TESS - Earnings call transcript Q2 2020 | Tessco Technologies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to TESSCO Second Quarter Fiscal Year 2020 Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

to Bernard, conference Sharon like speaker to now Jamie today Merrill would hand over the your I and Associates. ma'am. ahead, go Please

Jamie Bernard

Good you conference thank morning, TESSCO’s everyone, XXXX QX for call. joining and

Murkejee, Joining me and Spitulnik, Company’s the President Chief Executive Aric TESSCO’s CFO. today Officer; and Sandip are

note discussion contain today Please Forward-Looking results anticipated about that prospects. future management’s and will Statements

may difference discussed Forward-looking Securities may differ results be uncertainties, and today. concerning TESSCO’s including statements Information TESSCO’s public involve a with and Commission. a recent the number of periodic cause factors in found Company’s the that from reports Exchange filed can Form and those such other risks disclosures, and materially XX-K most

CEO. I turn like to introduction, to the that Sandip would President Sandip. over With and call Murkejee, TESSCO’s

Sandip Murkejee

everyone. myself, my here is excited opportunities Jamie, why Thank specifically my like pleasure President CEO. early hello highlighting introduce you, ahead observations, as very to today part and take the exciting I and briefly discuss for of be to to and that TESSCO. TESSCO some would as the team TESSCO's of review I’m lie be opportunity to the It

AT&T, Lucent telecom have Let decades Labs, wireless two myself. industries and Bell and Alcatel with me the I spent Lucent, most in recently software Nokia. begin introducing by over with

I time, technology refreshes me firsthand that have During what industry. experienced in the wireless

business. live conduct broader more importantly and and for how ecosystem, these the how the Specifically impact way growth and people opportunity enable they

impressive work knew also the unprecedented had in fourth I to accepted and knew well I The that revolution the current opportunities. transitions Company's needed we about I reverse a industry. that heritage which trend. and a CEO labeled going current are changes TESSCO role, much pretty established this industrial have was reputation through will bring some the When

a processes, financials customers, August, our supply late and operations, here our partners. getting of I days XX now. in for our have our TESSCO know people, been have our about lot I spent time joining Since to our

I TESSCO. I work the and discovered, team have positive I when passion every joined specifically, have to Very one, who talented with reinforces day we impressions purpose. What and come individuals very accentuate number of first had a

excellent, have supplier and partners. our with our relationships customers long We standing

a solutions a as have result come strong the our of and that in-depth competency understanding technology, We core worth about teams of market.

sit customer anticipates I'm And brand new do that the that position technologies, to finally, that intimacy, it then very makes my overall to taxonomy easy we table, my with and candidly in industry's well with. ramp innovation, very a business own around the the of I brand a These and passion happen. in factors to very bring be

factors foundation while our a Company. Now, for solid these provide

As we have some taken to a make And are I innovate. do already and how undergoing we order a mentioned important operate our very to we In have to deal potential. to of thorough full every improve of realize aspect we great performance, review in of actions immediate changes earlier, work structures. very our

on their have organizations order functions and of combined focus efficiencies. we management organization to inventory same one breath, and management each product expertise a separate into As into sales split facilitate better seamless organizations, an chain organization supply the drive in we needs example, understanding product devote for In and our attention. to our and have our

later will One products manufacturing example moments this Texas, stadium a enclosures, a few large engine. begin with design ability XXX spend in of and Enterprises. is stadiums custom large win business me has enabled our quarter. and this on wins examples with Ventev, a some recent us Fortune unique baseball Let to own shipping to which Ventev’s innovation

one full needs proficiency, logistics with come we suppliers, our differentiator we TESSCO. solutions the Ventev our for capabilities, This is improving to or customers which on future involving focused we is and anticipate up technical is our when along our what develop with true area an overall Another call solution. capabilities more own solutionings a integrated and end-to-end

Let partnered needs to CommScope me bidirectional to solves for example a that critical market effective coverage this. safety give with systems. amplifier of bring We reliable an public recently you cost wireless

has TESSCO has commitment is customer communications. public engagement this year reliable and very with entire this of across value and to had the for intimacy secured a the of product work have and ability that emergency first continuous innovative that this our safety will ensure chain and capacity long production It industry responders TESSCO the because product.

become already our begun end, improvements to much true we important competitive to easier inventory and ability solutions business advantage, optimization. to processing, the To supply in do changes order chain make our for to need with. that management While craft have we including

have also sales a and building implemented strong around We managing discipline our pipeline.

