TESS - Earnings call transcript Q3 2021 | Tessco Technologies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q3 2021 TESSCO Technologies, Inc. Earnings 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. now speaker to today, is over the It your to Mr. Instructions] my turn pleasure call [Operator David Calusdian. Sir, please go ahead.

David Calusdian

Good for morning, joining you TESSCO's QX everyone, XXXX Conference and thank Call.

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

CEO. recent may differ and call Securities risks cause the materially introduction, the be Form Company's TESSCO's with a With like involve and uncertainties, filed I'd periodic statements over the to concerning can most and Exchange factors that a Sandip? number Information such of Commission. XX-K that and other those difference found Sandip turn from public results reports Forward-looking discussed Mukerjee, to disclosures, today. may and TESSCO's President TESSCO's in including

Sandip Mukerjee

Thank this and And safe are David, during morning, I good you you, continuing and hope us. Thank all families ongoing your everyone. for joining stay pandemic. to you

TESSCO communications team health customers to provide tireless and critical to crisis this dedication with in great navigating to effort public meet needs. Our solutions show continues

with While optimism. the ongoing us still project related delays, we rollout provides seeing are vaccine significant pandemic some

year-over-year progress performance. our capabilities our aspects fiscal second, line industrializing results three-pillar we our In the you at quarter, innovator; beginning on improve and an industry our the distribution in investing for business; substantive improving we while includes; growing as value-added our and significantly the of As to to offerings and third, first, embarked Ventev on strategy customers. all make know, our while a drive This year, strategy, continued complexity services of strategy bottom profitability. and growth simplifying value-added scaling and pain operations points managed to third

our the completed exit important business, retail an we from step quarter, subsequent and our turnaround. sale in the During

IoT utilities, such market to our certain capture mining, carrier in integrator business, sequentially, we with and gas community new and continue verticals created oil and VAR as relationships grew partners. industrial We and share ecosystem wireless

overall product innovation in we due managed And market the on additional beta However, and testing. pandemic. we packing. remained customer to finally, offering entered the services sluggish and value-added as our our business announced have made Ventev We progress advanced

are industry. assets As the solicitation, quarter that on This in sales income the of to operations. $X completed and CBRS The recognized on a offset result LTE, higher sale so, doing includes focus is which we this all allows private of In million in infrastructure exit solely of deploying to the our resulted XG, technologies, each including significant construction discontinued retail consent retail unprecedented essentially other. amounts gain TESSCO faster-growing IoT. capitalize new two-unique rollout margin, a wireless from and widely included the

a As up process, included continuing consent result incurred consent December, we difficult of unfortunately, the and operations. $X in wrapped solicitation, million which worth solicitation is in which a of one. long was approximately and The expense,

on future, about is TESSCO's executing strategy exciting we are the board the However, capitalize unified opportunities. resulting on optimism to the now growth in and

Before reported our I each the markets. will our progress through regarding third you in during I in QX speak walk our performance of our strategy further quarter,

VAR start me Let integrator with and business. our

providing these be It is them predict issues our customers VAR and their service. all customers to some experienced working challenges reduced be of significantly aggressively includes venues and VAR return exactly carrier as is to by verticals our resolved, uneven government workforces business key delayed to Our and ecosystem. limited impacted the others while with yet key business rebound. team projects, business by our This when light temporarily continues will access continue Many caused delays. to integrator in have the a to growth, approval pandemic, market with difficult exceptional wireless but infrastructure of was have outside the

radio hardware, as initiatives solutions, Key variety providing States. of also very sequential The of positive resources with mounting infrastructure of to and station underserved are modernization will mobile-fleet geographies. leveraged as utility products, and both, to other automation brands wins to are and rebound, land-mobile distribution drive power and fleets seeing products segment a and quarter focused solutions and adoption mounting the utility as some several installation. where continues that such pandemic few. funding both side, bringing encouraging projects The I'll Ventev we vertically initiatives data base with are our well in products for wireless, driven floaters, K-to-XX enclosures energy and drivers drive for coverage antenna readout. solutions, other the antennas we base key outfitting distributed CARES a clean we education post for broadband modems, the by Act force and and digital community United energy station include communities as a this On believe growth driving and We the highlight such the grid sales for custom mobile lead XX%.

