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Tessco Reports Second-Quarter Fiscal 2021 Financial Results

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TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS) today reported financial results for its fiscal second quarter ended September 27, 2020.

Second-Quarter Highlights:

 

Second Quarter

FY 2021

Second Quarter FY 2020

First Quarter

FY 2021

Revenue

$119.7M

$141.8M

$119.8M

Loss from operations

($0.1M)

$0.6M

$(4.9M)

Loss per diluted share

$(0.03)

$0.00

$(0.54)

EBITDA per diluted share1

$0.10

$0.20

$(0.43)

1EBITDA per diluted share and EBITDA (on which EBITDA per diluted share is based) are Non-GAAP financial measures. Please see the discussion of Non-GAAP Information below and the reconciliation of Non-GAAP to GAAP results included as an exhibit to this press release.

Second-Quarter Revenue by Market:

 

Year over Year Q2 FY 2021 vs. Q2 FY 2020

Sequential Q2 FY 2021 vs. Q1 FY 2021

Commercial:

 

 

Public Carrier

(16.7%)

(16.9%)

VAR and Integrator

(12.8%)

(1.7%)

Total Commercial

(14.2%)

(7.9%)

Retail

(19.4%)

31.8%

Total

(15.6%)

(0.1%)

We made solid progress on our near-term profit improvement initiatives in the second fiscal quarter and took concrete steps to transform the business in accordance with our three-pillar strategy, said President and Chief Executive Officer Sandip Mukerjee. During the quarter, we maintained our focus on taking aggressive actions to drive higher margins, reduce costs and effectively manage inventory. As a result, we achieved the best quarterly bottom-line performance in a year, improved gross profit in both business segments on a sequential basis, and increased overall gross margin by 30 basis points year over year, despite lower sales due to continued headwinds from the economic downturn and COVID-19.

While sales in the public carrier market were challenged due to pandemic-related delays, we continue to capture market share in this ecosystem and better position Tessco to capitalize on new wireless technologies including 5G, private LTE/CBRS and IoT. Specifically, we are encouraged by the early results of our higher-margin Ventev brand in the Public Carrier ecosystem with enclosures for the monitoring of tower equipment. Industrializing our Ventev operations and scaling our capabilities positions us at the leading edge as an industry innovator.

We are realizing the benefits of our strategic execution and investment initiatives, as evidenced by higher sales of Ventev products in our VAR business and increased sales through the Tessco.com channel. As a result of the higher-margin Ventev and Tessco.com VAR revenues, combined with a positive Public Carrier sales mix, our overall Commercial Segment gross margin increased 220 basis points sequentially.

We are positioning the business to capitalize on the once-in-a-generation opportunity resulting from the unprecedented and concurrent rollout of new wireless technologies. We are taking bold actions to improve the performance of our VAR and Integrator business, including investing in our sales teams, reengaging with the end-user community and reestablishing our relevance on a sector-by-sector basis. The Board and management team have been focused on turning the business around and returning it to profitable growth and modernizing our IT and other operating systems. While we recognize that there is more to be done, the entire team is working with urgency to transform the Company by executing our three-pillar strategy and drive value for shareholders.

Business Outlook

The Company expects sequential revenue growth in the Commercial Segment in the third quarter, but with a return to more historical public carrier market gross margins due to product mix.

During the second quarter the Company recognized benefits associated with changes in estimates related to accounts receivable and inventory reserves that the Company would not expect to recur. Additionally, the Company expects to incur incremental legal and other costs associated with responses to the recently initiated consent solicitation.

We are encouraged by the progress we made in the second quarter on our strategy and operating results, said Mukerjee. As we look ahead to the second half of the year, we are focused on continuing to drive growth and profitability improvement as we execute on our three-pillar strategy. While we saw sequential improvements in Retail in the second quarter, we will continue to manage the decline of that business to maximize profitability. For the Commercial business, given the current macroeconomic outlook for the remainder of the year, we expect an easing of the project delays in the second half of Tesscos fiscal year, and additional growth coming from 5G in calendar year 2021. Overall, we are uniquely positioned to capitalize on the exponential growth, technological change and resultant complexity that will continue to drive our industry.

Forecasting future results or trends is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. The Business Outlook published in this press release reflects only the Companys current best estimate and it assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time.

Second-Quarter Financial Results

For the fiscal 2021 second quarter, revenues totaled $119.7 million, compared with $141.8 million for the second quarter of fiscal 2020, primarily as a result of lower sales in both segments due to continued headwinds from the economic environment and COVID-19.

