TESS - Earnings call transcript Q3 2020 | Tessco Technologies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2020 TESSCO Technologies Incorporated Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instruction]

I would now like to hand your conference over today to Jamie Bernard from Sharon Merrill Associates. ahead. go Please

Jamie Bernard

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

today TESSCO's Please Joining Executive Sandy future forward-looking are me Mukerjee, results anticipated Aric discussions will and the statements management's about Officer; President Spitulnik, Company's that CFO. note prospects. today contain and Chief and

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

introduction, TESSCO's to like I'd the turn Sandy that President call Sandy? Mukerjee, CEO. over With and to

Sandy Mukerjee

joining the my earnings Thank you, Jamie. of Good CEO morning for This call second us. and as everyone thank TESSCO. is you

soon The I had rhythm I'm full for TESSCO at I've and chance a five at of to today started not months experience the anniversary. business a first my came the after quarter.

we time, a our assets, how utilize also have undertaken this spend of time During at with had our I have quality many all and opportunity deep we to of look the also to Last and invest a the customers. discussed for on e-commerce website. our need our implement in I customer the inventory experience, stronger TESSCO improve quarter, discipline, and sales focus forecasting management

will to our evolution. moves Today am the technological that confident was these During in industry. us that made TESSCO results progress to I positioned the When initiatives. optimize of in on undertaking are and the change, joined the we've I we the I each quarter, that uniquely in third complexity our on exponential capitalize August, believe good driving roles growth, making and position

on for going share with call, each see and initiatives I progress this the forward. TESSCO During path we of our you these will

provide after and and a then brief on us first to you I'll at our look the ask I our more finally initiatives, will our progress I overview start results that with made quarter. talk the come Aric financials, share and back about a this give Let detailed we've will vision.

had to information we we profit related largely the two did had of not retail items operating that of because business on for our Based quarter our the QX, at projected call, happen. second an time

we our goodwill As and press in charge our by year-over-year which included decline $X.X release, in a was shared million, profitability. impairment loss continued sales retail of caused

OEM of combination Outside inventory million The our quarter. the more Additionally, loss. the we for would impairment result as slower an devices these vast the a of higher of $X a sales two loss. inventory incremental channels, also excess a made up the expense obsolete retail of of last modest of about items, majority several than year's and and obsolete and have of experienced excess discontinuance we recorded third versions in charge and much expense operating for

speak with markets three our will Ventev Let and our me now about Retail. I business. start

we transitions While is customer from our up in with to business ago. not This sales business well does same the QX. due large discussed the retail this a primarily sequentially, compare were year retail

clearly, Now partnerships. strategic two leverage are segments in to disciplined we very we the inventory we our and work do and have how management executing initiatives, on

and efforts highest lessening customers assist inventory, analytics focus E&O that using our SKUs. improving them appointing to improving Simultaneously, time this, served we new in efficiently ensure Through implemented optimizing team process. our at inventory our delivering inventory ensure risks. an same These we're have will the of turns. our have running while discipline on data customers overall while First, we availability terms optimum enhanced created and are driven inventory to management, including and the analytics turns have leadership new

exclusive Samsung programs Google, Second, strategic unique and partners key and to with and are working as offerings. such closely develop we ZAGG

continue we customers expand with and our to products. Google base larger a with of relationship example, support For now much Google

Samsung. a partnership winning strategic through This is our as Second, result customers Samsung's of new we're with distribution consolidation channels. in

Samsung's are enhancements. top for mobile We now distributor

ZAGG, to more management, which will in recently with We provide announced with improve partnership film shield strategic overall we partnerships on our costs, an business products, invisible TESSCO And tariff better and effectively. exclusive increased discipline, their custom protections due segment leveraging believe can ZAGG enable third, retail our demand. profitability in-store inventory to mitigating

Second, VAR and Integrator.

