5% 34.6% (17.2%) 10.8%
Consumer Revenue -- 56.8% -- 56.8%
-------------- ------------ ------------- ----------
Total Revenue 1.5% 35.3% (17.2%) 11.4%
============== ============ ============= ==========
Commercial /
Government Gross
Profit:
Public
Carriers and
Network
Operators (4.6%) (14.1%) (14.0%) (7.2%)
Resellers 5.5% 31.9% 20.4% 23.1%
Users and
Governments 2.3% 8.4% (52.3)% (32.3%)
-------------- ------------ ------------- ----------
Total Commercial
/ Government
Gross Profit 1.6% 28.6% (43.3%) (2.8%)
Consumer Gross
Profit -- 19.6% -- 19.6%
-------------- ------------ ------------- ----------
Total Gross
Profit 1.6% 27.9% (43.3%) (2.2%)
============== ============ ============= ==========
CONTACT: TESSCO Technologies Incorporated |