so the core significant our with result As these actions and well better to position on so growth technology earlier, a are that opportunities and aligns competencies. to market of we trends expect because TESSCO the upcoming mentioned capitalize I

Our core competitive much and technology process like our value profitable and to these over on more create investment points B, sustainable quarters. to C, A, coming accelerating enhance for and strength, are improvement growth shareholder long-term. the share we months with drive would our you the advantage, I

second our Now let's an turn performance. to overview quarter of

quarter. from Our sequentially the quarter overall second results improved first

our XX% top weaker year-over-year, and as was on down bottom expected primarily which on business, XX.X% year-over-year. were of result a the was Although lines. retail they than both Revenue down

of that was This fiscal customer the transitions to quarter in retail our our XXXX. fourth due occurred disclosed previously

The and flat year-over-year X% X improved we year-over-year, turf carrier both business captured as contractors. essentially was new substantially carrier down the but wins business in Tier Our with VAR has carriers ecosystem,

negatively businesses, in The impact our same with business. drivers the our of this impacted confluence factors each quarter one performance of our of Let's continue that starting retail the discuss for to first quarter behind business. second the us

First, consolidation segment the levels the experiencing significant chain. retail multiple throughout supply at is

the has for last business dynamics, which as Second, such several retail to the device driven our market adapting the of years. slowdown refreshes is changing the

of are accessories dynamics broader These continue the market. mass a expected hits to set until

this XG to availability the of later XXXX. this if change is expect sometime with expected devices and in calendar We

last during quarters. well. a results effect the Tariffs factor had this as on was our several have also quarter this in a This business, negative contributing

with earlier, have change we supply we our forward. to on started expected business tariffs going minimal a However, the have actions effect

some improving building are customer critical that we focusing strong aggressively our this, sales forecasting pipeline, better and managing inventory Beyond improve implementing will addressing experience, drive, our a areas performance. disciplines Examples, that management. on and

our team are implementing for hindered now We and our and resources our The enhancements. issues for in ecommerce of Integrator performance but not to channel segment. fixing has our and VAR only also sales, also We website. website devoting investing dedicated have a retail

been already of is us efforts. some the this are results improve seeing positive business And some aspects our of We now. time it for which we has these critical of back holding part that

and addition wholesale, the mass insurance In airport, including enterprise, channels, consumer a structural changes, focusing to developing with electronics, retail new on in repair. business

retailer. are as have the mentioned We and products customers well mass in another signed quarter, to largest the actively contract in with with product the we the mobility signed UK supplying and of newly as as one two through supply we carrier to in also partners established large a Ventev contracts last Europe distribution UK carriers

competitive helps are we robust their single providing JBL, announced dedicated To mobile and audio continue audio we that partnership and recently offering with a new customers best-in-class a This us device line end, premier building to audio accessory products Additionally, with accessory a for source providing while partnership a card. a brand. needs. all

before. retail happened the are ones our now have been finally, back we And from business historically seeing to which able snap has dynamics like

the expect to same We case be forward. going the

our of Turning business. the to in and We quarters. strategies the and VAR previously realignment prior sales Integrator discussed go-to-market had

We the results have not these yet sales changes in seen momentum. of our

position to strong TESSCO strategies to well this gain our share of review segment, another better a refinements understand believe go-to-market being to and us to implemented. market in presence meaningful implementation has brand drive traction, the and the needs and gain very growth. some I recognition strategy that chance

to many needs. include approach disciplines, earlier, mentioned those understanding on things I website the and and associated solutioning our improvements changing ecommerce solve These lean of customers' a stronger including our forward needs to which sales

these We are a will refinements. on have our I sales. these firmly that positive effect And implementing believe collectively

in attention will market pay share We segment. particular to this our growing

sales business, revenue we our continued up Regarding sequential carrier while growth. year-over- public significantly and expect were quarter-over-quarter, was sequentially year, flat essentially ecosystem

you tell me Let why.

