Tessco (TESS) 10-Q 7 Feb 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 29, 2019	Jan. 31, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Dec. 29, 2019
Entity Registrant Name	TESSCO TECHNOLOGIES INC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,547,747
Entity Central Index Key	0000927355
Current Fiscal Year End Date	--03-29
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 29, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 800	$ 30,300
Trade accounts receivable	82,545,100	93,966,200
Product inventory, net	70,773,100	71,845,400
Prepaid expenses and other current assets	6,880,700	5,562,800
Total current assets	160,199,700	171,404,700
Property and equipment, net	13,800,800	15,003,500
Goodwill	9,108,600	11,677,700
Intangible assets, net	9,145,000	5,097,800
Deferred tax assets	2,305,800	55,300
Lease asset - right of use	14,577,200
Other long-term assets	2,479,400	3,256,800
Total assets	211,616,500	206,495,800
Current liabilities:
Trade accounts payable	60,618,500	73,059,700
Payroll, benefits and taxes	5,385,300	5,929,500
Income and sales tax liabilities	272,600	749,000
Accrued expenses and other current liabilities	3,042,200	2,652,400
Revolving line of credit	29,356,800	14,378,100
Lease liability, current	2,553,000
Total current liabilities	101,228,400	96,768,700
Lease liability	12,095,900
Long-term liabilities	806,000	939,900
Total liabilities	114,130,300	97,708,600
Shareholders’ equity:
Preferred stock, $0.01 par value per share, 500,000 shares authorized and no shares issued and outstanding
Common stock, $0.01 par value per share, 15,000,000 shares authorized, 14,320,019 shares issued and 8,543,200 shares outstanding as of December 29, 2019, and 14,190,027 shares issued and 8,468,529 shares outstanding as of March 31, 2019	101,100	99,800
Additional paid-in capital	64,854,700	62,666,400
Treasury stock, at cost, 5,776,819 shares as of December 29, 2019 and 5,721,498 shares as of March 31, 2019	(58,496,200)	(57,614,100)
Retained earnings	91,026,600	103,635,100
Total shareholders’ equity	97,486,200	108,787,200
Total liabilities and shareholders’ equity	$ 211,616,500	$ 206,495,800

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 29, 2019	Mar. 31, 2019
Shareholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	500,000	500,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars shares)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	14,320,019	14,190,027
Common stock, outstanding (in shares)	8,543,200	8,468,529
Treasury stock (in shares)	5,776,819	5,721,498

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		9 Months Ended
	Dec. 29, 2019	Dec. 30, 2018	Dec. 29, 2019	Dec. 30, 2018
Consolidated Statements of Income
Revenues	$ 139,578,200	$ 152,294,500	$ 412,118,400	$ 461,850,000
Cost of goods sold	116,503,900	121,295,800	337,461,300	368,758,500
Gross profit	23,074,300	30,998,700	74,657,100	93,091,500
Selling, general and administrative expenses	26,479,100	27,494,800	80,320,800	85,933,400
Goodwill impairment	2,569,100		2,569,100
Restructuring charge			488,000
(Loss) income from operations	(5,973,900)	3,503,900	(8,720,800)	7,158,100
Interest expense, net	367,900	247,900	911,700	667,100
(Loss) income before provision for (benefit from) income taxes	(6,341,800)	3,256,000	(9,632,500)	6,491,000
(Benefit from ) provision for income taxes	(1,320,400)	551,400	(2,140,300)	1,437,200
Net (loss) income	$ (5,021,400)	$ 2,704,600	$ (7,492,200)	$ 5,053,800
Basic (loss) earnings per share	$ (0.59)	$ 0.32	$ (0.88)	$ 0.60
Diluted (loss) earnings per share	$ (0.59)	$ 0.32	$ (0.88)	$ 0.59
Basic weighted-average common shares outstanding (in shares)	8,541,020	8,446,671	8,517,838	8,429,086
Effect of dilutive options and other equity instruments (in shares)		32,583		130,982
Diluted weighted-average common shares outstanding (in shares)	8,541,020	8,479,254	8,517,838	8,560,068
Cash dividends declared per common share (in dollars per share)	$ 0.20	$ 0.20	$ 0.60	$ 0.60

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
Balance at Apr. 01, 2018	$ 99,000	$ 60,611,900	$ (57,503,000)	$ 104,843,700	$ 108,051,600
Balance (in shares) at Apr. 01, 2018	8,396,537
Increase (Decrease) in Stockholders' Equity
Proceeds from issuance of stock	$ 100	130,000			130,100
Proceeds from issuance of stock (in shares)	5,620
Treasury stock purchases			(111,100)		(111,100)
Treasury stock purchases (in shares)	(6,332)
Non-cash stock compensation expense	$ 200	320,300			320,500
Non-cash stock compensation expense (in shares)	26,257
Cash dividends paid				(1,684,200)	(1,684,200)
Net income (loss)				1,158,400	1,158,400
Balance at Jul. 01, 2018	$ 99,300	61,062,200	(57,614,100)	104,317,900	107,865,300
Balance (in shares) at Jul. 01, 2018	8,422,082
Balance at Apr. 01, 2018	$ 99,000	60,611,900	(57,503,000)	104,843,700	108,051,600
Balance (in shares) at Apr. 01, 2018	8,396,537
Increase (Decrease) in Stockholders' Equity
Net income (loss)					5,053,800
Balance at Dec. 30, 2018	$ 99,600	62,140,700	(57,614,100)	104,835,700	109,461,900
Balance (in shares) at Dec. 30, 2018	8,448,526
Balance at Jul. 01, 2018	$ 99,300	61,062,200	(57,614,100)	104,317,900	107,865,300
Balance (in shares) at Jul. 01, 2018	8,422,082
Increase (Decrease) in Stockholders' Equity
Proceeds from issuance of stock	$ 200	282,400			282,600
Proceeds from issuance of stock (in shares)	17,446
Non-cash stock compensation expense		384,800			384,800
Cash dividends paid				(1,687,000)	(1,687,000)
Net income (loss)				1,190,800	1,190,800
Balance at Sep. 30, 2018	$ 99,500	61,729,400	(57,614,100)	103,821,700	108,036,500
Balance (in shares) at Sep. 30, 2018	8,439,528
Increase (Decrease) in Stockholders' Equity
Proceeds from issuance of stock	$ 100	137,200			137,300
Proceeds from issuance of stock (in shares)	8,998
Non-cash stock compensation expense		274,100			274,100
Cash dividends paid				(1,690,600)	(1,690,600)
Net income (loss)				2,704,600	2,704,600
Balance at Dec. 30, 2018	$ 99,600	62,140,700	(57,614,100)	104,835,700	109,461,900
Balance (in shares) at Dec. 30, 2018	8,448,526
Balance at Mar. 31, 2019	$ 99,800	62,666,400	(57,614,100)	103,635,100	$ 108,787,200
Balance (in shares) at Mar. 31, 2019	8,468,529				8,468,529
Increase (Decrease) in Stockholders' Equity
Proceeds from issuance of stock	$ 100	143,100			$ 143,200
Proceeds from issuance of stock (in shares)	9,250
Treasury stock purchases			(189,100)		(189,100)
Treasury stock purchases (in shares)	(10,488)
Non-cash stock compensation expense	$ 400	338,500			338,900
Non-cash stock compensation expense (in shares)	41,256
Cash dividends paid				(1,702,600)	(1,702,600)
Net income (loss)				(2,492,800)	(2,492,800)
Balance at Jun. 30, 2019	$ 100,300	63,148,000	(57,803,200)	99,439,700	104,884,800
Balance (in shares) at Jun. 30, 2019	8,508,547
Balance at Mar. 31, 2019	$ 99,800	62,666,400	(57,614,100)	103,635,100	$ 108,787,200
Balance (in shares) at Mar. 31, 2019	8,468,529				8,468,529
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)					48,125
Net income (loss)					$ (7,492,200)
Balance at Dec. 29, 2019	$ 101,100	64,854,700	(58,496,200)	91,026,600	$ 97,486,200
Balance (in shares) at Dec. 29, 2019	8,543,175				8,543,200
Balance at Jun. 30, 2019	$ 100,300	63,148,000	(57,803,200)	99,439,700	$ 104,884,800
Balance (in shares) at Jun. 30, 2019	8,508,547
Increase (Decrease) in Stockholders' Equity
Proceeds from issuance of stock	$ 200	283,600			283,800
Proceeds from issuance of stock (in shares)	19,236
Treasury stock purchases			(681,100)		(681,100)
Treasury stock purchases (in shares)	(44,009)
Non-cash stock compensation expense		391,800			391,800
Exercise of stock options	$ 500	680,600			681,100
Exercise of stock options (in shares)	48,125
Cash dividends paid				(1,704,200)	(1,704,200)
Net income (loss)				22,000	22,000
Balance at Sep. 29, 2019	$ 101,000	64,504,000	(58,484,300)	97,757,500	103,878,200
Balance (in shares) at Sep. 29, 2019	8,531,899
Increase (Decrease) in Stockholders' Equity
Proceeds from issuance of stock	$ 100	138,000			138,100
Proceeds from issuance of stock (in shares)	9,570
Treasury stock purchases			(11,900)		(11,900)
Treasury stock purchases (in shares)	(824)
Non-cash stock compensation expense		212,700			212,700
Non-cash stock compensation expense (in shares)	2,530
Cash dividends paid				(1,709,500)	(1,709,500)
Net income (loss)				(5,021,400)	(5,021,400)
Balance at Dec. 29, 2019	$ 101,100	$ 64,854,700	$ (58,496,200)	$ 91,026,600	$ 97,486,200
Balance (in shares) at Dec. 29, 2019	8,543,175				8,543,200

