TESSCO Technologies Inc. (TESS, Financial) filed Quarterly Report for the period ended 2012-07-01.
Tessco Technologies, Inc. has a market cap of $151.2 million; its shares were traded at around $18.6 with a P/E ratio of 9.6 and P/S ratio of 0.2. The dividend yield of Tessco Technologies, Inc. stocks is 3.8%. Tessco Technologies, Inc. had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Tessco Technologies, Inc. the business predictability rank of 4-star.
Total Revenues. Revenues for the first quarter of fiscal 2013 increased 17.7% as compared with the first quarter of fiscal 2012, largely due to a 30.5% increase in retail segment revenues. The retail sales growth was largely a result of a 40.8% increase in sales to our Tier 1 carrier customers, primarily AT&T, but also due to a 10.3% increase in sales to our non-Tier 1 customers. Commercial segment revenues increased 3.7% compared to the first quarter of fiscal 2012, with a significant increase in sales to our commercial dealers and resellers and public system operators contractors and program managers markets, partially offset by a decline in sales to our private and government system operators market.
Total Gross Profit. Gross profit for the first quarter of fiscal 2013 decreased 4.6% as compared with the first quarter of fiscal 2012, due to an 8.1% decrease in our retail segment and a 2.1% decrease in our commercial segment. Within the retail segment, our Tier 1 carrier market showed a considerable increase in sales, but much lower gross margins associated with these Tier 1 sales, resulting in a 19.4% decline in gross profit in the retail segment. This was primarily due to the business expansion experienced with AT&T beginning in the third quarter of fiscal 2012. As discussed above, we expect that this business will be transitioned in all material respects during the third quarter of fiscal 2013. The decrease in our commercial segment gross profit was driven by a decline in our private and government market, partially offset by increases in our commercial dealers and resellers and public carrier, contractor and program manager markets. Overall gross profit margin decreased to 18.4%, compared to 22.8% for the same period last year, driven by the temporarily expanded AT&T business. We account for inventory at the lower of cost or market, and as a result, write-offs/write-downs occur due to damage, deterioration, obsolescence, changes in prices and other causes.
Commercial Segment. Revenues in our commercial segment totaled $81.2 million in the first quarter of fiscal 2013, compared to $78.3 million in the prior year period, a 3.7% increase. Gross profit totaled $21.4 million, a 2.1% decrease as compared to the first quarter last year. Within this segment, the commercial dealers and resellers market grew revenues by 9.4% and gross profits by 8.0%. The public carrier, contractor and program manager market had revenue and gross profit increases of 10.2% and 2.5%, respectively. The private system operator and government market revenues declined by 5.3% and gross profits by 13.0%.
Retail Segment. Revenues in our retail segment totaled $111.2 million in the first quarter of fiscal 2013, representing a 30.5% increase from the prior year period. Gross profit totaled $14.1 million, an 8.1% decrease. Revenues in our retailer, dealer agent and Tier 2/3 carrier market also increased in the first quarter of fiscal 2013 as compared to the same period last year, up 10.3%, with an 8.9% increase in gross profit, as a result of changes in product and customer mix. We experienced significantly higher sales to our Tier 1 carrier market, primarily AT&T, which showed a 40.8% revenue increase, however, due to the lower gross margin associated with this business, gross profit declined 19.4% on sales to the Tier 1 carrier market.
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Tessco Technologies, Inc. has a market cap of $151.2 million; its shares were traded at around $18.6 with a P/E ratio of 9.6 and P/S ratio of 0.2. The dividend yield of Tessco Technologies, Inc. stocks is 3.8%. Tessco Technologies, Inc. had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Tessco Technologies, Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
Excluding sales to our Tier 1 carriers, first quarter revenues increased by 5.5% as compared to the first quarter of fiscal 2012. This growth, combined with a 40.8% increase in sales to our Tier 1 carriers (including AT&T), resulted in total first quarter revenue growth of 17.7% compared to the first quarter of fiscal 2012. Excluding our Tier 1 carriers, gross profit remained essentially flat in the first quarter of fiscal 2013 as compared to the first quarter of fiscal 2012 and gross profit from our Tier 1 carriers decreased 19.4% in the first quarter of fiscal 2013. This resulted in an overall decrease in gross profits of 4.6% compared to the first quarter of the prior fiscal year. Selling, general and administrative expenses decreased by 3.7% over the prior year quarter, primarily due to a decrease in our pay for performance bonus expense. As a result, net income decreased by 8.0% and diluted earnings per share decreased by 10.5% over the prior-year quarter.Total Revenues. Revenues for the first quarter of fiscal 2013 increased 17.7% as compared with the first quarter of fiscal 2012, largely due to a 30.5% increase in retail segment revenues. The retail sales growth was largely a result of a 40.8% increase in sales to our Tier 1 carrier customers, primarily AT&T, but also due to a 10.3% increase in sales to our non-Tier 1 customers. Commercial segment revenues increased 3.7% compared to the first quarter of fiscal 2012, with a significant increase in sales to our commercial dealers and resellers and public system operators contractors and program managers markets, partially offset by a decline in sales to our private and government system operators market.
Total Gross Profit. Gross profit for the first quarter of fiscal 2013 decreased 4.6% as compared with the first quarter of fiscal 2012, due to an 8.1% decrease in our retail segment and a 2.1% decrease in our commercial segment. Within the retail segment, our Tier 1 carrier market showed a considerable increase in sales, but much lower gross margins associated with these Tier 1 sales, resulting in a 19.4% decline in gross profit in the retail segment. This was primarily due to the business expansion experienced with AT&T beginning in the third quarter of fiscal 2012. As discussed above, we expect that this business will be transitioned in all material respects during the third quarter of fiscal 2013. The decrease in our commercial segment gross profit was driven by a decline in our private and government market, partially offset by increases in our commercial dealers and resellers and public carrier, contractor and program manager markets. Overall gross profit margin decreased to 18.4%, compared to 22.8% for the same period last year, driven by the temporarily expanded AT&T business. We account for inventory at the lower of cost or market, and as a result, write-offs/write-downs occur due to damage, deterioration, obsolescence, changes in prices and other causes.
Commercial Segment. Revenues in our commercial segment totaled $81.2 million in the first quarter of fiscal 2013, compared to $78.3 million in the prior year period, a 3.7% increase. Gross profit totaled $21.4 million, a 2.1% decrease as compared to the first quarter last year. Within this segment, the commercial dealers and resellers market grew revenues by 9.4% and gross profits by 8.0%. The public carrier, contractor and program manager market had revenue and gross profit increases of 10.2% and 2.5%, respectively. The private system operator and government market revenues declined by 5.3% and gross profits by 13.0%.
Retail Segment. Revenues in our retail segment totaled $111.2 million in the first quarter of fiscal 2013, representing a 30.5% increase from the prior year period. Gross profit totaled $14.1 million, an 8.1% decrease. Revenues in our retailer, dealer agent and Tier 2/3 carrier market also increased in the first quarter of fiscal 2013 as compared to the same period last year, up 10.3%, with an 8.9% increase in gross profit, as a result of changes in product and customer mix. We experienced significantly higher sales to our Tier 1 carrier market, primarily AT&T, which showed a 40.8% revenue increase, however, due to the lower gross margin associated with this business, gross profit declined 19.4% on sales to the Tier 1 carrier market.
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