Gross profit was $22.7 million for the second quarter of fiscal 2021, compared with $26.3 million for the same quarter of fiscal 2020, due to lower sales volume. Gross margin grew 30 basis points to 18.9% for the second quarter of fiscal 2021 from 18.6% in the second quarter of last year. The increase was due to product mix in the Commercial Segment, reduced freight-in costs and improved inventory management.

Second-quarter selling, general and administrative (SG&A) expenses decreased 11% from the prior-year second quarter to $22.8 million, primarily related to the lower sales and the Companys cost-reduction actions. In addition, Tessco recorded a benefit from bad debt expense of $0.8 million as a result of strong collection efforts, allowing the Company to reduce reserves put in place in fiscal year 2020 related to the pandemic.

Second-quarter fiscal 2021 loss before income taxes was $245,900 compared with income before income taxes of $239,000 in the second quarter of fiscal 2020.

Net loss and loss per share was $266,900 and $0.03, respectively, for the second quarter of fiscal 2021. This compares with net income of $22,000 and earnings per share of $0.00, for the prior-year second quarter.

EBITDA and EBITDA per share were $888,500 and $0.10, respectively, for the second quarter of fiscal 2021. This compares with EBITDA and EBITDA per share of $1.7 million and $0.20, respectively, for the second quarter of fiscal 2020.

The Company maintains a solid liquidity profile. As of September 27, 2020, the outstanding balance under the Companys $75 million line of credit was approximately $32.1 million.

Second-Quarter Conference Call

Management will host a conference call to discuss second-quarter fiscal-year 2021 results and business outlook on Thursday, October 29, 2020 at 8:30 a.m. ET. To participate in the conference call, please call 877-824-7042 (domestic call-in) or 647-689-6625 (international call-in) and reference code #3656348. A live webcast of the conference call will be available on the Events & Presentations page of the Companys website. All participants should call or access the website approximately 10 minutes before the conference begins. An archived version of the webcast will be available on the Company’s website for one year.

Non-GAAP Information

EBITDA and EBITDA per diluted share are measures used by management to evaluate the Companys ongoing operations, and to provide a general indicator of the Company’s operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges). EBITDA is defined as income from operations, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization. EBITDA per diluted share is defined as EBITDA divided by Tesscos diluted weighted average shares outstanding.

Management believes EBITDA and EBITDA per diluted share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Because not all companies use identical calculations, the Companys presentation of these Non-GAAP measures may not be comparable to other similarly titled measures of other companies. EBITDA, EBITDA per diluted share, Adjusted EBITDA and Adjusted EBITDA per share are not recognized terms under GAAP, and EBITDA and Adjusted EBITDA 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. Additionally, EBITDA and EBITDA per diluted share, are intended to be measures of free cash flow for management’s discretionary use, as certain cash requirements, such as interest payments, tax payments and debt service requirements, are not reflected.

A reconciliation of Non-GAAP to GAAP results is included as an exhibit to this release.

About TESSCO Technologies Incorporated (NASDAQ: TESS)

TESSCO Technologies, Inc. (NASDAQ: TESS) is a value-added technology distributor, manufacturer, and solutions provider serving commercial and retail customers in the wireless infrastructure and mobile device accessories markets. The Company was founded more than 30 years ago with a commitment to deliver industry-leading products, knowledge, solutions, and customer service. Tessco supplies more than 50,000 products from 350 of the industrys top manufacturers in mobile communications, Wi-Fi, Internet of Things (IoT), wireless backhaul, and more. Tessco is a single source for outstanding customer experience, expert knowledge, and complete end-to-end solutions for the wireless industry. For more information, visit www.tessco.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained herein, including statements regarding our future results of operations and financial position, strategy and plans and future prospects, and our expectations for future operations, are forward-looking statements. These forward-looking statements are based on current expectations and analysis, and actual results may differ materially from those projected. These forward-looking statements may generally be identified by the use of the words “may,” “will,” “expects,” “anticipates,” targets, goals, projects, intends, plans, seeks, “believes,” “estimates,” and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. These forward-looking statements are only predictions and involve a number of risks, uncertainties and assumptions, many of which are outside of our control. Our actual results may differ materially and adversely 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 (the SEC), 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. For additional information with respect to risks and other factors which could occur, see Tesscos Annual Report on Form 10-K for the year ended March 29, 2020, including Part I, Item 1A, “Risk Factors” therein, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other securities filings with the SEC that are available at the SEC’s website at www.sec.gov and other securities regulators.