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (7,492,200)	$ 5,053,800
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	2,870,200	2,706,800
Goodwill impairment	2,569,100
Non-cash stock-based compensation expense	943,400	979,400
Deferred income taxes and other	(2,250,500)
Change in trade accounts receivable	11,421,100	(2,512,300)
Change in product inventory	1,072,300	(2,321,800)
Change in prepaid expenses and other current assets	(1,317,900)	(1,476,700)
Change in other assets and other liabilities	815,600	643,500
Change in trade accounts payable	(11,496,300)	524,600
Change in payroll, benefits and taxes	(544,200)	(1,296,400)
Change in income and sales tax liabilities	(476,400)	(1,038,100)
Change in accrued expenses and other current liabilities	887,000	1,991,600
Net cash (used in) provided by operating activities	(2,998,800)	3,254,400
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	(1,094,300)	(2,643,900)
Purchases of internal use software	(5,737,400)	(1,642,400)
Net cash used in investing activities	(6,831,700)	(4,286,300)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings from revolving line of credit	14,978,700	6,070,100
Payments on debt	(2,300)	(20,400)
Proceeds from issuance of common stock	142,400	137,300
Cash dividends paid	(5,116,300)	(5,061,800)
Purchases of treasury stock and repurchases of stock from employees	(201,500)	(111,100)
Net cash provided by financing activities	9,801,000	1,014,100
Net decrease in cash and cash equivalents	(29,500)	(17,800)
CASH AND CASH EQUIVALENTS, beginning of period	30,300	19,400
CASH AND CASH EQUIVALENTS, end of period	$ 800	$ 1,600

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Dec. 29, 2019
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	Note 1. Description of Business and Basis of Presentation TESSCO Technologies Incorporated, a Delaware corporation (TESSCO, we, or the Company), architects and delivers innovative product and value chain solutions to support wireless systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing extensive internet and information technology. Approximately 97% of the Company’s sales are made to customers in the United States. The Company takes orders in several ways, including phone, fax, online and through electronic data interchange. Almost all of the Company’s sales are made in United States Dollars. In management’s opinion, the accompanying interim Consolidated Financial Statements of the Company include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the Company’s financial position for the interim periods presented. These statements are presented in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in the Company’s annual financial statements have been omitted from these statements, as permitted under the applicable rules and regulations. The results of operations presented in the accompanying interim Consolidated Financial Statements are not necessarily representative of operations for an entire year. The information included in this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2019, filed with SEC on June 11, 2019. Certain amounts have been reclassified on the balance sheet to conform with current period presentation.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	9 Months Ended
	Dec. 29, 2019
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	Note 2. Recently Issued Accounting Pronouncements Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year. Recently issued accounting pronouncements adopted: Effective April 1, 2019, the Company adopted the FASB issued ASU No. 2016-02, Leases. This ASU requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The ASU also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The Company adopted this standard on the first day of the 2020 fiscal year, using a modified retrospective approach. This standard resulted in the Company recording a right-of-use asset and lease liability for all leases, but otherwise the standard did not have a material impact on the financial statements. Prior periods were not adjusted to reflect this change. Effective April 1, 2019, the Company adopted the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new standard changes the classification of certain cash payments and receipts within the cash flow statement. Specifically, payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, are now classified as financing activities. Previously, these payments were classified as operating expenses. Adoption of this standard did not have an impact on the Consolidated Financial Statements of the Company, included herein. Effective September 30, 2019, the Company adopted the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The early adoption of this standard resulted in the Company capitalizing certain implementation costs related to cloud computing arrangements that are service contracts, during the third quarter.