capturing slowed mentioned that pleased with with we awarded In components new Tier carrier had project we been bills our and distributed major The wins agency but some our a turf system are X has QX, purchase the We contractors. down carriers performance. carrier these agreement had master of and this Tier government has signed very with a overall X of been a quarter, with installation. for antenna

primary their sites have and contractors have for turf Additionally, have either several providers won of or been we that markets as selected new the exclusive they won. our supplier

winning also Verizon with business Contractors. We are

a business with a business that on our the And dramatic very United during were we part one tower will have our quarter, I’m the believe wins of what team we operators going proud of effect largest has States. in this important tower and achieved of these informed this of forward. won aspect

by are the segment. we Overall, of encouraged outlook the carrier

quarters, build to seen be As the last we few seem over they easing. the delays had

rest of increase will the the of of XXXX. in the the like expect, half that deployments XG industry We second calendar velocity

demand suite, expertise carriers, broad competitive demand this expect industry Given TESSCO’s U.S. among drive program our and increased the execution increasing for our our solutions. products management and will we of the environment recognition with together

which Our forward. business, is VAR refreshes. sales driven the and improvements for expecting customers both Wifi going This infrastructure is Ventev supports waiting carrier markets by

mainly the generation radios choosing WiFi X now However for technology to releasing X. are wait next OEM WiFi deployments. for just

lift from So throughout quarter of this we a products. and expect group to see this QX both

Press study Finally, business. of Release, strategic as we mentioned our a kicked our have I off in

completed be enhance goal ensure Now is expect this results over shareholder work you assets by expected to to the utilized this with to being all Company share of best end is our and I of fiscal of quarters. coming and resources the are the year that value. the to long-term our

discussion thoughts. I provide a will financial hand now the of call results. Aric. final to me detailed be back Aric, to the Let for over more some

Aric Spitulnik

And Sandip. Thank you, everyone. good morning,

show while know, revenue another over significant improvement for did was earnings us. in quarter you we QX, it difficult and As

the we before we focused the opportunities us. about forget business, fundamentals However, of exciting are on our now

were the give up the quarter, revenues in tariff the Now XX% and and down Revenues of Sequentially, XXX prior million overview financial from total year. increased you XX.X a profit quarter. lower million the to XX% down quarter X%. due let volumes from from freight sales totaled was Gross prior higher second year me costs.

As gross quarter the fiscal XX.X% to declined margins second a XXXX. of from XX.X% result, from

had which million. X.X Our incremental products tariff costs primarily to-date Ventev to fiscal are mobile related approximately been year accessory

to expect in issues We that so largely said mitigated been have the have by successful be all that QX, tariff effort. year we we

manufacture we products believe of over power We quarter from that XX% will come countries. this Ventev all non-tariff

So vastly first continue going have forward, the fiscal to some should we amount half tariff in of the cost will than year. be lower the

XX% quarter efforts. down but from our a expenses, year to were cost due variable expenses part in lower result prior SG&A reduction also of the as

As quarter a to million million X.X same percentage of was to income XX Operating the of operating basis total with decreased year lower for income XX.X% sales X.X SG&A points due period expenses revenue, . last for compared volume.

was second breakeven Net a income of ago. quarter with essentially income year net million X.X for compared the

Second earnings earnings were diluted year share per share compared also $X.XX quarter breakeven with diluted per ago.

quarter, and the difficult difficulty second for results was most in the the historically with forecast. our fourth quarter to results forecasting quarter In-line which

the all guidance, third previously given in earnings rescinded however we expect financial have We quarter. do positive

Turning sheet. to the balance

XX approximately by increased as the of expected. balance inventory from QX million end Our

while availability a to impacting have wide customers. We inventory to not corporate reduce initiative had our

Most had related differed. was to projects been that of reduction inventory the carrier

to are now inventory, focused than were are lower we opportunities a further position on a we better While XX much days we ago. on

our additional borrowed We balance of from $XX $XX down million XX of million. line credit an against a million

balance business naturally on working sheet. flow. fluctuations and the capital While cash to remain focused project lead improvements in the will on kit We

and our November We record have dividend ultimately of XXth. of per set date November share with $X.XX XXth

While the results this our expectations. below have been fiscal year

get focused driving back we to profitable growth. and are to engaged is Sandip's under leadership team Our

let it back With Sandip. to that, me turn

Sandip Murkejee

you much, very Thank Aric.

first made few Q&A making strategies along TESSCO has team talent TESSCO organizational session, Number to the win. believe two, our our of the the reiterate to changes best-in-class. we let Before one, I the and Number me are structure, to web we our passion the sales go my recently a road the beliefs. have disciplines steps to and the

