Does anyone invest in the suppliers to the wireless
TESS
This is one huge potential undiscovered wireless supplier. Exclusive supplier to Nokia for cellular and PCS, great earnings, profitbale, low p/e. Only 5.5 million shares outstanding and lower float.
I posted this on SI about 1-2 weeks ago. Just released earnings yesterday which were very very good. Already traded 3.5 times it normal volume today. It has continually risen for the last week. They made 54 million last quarter and are profitable with a low p/e. Outstanding shares around 5 million with smaller float.
They are a wireless supplier to many companies including Nokia. biz.yahoo.com
Someone is acquiring now - bigger buys coming in. This one is in my retirement account. p/e was 24 prior to earnings yesterday. Read press release - if we could build volume - this one could really roll for us.
Companies website: tessco.com
biz.yahoo.com
Thursday January 13, 5:42 pm Eastern Time
Company Press Release
SOURCE: TESSCO Technologies Incorporated
TESSCO Announces 29% Revenue Growth for Its Third Quarter; Earnings Per Share More Than Double Over Last Year Rising to $0.30
HUNT VALLEY, Md., Jan. 13 /PRNewswire/ -- TESSCO Technologies Incorporated (Nasdaq: TESS - news), a leading provider of products and value-added services to the wireless communications industry, today reported its financial results for the third quarter ending December 26, 1999.
Revenues for the third quarter increased 29% to a record $52.4 million compared to $40.7 million for the corresponding prior year quarter. Gross profit increased 31% totaling $14.5 million for the quarter as compared to $11.0 million in the corresponding prior year quarter.
Net income for the third quarter increased to $1.4 million as compared to $656,900 for the corresponding prior year quarter. Diluted earnings per share for the quarter totaled $0.30 compared to $0.14 for the corresponding prior year quarter.
For the first nine months of the current fiscal year, revenues increased 17% to $140.6 million compared to $120.3 million for the corresponding prior year period. Gross profit increased 26%, totaling $38.8 million for the same nine months compared to $30.8 million in the corresponding prior year period.
For the first nine months of the current fiscal year, net income increased 172%, totaling $4.1 million compared to $1.5 million for the corresponding prior year period. Diluted earnings per share totaled $0.89 for the same nine months compared to $0.33 in the corresponding prior year period.
Cash flow provided by operations totaled $2.8 million for the first nine months of the current fiscal year.
Robert B. Barnhill, Jr., chairman and chief executive officer, said:
``This marked our third consecutive quarter of record level revenues and gross profits, reflecting both the improved strength of the wireless market and the results of our sales and marketing initiatives. Compared to the third quarter of last year, monthly buyers increased more than 10% and their average purchases rose 21%, resulting in double-digit growth in all of our core product classes. The 29% increase in total revenues, strong gross profit margins, improved operating productivity, and tight cost control allowed earnings to more than double to $0.30 per share.
Investments in TESSCO.com are producing sales increases and cost decreases. E-commerce sales increased 49% over the previous quarter. Interactive Week magazine, in collaboration with Ernst & Young and the Center for e-Business at Massachusetts Institute of Technology recognized TESSCO Technologies as one of the country's leading business-to-business e-commerce companies.
I am excited about our future. Growth rates in our core markets are now outpacing forecasts, and we are developing new opportunities from the convergence of wireless, telephony, computer and Internet technologies. Going forward, we are striving to build on our growth and profit momentum by continuing to expand market share, new product and solution offerings, electronic commerce initiatives and productivity enhancements. Thank you for your continued support.``
TESSCO Technologies Incorporated is a global provider of products and value-added services to the wireless communications industry. The Company currently serves more than 7,000 business customers and 12,000 consumers per month in the cellular telephone, Personal Communications Services (PCS), paging and mobile radio-dispatch markets, including a diversified mix of cellular, PCS and paging carriers, dealers, self-maintained users and consumers. Its product selection, which consists of over 18,000 items from 275 manufacturers, is used to build, operate or maintain wireless systems. These products are presented through the TESSCO Buyer's Guide, a one-of-a-kind industry resource, and TESSCO.com, the internet-based product knowledge and transaction system, made available for express delivery throughout the world.