Goodwill

Goodwill	9 Months Ended
	Dec. 29, 2019
Goodwill
Goodwill	Note 3. Goodwill During the third quarter of fiscal 2020, the Company recorded $2.6 million of non-cash goodwill impairment. Due to the lower than expected results through the first nine months of fiscal 2020, the Company performed an interim quantitative goodwill impairment assessment, which included an analysis of new information related to macroeconomic, industry and company specific events and trends. During this analysis, the Company determined that potential impairment indicators existed related to the retail segment based on the continued decline in sales and profitability in the retail segment, including the transition of the Company’s largest retail customer during the first quarter of fiscal 2020. The Company conducted a quantitative impairment analysis using various valuation techniques, with the primary technique being a discounted cash flow or income approach, under which the Company estimated the present value of the report unit’s future cash flows.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Dec. 29, 2019
Stock-Based Compensation
Stock-Based Compensation	Note 4. Stock-Based Compensation The Company’s selling, general and administrative expenses for the fiscal quarter and nine months ended December 29, 2019 includes $212,700 and $943,400, respectively, of non-cash stock-based compensation expense. The Company’s selling, general and administrative expenses for the fiscal quarter and nine months ended December 30, 2018 includes $274,100 and $979,400, respectively, of non-cash stock-based compensation expense. Non-cash stock-based compensation expense is primarily related to our Performance Stock Units (PSUs), Restricted Stock Units (RSUs) and Stock Options, granted or outstanding under the Company’s Third Amended and Restated Stock and Incentive Plan (the “1994 Plan”) and 2019 Stock and Incentive Plan (the “2019 Plan” and together with the 1994 Plan, the “Plans”), which was approved at the Annual Meeting of Shareholders held on July 25, 2019. No additional awards may be granted under the 1994 Plan, although awards outstanding under the 1994 Plan remain outstanding and governed by its terms. Performance Stock Units: The following table summarizes the activity under the Company’s PSU program under the Plans, for the first nine months of fiscal 2020: Nine Months Weighted Ended Average Fair December 29, Value at Grant 2019 Date (per unit) Unvested shares available for issue under outstanding PSUs, beginning of period 98,306 $ 14.55 PSUs Granted 51,616 15.93 PSUs Vested (29,036) 14.09 PSUs Forfeited/Cancelled (40,719) 15.69 Unvested shares available for issue under outstanding PSUs, end of period 80,167 $ 15.02 During the first quarter of fiscal 2020, the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) approved the grant of PSUs to select key employees, providing them with the opportunity to earn up to 45,500 shares of the Company’s common stock in the aggregate, depending upon whether certain earnings per share targets, and individual performance metrics, are satisfied, for fiscal year 2020. These not-yet-earned PSUs have only one measurement year (fiscal 2020), and assuming the performance metrics are met to a sufficient extent, the shares earned at the end of fiscal 2020 on the basis of that performance will vest in four equal installments beginning on or about May 15, 2020 and continuing on the same date in calendar 2021, 2022 and 2023, provided that the respective employee remains employed by the Company on each such date. Pursuant to the typical PSU award agreement, however, performance metrics are deemed met upon the occurrence of a change in control, and shares earned are issued earlier upon the occurrence of a change in control, or death or disability of the employee, or upon termination of the employee’s employment without cause or by the employee for good reason, as those terms are defined in the applicable PSU award agreement. In connection with his hiring as President and Chief Executive Officer on August 20, 2019, the Compensation Committee, with concurrence of the full Board of Directors, granted an additional PSU to Mr. Mukerjee, providing him with the opportunity to earn up to 6,116 shares of the Company’s common stock. This PSU was granted on the same terms as the PSUs granted in May 2019, except that this PSU was granted under the 2019 Plan and any shares earned pursuant to it on the basis of fiscal 2020 performance will vest in four equal installments beginning on the first anniversary of the commencement of the employment of Mr. Mukerjee and continue in calendar 2021, 2022 and 2023 on the same date as the other PSUs vest, provided that Mr. Mukerjee remains employed by the Company on each such date. The PSUs cancelled during fiscal 2020 primarily related to the fiscal 2019 grant of PSUs, which also had a one-year measurement period (fiscal 2019). The PSUs were cancelled because the applicable fiscal 2019 performance targets were not fully attained. Per the provisions of the 1994 Plan, the shares related to these forfeited and cancelled PSUs were added back to the 1994 Plan and became available for future issuance under the 1994 Plan (or its successor 2019 plan). If all PSUs granted thus far in fiscal 2020 are assumed to be earned on account of the applicable performance metrics being fully met, or otherwise in accordance with terms of the applicable award agreement, total unrecognized compensation costs on these PSUs plus all earned but unvested PSUs would be approximately $0.8 million as of December 29, 2019, and would be expensed through fiscal 2023. To the extent the maximum number of PSUs granted in fiscal 2020 are not earned, stock-based compensation related to these awards will differ from this amount. Restricted Stock Units: The Company has made annual RSU awards under the 1994 Plan to its non-employee directors over recent years. On May 10, 2019, the Compensation Committee approved the grant of an aggregate of 21,000 RSUs, ratably to the six non-employee directors, including the Chairman of the Board of the Company. These RSU awards provide for the issuance of shares of the Company’s common stock in four equal installments beginning on May 10, 2020 and continuing on the same date in 2021, 2022 and 2023, provided that the director remains associated with the Company on each such date (or meets other criteria as prescribed in the applicable award agreement). On August 8, 2017, the Compensation Committee, with the concurrence of the full Board of Directors, approved the grant of an aggregate of up to 56,000 RSUs to several senior executives. The number of shares earned by a recipient is determined by multiplying the number of RSUs covered by the award by a fraction, the numerator of which is the cumulative amount of dividends (regular, ordinary and special) declared and paid, per share, on the Common Stock, over an earnings period of up to four years, and the denominator of which is $3.20. Subject to earlier issuance upon the occurrence of certain events (as described in the applicable award agreement), any earned shares are issued and distributed to the recipient upon the fourth anniversary of the award date. As of December 29, 2019, 15,000 of these 56,000 RSUs have been canceled due to employee departures, leaving 41,000 of the 56,000 RSUs outstanding. An additional 2,000 RSU’s with similar terms (but with a shorter earnings period) were awarded in fiscal 2019, and in connection with his hiring as our new President and Chief Executive Officer, the Company issued an additional RSU grant to Mr. Mukerjee under the 2019 Plan for 19,000 shares and with similar terms (a four-year earning period and a denominator of $3.20). As a result, an aggregate of 62,000 dividend-based RSUs currently remain outstanding. As of December 29, 2019, there was approximately $0.9 million of total unrecognized compensation cost related to all outstanding RSUs, assuming all shares are earned. Unrecognized compensation costs are expected to be recognized ratably over a weighted average period of approximately three years. PSUs and RSUs are expensed based on the grant date fair value, calculated as the closing price of TESSCO common stock as reported by Nasdaq on the date of grant minus the present value of dividends expected to be paid on the common stock before the award vests, because dividends or dividend-equivalent amounts do not accrue and are not paid on unvested PSUs and RSUs. The Company accounts for forfeitures as they occur rather than estimate expected forfeitures. To the extent that forfeitures occur, stock-based compensation related to the restricted awards may be different from the Company’s expectations. Stock Options: As summarized below, in the first nine months of fiscal 2020, stock options for an aggregate of 385,000 shares of common stock, including an option for 250,000 shares issued to the Company’s new President and Chief Executive Officer, were granted, under the Plans. These stock options have exercise prices equal to the market price of the Company’s stock on the grant date, and except for the option granted to Mr. Mukerjee (which vests and becomes exercisable for 80,308 shares on November 30, 2020 and continues to vest on the last day of each consecutive month following, at a rate of approximately 5,142 shares monthly, until becoming fully exercisable on August 31, 2023), the terms thereof provide for 25% vesting after one year and then 1/36 per month over the following three years, subject, however, to acceleration or termination upon the occurrence of certain events, as described in the applicable award agreement. The grant date value of the Company’s stock options is determined using the Black-Scholes-Merton pricing model, based upon facts and assumptions existing at the date of grant. The value of each option at the date of grant is amortized as compensation expense over the service period. This occurs without regard to subsequent changes in stock price, volatility, or interest rates over time, provided the option remains outstanding. The following tables summarize the pertinent information for outstanding options. Nine Months Weighted Ended Average Fair December 29, Value at Grant 2019 Date (per unit) Outstanding, beginning of period 591,500 $ 2.30 Options Granted 385,000 2.50 Options Forfeited/Cancelled (71,792) 3.10 Options Exercised (48,125) 2.25 Outstanding, end of period 856,583 2.33 Vested and exercisable, end of period 366,458 $ 2.21 December 29, 2019 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 385,000 $ 13.80 358,000 - 66,500 $ 16.31 44,000 13,749 230,000 $ 15.12 114,583 70,001 410,000 $ 12.57 300,000 242,708 100,000 $ 22.42 40,000 40,000 Total 856,583 366,458 Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2020 % % % 4.0 $ 2.50 2019 % % % 4.0 $ 3.38 2018 % % % 4.0 $ 2.57 As of December 29, 2019, there was approximately $1.0 million of total unrecognized compensation costs related to these options. These unrecognized compensation costs are expected to be recognized ratably over a period of approximately three years.