needed go-to-market strategy second our mentioned During call, I segment refinement. in quarter our that this

utility focus last with the our refinements XX these we strategy, end-users and days, to broadening two on enacted Over coverage of renewing by customers. starting sales direct

about strategy the customers and enough focus performing to simply wasn't that ago, two was growth. the years When was modified go-to-market on top drive

hired doubled significantly now segment and has and have talent. improved additional assigned down on account This the sales coverage. direct We

our was less historically force been technology as specifications need had to a at became regional knowledge trends been and result, TESSCO Company this and had able industry basis, the at VAR good the When communicate the customers. reorganized to level, dispersed and effective. understanding sales vertical a that knowledge winning end-user back on and was effectively

of have historically vertical. helped us has largest the advantage. sales a This a reclaim team for our now seasoned professionals was We assigned competitive which utility sectors,

in across to new a the replicate first construct quarters. As three industrialize in verticals. of sell-through other plan to this the and We we the third result quarter this utility saw time growth approach, sector for

Public onto Carriers. Moving

result three sales. we time sales to contractors Carrier the turf growth Verizon experienced and a contractors. was quarters, AT&T This For a increase year-over-year in of Public strong predominantly first in

are suppliers from and number a have We they the customers Verizon. new these AT&T awards to primary or winning and either of sole both been

space this in capabilities. offer partnerships kitting overall and OEM logistics is and our our blends It very competitive. Our

have manage have are created already they APIs help carriers have place. inventory distribution to The market in them towards customers as better benefiting these improve dashboards contracts larger contractors software to their spend drive we allow and us spend. and from in our will overall already needs and Additionally, place share more our agreements materials we

construction end of the the you larger Finally, know, the slowed halted some their which year, at our third calendar was or the way as all of by spend quarter. either fiscal carriers

to on this we capitalize spend. Now resume, uniquely these are as bills we positioned believe

Ventev. Let and the year-over-year two products XXX The the of additional Ventev paper in Ventev expected projects, have quarters. few which sales with several manufacturers award in U.S. warehouses. me about business been demand posted infrastructure resulted infrastructure include over with both sequential one of from in specked gains. into next talk QX These an largest the

of year expected This the one to XXXX country's end by to bid of of with includes for antenna project The and ability is XXXX. with needs an antenna a grocery all due their antenna placed store TESSCO This specific antennas. to July in and customize We store to for our meet calendar integrated to completed largest business the completion enclosure Ventev awarded customer a speed. custom be custom the with want be to chains. freezers date will

parks aesthetically has partnership of world, the Ventev detector theme custom largest in continued designing installation the two with mounts smoke with quick pleasing its also capabilities.

We also outfitted of newest accessories Japan. all one theme in the networking for these exhibits wireless parks,

ceiling access introduced the points tile new enclosures warehouse We and for new antennas.

and We'd the see our an for We are the ramp of oil to momentum industry. partners solutions custom WiFi integrated working from with expect one to X. design targeted gas continued e-manufacturing

support devices. products, their to we As manufacturers portfolio radio broaden released will to these major our see continue

by infrastructure in of know MDA industrial are sales, the large antennas, transition affected applications. discussed will and market. retail particularly come we you retail in Growth Ventev drivers as from general systems relevant were however, the cables. customer earlier, enclosures, these, softness in power and the products And the

they are the products in targeted to magnetic wireless At products consumer new charging our technologies. include different lines. mobile introduced dockings, These points, and product multiple with device solutions. Ventev and CES, We latest charging a and use limitless cases suite charging price of meet offer retail

business, Ventev results saw Infrastructure from the this business our from refocus carrier utilities in sectors. good our our initial and To results summarize, on quarter, we good

TESSCO's We launched also the progress performance. steady we made improve of each near-term initiatives with have to

of the e-commerce focusing As I at the implementing experience, and website. on forecasting these customer in inventory discipline, investing and the mentioned our stronger include sales management improving call, outset

with in initiatives, our at of look Let's the these customer each experience. progress starting improving

the directly. experience techniques overall responsiveness. has by algorithms engaging customers resulted quarter, capabilities the our improvements This of a of that auto improve in we our use customer review AI to processing and the During conducted and customer

stronger address to have dashboards to continuous discipline. We all aspects modernize to intelligence of and and tools cycle. and our pipeline These issues, visibility, quickly improved sales evaluate our sales include support enhanced improvements procedures business of processes