CDRX. market XG, our three, technologies by such new expanding, as X, is and Number driven WiFi

will together and edge and this Now in computing applications as with reality of et metering, cetera. IoT, usher new virtual based smart the applications cities, such reality, smart augmented cloud

and TESSCO need will solutions Number customers our overtime. and from four, in complex end-to-end this needs succeed that order increase complete to will

be investments appropriately. these We and are focused our anticipating aligning very going to on needs

customers, the welcome took now to Even and they TESSCO’s to take I about first TESSCO to thank have for more very the me. this future. shareholders months when opportunity suppliers two optimistic extended want team, I'm to the our ago. seat so I than warm

to With that, very be Aric take and your questions. happy I will

Operator

[Operator Nolan Instructions]. Maggie from with And your William first question comes Blair.

Ted Starck-King

Ted for is Maggie. This

think I of go-to-market So and the help to VAR a of traction. some I on and gain kind might Sandip, you dig in guys refinement you wanted strategy Integrator the business there mentioned

refine could more add go-to-market you bit strategy? color of plan So how Thanks. that a to little terms in you

Sandip Murkejee

I Ted, morning a Look good right thanks for points table, question. your couple Hey things to as the of answer question.

that is end-users this the one. has in strength particular TESSCO on, has that historically been the First, built point segment and this VARs,

have So that. to we appreciate

right. really Second, our well-known, is brand

two need it We and has the refine. One happened our understanding is the we to that call end-user is VAR what end-users, of overtime right. Now, market. things

either a VARs because both to end-users we we through them, anticipate of For or TESSCO reason, the sell directly and right. needs

more is our we lose, need the we the So continue understanding we point and completely, in embrace to so to that to continued get is are and need points, be our pain Ted one. much solutioning that capability right, to to something improve to need we market. that right, not relevant back of relevant

also right, two, procure actually forward right. Point and behavior, procure they them. the are buying website, and sell the calling and our the through us to VARs directly They we by multi-channels, of end-user, lean

an almost is So experience. omni-channel that

fix. our aggressively in you one the a of provide if have are is things through we parts had overtime, this kind that the let channel, on need when or we doing we calls salesperson website, website, same comes are that. aggressively like a weaknesses happens provide our we customer to calls, We a need of we various Things have of And that experience will. when what to we in customer and when doing

touch, right, finally, had to need - we then to provide historically we customers. back how get has in a that experience And intimacy, follow-up good and terms right. personal mean, very of And TESSCO we I that our a

attention Ted, did already it your the science this, that the ensure way how that the manage we and devote mean do tools the have, And we to follow-up how using pipeline, on we pipeline, a I pipeline, how question? build we make management answer to to happens. I

Ted Starck-King

was Yes, really helpful. that

going into a So you I know bit little the I in duration also seeing some about loaded to as can that much delays of visibility the XXXX you here wanted at think half Is on we something easing mentioned How project dig are carriers. that the as or back do of well? about you that think that. XXXX is fiscal we have delays. more that to be and

Sandip Murkejee

and to Yes. that all channels, have you on feedbacks others our are access going two domain available on in right, own call I'm to. the base from getting things, right this things that are that plus public we this

these some been look let's driving at what delays. of So, has

points other people pain is mean, technologies life, that of been introduction this this contributing talked understands, I to first have cost factor. but used so audience think is structure, radio right, on So, radios, any my I part shipping, XG be availability. new of accompanies a prior radios about

where areas these overtime, in in shakeout been has built. right, The skilled get of second I the mean people geographies and the historically, things and them labor, factor availability need networks

network, more and cells, is And complex wave that what used, and the antennas I more advanced the done the forward going it frequencies deployments you have the mean been. of these are with being historically macro millimeter if then technologies, a the electronics network you think some smaller when finally, little get macro right of

historical out So but shake right that pick overtime my is I'm up and belief using analogs here, these things momentum.

embrace how For aligned some are builds, our gave how with we I you the business, we examples. well tower

overcome. those we shortages on are based and channel being think I are feedback radio that the beginning

quarter-over-quarter to up expect I again. So pick the Ted momentum

Ted Starck-King

helpful. That is very

So smaller headlines a implementation at the starting as of the XG of to of of adoption network scale. about some level and we currently, kind about kind XG the see think

what up of how level view wanted kind Just see the and you XG that terms to will overtime? of is of current adoption ramp of in you think guys