Borrowings Under Revolving Cred

Borrowings Under Revolving Credit Facility	9 Months Ended
	Dec. 29, 2019
Borrowings Under Revolving Credit Facility
Borrowings Under Revolving Credit Facility	Note 5. Borrowings Under Revolving Credit Facility On October 19, 2017, the Company and its primary operating subsidiaries, as co-borrowers, and SunTrust Bank, as Administrative Agent and Lender, and Wells Fargo Bank, National Association, as a Lender, entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”), which amended and restated the terms of a previously established secured Revolving Credit Facility with the same lenders, and which resulted in, among other modifications, an increase in the Company’s borrowing limit to up to $75 million, from the previous borrowing limit of up to $35 million. Capitalized terms used but not otherwise defined in this and the following three paragraphs have the meanings ascribed to each in the Amended and Restated Credit Agreement. In addition to increasing the Company’s borrowing limit, and among other modifications, the Amended and Restated Credit Agreement extended the maturity date of the secured Revolving Credit Facility to October 19, 2021. The Amended and Restated Credit Agreement also set forth financial covenants, including a fixed charge coverage ratio to be maintained at any time during which the borrowing availability, as determined in accordance with the Amended and Restated Credit Agreement, falls below $10 million, as well as terms that could limit our ability to engage in specified transactions or activities, including (but not limited to) investments and acquisitions, sales of assets, payment of dividends, issuance of additional debt and other matters. The Amended and Restated Credit Agreement provides for a $5.0 million sublimit for the issuance of standby letters of credit, a $12.5 million sublimit for swingline loans and an accordion feature which, subject to certain conditions, could increase the aggregate amount of the commitments to up to $125 million, with the optional commitments being provided by existing Lenders or new lenders reasonably acceptable to the Administrative Agent. No Lender is obligated to increase its commitment. Availability is determined in accordance with a Borrowing Base, which has been expanded to include not only Eligible Receivables but also Eligible Inventory and is generally: (A) the sum of (i) 85% of Eligible Receivables; (ii) the Inventory Formula Amount for all Eligible Inventory which is aged less than 181 days; and (iii) the lesser of (x) $4 million and (y) the Inventory Formula Amount for all Eligible Inventory which is aged at least 181 days; minus (B) Reserves. Borrowings under the Amended and Restated Credit Agreement initially accrue interest from the applicable borrowing date at an Applicable Rate equal to the Eurodollar Rate plus the Applicable Margin. The Eurodollar Rate is the rate per annum obtained by dividing (i) LIBOR by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage. When the Applicable Rate is the Eurodollar Rate plus the Applicable Margin, the Applicable Margin is 1.50% if Average Availability is greater than or equal to $15 million, and 1.75% otherwise. On December 29, 2019, the interest rate applicable to borrowings under the secured Revolving Credit Facility was 3.20%. Under certain circumstances, the Applicable Rate is subject to change at the Lenders’ option from the Eurodollar Rate plus the Applicable Margin to the Base Rate plus the Applicable Margin. Following an Event of Default, in addition to changing the Applicable Rate to the Base Rate plus the Applicable Margin, the Lenders’ may at their option set the Applicable Margin at 0.50% if the Base Rate applies or 1.75% if the Eurodollar Rate applies, and increase the Applicable Rate by an additional 200 basis points. The Applicable Rate adjusts on the first Business Day of each calendar month. The Company is required to pay a monthly Commitment Fee on the average daily unused portion of the secured Revolving Credit Facility provided for pursuant to the Amended and Restated Credit Agreement, at a per annum rate equal to 0.25%. In connection with the entering into of the Amended and Restated Credit Agreement, the Company, the other Company affiliate borrowers under the Amended and Restated Credit Agreement and other subsidiaries of the Company, referred to collectively as the Loan Parties, executed and delivered to SunTrust Bank, as Administrative Agent, a Reaffirmation Agreement, pursuant to which the obligations of the Loan Parties under a Guaranty and Security Agreement previously delivered by them in connection with the secured Revolving Credit Facility as previously existing (including the previously existing guaranty by the Loan Parties not otherwise Borrowers and the previously existing grant by the Company and the other Loan Parties of a continuing first priority security interest in inventory, accounts receivable and deposit accounts, and on all documents, instruments, general intangibles, letter of credit rights, and all proceeds) were ratified and confirmed as respects the Obligations arising from time to time under the secured Revolving Credit Facility provided for under the Amended and Restated Credit Agreement, and as respects certain other obligations of the Loan Parties to the Lenders and their affiliates arising from time to time, relating to swaps, hedges and cash management and other bank products. Borrowings may be used for working capital and other general corporate purposes, as further provided in, and subject to the applicable terms of, the Amended and Restated Credit Agreement. As of December 29, 2019, borrowings under the secured Revolving Credit Facility totaled $29.4 million and, therefore, the Company had $45.6 million available for borrowing as of December 29, 2019, subject to the Borrowing Base limitation and compliance with the other applicable terms of the Amended and Restated Credit Agreement, including the covenants referenced above. The line of credit has a lockbox arrangement associated with it and therefore the outstanding balance is classified as a current liability on our balance sheet. As of March 31, 2019, borrowings under the secured Revolving Credit Facility totaled $14.4 million and, therefore, the Company had $60.6 million available on its revolving line of credit facility as of March 31, 2019, again subject to the Borrowing Base limitation and compliance with the other applicable terms of the Amended and Restated Credit Agreement, including the covenants referenced above.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Dec. 29, 2019
Earnings Per Share
Earnings Per Share	Note 6. Earnings Per Share The Company presents the computation of earnings per share (“EPS”) on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted EPS is computed similarly to basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Common shares are excluded from the calculation if they are determined to be anti-dilutive. Diluted EPS was equal to basic EPS for the fiscal quarter ended and nine months ended December 29, 2019 because the Company operated at a loss. The number of diluted weighted-average common shares would have been 8,595,521 for the fiscal quarter ended December 29, 2019, and 8,651,341 for nine months ended December 29, 2019, respectively, if the Company was at a positive earning position. At December 30, 2018, stock options with respect to 591,500 shares of common stock were outstanding, of which 541,500 were anti-dilutive. There were no anti-dilutive PSUs or RSUs outstanding as of December 29, 2019 or December 30, 2018, respectively.