TESSCO's operations are centralized in the Global Logistics Center, the Company's ISO 9002 registered headquarters in Hunt Valley, Maryland. The customer relations and product support center provides sales, account management and technical support services 24 hours a day, seven days a week. The high-capacity fulfillment center is designed to configure orders for complete, on-time delivery. TESSCO's distribution node in Reno, Nevada facilitates the prompt delivery of freight-intensive products to the western part of the United States. All customer, product and fulfillment activities are directed by an integrated enterprise technology platform providing timely knowledge and product delivery and efficient and effective sales, service and transactions.
This report contains a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, all of which are based on current expectations. The Company's future results of operations and other forward-looking statements contained in this report involve a number of risks and uncertainties. For a variety of reasons, actual results may differ materially from those described in any such forward-looking statement. Such factors include, but are not limited to, the following: the Company's dependence on a relatively small number of suppliers and vendors, which could hamper the Company's ability to maintain appropriate inventory levels and meet customer demand; the effect that the loss of certain customers or vendors could have on the Company's net profits; the possibility that unforeseen events could impair the Company's ability to provide prompt and efficient service to its customers; the possibility of unforeseen delays in entering into or performing under anticipated contracts or in otherwise realizing anticipated revenues or anticipated savings; existing competition from national and regional distributors and the absence of significant barriers to entry which could result in pricing and other pressures on profitability and market share; and continuing changes in the wireless communications industry, including risks associated with conflicting technologies, changes in technologies, and inventory obsolescence. Consequently, the reader is cautioned to consider all forward-looking statements in light of the risks to which they are subject.
TESSCO Technologies Incorporated
Consolidated Statements of Income
Fiscal quarters ended Nine months ended
Dec. 26, Dec. 27, Dec. 26, Dec. 27,
1999 1998 1999 1998
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues $52,436,300 $40,661,200 $140,577,000 $120,278,800
Cost of goods sold 37,920,700 29,621,500 101,755,400 89,432,600
Gross profit 14,515,600 11,039,700 38,821,600 30,846,200
Selling, general
and administrative
expenses 11,986,700 9,658,100 31,316,200 27,544,700
Income from
operations 2,528,900 1,381,600 7,505,400 3,301,500
Interest expense,
net (310,100) (322,100) (895,400) (875,200)
Income before
provision for
income taxes 2,218,800 1,059,500 6,610,000 2,426,300
Provision for
income taxes 843,200 402,600 2,511,800 922,100
Net income $1,375,600 $656,900 $4,098,200 $1,504,200
Basic earnings
per share $0.31 $0.15 $0.92 $0.34
Diluted earnings
per share $0.30 $0.14 $0.89 $0.33
Basic weighted
average shares
outstanding 4,488,100 4,420,100 4,466,300 4,416,400
Diluted weighted
average shares
outstanding 4,563,000 4,627,500 4,586,000 4,596,000
TESSCO Technologies Incorporated
Consolidated Balance Sheets
December 26, March 28,
1999 1999
(unaudited) (audited)
ASSETS
CURRENT ASSETS:
Cash and marketable
securities $- $97,700
Trade accounts
receivable, net 27,426,000 19,621,000
Product inventory 27,783,500 21,149,000
Deferred tax asset 626,600 626,600
Prepaid expenses
and other current
assets 1,527,100 1,968,900
Total current
assets 57,363,200 43,463,200
PROPERTY AND
EQUIPMENT, net 16,359,800 15,725,900
DEFERRED TAX ASSET 255,100 255,100
GOODWILL, net 3,373,400 3,618,200
Total assets $77,351,500 $63,062,400
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts
payable $22,642,900 $12,938,500
Accrued expenses and
other current
liabilities 3,736,200 2,783,800
Revolving line
of credit 4,195,000 4,403,000
Current portion of
long-term debt 294,900 287,200
Total current
liabilities 30,869,000 20,412,500
DEFERRED TAX LIABILITY 14,500 14,500
OTHER LIABILITY - 50,000
LONG-TERM DEBT, net of
current portion 6,887,600 7,128,700
Total
liabilities 37,771,100 27,605,700
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock - -
Common stock 53,000 47,000
Additional paid-in
capital 21,220,900 20,598,400
Treasury stock,
at cost (3,710,600) (3,107,600)
Retained earnings 22,017,100 17,918,900
Total shareholders'
equity 39,580,400 35,456,700
Total liabilities
and shareholders'
equity $77,351,500 $63,062,400
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