We are not able to identify or control all circumstances that could occur in the future that may materially and 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: the impact and results of the consent solicitation and other activism activities by Robert B. Barnhill, Jr. and certain other participants in his consent solicitation and/or other activist investors; 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 either directly or indirectly as a result of consolidation among large wireless services carriers and others within the wireless communications industry; the strength of our customers’, vendors’ and affinity partners’ business; negative or adverse economic conditions, including those adversely affecting consumer confidence or consumer or business spending or otherwise adversely impacting our vendors or customers, including their access to capital or liquidity, or our customers’ demand for, or ability to fund or pay for, the purchase of our products and services; 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; changes in customer and product mix that affect gross margin; effect of conflict minerals regulations on the supply and cost of certain of our products; failure of our information technology system or distribution system; system security or data protection breaches; technology changes in the wireless communications industry or technological failures, 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 relative bargaining power and inability to negotiate favorable terms with our vendors and customers; 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; claims against us for breach of the intellectual property rights of third parties; product liability claims; our inability to protect certain intellectual property, including systems and technologies on which we rely; our inability to hire or retain for any reason our key professionals, management and staff; health epidemics or pandemics or other outbreaks or events, or national or world events or disasters beyond our control; and the possibility that, for unforeseen or other 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.

The above list should not be construed as exhaustive and should be read in conjunction with our other disclosures, including but not limited to the risk factors described in our most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission (the SEC), under the heading “Risk Factors” and otherwise. Other risks may be described from time to time in our filings made under the securities laws. New risks emerge from time to time. It is not possible for our management to predict all risks.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. In addition, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. We disclaim any duty to update any of these forward-looking statements after the date of this press release to confirm these statements to actual results or revised expectations.

 

TESSCO Technologies Incorporated

Consolidated Statements of Loss (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Quarters Ended

 

Six Months Ended

 

 

September 27,

2020

 

September 29,

2019

 

June 28,

2020

 

September 27,

2020

 

September 29,

2019

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

119,655,400

 

 

$

141,810,900

 

$

119,813,500

 

 

$

239,468,900

 

 

$

272,540,200

 

Cost of goods sold

 

 

96,983,200

 

 

 

115,491,600

 

 

100,987,800

 

 

 

197,971,000

 

 

 

220,957,400

 

Gross profit

 

 

22,672,200

 

 

 

26,319,300

 

 

18,825,700

 

 

 

41,497,900

 

 

 

51,582,800

 

Selling, general and administrative expenses

 

 

22,812,200

 

 

 

25,745,200

 

 

23,734,400

 

 

 

46,546,600

 

 

 

53,841,700

 

Restructuring charge

 

 

 

 

 

 

 

 

 

 

 

 

 

488,000

 

(Loss) income from operations

 

 

(140,000

)

 

 

574,100

 

 

(4,908,700

)

 

 

(5,048,700

)

 

 

(2,746,900

)

Interest expense, net

 

 

105,900

 

 

 

335,100

 

 

110,700

 

 

 

216,600

 

 

 

543,800

 

(Loss) income before provision for (benefit from) income taxes

 

 

(245,900

)

 

 

239,000

 

 

(5,019,400

)

 

 

(5,265,300

)

 

 

(3,290,700

)

Provision for (benefit from) income taxes

 

 

21,000

 

 

 

217,000

 

 

(388,000

)

 

 

(367,000

)

 

 

(819,900

)

Net (loss) income

 

$

(266,900

)

 

$

22,000

 

$

(4,631,400

)

 

$

(4,898,300

)

 

$

(2,470,800

)

Basic loss per share

 

$

(0.03

)

 

$

 

$

(0.54

)

 

$

(0.57

)

 

$

(0.29

)

Diluted loss earnings per share

 

$

(0.03

)

 

$

 

$

(0.54

)

 

$

(0.57

)

 

$

(0.29

)

Basic weighted-average common shares outstanding

 

 

8,656,877

 

 

 

8,518,326

 

 

8,617,803

 

 

 

8,637,340

 

 

 

8,506,247

 

Effect of dilutive options and other equity instruments

 

 

 

 

 

131,994

 

 

 

 

 

 

 

 

 

Diluted weighted-average common shares outstanding

 

 

8,656,877

 

 

 

8,650,320

 

 

8,617,803

 

 

 

8,637,340

 

 

 

8,506,247

 