Business Segments

Business Segments	9 Months Ended
	Dec. 29, 2019
Business Segments
Business Segments	Note 7. Business Segments The Company evaluates its business within two segments: commercial and retail. The commercial segment consists of the following customer markets: (1) public carriers, that are generally responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers; and (2) value-added resellers and integrators, which results from the consolidation of our previously identified value-added resellers, government channels and private system operator markets, and reflects implementation over the 2019 fiscal year of an enhanced go-to-market strategy. This go-to-market strategy and the corresponding consolidation of these customer markets is designed to increase sales opportunities across the consolidated markets, as well as to provide better coverage to customers and to better align territories with supplier partners. The retail segment consists of the retail market which includes retailers, independent dealer agents and carriers. To provide investors with better visibility, the Company also discloses revenue and gross profit by its four product categories: · Base Station Infrastructure - Base station infrastructure products are used to build, repair and upgrade wireless telecommunications systems. Products include base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas. Base station infrastructure service offerings include connector installation, custom jumper assembly, site kitting and logistics integration. · Network Systems - Network systems products are used to build and upgrade computing and internet networks. Products include fixed and mobile broadband equipment, distributed antenna systems (DAS), wireless networking, filtering systems, two-way radios and security and surveillance products. This product category also includes training classes, technical support and engineering design services. · Installation, Test and Maintenance - Installation, test and maintenance products are used to install, tune, maintain and repair wireless communications equipment. Products include sophisticated analysis equipment and various frequency, voltage- and power-measuring devices, as well as an assortment of tools, hardware, GPS, safety and replacement and component parts and supplies required by service technicians. · Mobile Device Accessories - Mobile device accessories include cellular phone and data device accessories such as replacement batteries, cases, speakers, mobile amplifiers, power supplies, headsets, mounts, car antennas, music accessories and data and memory cards. Retail merchandising displays, promotional programs, customized order fulfillment services and affinity-marketing programs, including private label internet sites, complement our mobile devices and accessory product offering. The Company evaluates revenue, gross profit, and income before provision for income taxes at the segment level. Certain cost of sales and other applicable expenses have been allocated to each segment based on a percentage of revenues and/or gross profit, where appropriate. Segment activity for the third quarter and first nine months of fiscal years 2020 and 2019 are as follows (in thousands): Three Months Ended December 29, 2019 December 30, 2018 Commercial Retail Commercial Retail Segment Segment Total Segment Segment Total Revenues Public carrier $ 37,793 $ — $ 37,793 $ 33,593 $ — $ 33,593 Value-added resellers and integrators 63,051 — 63,051 65,373 — 65,373 Retail — 38,734 38,734 — 53,329 53,329 Total revenues $ 100,844 $ 38,734 $ 139,578 $ 98,966 $ 53,329 $ 152,295 Gross Profit Public carrier $ 4,508 $ — $ 4,508 $ 4,583 $ — $ 4,583 Value-added resellers and integrators 15,139 — 15,139 16,013 — 16,013 Retail — 3,427 3,427 — 10,403 10,403 Total gross profit $ 19,647 $ 3,427 $ 23,074 $ 20,596 $ 10,403 $ 30,999 Directly allocable expenses 7,620 3,273 10,893 8,079 4,038 12,117 Segment net profit contribution $ 12,027 $ 154 12,181 $ 12,517 $ 6,365 18,882 Corporate support expenses 18,523 15,626 Income before provision for income taxes $ (6,342) $ 3,256 Nine Months Ended December 29, 2019 December 30, 2018 Commercial Retail Commercial Retail Segment Segment Total Segment Segment Total Revenues Public carrier $ 110,448 $ — $ 110,448 $ 113,647 $ — $ 113,647 Value-added resellers and integrators 192,727 — 192,727 199,570 — 199,570 Retail — 108,943 108,943 — 148,633 148,633 Total revenues $ 303,175 $ 108,943 $ 412,118 $ 313,217 $ 148,633 $ 461,850 Gross Profit Public carrier $ 13,621 $ — $ 13,621 $ 14,989 $ — $ 14,989 Value-added resellers and integrators 46,432 — 46,432 48,842 — 48,842 Retail — 14,604 14,604 — 29,261 29,261 Total gross profit $ 60,053 $ 14,604 $ 74,657 $ 63,831 $ 29,261 $ 93,092 Directly allocable expenses 25,058 9,299 34,357 24,722 12,391 37,113 Segment net profit contribution $ 34,995 $ 5,305 40,300 $ 39,109 $ 16,870 55,979 Corporate support expenses 49,933 49,488 Income before provision for income taxes $ (9,633) $ 6,491 Supplemental revenue and gross profit information by product category for the third quarter and first nine months of fiscal years 2020 and 2019 are as follows (in thousands): Three Months Ended December 29, 2019 December 30, 2018 Revenues Base station infrastructure $ 69,688 $ 67,988 Network systems 21,564 21,477 Installation, test and maintenance 7,772 8,306 Mobile device accessories 40,554 54,524 Total revenues $ 139,578 $ 152,295 Gross Profit Base station infrastructure $ 14,808 $ 14,822 Network systems 3,055 3,453 Installation, test and maintenance 1,410 1,623 Mobile device accessories 3,801 11,101 Total gross profit $ 23,074 $ 30,999 Nine Months Ended December 29, 2019 December 30, 2018 Revenues Base station infrastructure $ 210,230 $ 217,817 Network systems 66,971 66,818 Installation, test and maintenance 21,037 24,628 Mobile device accessories 113,880 152,587 Total revenues $ 412,118 $ 461,850 Gross Profit Base station infrastructure $ 43,894 $ 46,072 Network systems 10,445 10,677 Installation, test and maintenance 3,723 4,899 Mobile device accessories 16,595 31,444 Total gross profit $ 74,657 $ 93,092

Leases

Leases	9 Months Ended
	Dec. 29, 2019
Leases
Leases	Note 8. Leases The Company leases certain office spaces and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company’s leases include rental payments adjusted for inflation. The right-of-use lease asset and lease liability are recorded on our Consolidated Balance Sheet. The lease for the Company’s office space located at 375 West Padonia Road, Timonium, Maryland, 21093, and which includes approximately 102,164 rentable square feet, had been scheduled to end in December 2020. In July 2019, the Company entered into an amendment to the lease agreement to extend the lease term to December 15, 2025. Under the terms of this amendment, the base rental rate during the extended lease term ranges from $200,071 to $220,841 per month. The lease for the Company’s office space located at 10999 McCormick Road, Hunt Valley, Maryland, had been scheduled to end in July 2020. In November 2019, the Company entered into an amendment to the lease agreement to extend the lease term to July 31, 2023. Under the terms of this amendment, the base rental rate during the extended lease term ranges from $40,498 to $42,971 per month. Quantitative information regarding the Company’s leases is as follows: Three Months Ended December 29, 2019 Operating lease expense $ 736,500 As of December 29, 2019 Maturities of discounted lease liabilities by fiscal year are as follow: 2020 $ 759,900 2021 3,119,400 2022 3,157,800 2023 3,010,400 2024 2,715,400 Thereafter 4,592,300 Total 17,355,200 Less: present value discount (2,706,300) Present value of lease liabilities $ 14,648,900 Weighted-average discount rate: Operating leases

Shares Withheld

Shares Withheld	9 Months Ended
	Dec. 29, 2019
Shares Withheld
Shares Withheld	Note 9. Shares Withheld The Company withholds shares of common stock from its employees and directors at their request, equal to the minimum federal and state tax withholdings or proceeds due to the Company related to vested PSUs, stock option exercises and vested RSUs. For the nine months ended December 29, 2019 and December 30, 2018, the aggregate value of the shares withheld totaled $882,100 and $111,100, respectively.

Concentration of Risk

Concentration of Risk	9 Months Ended
	Dec. 29, 2019
Concentration of Risk
Concentration of Risk	Note 10. Concentration of Risk The Company’s future results could be negatively impacted by the loss of certain customer and/or vendor relationships. For the fiscal quarter ended and nine months ended December 29, 2019, revenue from the Company’s largest customer accounted for 11.7% and 10.1% of consolidated revenue, respectively. For the fiscal quarter and nine months ended December 30, 2018, no customer accounted for more than 10% of total consolidated revenues. For the fiscal quarter ended December 29, 2019, sales of products purchased from the Company’s largest supplier accounted for 21.9% of consolidated revenue. For the fiscal quarter ended December 30, 2018, sales of products purchased from the Company’s largest supplier accounted for 14.9% consolidated revenue. No other suppliers accounted for more than 10% of consolidated revenue. For the nine months ended December 29, 2019, sales of products from the Company’s largest supplier accounted for 21.8% of consolidated revenue. For the nine months ended December 30, 2018, sales of products from the Company’s largest supplier accounted for 15.4% of consolidated revenue. No other suppliers accounted for more than 10% of consolidated revenue.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Dec. 29, 2019
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year. Recently issued accounting pronouncements adopted: Effective April 1, 2019, the Company adopted the FASB issued ASU No. 2016-02, Leases. This ASU requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The ASU also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The Company adopted this standard on the first day of the 2020 fiscal year, using a modified retrospective approach. This standard resulted in the Company recording a right-of-use asset and lease liability for all leases, but otherwise the standard did not have a material impact on the financial statements. Prior periods were not adjusted to reflect this change. Effective April 1, 2019, the Company adopted the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new standard changes the classification of certain cash payments and receipts within the cash flow statement. Specifically, payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, are now classified as financing activities. Previously, these payments were classified as operating expenses. Adoption of this standard did not have an impact on the Consolidated Financial Statements of the Company, included herein. Effective September 30, 2019, the Company adopted the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The early adoption of this standard resulted in the Company capitalizing certain implementation costs related to cloud computing arrangements that are service contracts, during the third quarter.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Dec. 29, 2019
Stock-Based Compensation
Schedule of Performance Stock Unit activity	Nine Months Weighted Ended Average Fair December 29, Value at Grant 2019 Date (per unit) Unvested shares available for issue under outstanding PSUs, beginning of period 98,306 $ 14.55 PSUs Granted 51,616 15.93 PSUs Vested (29,036) 14.09 PSUs Forfeited/Cancelled (40,719) 15.69 Unvested shares available for issue under outstanding PSUs, end of period 80,167 $ 15.02
Schedule of Stock Options	Nine Months Weighted Ended Average Fair December 29, Value at Grant 2019 Date (per unit) Outstanding, beginning of period 591,500 $ 2.30 Options Granted 385,000 2.50 Options Forfeited/Cancelled (71,792) 3.10 Options Exercised (48,125) 2.25 Outstanding, end of period 856,583 2.33 Vested and exercisable, end of period 366,458 $ 2.21 December 29, 2019 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 385,000 $ 13.80 358,000 - 66,500 $ 16.31 44,000 13,749 230,000 $ 15.12 114,583 70,001 410,000 $ 12.57 300,000 242,708 100,000 $ 22.42 40,000 40,000 Total 856,583 366,458
Schedule of assumptions of Black-Scholes-Merton option pricing model	Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2020 % % % 4.0 $ 2.50 2019 % % % 4.0 $ 3.38 2018 % % % 4.0 $ 2.57