Sandip Murkejee

So, alone business or an lift our be see don't from mean we impact right. a I to XG yet. mean candid, to very I

We market, devices XG winning how are business, I out ourselves I there to earlier we as right, contracts mass positioned already in are mentioned value the broader are in getting low the winning of compared but overall. mean terms that is many chain,

covers FirstNet put mean that that to will Ted I one like see going there our lens you I is right. I'm is So business multiple mean, of aspect aspects a right. of where into traditional the have you XG - right carriers impact. lens have are I what is about. build will an think our another out we asking that business is that things There

from of we will see is right or we ARVR get When right. a from virtual augmented third you comes will when play when The the IoT when device to accessories retail lift MDA if new reality, look aspect and a devices. reality some

are that of kind there our availability aspects leverage business networks. of of these multiple So XG

So see right. we a from lift broad that spectrum yet, don't

that yes our From that the of like we traction much there help? here tower to is help seeing, we hope screen the and bigger parts we vectors business, But lift. are how ride. business Does

Ted Starck-King

Yes, certainly. this a certainly you to outside Sandip And perspective then from of different coming business. it TESSCO, bring

your you benefit you relationships be that to how leverage expect So to that over would just there able carry able plan be Are long-term? prior that from think TESSCO to you do to perspective. stops

Sandip Murkejee

mean, I that us so, the And of anybody to is I to to power one is have that a pretty I TESSCO, and relevance table wear want the passion absolutely I we at point person brings and TESSCO third, the bring I one. a have question. utilize. broad underestimate it each Look want to or a broader industry, two, Point don't now, that. leverage TESSCO mean, Well we and from to underestimate I’m badge,

The of those those will outlined call, of biggest challenges some require and I I I for on time. the some mean us, are easy, focus mean,

So one line, our of double-clicked lot that right. we drives step have analogs on top at a time, think I that a

things allocation with of in earlier capital we can are is grow, overall make need if Next embrace set then investments commissioned, and have adopt. in of aligned will, mentioned pipeline, comments need I our which terms sure our confident of and this where we strategy they to there building to the that and science sales, and you art to I of get the it and right, we

yes, what I to experienced, have So approach close company the to very what I and what embrace the Company than I absolutely to belief more contacts. to that mean system it's business just bring an already is want the It's has. a

Ted Starck-King

the was that makes And me, then last this quarter? for Certainly lot of what count Thanks. share a question sense.

Aric Spitulnik

Its X,XXX,XXX.

Ted Starck-King

you. Thank

Sandip Murkejee

Thanks Ted. Good questions.

Operator

[Operator Bill Titan Instructions] comes from Dezellem And next your with Capital. question

William Dezellem

have you, Thank I questions. a group of

all, of build you the What their ramp pushed hearing earlier. do when XG are I about asked is was steep about carriers from and XG want pick question what how out First out are whether in, being those plans a of anticipating? that pulled up the to are sense they begin on and you about your

Sandip Murkejee

question. channel, and public there input is the own then carriers Thanks our we right in is cetera. morning of orders, there in mentioned from domain from transaction second the our avenues is right I mean, et like just two is channel what flow our previous our and own get, information discussion there one and flow the for is with the customers Ted good Hey, and Bill.

the talked partners talked of radio some skilled about supply our the our cetera. think in in with have other I So problems, and of I lens structures, repeat, that radio I won’t labor, players about and customers et issues, some mind, ecosystem that. cost earlier already

that is point So one.

frame two you Point are right. specific for asking time a

the Our adoption our second our call is XXXX benefit we when from and mass mass carrier see over this by of half we we bills adoption beliefs will and business. is is what have that when relative calendar to it we gotten which will see

and Accessories the we impacts you bill premise we other come when others MDA, the XG. and Second business broadly market fruition then and mass are Mobile behind Device to to we in when mass we the see forms things and will accessories will more retail essentially FirstNet to see like seen our adoption would hit adoption new ecosystem do participate through And which is today. the market, this strategies see hope we than of we overall developing

William Dezellem

XG, take thinking have that are that may much comments? If of a quite because am fair adoption at there implied when should me activity and be question. XXXX the super sooner half doesn't be infrastructure I level been steep Okay, mass misinterpreting the second is will that up ramp that pick I level that carrier with than of you your the a further, let step not or

Sandip Murkejee

No.