To address our to improve inventory and we several need for reviewing are the our management, goods refining forecasting SKUs. and of velocity

and and We our vendor managed planning demand have purchasing organizations. inventory our restructured enhanced team

conducting an those we determined audit making processes be We of our are and swift are to to suboptimal. changes all

directly And are once team a tesco.com. areas again of improvement. with we making created good of who experts website customers progress We identify to engage finally,

online and have improvements capture have plan improve a ability track tools project website behavior. to and our for We deployed that customer

the engines that came number determined searches to search our significantly. has we've decreased analysis, of website that this from Through outside

search We already engine experts positive are results. have engaged improved seeing and and optimization more

past the few the year. over returned not results we that levels our have a months, During to search seen in had

results for our reviews term. Aric discuss for I'll quarter, the financial long the After to vision return our Aric?

Aric Spitulnik

and everyone. good Sandip, morning you, Thank

impairment in business. several market As and in affected made Sandip the were results write-offs, the progress goodwill the mentioned, while our areas results in by softness in third quarter inventory retail we of

Let me financial third of the quarter. the overview give you

excess the XXX.X higher quarter the year quarter XXX.X quarter. sequential XXX.X year prior in the related volumes with profit due inventory. compared sales prior lower million the sold for totaled second a goods XX to with was to cost quarter of compared million XX.X a Revenues Gross million in obsolete a million and million in and and

for with last was gross revenues XX.X% year. As the a compared margin result, third of quarter XX.X%

related in incremental accessory this been with year mobile XXX,XXX approximately Our have cost about primarily of million X.X are to-date that Ventev which products tariff QX. to

the fiscal expected, will end all we tariff we products of subject be to fourth tariffs. we XX% QX, not by mitigated over the As manufacture was the current believe Ventev in of largely power issue quarter

and down before two with million loss a were taxes our was and retail cost items million before costs quarter due income million the sales compared excess efforts. factors, expenses million sold to goodwill inventory. million X.X X.X lower Both from in was of X.X primarily loss X.X relating impairment segment. X.X% The goods reduction a to and The related primarily are year-over-year driven our increase of of year a ago. taxes by these obsolete X.X earnings income prior year SG&A to

the flows. retail lower of I discussing and ebbs want few and The E&O minutes to subject to business a incremental obsolete business as been excess has the and always sales year year This difficult spend has higher accurately years past periods purchases this downward inventory made take we than the trend experienced not the retail in in did into significant effect year. in we've been more The past. inventory.

phone obsolescence has more several models year. of discontinuance caused this the inventory Additionally, normal than

going of problem and $X.XXrespectively this mentioned, have loss earnings third Net income of we X forward. measures to with Sandip attempt mitigate quarter million quarter. As This several compares $X.XX diluted for were per XXXX. million fiscal share X.X and share the loss taken year for prior third the and to net per of

see We improvement balance did sheet. on our

XX Our and by QX, end from company-wide the inventory decreased of million million our to approximately a availability QX while since customers. end result impacting our the balance not initiatives our reduce of XX as offer inventory to of

balance improvements flows. quarter $X focused and in credit we of $XX on cash the on lead to to naturally line will while Our project-based million, capital balance this the million sheet, fluctuations working business decreased remain

make talent our the February long-term As and allocation it to payable determined to XXth we Accordingly, Board release, February Company's capital be noted reprioritize a of date XX. strategy on record of to our in dividend per drive share, the was Directors profitable growth. with will the appropriate reduced to enable to $X.XX necessary investments technology Board us which our

momentarily, investments on the us will will As our capitalize exciting describe growth Sandip of these execution to strategy opportunities. successful in enable

and well and our We customers. enhancing look in our to further We offer value forward experience we our are to provide positioned industry. the

Importantly, enable us cost will we our as grow lower drive structure profitability improved to sales.

over this over long turn strategy the Sandy to TESSCO's drive now will to Sandip. to growth term. I discuss our

Sandy Mukerjee

Aric. Thanks,

TESSCO. for the and share with you minutes strategy use highlights remaining our the Let path me the forward to of

First, part a not same is of but which underpinnings Clearly, year must stabilize this it has solid we our regarding Retail. that it ago. business, business the was

today, announced back. With the have we believe down started have that steps taken the we have we and ones that I

Second.