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Dec. 29, 2019
Business Segments
Schedule of Revenue and Gross Profit by Market	Segment activity for the third quarter and first nine months of fiscal years 2020 and 2019 are as follows (in thousands): Three Months Ended December 29, 2019 December 30, 2018 Commercial Retail Commercial Retail Segment Segment Total Segment Segment Total Revenues Public carrier $ 37,793 $ — $ 37,793 $ 33,593 $ — $ 33,593 Value-added resellers and integrators 63,051 — 63,051 65,373 — 65,373 Retail — 38,734 38,734 — 53,329 53,329 Total revenues $ 100,844 $ 38,734 $ 139,578 $ 98,966 $ 53,329 $ 152,295 Gross Profit Public carrier $ 4,508 $ — $ 4,508 $ 4,583 $ — $ 4,583 Value-added resellers and integrators 15,139 — 15,139 16,013 — 16,013 Retail — 3,427 3,427 — 10,403 10,403 Total gross profit $ 19,647 $ 3,427 $ 23,074 $ 20,596 $ 10,403 $ 30,999 Directly allocable expenses 7,620 3,273 10,893 8,079 4,038 12,117 Segment net profit contribution $ 12,027 $ 154 12,181 $ 12,517 $ 6,365 18,882 Corporate support expenses 18,523 15,626 Income before provision for income taxes $ (6,342) $ 3,256 Nine Months Ended December 29, 2019 December 30, 2018 Commercial Retail Commercial Retail Segment Segment Total Segment Segment Total Revenues Public carrier $ 110,448 $ — $ 110,448 $ 113,647 $ — $ 113,647 Value-added resellers and integrators 192,727 — 192,727 199,570 — 199,570 Retail — 108,943 108,943 — 148,633 148,633 Total revenues $ 303,175 $ 108,943 $ 412,118 $ 313,217 $ 148,633 $ 461,850 Gross Profit Public carrier $ 13,621 $ — $ 13,621 $ 14,989 $ — $ 14,989 Value-added resellers and integrators 46,432 — 46,432 48,842 — 48,842 Retail — 14,604 14,604 — 29,261 29,261 Total gross profit $ 60,053 $ 14,604 $ 74,657 $ 63,831 $ 29,261 $ 93,092 Directly allocable expenses 25,058 9,299 34,357 24,722 12,391 37,113 Segment net profit contribution $ 34,995 $ 5,305 40,300 $ 39,109 $ 16,870 55,979 Corporate support expenses 49,933 49,488 Income before provision for income taxes $ (9,633) $ 6,491
Schedule of Revenue and Gross Profit by Product	Supplemental revenue and gross profit information by product category for the third quarter and first nine months of fiscal years 2020 and 2019 are as follows (in thousands): Three Months Ended December 29, 2019 December 30, 2018 Revenues Base station infrastructure $ 69,688 $ 67,988 Network systems 21,564 21,477 Installation, test and maintenance 7,772 8,306 Mobile device accessories 40,554 54,524 Total revenues $ 139,578 $ 152,295 Gross Profit Base station infrastructure $ 14,808 $ 14,822 Network systems 3,055 3,453 Installation, test and maintenance 1,410 1,623 Mobile device accessories 3,801 11,101 Total gross profit $ 23,074 $ 30,999 Nine Months Ended December 29, 2019 December 30, 2018 Revenues Base station infrastructure $ 210,230 $ 217,817 Network systems 66,971 66,818 Installation, test and maintenance 21,037 24,628 Mobile device accessories 113,880 152,587 Total revenues $ 412,118 $ 461,850 Gross Profit Base station infrastructure $ 43,894 $ 46,072 Network systems 10,445 10,677 Installation, test and maintenance 3,723 4,899 Mobile device accessories 16,595 31,444 Total gross profit $ 74,657 $ 93,092

Leases (Tables)

Leases (Tables)	9 Months Ended
	Dec. 29, 2019
Leases
Schedule of quantitative information regarding the Company’s leases	Three Months Ended December 29, 2019 Operating lease expense $ 736,500 As of December 29, 2019 Maturities of discounted lease liabilities by fiscal year are as follow: 2020 $ 759,900 2021 3,119,400 2022 3,157,800 2023 3,010,400 2024 2,715,400 Thereafter 4,592,300 Total 17,355,200 Less: present value discount (2,706,300) Present value of lease liabilities $ 14,648,900 Weighted-average discount rate: Operating leases

Description of Business and B_2

Description of Business and Basis of Presentation (Details)	9 Months Ended
	Dec. 29, 2019
US | Geographic Concentration Risk | Revenue
Concentration Risk
Concentration risk (as a percent)	97.00%

Recently Issued Accounting Pr_3

Recently Issued Accounting Pronouncements (Details)	Apr. 01, 2019	Sep. 30, 2019
ASU 2016-02
Recently Issued Accounting Pronouncements
Change in Accounting Principle, Accounting Standards Update, Adopted	true
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected	Modified Retrospective
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated	true
ASU 2016-15
Recently Issued Accounting Pronouncements
Change in Accounting Principle, Accounting Standards Update, Adopted	true
ASU 2018-15
Recently Issued Accounting Pronouncements
Change in Accounting Principle, Accounting Standards Update, Adopted		true

Goodwill - (Details)

Goodwill - (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 29, 2019	Dec. 29, 2019
Goodwill
Goodwill impairment	$ 2,569,100	$ 2,569,100

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 29, 2019	Dec. 30, 2018	Dec. 29, 2019	Dec. 30, 2018
Selling, general and administrative expenses
Stock-based compensation
Stock-based compensation (in dollars)	$ 212,700	$ 274,100	$ 943,400	$ 979,400