I green you leveraging compatible a think past correctly. down, I'm a the XG I got XG deployment, be mean XG is came and if you right off different. field hand look way XG along be and my it it is and backwards new when to had you right came technology not could will no or people roamed hand as so will it along

not So you technology to and before flip it from I mean starting what handsets different. dual in being It then technology customers an and discussions proprietary any their I should initially right. as they over that have other single out our exactly out into overlay and this movie strategy we to with terms devices of will start have as build be will seen of some are is. not get where

build the typically terms as actually build three technology adoption we our they the participate right. how mean consider and participate of out build if of towers so put three mass I strategy XG you this deployment, their of we phase radios I what part comes in in in own this But that phases of people look business, so of

into we when different of build distribution, part part in it antenna not expect second areas in of ways The going calling business is the get our get you in forget to accessory/retail into right, many targeted that there adoption. further we is out And phase you when into I'm drive right. the let's distributed building are build then to and device participate get out two systems mobile when into you

that overall as be industry together right. to excited. voice mean I If markets are excited XG XG, things the to way disappointment I will possibilities another in a is how people I be do going that big happen I’m edge computing. with mentioned very the just about for the of that mean, will adjacent particularly

applications cloud to of that drive things have that mentioned IoT all I had and to device will come together like impact like devices things an AR/VR on to accessory. drive

phase the no you back be how is see. on that different. XG is or and So I how evolved, mean, XG third will this cycles a long we decade of evolved XG if what this And is look

William Dezellem

you. Thank

Let switch me slightly.

your several wins talk mentioned magnitude please? to and carrier Would wins of You you opening remarks. the in turf please contractor and those timing

Sandip Murkejee

Aric said can’t my friend I that violate specifics into earlier. and Look, something Yes. go

specific giving and we on So third are guidance, quarter. Bill not guidance fourth

you confines, why rules, those So I need will. if I within need to stay Aric's hopefully, follow you understand to

expanding the that excited if of we - and have some we in you into value right even exclusive about contracts, arrangements, overall we of with share So we there have past in lot recently things them these are we our call our some I mentioned, a this, so things usually have like when of a mind, tense, and this that the on will, won. long from mentioned look chain

categories, described stay I of in not of within be it to segments, I'm will to using, our give time, need [Indiscernible] the would to you some like but confident that overall what to able some impact you this comment. like Aric to statements business. Aric, framework

Aric Spitulnik

that. bit Yes, a to little

historically or a us. handful share done business with. we They This their quarter, of no turfs increased market little we have with had either that dramatically

that are So the are when million a contractors, some turf are TESSCO we about where to customers at made grow key today. ago their type did bigger bit vendors, There of wins. point to kind about They mid-sized a of but we historically three type share. business giving little significantly piece with, five done those but who this of have a from $XX of they of were not we comments the year are now

Sandip Murkejee

Bill. helps that hope I

William Dezellem

Yes, it Thank you. does.

if be looking bit an question, began the are that add please. Next process. about on In into earlier open needs go there. question, request and you going and about course, VAR mention Would you be for that keeping that and additional doing to I of done may you timing are you to up perspective insight more would strategy to how refinement and can in The - what anything helpful. of Aric's you a mind

Sandip Murkejee

prior about quarters. kind current. one that happened pretty we Look It's some put web have had right. have and of is we simple. reclaiming not past our here that think let three trajectory right we is in is strategy place, it it. strategy, the momentum, The double-clicked the and Yes. remain our I elements That mean I have in how about changes in on talked

going the that experience shopping attract and monetizing of in we on ease experience repeat then mean easy get not how we catalog But like I that. just to eyeballs use making measuring I'm of impressions things focusing terms right. of cart,

you strategy, it do have couple of we we have why right, devoted is you many we impressions search getting One ecommerce of are cetera, ways. we results is we we straightforward you success resources, right, already. to are basics, et measure an in how but that web uptick measure organic success seeing a a how any telling back fairly are I'm or seeing What priority have gone made and

experience we engaging from we improve. their will time, The directly learning that ease with customers people but some them are and take in devoted, of working experience feedback, are some helping us engaging of our

work is progress. that in So

quarter terms monetize TESSCO.com you break this a contribute overall to will but that our I end-user that business. it's contributor results. VAR our expect to out our results mean, I tense, of Present being to and in we don't able see and in right in big then

So you if that is one platform right, will.