are Carrier the made also As early have I VAR positions and we we progress markets are mentioned the with pleased and we the Ventev indications our in and earlier, have The from attended businesses. very promising. Integrator

of auctions, More XG, well importantly, CBRS driven that This assets in these the and positioned grow and of from changes expected an is industry and all channels by technological evolution private WiFi. LTE, grow to will are significantly. be

what it However, different and inside more will to warehouses, locations, all unique more in challenging that innovative and in manufacturing have buildings, inside cells, cetera. small improved et is And require deployed front-haul to relevant and would for these technologies stadiums, morphologies support will is this kitting supported requirements. TESSCO require enclosures, of back-haul aesthetics be

industry's Furthermore, of all these on strain dynamics existing above. the will abilities to the and put maintain a manage

We some new other seen models of value-added power in neutral ways. complex solving resellers issues innovative and already are changes in estate where and and others have business very the real hosts,

Now, TESSCO has these of deep with innovators, customers. our are all relationships they

strategy. Based on a we past can the to few differentiated TESSCO our three-pronged industry the that implementation of a in work months, confident over return through place I'm

Our three strategic pillars will include.

do customers. business business, our our we for regaining are on redoubling the supplies to easiest being both core by the in and company with focus First, competitive distribution advantage

around we tailored operation of existing as business. much environmentally of do this Ventev aesthetics, and our industrializing already closures by quality, and the Second,

around become Our roadmap be be to engineering-led, leader. an and to scaling transformation capabilities industry our driven will

value-added invest services third, points traditionally the of and focused. we And reaching will by for boundaries in a to managed resolve with TESSCO beyond pain has customers mandate and providing where our complexity

and how wireless differentiators. our and be constructed customer our existing Our domain are will relationships expertise networks

This with be revenue on focused and a streams business developing than sustainable margins. attractive will incremental more

With TESSCO executing the force wireless disruptive initiatives we believe our for long-term performance of successful will can our growth a value implementation strategy, and shareholders. strategy, become in industry. I by well long-term our And both drive on improvement the this

the will call turn operator over Now questions. for Operator? to the I that, with

Operator

[Operator first line from question from the from Your Bill Tieton. of Instructions] comes Dezellem

open. is line Your

Bill Dezellem

you. have group a questions. Thank I of

favorable tie First with of you that Carrier so in with seem you carriers you the that slowed in, the Public discuss couple a doing? that contrast growth carrier all would, of a saw all, sales if would what two your you to market and spending and the kind comments that were and the of

Sandy Mukerjee

answering question. will leave Aric, I out. the a And you've take good I I at stab Hey, things with in morning Bill. think. details jump can for Thanks asked, the three you any

So, a T-Mobile AT&T, Public likes of user driven et first cetera. spend the Bill, from is Verizon, by end the Carrier market,

are people Tower, some networks all the spend pick to Much was them. that MasTec, the up, Crown It's American world. the Castle ahead beginning of in construct We Our evidence saw of who but growth is of for customers XG XG. the still of that is us.

in I shared today in We that we agreements the have this place, ecosystem. announced contracts in AT&T place and call have on turf

So, who these are people build networks for AT&T.

did contracts segments. if quarter that that. this in certainly the and well for We around you into two halted happens, have It programs. industry place I'll the think going I similar was phenomenon typically been point quarter, the Verizon customers ecosystem, larger there's around slowed which not to or those public comments we go specifics calendar I'm in very fourth fourth overtime. you many industry followed to

optimistic and market we improving and about growth up, result, our expect as share. pretty are the to a I pick position

your if and one to tell you set questions. your points I'm answering answer of of can me, two questions, that's think I So

and our that to see customers that management, their customers add And operations is point just et chain around more our with of to What and I'm software particularly but their analysis, of that value. much it's about drive is, through engaging of our basically distinctly overall third logistics, and off customers it's asset impressed makes some expose offer. actually can our overall also application interfaces relationships, The supply overall help we how logistics us sticky dashboards through cetera. assets proud programming some us are use we our not OEM our materials, consumption

about to makes Carrier want us add Public do optimistic Aric, you So, said? the overall of I all the anything ecosystem. what that it's to above