 
 

TESSCO Technologies Incorporated

Consolidated Balance Sheets

 

 

 

 

 

 

 

September 27,

 

March 29,

 

 

2020

 

2020

 

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

19,400

 

 

$

50,000

 

Trade accounts receivable, net

 

 

74,688,900

 

 

 

82,868,400

 

Product inventory, net

 

 

62,364,300

 

 

 

69,148,000

 

Prepaid expenses and other current assets

 

 

14,382,200

 

 

 

11,707,500

 

Total current assets

 

 

151,454,800

 

 

 

163,773,900

 

 

 

 

 

 

Property and equipment, net

 

 

12,971,400

 

 

 

13,433,700

 

Intangible assets, net

 

 

15,827,500

 

 

 

11,157,400

 

Deferred tax assets

 

 

1,516,200

 

 

 

3,032,500

 

Lease asset – right of use

 

 

12,609,400

 

 

 

13,949,800

 

Other long-term assets

 

 

5,318,800

 

 

 

3,361,400

 

Total assets

 

$

199,698,100

 

 

$

208,708,700

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Trade accounts payable

 

$

64,615,900

 

 

$

75,512,600

 

Payroll, benefits and taxes

 

 

6,063,600

 

 

 

4,258,300

 

Income and sales tax liabilities

 

 

585,700

 

 

 

450,800

 

Accrued expenses and other current liabilities

 

 

3,000,200

 

 

 

4,244,400

 

Revolving line of credit

 

 

32,052,000

 

 

 

25,563,900

 

Lease liability, current

 

 

2,605,000

 

 

 

2,579,200

 

Total current liabilities

 

 

108,922,400

 

 

 

112,609,200

 

 

 

 

 

 

Non-current lease liability

 

 

10,173,900

 

 

 

11,481,100

 

Other non-current liabilities

 

 

884,100

 

 

 

915,700

 

Total liabilities

 

 

119,980,400

 

 

 

125,006,000

 

 

 

 

 

 

Shareholders equity:

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

102,700

 

 

 

101,400

 

Additional paid-in capital

 

 

66,303,400

 

 

 

65,318,500

 

Treasury stock

 

 

(14,100

)

 

 

(58,496,200

)

Retained earnings

 

 

13,325,700

 

 

 

76,779,000

 

Total shareholders equity

 

 

79,717,700

 

 

 

83,702,700

 

Total liabilities and shareholders equity

 

$

199,698,100

 

 

$

208,708,700

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Reconciliation of Net Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Quarters Ended

 

Six Months Ended

 

 

September 27,

2020

 

September 29,

2019

 

June 28,

2020

 

September 27,

2020

 

September 29,

2019

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(266,900

)

 

$

22,000

 

$

(4,631,400

)

 

$

(4,898,300

)

 

$

(2,470,800

)

Add:

 

 

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

 

21,000

 

 

 

217,000

 

 

(388,000

)

 

 

(367,000

)

 

 

(819,900

)

Interest expense, net

 

 

105,900

 

 

 

335,100

 

 

110,700

 

 

 

216,600

 

 

 

543,800

 

Depreciation and amortization

 

 

1,028,500

 

 

 

1,113,800

 

 

1,228,000

 

 

 

2,256,500

 

 

 

2,074,600

 

EBITDA

 

$

888,500

 

 

$

1,687,900

 

$

(3,680,700

)

 

$

(2,792,200

)

 

$

(672,300

)

Add:

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

316,700

 

 

 

391,800

 

 

311,900

 

 

 

628,600

 

 

 

730,700

 

EBITDA, adjusted

 

$

1,205,200

 

 

$

2,079,700

 

$

(3,368,800

)

 

$

(2,163,600

)

 

$

58,400

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA per diluted share

 

 

0.10

 

 

 

0.20

 

$

(0.43

)

 

$

(0.32

)

 

$

(0.08

)

Adjusted EBITDA per diluted share

 

$

0.14

 

 

$

0.24

 

$

(0.39

)

 

$

(0.25

)

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Three Months Ended

Growth Rates Compared to

 

September 27, 2020

September 29, 2019

Prior Year Period

Market Revenues

Commercial

Retail

Total

Commercial

Retail

Total

Commercial

Retail

Total

Public carrier

$

32,632

 

$

 

$

32,632

 

$

39,169

 

$

 

$

39,169

 

(16.7

)%

%

(16.7

)%

VAR and integrators

 

56,260

 

 

 

 