that quarters, The the days put that second still need one end-user we the in and around is mean resources with understand forward together right, the we to strategy, is we in end-user, lean prior need a would and customers to the lean use to I to still forward, in dynamics was strategy devoting kitting. but regionalization earlier right our term themselves ability place

In is is other terms of is buy in what of our we terms today facilities, rest XG brought to target and dynamics how some of solutions, how the our capabilities, logistics to were where a talking to build management our earlier right, solutions together the of it that table we the capabilities, design with it it radio you out. people knit program our about credit shortages facilities, the we are

the technologies aspects in and they WiFi, better needs is business, to can where are. but that VAR much be Other it end-user is closer not more typically of we are relevant other much the it XG,

to are specific if we reclaim making will. that you So changes

And focusing sales in have modern Its on seen very do. then frankly sense building a perspective discipline the sales from sales pipelines, way that organizations a discipline might focusing on offs, where bringing revenue touch classic sales finally then the pipeline drop right. its people personal we managing and

William Dezellem

view plus years you Sandip, and two from that then you rate off. what have was the percent out helpful. and specifically time and year and business it I two additional And the that? would when this XX TESSCO discuss behind you you is Number how just kind like. look of now looks and industry two you I horizon one step what was talk to please would will XX questions or quarter That tax Aric, the

Aric Spitulnik

now, so Yes, start right of And big as items if year compared whack a a a the little tax quarter. combination certainly to a quarter range the this to in I And that rest I breakeven sticking you year for question year. in after to that those and permanent our the QX one ratio were is would the the the the rate this a probably with quarter The certainly XX% just of loss of of pre-tax around tax income. at with model anomaly. our back overall will year try ratios look quarter rate odd little looks probably out coming rest tax

Sandip Murkejee

mean, is let's two questions, how look I the about part think tackle think at question. that your then better and of a years ahead I two I Bill time gives Hey back, Look answers will I you if this. horizon. years second your here

supply of kind tailor jumpers and is point what TESSCO offline And very customers right and the right at we how soup that passive with will, cables, to basically industry, very very, of if good of credit unique. you will to you they an with need, say the And our that do to for components the need facilities and if well assortment what to was are right. we we items in to of time right going is we still kit customize nuts, do what sort logistics I'm antennas, at the we

TESSCO. This is we this something started is of past, a ago the two years snapshot in

the to forward the two get the you overall the have, were of in components versus networks years as If technology how mean from have, is front you you of MIMO, all back now, taxonomy to these active right. you earlier terms and antennas components the and of I such fast basically antennas, mean, asking advent through how changes, XG, that station. about topology passive many I connected active many how

lot the I active see right, will years in mean, we software we will a So more down see components electronics we more distribute. in that the lot two road, a distribute, we the components content,

you will that like going be So upgrades our our about need overall very will “kit” a we And will things end worry to if up customers software kits, it look driving. is to of licenses, different will, mix different.

nuts, soup quarter-over-quarter of again revenue, to the provide quality to revenue, look And you of how solution, So of of suit. growth think our we and will, that once of that I types the the the mix revenue total expect opportunity the different. if will in terms to follow solution for of TESSCO, a very mix mix is change. to

value I for our shareholders. is forward. color strategy here But our what they our Now, come hopefully, chance going to we to after have give to look investment long-term at to into had which I are not some another able is and need giving are you going we a though, building was forward so to back guidance, thinking overall what

William Dezellem

both. you, Thank

Operator

questions now are There for call at remarks. hand the I no closing further time. this would back

Sandip Murkejee

really this I but in I for chain earlier, the of I can believe part repeat more something problems you, in want and participation front to repeating. important thank Thank you, Ashley, your to worth Jamie is said opportunity just it more and call. TESSCO, Aric we our and solve sit our value an we suppliers relevant of I where customers important add mean value can our in and we make on successful.

sit to bring how both me intimacy, that the of more much, much, taxonomy certain about can that to things here model table more business value customer innovation ends. I become companies with. you set easier much talk mean I mean or business to will and hear I few much we Very a in do add a

want who call, questions Aric call. and a for work the of team heard in putting importantly I to the to TESSCO the have for for me close warm extended you that were welcome the all been and I on this have but lot this they on good most by that they thanking

Good So day. thank everyone. you,

Operator

gentlemen, Thank for and Ladies call. this concludes participating. you today's conference

disconnect. now may You

Tessco (TESS) 4 Nov 192020 Q2 Earnings call transcript