be Demand to and Our increasing remote meet Federated solutions We key in and monitoring announced anticipate truly states. public DAS provide these both see increased growth partnership number our and value-added strong monitoring TESSCO that many construction for of is Public with VARs Ventev regulations enclosure. This will safety strong, solutions partnerships, continue in of relevance the presents differentiated will will to include our of companies will which owners, Mandate, resellers. distribution Ventev building the with guidelines. demand play Wireless bring to a for automation for by to In quarters, solutions. strict working a safety Federal to in a TESSCO We're ideal TESSCO projects, DAS and remote with reinforced gain and complexity combination upcoming value role. recently we growing the top customer portfolio, opportunity is DAS OEM helping installations. expect spend

share has our market, the ecosystem as part carrier consistently TESSCO in this carrier I'm the not public business. pleased the that impacted as say and been of to capturing to VAR market. And integrator is Turning public

sales grew year-to-date X% pandemic despite delays. some XX% and Our this year-over-year quarter,

this significant are share continue quarterly will be opportunity market market growth exciting. to fluctuations, in our this and gains While market subject to long-term

carrier the due ecosystem wireless with of engaged in supply by the competitors, outstanding recognized the needs and strength to have the production address in we that which and our our Our developed engineering companies relationships construction infrastructure. is expertise, our proprietary logistics management are nation's unmet and capabilities, chain

position AT&T turf increased a two-year included Our another share share growth top-tier vendor a quarter this contract vendor. one largest new of with vendors with top-tier and prominent AT&T new with the a with turf Turf vendors,

We share with other also top vendors. successfully maintained turf our

kits This quarter, the and OEMs continued these we by kits over XG expect providing with saw few increased installation demand next years. for opportunity directly

We continue to make customers. tower progress good with our

towers, on-site also we for During enclosures with the tops top Ventev of and provided working carriers gaining our equipment among prototype for Ventev rural market OEM manufacturer lighting solutions enclosures prototype survey. monitoring, with site share We're closely integrated this quarter, for partners.

discussed from excited we We the are that and to XG adoption new continuing see of technologies, the long have to we increase. spending see opportunity

ongoing XG to share XX% XG, fact, expect on estimate number third and investments that we revenues In With by quarter of approximately our improving projects. our carriers relate to that carrier we market increase.

the which and Company's earlier business, to of December, the device we decline very Ventev retail mentioned business, as retail relates Prior our it of I to month, products. well mobile brand inventory announced we retail sale in and accessory managed we prior last quarters. executed closed of our Regarding discussed most in the as the that, on have as

own and outside the retail You brand should of give to note color you operate call. the continue more results in the will Aric that will retail. later we Ventev on

transformation, of systems are and enhancing and that undergoing our an stated previously modernizing platform. enhancing core consisting have IT We we digital our

end Our our efficiencies many operations. modernizing core and systems streamline we work elements after ultimately produce on of our system us expect updated launch many parts fiscal and will our enhancing and shortly the in is well, The to progressing year. our procedures allow of back-end to

We service. benefits also in customer improved expect

to We have several digital made improvements our platforms.

related the industry pages to earlier. I referenced landing three-new vertical created we initiatives example, For

As part effort gains and inactive those in to resulted this we group with piloted of select marketing new expansion specific a guides. have and We sales efforts, customers. of customers, and published small solution our significant content several market campaigns

interviews website to gain our continue they greater conduct refine needs. best into and to insight customer We what and input service want how to has enhance website. their This as our require we customers our invaluable been

continue our each three-pillar area. Regarding progress we strategy, to on

business. relates core The first distribution to pillar our

market share discussed, the have strong to are carrier the business, we I impact once market also we rebounds. our expect believe in gains we and seeing results As progress VAR the

funding. an now product XG many introduced map antennas to capabilities wireless the antenna CBRS numerous logistics of our industrialize Recent Act utilized provided and large by outdoor The Ventev the for Ventev been LTE, product Under in rental innovation. second broadband road headquarters our professional stadiums. our this U.S. of is agile We one related facilities, modular, scaling Seat launched the world's pillar to driven progress We designs. our and of of CARES in have sports deployments, WiFi Enclosure the largest projects, sold and driving number and flexible and includes strategy Wedge operation, football We community and soccer a has supporting XG, including spectrum. company. contains mounts

delays gaining Product traction of project. nominated by community The was of obscured our with Cisco gross from revenues This lower one with Ventev the is project greatest Design-In antenna industrial in the market. which We're Year for that by the impacted wireless VAR some year-over-year warehouse in and Our impact finalists progress Awards. the coming Program, this WiFi the margin IoT quarter, five resulted