Aric Spitulnik

two reinforce we're customers the the to we from slowing business think continue seen. Just gains to fold. I you've first as or seems into an is what our market revenues to significant customers, well be of do indication one but more carrier not the new bringing it's point customers we've the more made, growing, Sandip, and It's seeing share down,

we're increased in period reason the So, I seeing revenues that's carriers a a necessarily where the think lot. spending aren't why

Sandy Mukerjee

answered your question. hope I we

Bill Dezellem

Yes, of takes care that it.

build then that, on may. me Let if I

of was majority the XG spending. vast that said the You

I are XG of the year when call thought you that up. at that on middle your ramps? the updated think spending last What XG spending pick mentioned is you've would thoughts quickly how and

Sandy Mukerjee

ours. announced just that still Aric availability, we I'm play in spending to roughly as is into specifically our of then say XG XG driven business our boils ahead XX optimistic build about I'm and see several XX% particular being I us. to down carriers we the in We is described, maybe in, going At segment XG. point, and by and this that customers of taxonomy this overall

time. expect So, increase that I over to

Bill Dezellem

when middle calendar in of ramp the And anticipating to the year is that you're the still begin more earnest?

Sandy Mukerjee

Bill. -- we to indicators industry the look to Yes, looks the right,

Our you devices, actually, need availability talks what XG those, therefore calendar utilization all look capacity and for drive mid of which of about calendar if at year XXXX industry increased the -- drive will the devices, is, -- year. of next

Bill Dezellem

in And developments. VAR shoots, you then, were will question of that more I an provide hoping guess you additional in green some segment, Integrator us mentioned examples indication seeing or that early that you'd more some second if with favorable I'm you and place? would the

Sandy Mukerjee

with specifically utility one suddenly one this on want perspective. The in to segment, vertical more anecdotal happy an about the to That's call color provide we color. doubled from segment. this as so end-user is We that progress the on, down provide -- have we you talked make we

do forward, we go As we certainly will that.

you we're the particular this ourselves with are I shape overall replicate more across industrialize, you strategy verticals. when as we giving to the quarter. that share and in we That's construct go-to-market it tracking and vertical, back the certainly we and with our industrialize down. that is said other it are going And We next we'll get fact

Bill Dezellem

the in you which business. that they effort that putting couple drive of Relative that remarks ever weren't said weren't putting group? commentary of you efforts to larger opening talk any a top more -- So beyond just those additional and top additional you about Would group? enough that had doing system, you're are detail the what there. And in you Integrators, you your to top questions were VARs more those outside to

Sandy Mukerjee

Bill. points, three So,

overall larger that's our call, First, one. in also That's two, the accounts accentuated. I assignment to Aric our mentioned customers, strategy. two point during the Point focus, improvement offer, and right, dedication, of the I things think,

We have and increased our I'm coverage sales go numbers. going not into to specific

increased our sales who to have VARs volume loyal have of coverage very the been to historically TESSCO. large We

point those of accounts for that people to items outreach. the like provided business additional have closer drop identification we bandwidth its its simple get that's Bill, the in to at done off who In assignment So need accounts, of accounts, with basic community. in to discipline, increased past the its -- -- one. accounts looking have words, two, sales we like Point its things business us

Bill Dezellem

more metrics us you around to that? have And do detail what provide

Sandy Mukerjee

strategy, use Aric, I in I'm sure, terms will overall the months with deeper specifics on. sharing can dig our be Bill, spending on more to our the opportunity investment we community, how in coming we time you deeper there areas can overall that over dig mean, of with

and with follow happy key looking up we'll that to actually to stakeholders. follow up So, forward be

Operator

from comes the question Capital Management. of next Tim from line Your Call

open. Your line is

Tim Call

of will interest get cash, toward what debt pay that for expense? freeing some as a cut dividend see do trends you down? future the And the With

Aric Spitulnik

investing reduction the that also the investments will Sandip but But period probably Ventev end back than of distribution core mean into want today today lot in is bit, the reasonable first going we we over to I to some about well in business it, down because about it's quarters. little spoke into come probably is be will make opportunities. dividend a a growth certainly to say it the I a the into services we are that would yes, significantly we call business the So, debt, talked of future that of that area where couple part as money offerings towards into the where baseline as From be the different business we the go of wouldn't the some next the today expect today. towards