56,260

 

 

64,482

 

 

 

 

64,482

 

(12.8

)%

%

(12.8

)%

Retail

 

 

 

30,763

 

 

30,763

 

 

 

 

38,160

 

 

38,160

 

 

(19.4

)

(19.4

)%

Total revenues

$

88,892

 

$

30,763

 

$

119,655

 

$

103,651

 

$

38,160

 

$

141,811

 

(14.2

)%

(19.4

)%

(15.6

)%

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

Commercial

Retail

Total

Commercial

Retail

Total

Commercial

Retail

Total

Public carrier

$

3,570

 

$

 

$

3,570

 

$

4,860

 

$

 

$

4,860

 

(26.6

)%

%

(26.6

)%

VAR and integrators

 

13,551

 

 

 

 

13,551

 

 

15,324

 

 

 

 

15,324

 

(11.6

)%

%

(11.6

)%

Retail

 

 

 

5,551

 

 

5,551

 

 

 

 

6,135

 

 

6,135

 

 

(9.5

)

(9.5

)%

Total gross profit

$

17,121

 

$

5,551

 

$

22,672

 

$

20,184

 

$

6,135

 

$

26,319

 

(15.2

)%

(9.5

)%

(13.9

)%

% of revenues

 

19.3

%

 

18.0

%

 

18.9

%

 

19.5

%

 

16.1

%

 

18.6

%

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

Three Months

 

Three Months

 

Growth Rates

 

 

Ended

 

Ended

 

Compared to

 

 

September 27, 2020

 

September 29, 2019

 

Prior Year Period

Product Revenues

 

 

 

 

 

 

Base station infrastructure

 

$

65,169

 

 

$

71,473

 

 

(8.8

)%

Network systems

 

 

19,575

 

 

 

22,855

 

 

(14.4

)%

Installation, test and maintenance

 

 

5,970

 

 

 

7,240

 

 

(17.5

)%

Mobile device accessories

 

 

28,941

 

 

 

40,243

 

 

(28.1

)%

Total revenues

 

$

119,655

 

 

$

141,811

 

 

(15.6

)%

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

Base station infrastructure

 

$

15,383

 

 

$

14,565

 

 

5.6

%

Network systems

 

 

3,041

 

 

 

3,463

 

 

(12.2

)%

Installation, test and maintenance

 

 

1,108

 

 

 

1,229

 

 

(9.8

)%

Mobile device accessories

 

 

3,140

 

 

 

7,062

 

 

(55.5

)%

Total gross profit

 

$

22,672

 

 

$

26,319

 

 

(13.9

)%

% of revenues

 

 

18.9

%

 

 

18.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Growth Rates Compared to

 

 

September 27, 2020

 

June 28, 2020

 

Prior Period

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public carrier

 

$

32,632

 

 

$

 

 

$

32,632

 

 

$

39,255

 

 

$

 

 

$

39,255

 

 

(16.9

)%

 

%

 

(16.9

)%

VAR and integrators

 

 

56,260

 

 

 

 

 

 

56,260

 

 

 

57,223

 

 

 

 

 

 

57,223

 

 

(1.7

)%

 

%

 

(1.7

)%

Retail

 

 

 

 

 

30,763

 

 

 

30,763

 

 

 

 

 

 

23,336

 

 

 

23,336

 

 

 

 

31.8

 

 

31.8

%

Total revenues

 

$

88,892

 

 

$

30,763

 

 

$

119,655

 

 

$

96,478

 

 

$

23,336

 

 

$

119,814

 

 

(7.9

)%

 

31.8

%

 

(0.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public carrier

 

$

3,570

 

 

$

 

 

$

3,570

 

 

$

3,728

 

 

$

 

 

$

3,728

 

 

(4.2

)%

 

%

 

(4.2

)%

VAR and integrators

 

 

13,551

 

 

 

 

 

 

13,551

 

 

 

12,725

 

 

 

 

 

 

12,725

 

 

6.5

%

 

%

 

6.5

%

Retail

 

 

 

 

 

5,551

 

 

 

5,551

 

 

 

 

 

 

2,373

 

 

 

2,373

 

 

 

 

133.9

 

 

133.9

%

Total gross profit

 

$

17,121

 

 

$

5,551

 

 

$

22,672

 

 

$

16,453

 

 

$

2,373

 

 

$

18,826

 

 

4.1

%

 

133.9

%

 

20.4

%

% of revenues

 

 

19.3

%

 

 

18.0

%

 