to revenues strong, is pipeline quarter. our very Ventev However, expect in in the fourth rebound we and

resilient centers, managed football our as financial enterprises. and revenue. the DAS and communication that, service Aric stadium of Aric? system our points an focus wins, also value-added county-wide fire this a to Our With network large development will between recurring our and for for services, out and of has a generate on customers. complexity highly of broader third RF high-margin designs innovators pain services We're pillar review. industry-leading our solution dispatch for power building over agencies provide that and will and in to a utilization and ultimately high-profile such of design for to the array two-way large resolve design expanding resulted number call in reliable turn is We're their offering I

Aric Spitulnik

good everyone. Sandip, Thank you, and morning,

we very no expenses previous quarters. to allocations corporate As retail shown, discontinued The of in requires report exit operations we operations. Since any you begin discontinue this Retail quarter quarter. reporting this in this charged sale expenses and represent seen, operations retail discussing will than X, closed business direct only I retail compared profit charged period two-third the million or $X.X normal by retail from the that and any on support activity with December about quarter and $XX as SG&A Gross our have $X.X discontinued activity. was was expenses. comparable million. of million looks any was $XX.X to on The the were quarter. different revenues this million last

$X a pretax discontinued retail $X.X the million, from generated operations sale gain the Additionally, million. from of $X.X income was was million. and Therefore, net income

we retail-related will not remaining the from some to be but expect not forward, have Going revenue retail the was inventory sell-through we material. part we sale, do of that that as

for We discontinued as additional well. and will ins outs as transaction any account retail operations

represent customer part, in payments Voice inventory you most sell-through. to and will and from that the Ventev on Comm For returns

quarter down continuing Gross the in operations continued third this market million to market. of the were fourth compared integrator million the gross with customer portion SG&A Turning continuing product in XXXX delays, from fiscal due growth XX.X% was revenues, market expect of compared quarter a in the to $XX represented project of pandemic in VAR for quarter. fiscal by $XX.X rebound but totaled to of larger timing one third year. The the million from was lower and to in with of the the while profit to million and see in quarter the Ventev compared were strong Gross were revenue for margins quarter $XX.X down to challenges mix. sales Ventev with XXXX. the $XX.X in revenue margin was $XX.X due million was ago. operations The overall prior sales. carrier we a year the decrease XX.X% million expenses quarter. public VAR year business, offset due third Lower and last quarter related compared the $XXX.X carrier margin

the in release, solicitation incremental mentioned we $X costs. did million quarter this As consent include of

a income the loss taxes fiscal one earlier. before this Excluding The be loss remainder SG&A profit consent costs, increased was compared $X.X the those discussed third I million is year X%. loss the majority the the of was before million related lower vast to costs, to quarter can ago. with down $X.X gross of income In attributed of XXXX, taxes

the Moving compared to the $X.XX per with retail discontinued last year. continuing share net $X.XX operations with was this loss operations, quarter

We down balance have accounts retail. is of is sheet. as significantly due the we to continue of healthy up sale collect. Inventory retail to $XX million maintain a Accounts still slightly to receivable receivable

that the fourth during We majority to expect happen of the quarter.

$XX of current end the with a paid up of mostly our of credit, million down million, balance will had be from retail-related liabilities million at Excluding the that in are line last on ended We $XX about slightly. QX. liabilities line also quarter $X the quarter. credit the We quarter of in

our year cash this a a to fully quarter critical our on commercial tax now $X receive and for XXXX quarter monetizing business. us was to fiscal strategic Exiting this as step, closing, related to retail a also with and key We focused million roadmap. are respect we expect In return. refund the

Our run for Sandip to rate further overall commentary. goal is this I sales our will turn now now profitability. over and improve to

Sandip Mukerjee

be a Thank you, Aric. continues the pace a regarding challenge. macroeconomic to Visibility recovery of

However, additional the and continued we project anticipate XXXX. easing gradual of calendar in coming XG from expect delays year growth

three-pillar technological progress managing doing make time, the of our strategy, no and to growth to exponential ahead. market ago. pillar At years would our our one job to conditions Under term industry the the that up will performance. that continue is with team We on same capitalize a near drive we have each respect good in imagined TESSCO advances a the in setting are year and the

in forward continued all expect our growth we Looking am we strategy: go ahead strategy to questions. opportunity reporting respect three-pillars with Please confident to place our the to call the to to right will look have ahead. fiscal XXXX, Ventev Operator? we you. open seize this year that Distribution, I and that, of for progress Services. With and