Stock-Based Compensation - PSUs

Stock-Based Compensation - PSUs (Details) - Performance Stock Units - USD ($) $ / shares in Units, $ in Millions	Aug. 20, 2019	Jun. 30, 2019	Dec. 29, 2019	Mar. 31, 2019
PSU Activity
Unvested shares available for issue under outstanding PSUs, beginning of period (in shares)		98,306	98,306
Granted (in shares)		45,500	51,616
Vested (in shares)			(29,036)
Forfeited/cancelled (in shares)			(40,719)
Unvested shares available for issue under outstanding PSUs, end of period (in shares)			80,167	98,306
Unvested PSUs, Weighted-Average Fair Value at Grant Date
Unvested shares available for issue under outstanding PSUs, beginning of period (in dollars per share)		$ 14.55	$ 14.55
Granted (in dollars per share)			15.93
Vested (in dollars per share)			14.09
Forfeited/cancelled (in dollars per share)			15.69
Unvested shares available for issue under outstanding PSUs, end of period (in dollars per share)			$ 15.02	$ 14.55
Additional stock based compensation information
Measurement period		1 year		1 year
Vesting period		4 years
Unrecognized compensation costs (in dollars)			$ 0.8
President and Chief Executive Officer
PSU Activity
Granted (in shares)	6,116
Additional stock based compensation information
Vesting period	4 years

Stock-Based Compensation - RSUs

Stock-Based Compensation - RSUs (Details) - RSU awards $ / shares in Units, shares in Thousands, $ in Millions	Aug. 20, 2019$ / sharesshares	May 10, 2019individualshares	Aug. 08, 2017$ / sharesshares	Dec. 29, 2019USD ($)shares	Mar. 31, 2019shares
Stock-based compensation
Shares outstanding (in shares)				62
Unrecognized compensation costs (in dollars) | $				$ 0.9
Unrecognized compensation costs, period for recognition				3 years
President and Chief Executive Officer
Stock-based compensation
Granted (in shares)	19
Vesting period	4 years
Denominator in fraction used to calculate number of awards earned | $ / shares	$ 3.20
Non-employee directors and Executive Chairman
Stock-based compensation
Granted (in shares)		21
Number of individuals that received stock awards | individual		6
Vesting period		4 years
Award Date August 8, 2017 | Senior executives
Stock-based compensation
Granted (in shares)			56
Denominator in fraction used to calculate number of awards earned | $ / shares			$ 3.20
Cancelled (in shares)				15
Shares outstanding (in shares)				41
Award Date August 8, 2017 | Senior executives | Maximum
Stock-based compensation
Vesting period			4 years
Grant Fiscal Year 2019 | Senior executives
Stock-based compensation
Granted (in shares)					2

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	11 Months Ended	12 Months Ended				33 Months Ended
	Dec. 29, 2019	Nov. 30, 2020	Mar. 31, 2019	Apr. 01, 2018	Mar. 26, 2017	Mar. 27, 2016	Aug. 31, 2023
Outstanding options
Outstanding, beginning of period (in shares)	591,500	856,583
Options Granted (in shares)	385,000
Options Forfeited/Cancelled (in shares)	(71,792)
Options Exercised (in shares)	(48,125)
Outstanding, end of period (in shares)	856,583		591,500
Vested and exercisable, end of period (in shares)	366,458
Weighted Average Fair Value at Grant Date
Outstanding, beginning of period (in dollars per share)	$ 2.30	$ 2.33
Options Granted (in dollars per share)	2.50
Options Forfeited/Cancelled (in dollars per share)	3.10
Options Exercised (in dollars per share)	2.25
Outstanding, end of period (in dollars per share)	2.33		$ 2.30
Vested and exercisable, end of period (in dollars per share)	2.21
Additional Disclosures
Vested and exercisable, end of period (in dollars per share)	$ 2.21
Options Outstanding (in shares)	856,583
Options Exercisable (in shares)	366,458
Grant Fiscal Year 2020
Outstanding options
Options Granted (in shares)	385,000
Weighted Average Fair Value at Grant Date
Vested and exercisable, end of period (in dollars per share)	$ 13.80
Additional Disclosures
Vested and exercisable, end of period (in dollars per share)	$ 13.80
Options Outstanding (in shares)	358,000
Valuation assumptions
Expected Stock Price Volatility (as a percent)	35.76%
Risk-Free Interest rate (as a percent)	2.02%
Expected Dividend Yield (as a percent)	6.07%
Average Expected Term	4 years
Resulting Black Scholes Value (in dollars per share)	$ 2.50
Grant Fiscal Year 2019
Outstanding options
Options Granted (in shares)			66,500
Weighted Average Fair Value at Grant Date
Vested and exercisable, end of period (in dollars per share)			$ 16.31
Additional Disclosures
Vested and exercisable, end of period (in dollars per share)			$ 16.31
Options Outstanding (in shares)	44,000
Options Exercisable (in shares)	13,749
Valuation assumptions
Expected Stock Price Volatility (as a percent)			35.59%
Risk-Free Interest rate (as a percent)			3.11%
Expected Dividend Yield (as a percent)			4.99%
Average Expected Term			4 years
Resulting Black Scholes Value (in dollars per share)			$ 3.38
Grant Fiscal Year 2018
Outstanding options
Options Granted (in shares)				230,000
Weighted Average Fair Value at Grant Date
Vested and exercisable, end of period (in dollars per share)				$ 15.12
Additional Disclosures
Vested and exercisable, end of period (in dollars per share)				$ 15.12
Options Outstanding (in shares)	114,583
Options Exercisable (in shares)	70,001
Valuation assumptions
Expected Stock Price Volatility (as a percent)				32.63%
Risk-Free Interest rate (as a percent)				1.96%
Expected Dividend Yield (as a percent)				5.34%
Average Expected Term				4 years
Resulting Black Scholes Value (in dollars per share)				$ 2.57
Grant Fiscal Year 2017
Outstanding options
Options Granted (in shares)					410,000
Weighted Average Fair Value at Grant Date
Vested and exercisable, end of period (in dollars per share)					$ 12.57
Additional Disclosures
Vested and exercisable, end of period (in dollars per share)					$ 12.57
Options Outstanding (in shares)	300,000
Options Exercisable (in shares)	242,708
Grant Fiscal Year 2016
Outstanding options
Options Granted (in shares)						100,000
Weighted Average Fair Value at Grant Date
Vested and exercisable, end of period (in dollars per share)						$ 22.42
Additional Disclosures
Vested and exercisable, end of period (in dollars per share)						$ 22.42
Options Outstanding (in shares)	40,000
Options Exercisable (in shares)	40,000
Stock Options
Stock Options:
Unrecognized compensation costs (in dollars)	$ 1
Unrecognized compensation costs, period for recognition	3 years
Stock Options | First year vesting | Grant Fiscal Year 2020
Stock Options:
Vesting percentage	25.00%
Vesting period	1 year
Stock Options | Monthly vesting over 36 months | Grant Fiscal Year 2020
Stock Options:
Monthly percentage of vesting of share based compensation	2.78%
Additional vesting period after the initial period	3 years
President and Chief Executive Officer | Grant Fiscal Year 2020
Outstanding options
Options Granted (in shares)	250,000
President and Chief Executive Officer | Grant Fiscal Year 2020 | Forecast
Outstanding options
Number of options vested		80,308
Number of options vesting monthly							5,142

Borrowings Under Revolving Cr_2

Borrowings Under Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions	Oct. 19, 2017	Dec. 29, 2019	Mar. 31, 2019	Oct. 18, 2017
Credit Facility
Maximum borrowing capacity	$ 75			$ 35
Maximum aggregate commitment amount	$ 125
Borrowing base as a percent of eligible receivables	85.00%
Interest rate (as a percent)		3.20%
Increase of applicable rate upon event of default (as a percent)	2.00%
Fee commitment (as a percent)	0.25%
Outstanding principal balance		$ 29.4	$ 14.4
Available borrowing capacity		$ 45.6	$ 60.6
Minimum
Credit Facility
Inventory age	181 days
Maximum
Credit Facility
Maximum borrowing availability amount required	$ 10
Inventory age	181 days
Amount included in formula to determine borrowing base	$ 4
Base rate
Credit Facility
Interest rate spread on variable rate basis upon event of default (as a percent)	0.50%
Eurodollar rate
Credit Facility
Value from which Eurodollar Reserve Percentage is subtracted	1
Interest rate spread on variable rate when average availability is greater or equal to $15 million	1.50%
Average availability threshold	$ 15
Interest rate spread on variable rate when average availability otherwise	1.75%
Interest rate spread on variable rate basis upon event of default (as a percent)	1.75%
Standby letters of credit
Credit Facility
Maximum borrowing capacity	$ 5
Swingline loan
Credit Facility
Maximum borrowing capacity	$ 12.5