Sandy Mukerjee

said. I Aric. you, Thank just if could elaborate what morning, Good Tim, just on Aric

growth Dividend the You of came soon look after last of the product to lines, making one follow effort front strategic see, one we we we the our the of agreed growth was concerted had quarter, Board And those. I through capital execute, programs, to at to in actually specific bandwidth give allocation assets. suddenly developments of is and those opportunities. a to all of opportunities Board, on given with remember ourselves specific capture specific are us, and overall items our

one things a is bandwidth of to doing and a ourselves are this give that series we in that that So, capacity.

Tim Call

Retail could are the airports electronics, well elaborate others? or And you then wins, Is new with in segment, you consumer wholesale account progressing? channels, or retail achieving that still going

Aric Spitulnik

talked think open a Samsung as today. wins seen, mentioned we we've about from of Yes, areas. The some it I bit those being new lot opportunity are A new Google us Sandip that's today. will well. ZAGG for generated opportunities We talked about is,

well channel customer being in transitioned as as well. by that's the aggressive mapped very we're us. well Unfortunately, year team doing for the new in store you channels. the in doing softness channel and in mentioned, and large department are business in the mostly opportunities in-store are wins more general very winning strong earlier of the some are and that going development We airport traditional the very, But out we some those

Tim Call

annualize should loss March? customer that Is in right? that And

Aric Spitulnik

That's right.

last Next a comparison. will quarter have the we that year-over-year that be quarter

Operator

comes line from question from of next William Maggie the Nolan [Operator Blair. Instructions] Your

open. Your is line

Maggie Nolan

on managed are expanding the your terms planning receptive what internally offerings could And I'm will existing additional in bringing be value-add addressable how market? of in to you're it client service to out that anticipate and clients do or of roll the way base do of you your then how it thinking curious, you some here? about

Sandy Mukerjee

Maggie. which morning at has is he Aric take shot Hey, question, good Sandip. question jump I'll if the This to is your and we'll first ask in, good anything additional.

true one Maggie, It's products. that's of a they the overall solution typically said deploy at customers, look just they first, you vendor's this So that in that multi-vendor is market deploy. don't been one when they things,

given we we nature are distribute, vendor multi-vendor, and technology are we agnostic. most everything are TESSCO likes by agnostic, for we the somebody And part

value you think providing services, everybody. can value when So provide we about added to

point So that's one.

Point two, program to APIs. being in gave of additional pain the build some I solve on capability terms bring expose of to software be examples to, top us able earlier that want that overall to and calculate and able of points. our We

pain points Additional follows. as

protocols, the really vendors. deployed you will those being just you So XG, more CBRS, see, think software-enabled active first in is, and from different all area beyond electronics, lot of physics devices changes of a types as it's that

that with a require there focus. will our And monitor, identified more customers need we that with topics warranty manage, larger set to have of be around, upgrade, manage a

able is we multivendor, needed in to the a value-added marketplace. So that are in way, if much services, provide vendor-agnostic

So, and that's we we have wanted that come to on. one area to focus believe

TESSCO as Beyond around automation given the at have how in cells requires pain capacity for have networks small which and we overall get doing not that provide I have believe over to you been to get what that, we been tackled, these described and areas we XX hitherto points years. expertise, coverage constructed as

exploit deliver we the that services. and intimacy So need domain pain customer to we these with it's customers have that our to the points expertise,

multi-vendor. services have been industry know, in always and you short, software in about So this being

will in play see carrier space. You out the this

industries also You will this that. to TESSCO see in exploit the think and we is out vertical play well that positioned

you very That's forward drive move add? will upon strategy. to one another. Aric, our anything success iteratively and We focused want

Aric Spitulnik

a you No, answering did good job of question. I think that

Sandy Mukerjee

Thank you. what asking. hope into gave you we insights Maggie, you were

Operator

Nolan have question another Blair. We William from from Maggie

is open. line Your

Maggie Nolan

the thanks you that about thinking that you are investments kind in fiscal in the how weakness are And and then considering today, of year, -- segments about various expecting XXXX. the given you've earnings to the that you see the strength and that helps. outlined next Yes, positive talked