 

18.9

%

 

 

17.1

%

 

 

10.2

%

 

 

15.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

Three Months

 

Growth Rates

 

 

Ended

 

Ended

 

Compared to

 

 

September 27, 2020

 

June 28, 2020

 

Prior Period

Product Revenues

 

 

 

 

 

 

 

 

Base station infrastructure

 

$

65,169

 

 

$

68,855

 

 

(5.4

)%

Network systems

 

 

19,575

 

 

 

19,400

 

 

0.9

%

Installation, test and maintenance

 

 

5,970

 

 

 

5,462

 

 

9.3

%

Mobile device accessories

 

 

28,941

 

 

 

26,097

 

 

10.9

%

Total revenues

 

$

119,655

 

 

$

119,814

 

 

(0.1

)%

 

 

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

 

 

Base station infrastructure

 

$

15,383

 

 

$

11,418

 

 

34.7

%

Network systems

 

 

3,041

 

 

 

2,133

 

 

42.6

%

Installation, test and maintenance

 

 

1,108

 

 

 

766

 

 

44.6

%

Mobile device accessories

 

 

3,140

 

 

 

4,509

 

 

(30.4

)%

Total gross profit

 

$

22,672

 

 

$

18,826

 

 

20.4

%

% of revenues

 

 

18.9

%

 

 

15.7

%

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

Six Months Ended

 

Growth Rates Compared to

 

 

September 27, 2020

 

September 29, 2019

 

Prior Year Period

Market Revenues

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public carrier

 

$

71,887

 

 

$

 

 

$

71,887

 

 

$

72,655

 

 

$

 

 

$

72,655

 

 

(1.1

)%

 

%

 

(1.1

)%

VAR and integrators

 

 

113,483

 

 

 

 

 

 

113,483

 

 

 

129,676

 

 

 

 

 

 

129,676

 

 

(12.5

)%

 

%

 

(12.5

)%

Retail

 

 

 

 

 

54,099

 

 

 

54,099

 

 

 

 

 

 

70,209

 

 

 

70,209

 

 

 

 

(22.9

)

 

(22.9

)%

Total revenues

 

$

185,370

 

 

$

54,099

 

 

$

239,469

 

 

$

202,331

 

 

$

70,209

 

 

$

272,540

 

 

(8.4

)%

 

(22.9

)%

 

(12.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Gross Profit

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

 

Commercial

 

Retail

 

Total

Public carrier

 

$

7,298

 

 

$

 

 

$

7,298

 

 

$

9,113

 

 

$

 

 

$

9,113

 

 

(19.9

)%

 

%

 

(19.9

)%

VAR and integrators

 

 

26,276

 

 

 

 

 

 

26,276

 

 

 

31,293

 

 

 

 

 

 

31,293

 

 

(16.0

)%

 

%

 

(16.0

)%

Retail

 

 

 

 

 

7,924

 

 

 

7,924

 

 

 

 

 

 

11,177

 

 

 

11,177

 

 

 

 

(29.1

)

 

(29.1

)%

Total gross profit

 

$

33,574

 

 

$

7,924

 

 

$

41,498

 

 

$

40,406

 

 

$

11,177

 

 

$

51,583

 

 

(16.9

)%

 

(29.1

)%

 

(19.6

)%

% of revenues

 

 

18.1

%

 

 

14.6

%

 

 

17.3

%

 

 

20.0

%

 

 

15.9

%

 

 

18.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TESSCO Technologies Incorporated

Supplemental Results Summary (in thousands) (Unaudited)

 

 

 

 

 

 

 

 

Growth Rates

 

 

 

Six Months Ended

 

 

Six Months Ended

 

Compared to

 

 

 

September 27, 2020

 

 

June 28, 2020

 

Prior Year Period

Product Revenues

 

 

 

 

 

 

 

 

Base station infrastructure

 

$

134,024

 

 

$

140,542

 

 

(4.6

)%

Network systems

 

 

38,975

 

 

 

45,407

 

 

(14.2

)%

Installation, test and maintenance

 

 

11,432

 

 

 

13,265

 

 

(13.8

)%

Mobile device accessories

 

 

55,038

 

 

 

73,326

 

 

(24.9

)%

Total revenues

 

$

239,469

 

 

$

272,540

 

 

(12.1

)%

 

 

 

 

 

 

 

 

 

Product Gross Profit

 

 

 

 

 

 

 

 

Base station infrastructure

 

$

26,801

 

 