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended	9 Months Ended
	Dec. 29, 2019	Dec. 29, 2019	Dec. 30, 2018	Mar. 31, 2019
Antidilutive Securities
Diluted weighted average common shares, at positive earning position	8,595,521	8,651,341
Options outstanding (in shares)	856,583	856,583	591,500	591,500
Stock Options
Antidilutive Securities
Anti-dilutive equity awards (in shares)			541,500
Performance Stock Units
Antidilutive Securities
Anti-dilutive equity awards (in shares)		0	0
RSU awards
Antidilutive Securities
Anti-dilutive equity awards (in shares)		0	0

Business Segments - Segment Act

Business Segments - Segment Activity (Details)	3 Months Ended		9 Months Ended
	Dec. 29, 2019USD ($)	Dec. 30, 2018USD ($)	Dec. 29, 2019USD ($)segmentproduct	Dec. 30, 2018USD ($)
Business Segments
Number of reportable segment | segment			2
Number of product categories | product			4
Market unit activity
Revenues	$ 139,578,200	$ 152,294,500	$ 412,118,400	$ 461,850,000
Gross Profit	23,074,300	30,998,700	74,657,100	93,091,500
(Loss) income before provision for (benefit from) income taxes	(6,341,800)	3,256,000	(9,632,500)	6,491,000
Segments
Market unit activity
Directly allocable expenses	10,893,000	12,117,000	34,357,000	37,113,000
(Loss) income before provision for (benefit from) income taxes	12,181,000	18,882,000	40,300,000	55,979,000
Corporate
Market unit activity
Directly allocable expenses	18,523,000	15,626,000	49,933,000	49,488,000
Public carrier
Market unit activity
Revenues	37,793,000	33,593,000	110,448,000	113,647,000
Gross Profit	4,508,000	4,583,000	13,621,000	14,989,000
Value-added resellers and integrators
Market unit activity
Revenues	63,051,000	65,373,000	192,727,000	199,570,000
Gross Profit	15,139,000	16,013,000	46,432,000	48,842,000
Retail
Market unit activity
Revenues	38,734,000	53,329,000	108,943,000	148,633,000
Gross Profit	3,427,000	10,403,000	14,604,000	29,261,000
Commercial Segment
Market unit activity
Revenues	100,844,000	98,966,000	303,175,000	313,217,000
Gross Profit	19,647,000	20,596,000	60,053,000	63,831,000
Commercial Segment | Segments
Market unit activity
Directly allocable expenses	7,620,000	8,079,000	25,058,000	24,722,000
(Loss) income before provision for (benefit from) income taxes	12,027,000	12,517,000	34,995,000	39,109,000
Commercial Segment | Public carrier
Market unit activity
Revenues	37,793,000	33,593,000	110,448,000	113,647,000
Gross Profit	4,508,000	4,583,000	13,621,000	14,989,000
Commercial Segment | Value-added resellers and integrators
Market unit activity
Revenues	63,051,000	65,373,000	192,727,000	199,570,000
Gross Profit	15,139,000	16,013,000	46,432,000	48,842,000
Retail Segment
Market unit activity
Revenues	38,734,000	53,329,000	108,943,000	148,633,000
Gross Profit	3,427,000	10,403,000	14,604,000	29,261,000
Retail Segment | Segments
Market unit activity
Directly allocable expenses	3,273,000	4,038,000	9,299,000	12,391,000
(Loss) income before provision for (benefit from) income taxes	154,000	6,365,000	5,305,000	16,870,000
Retail Segment | Retail
Market unit activity
Revenues	38,734,000	53,329,000	108,943,000	148,633,000
Gross Profit	$ 3,427,000	$ 10,403,000	$ 14,604,000	$ 29,261,000

Business Segments - Product Cat

Business Segments - Product Category (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 29, 2019	Dec. 30, 2018	Dec. 29, 2019	Dec. 30, 2018
Revenue and Gross Profit from External Customers
Revenues	$ 139,578,200	$ 152,294,500	$ 412,118,400	$ 461,850,000
Gross Profit	23,074,300	30,998,700	74,657,100	93,091,500
Base station infrastructure
Revenue and Gross Profit from External Customers
Revenues	69,688,000	67,988,000	210,230,000	217,817,000
Gross Profit	14,808,000	14,822,000	43,894,000	46,072,000
Network systems
Revenue and Gross Profit from External Customers
Revenues	21,564,000	21,477,000	66,971,000	66,818,000
Gross Profit	3,055,000	3,453,000	10,445,000	10,677,000
Installation, test and maintenance
Revenue and Gross Profit from External Customers
Revenues	7,772,000	8,306,000	21,037,000	24,628,000
Gross Profit	1,410,000	1,623,000	3,723,000	4,899,000
Mobile device accessories
Revenue and Gross Profit from External Customers
Revenues	40,554,000	54,524,000	113,880,000	152,587,000
Gross Profit	$ 3,801,000	$ 11,101,000	$ 16,595,000	$ 31,444,000

Leases - Office space (Details)

Leases - Office space (Details)	44 Months Ended	77 Months Ended
	Jul. 31, 2023USD ($)	Dec. 15, 2025USD ($)	Dec. 29, 2019ft²
Leased office space, West Padonia Road, Maryland
Leases
Rental area (in square feet) | ft²			102,164
Leased office space, West Padonia Road, Maryland | Forecast | Minimum
Leases
Monthly base rental rate (in dollars)		$ 200,071
Leased office space, West Padonia Road, Maryland | Forecast | Maximum
Leases
Monthly base rental rate (in dollars)		$ 220,841
Leased office space, Hunt Valley, Maryland | Forecast | Minimum
Leases
Monthly base rental rate (in dollars)	$ 40,498
Leased office space, Hunt Valley, Maryland | Forecast | Maximum
Leases
Monthly base rental rate (in dollars)	$ 42,971

Leases - Quantitative informati

Leases - Quantitative information (Details)	3 Months Ended
	Dec. 29, 2019USD ($)
Leases
Operating lease expense	$ 736,500
Maturities of discounted lease liabilities by fiscal year are as follow:
2020	759,900
2021	3,119,400
2022	3,157,800
2023	3,010,400
2024	2,715,400
Thereafter	4,592,300
Total	17,355,200
Less: present value discount	(2,706,300)
Present value of lease liabilities	$ 14,648,900
Weighted-average discount rate - Operating leases	4.00%

Shares Withheld (Details)

Shares Withheld (Details) - USD ($)	9 Months Ended
	Dec. 29, 2019	Dec. 30, 2018
Shares Withheld
Tax withholding for share based compensation	$ 882,100	$ 111,100

Concentration of Risk (Details)

Concentration of Risk (Details) - Revenue	3 Months Ended		9 Months Ended
	Dec. 29, 2019	Dec. 30, 2018	Dec. 29, 2019	Dec. 30, 2018
Customer Concentration Risk | Largest customer
Concentration Risk
Concentration risk (as a percent)	11.70%		10.10%
Supplier Concentration Risk | Largest Supplier
Concentration Risk
Concentration risk (as a percent)	21.90%	14.90%	21.80%	15.40%