Aric Spultnik

growth say, Maggie, to guidance. XG we're obviously on we're not drive today for give investments technology didn't of and EPS am to our are now, But since this at that kind and comment any us. about for optimistic to kind would for of XXXX year we other any the point. I going going next giving I figures very next not year right guidance

Sandy Mukerjee

about long-term. It's the

Maggie Nolan

if Yes, general you share any of that? directions be would long-term can helpful,

Aric Spultnik

Long-term, Maggie, are optimistic going Company to we the we for quarterly is, specific very are term about you know, opposed cadence. approach we long-term value outlined, to the the longer reasons as and shareholder take

projects lot I drive talked from some a intensities think quarter. about Company the has that of the things to quarter

We have a talked from about sales perspective. pipeline, focus

want All and through things you right, deepen the on, long-term, we strategy. take and of these focus that's we sharpen our where as to

Maggie Nolan

sound the some that that. your optimistic there terms you're particular, when as of the piece you Understood. And of that then sense things the see you some behind the in that underway expectations in think business for showing about about, in including, really we of business, are any all that to Is stabilizing you've start Retail talked P&L? and initiatives timing, there that good around up

Sandy Mukerjee

I right. I answered the fiscal year, Yes, when this he previous we suffer this when mean, Aric alluded do we question, Maggie. to this think, year-over-year year, comparisons,

we If go fundamentally just quarter. by you from a different a top suffer every large back from year one perspective. talk comparison very dominated year-over-year was there we a line a it's a customer today, because And that customer business mix, ago, about different

one. So point that's

bringing when we line much are you is the at this on discipline is it business, an size that the this look basic to given smaller two, top Point table. business associated annualized basis, a what with business a

on inventory buy. you to more what have You be much focused

what and much more on focused more focused turns. much be to have you You have be you up, to on SKUs build

the At you around you to inventory the this nature if on of shelf, the vendor-managed so business same inventory, is need time, have will.

color But a doing. to focus Hope it the terms in into get it's balancing processes shape given I'm this are confident you wrapped we have this the tools, we'll analytics at. the the difficult the be. this brought, we So, gives specifics things and place, that we needs of have that

Maggie Nolan

Absolutely, TESSCO to that How Last responding pulse your What's and various right segments? one internally me. culture the seeing changes the the at employees changes going are -- the given thank business now, on for on? just are you. that they're across there

Sandy Mukerjee

pleased, talked fashion last the plate. I team very that the brings the TESSCO during to I'm with about right, call

I to received. cutting niche wireless. in cord industry for carved want have what to is is be for everybody. in Everybody's happening focus ourselves good everything think a we The for don't the us. on well and is We general focus the

change the the will team will focus, terms confident that process, balanced leadership discipline right. the be And with wins, remain excited. a In I'm of right right new the continuum,

Operator

are time. presenters. over I call There back turn the further at no the questions will this to

Sandy Mukerjee

operator. you, of couple with thoughts. to want leave Thank you a I

we embracing of are basic and inventory, drive focused terms e-commerce we around improving very are forward. us disciplines to our site, modern modern the First, business in tools, technologies

in Second, continue VAR refine to the us. It our build we and we and will profitable making progress are upon for segment the most segments. industry is

progress, reclaim multiple that, So, will we And the we the differentiation be ways. once to in it as confident back I'm TESSCO, we make as segment. in pays able had

opportunities. decisions for the as out which invest call, the of excited when focus explains we to about bring been and capacity these to opportunities I'm section. we our during create through excited the Q&A others And able make are growth of us some in to frankly, about went We came company us, ahead to a we've

gained the bring continued our for I also TESSCO and Finally, in Ventev the business team passion very the partners, table support position and thanking OEMs, and position overall pleased excited day. our every the with to your want above Infrastructure and I'm team, they TESSCO our segment. the our established, has customers, the by all to investors, the end Carrier to for about team

on you today Thank the for joining I next speaking to and look quarter. us call forward you with

Operator

This concludes call. today's conference

may You now disconnect.

Tessco (TESS) 28 Jan 202020 Q3 Earnings call transcript