$

29,086

 

 

(7.9

)%

Network systems

 

 

5,174

 

 

 

7,390

 

 

(30.0

)%

Installation, test and maintenance

 

 

1,874

 

 

 

2,313

 

 

(19.0

)%

Mobile device accessories

 

 

7,649

 

 

 

12,794

 

 

(40.2

)%

Total gross profit

 

$

41,498

 

 

$

51,583

 

 

(19.6

)%

% of revenues

 

 

17.3

%

 

 

18.9

%

 

 

 

TESSCO Technologies Incorporated

Aric Spitulnik

Chief Financial Officer

410-229-1419

[email protected]

or

David Calusdian

Sharon Merrill Associates

617-542-5300

[email protected]

News

Partnership to Fight Infectious Disease Urges Prioritization of National Pandemic Preparedness Strategy 

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The Partnership to Fight Infectious Disease (PFID) today sent an open letter to President-elect Joe Biden and his incoming administration to prioritize the buildout of a National Pandemic Preparedness Strategy. The Partnership is a group of patients, providers, health policy experts, community organizations, and business and labor groups that have joined together to raise awareness of threats posed by infectious disease, now a very stark reality in the U.S., as well as advance solutions to ensure future pandemic preparedness.

Amid this pandemic, which has already claimed more than 270,000 American lives, our country has witnessed firsthand the health, economic and societal impacts of national health emergencies. The need to improve pandemic preparedness now, in order to prevent or otherwise lessen the impact of current and future national health emergencies, has never been more apparent, wrote Ken Thorpe, PFID advisory board member and Chairman of the Partnership to Fight Chronic Disease.

In the detailed letter, also delivered to Senate Majority Leader Mitch McConnell and Speaker of the House Nancy Pelosi, the Partnership outlined the key elements required for a successful National Pandemic Preparedness Strategy:

  • Address the needs of front-line workers;
  • Address existing and growing public health threats associated with pandemics;
  • Address the current and growing crisis of antimicrobial resistance (AMR);
  • Support a health care infrastructure that ensures access for all and addresses challenges to achieving health equity; and
  • Encourage the public and private sectors to work collaboratively.

The Partnership stressed the clear need to deal with the current crisis but with a vision for how to optimize lessons learned to mitigate future risks. Among several ideas, the group highlighted the need to support investment in medical products critical to preventing future pandemics and ensuring that front line medical staff have all the resources they need to save lives, including life-saving antibiotics.

Further, the Partnership contends that the preparedness strategy must facilitate access to health care for Americas most vulnerable populations elevating the importance of investment in telehealth systems that enable patients to access medical are remotely. The letter also highlighted considerations to address the behavioral health impacts associated with infectious disease outbreaks and expressed that the strategy should also be supported with a national communications plan to disseminate consistent, credible information about ongoing and emerging public health threats.

Without effective planning, we may one day face an infectious disease crisis even more deadly and disruptive than COVID-19, concluded Thorpe.

Read the full letter here.

To learn more about the Partnership to Fight Infectious Disease visit www.fightinfectiousdisease.org, on Twitter @ThePFID and LinkedIn.

The Partnership to Fight Infectious Disease (PFID) is a group of patients, providers, community organizations, business and labor groups, and health policy experts working to advance awareness and action on antimicrobial resistance. As an initiative of the Partnership to Fight Chronic Disease, PFID is focusing on the impact of this growing issue on our population and health care system.

Media Contact:

Jennifer Burke

[email protected]

301.801.9847

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News

SCHOTT Joins the NKBA Global Connect Program to Accelerate North American Growth

gbafNews28

SCHOTT, the inventor of specialty glass, has joined the National Kitchen & Bath Association (NKBA) Global Connect Subscription program to accelerate growth in North America. SCHOTT will tap into the NKBAs 50,000 strong membership to gain a stronger foothold in the kitchen and bath industry, leverage the programs expertise, and expand the companys opportunity to equip manufacturers with glass materials for current and future designs.

The NKBA Global Connect program will help SCHOTT deepen its ties with North American manufacturers and experts in the kitchen and bath industry, said Kathrin Becker, Marketing Director SCHOTT CERAN. Were honored to join the program and look forward to utilizing NKBAs deep-rooted expertise in this space.

