TESSCO Technologies (TESS) Offers Strong Q3 and FY12 Guidance

TESSCO Technologies Incorporated (NASDAQ: TESS) today announced that it expects to deliver record revenue and strong earnings for the third quarter of fiscal 2012. Based on preliminary estimates, the company expects to report consolidated revenue of approximately $225 million, versus the consensus of $206.7 million. Of this amount, approximately $85 million will be from the commercial segment, $33 million from the retail segment, not including tier one carrier customers, and $107 million from retail tier one customers.

Further, the company expects diluted earnings per share of $0.55 - $0.60, versus the consensus of $0.58, and EBITDA per diluted share of $1.08 - $1.15 for the quarter. To date, the company’s quarterly EPS and EBITDA per share records are $0.57 and $1.09, respectively.

Robert Barnhill, Chairman and CEO, commented, “Our results reflect our strong performance in each of our segments. In our retail segment, we saw strong growth in our retailer, dealer agent and tier 2/3 carrier market and tremendous revenue growth from our tier one customers, mostly related to the expected expansion of our relationship with our major tier one carrier customer. In our commercial business, we continued to drive margin and profitability growth as we maintain our focus on providing product and value chain solutions to our customers.

“We continue to expect fiscal 2012 to be a remarkable year – nine-month earnings per share are expected to be in the range of $1.56 - $1.61 compared to $1.07 in last year’s comparable period. We look forward to providing more details when we release our final third-quarter results next week.” The Street's consensus for FY12 is $1.83.

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