SCHOTT introduced the first black glass-ceramic cooktop panels under the SCHOTT CERAN brand in 1971. Since, the company has manufactured and sold over 180 million units and made SCOTT AG a recognized consumer brand. SCHOTT CERAN is extremely durable and heat resistant, standing up to sudden temperature shocks in the range of up to 700 degrees Celsius without difficulty. Further, it puts up with the normal wear and tear of the kitchen and everyday cooking without losing any of its stability, which makes for a pleasant cooking experience.

The NKBA Global Connect Subscription program offers a robust package of resources and connections to help international brands enter the North American kitchen and bath marketplace. Access to industry experts, proprietary NKBA market data, North American design and construction insights, VIP events and networking programs give NKBA Global Connect Subscribers a unique view into the market before they commit to launch.

We are pleased to welcome the SCHOTT AG into the NKBA Global Connect program, said Suzie Williford, EVP and Chief Strategy Officer, NKBA. We have built an outstanding program, designed to help marketers navigate the vast North American kitchen and bath market and its exciting to see it embraced. SCHOTT CERAN brings a wealth of technological capabilities and partnerships that are sure to positively impact many aspects of the market.

About SCHOTT SCHOTT is a leading international technology group in the areas of specialty glass, glass-ceramics and related high-tech materials. With over 130 years of experience, the company is an innovative partner to many industries, including the home appliance, pharma, electronics, optics, life sciences, automotive and aviation industries. SCHOTT has a global presence with production sites and sales offices in 34 countries. In the 2018/2019 fiscal year, the group generated sales of around $2.54 billion with over 16,200 employees.

About NKBA Global Connect The NKBA Global Connect goal is to expand visibility of the NKBA and the Associations premier trade show event the Kitchen & Bath Industry Show (KBIS) internationally with design professionals, brands, influencers and other industry constituents. The initiative is designed to facilitate discussion on conducting business and participating in trade development events in North America and, conversely, in Europe and beyond for North American brands looking to extend their global footprint.

About the National Kitchen & Bath Association and the Kitchen & Bath Industry Show The National Kitchen & Bath Association (NKBA) is the not-for-profit trade association that owns the Kitchen & Bath Industry Show (KBIS), as part of Design & Construction Week (DCW). With nearly 50,000 members in all segments of the kitchen and bath and design and remodeling industry, the NKBA has educated and led the industry since the associations founding in 1963. The NKBA envisions a world where everyone enjoys safe, beautiful and functional kitchen and bath spaces. The mission of the NKBA is to inspire, lead and empower the kitchen and bath industry through the creations of certifications, specialty badges, marketplaces and networks. For more information, visit www.NKBA.org or call 1-800-THE-NKBA (843-6522).

KBIS and NKBA are registered trademarks of the National Kitchen & Bath Association.

SCHOTT North America, Inc.

Rina Della Vecchia

555 Taxter Road

Elmsford, NY 10523

USA

Phone: 914-831-2286

E-mail

https://www.us.schott.com

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News

Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against JOYY Inc. (YY)

gbafNews28

Glancy Prongay & Murray LLP (GPM) reminds investors of the upcoming January 19, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired (JOYY or the Company) (NASDAQ: YY) securities between April 28, 2016 and November 18, 2020 inclusive (the Class Period).

If you suffered a loss on your JOYY investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/joyy-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.

On November 18, 2020, Muddy Waters Research published a report entitled “YY: You Can’t Make This Stuff Up. Well¦Actually You Can, alleging that the Company “is a multibillion-dollar fraud.” The report concluded that YY’s component businesses are a fraction of the size it reports, and that the company’s reported user metrics, revenues, and cash balances are predominantly fraudulent[,]” and that “[a]pproximately 84% of YY’s reported consolidated revenue appears to be fraudulent.”

On this news, JOYY American depositary shares (“ADSs”) price fell $26.53 per ADS, or 26%, to close at $73.66 per ADS on November 18, 2020.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) JOYY dramatically overstated its revenues from live streaming sources; (2) the majority of users at any given time were bots; (3) the Company utilized these bots to effect a roundtripping scheme that manufactured the false appearance of revenues; (4) the Company overstated its cash reserves; (5) the Companys acquisition of Bigo was largely contrived to benefit corporate insiders; and (6) as a result, Defendants public statements were materially false and/or misleading at all relevant times.

Follow us for updates on LinkedIn, Twitter, or Facebook.

If you purchased or otherwise acquired JOYY securities during the Class Period, you may move the Court no later than January 19, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Glancy Prongay & Murray LLP, Los Angeles

Charles Linehan, 310-201-9150 or 888-773-9224

[email protected]

www.glancylaw.com

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Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
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