Operator

[Operator Nolan Instructions] Your question from Maggie comes Blair. first William from

open. is line Your

Maggie Nolan

update. the for Thanks

in share? do and that say to continue So think capture you're What you the capturing share it momentum ecosystem carrier takes you business. additional

Sandip Mukerjee

Maggie, focused joining, plus that sure our carriers. and build an carrier top out few thanks consolidation opportunity the spend largely all aware We're efforts and underway. far. for some that just the with pleased reasons going question. and not of obvious to for have in other carriers last has a quarters, I'm also you're happened this the number so for us a market rural for to that thanks over refrain entrants, We've new regional large provides discussion the carriers. There's had of

it Maggie. in So exciting, opportunity, terms of is

our management, systems. offer, we've materials, competitive We of have what believe logistics, and told what completeness the including I been supply our created a very our program is distribution our bill chain and of

So I'm confident this we will path. continue down

Maggie Nolan

have integrator, and -- Do of projects for you the backlog then sense of hold a there some on VAR while. have been a in what have is? level projects that VAR And been for

Sandip Mukerjee

for months. specific know, for backlog, numbers, I have many, give mean the color. Maggie, availability sites, It's the as I'll on funding you that pace projects been you don't to of but specific not those hold just challenged. qualitative are We it's provide that many

progress. So progress there is is but slow,

is Utility, industry, right? So power that the in for and positive lot point of energy the grid to we call, in actually as of outlined sectors, grid, a projects. dynamics are one. driven rebound, bringing seeing some I drive of that's unblocking alternate some some Point clean the two, on sources that by modernization,

beginning gas progress to we Oil seeing rebound. progress mining. in seeing are So, is there. and We're

sluggish it optimistic positive one seeing and what used be we compared market signs, will to -- but it but perspective, this ago, space, there year a this definitively broader is be we're the that to So signs. positive still from are slow, are may

Maggie Nolan

from integrator? business Okay. carrier is that then exited the kind now And retail percentage comes for that the VAR vision what of business, the longer-term versus you've the of

Sandip Mukerjee

but both, In a our a lot un-complicates with apply our be we it retail from attention exit expect how investment, it simplifies to candid capital, we not company. mean, IT We you, simplifies how from the growth improve in just focus perspective, of I our Maggie. processes.

going about have a well us own. talk let trust a From for a that segment So as as -- its integrator VAR perspective each forward. on will me and market

able we being participated. board, processes, cut to vertical industry into Just drive that that practices, the business business in cord we adoption wireless every see drive the wireless in across

not able deployment supplies, this power construction some just software distribution growth be So, there. these we post-construction mounds this business, proprietary much see also and closures, devices opportunity And makes is all Ventev, for manage to see and it's it's then much, I'm of of And confident that our manage of business. services will software-driven our to our products, but simpler. all and where our we

demand and stand-alone growth very the that's a and perspective, kits. others XG spend carrier And evolution qualitatively, will the you and is beginning, to XG on before request right? be optimistically it. know, but still forXG as see to seeing Industries So XG, and was deployment in XG say call beginning XG XG the we VAR just Maggie, conversion are XG kits should a decade-long a as I from perspective. project From

both markets. So, about I'm positive these very

Maggie Nolan

good. Very

expectation in for is growth And fiscal so the of that that positivity does that XXXX? narrative, kind preliminary

Sandip Mukerjee

Ventev. of where We perspective. expect about growth, Maggie, earlier, we from excited our services as strategic are said I all distribution, a initiatives, We're three from

We just I feel market market. FY VAR that the 'XX. the industries business and And I how contribute segment expect and carrier about in from see the shared a to to perspective,

the rollout what vaccine this So been. very and 'XX economy expect fiscal bit has help of yes, the year easing of little be than on pressures to from you macro a different with

Operator

Titan from Bill Your next question from comes Capital. Dezellem

open. Your line is

Bill Dezellem

questions my start with I'll Ventev.

wins into Cisco. you press your with about market that and those be? the in release please Could more discussed You could how detail just go significant

Sandip Mukerjee

thanks was will announcement back question. the a Cisco to as of play. part run partners we and an and for address thanks to that announcement IoT Bill, the you we made of ago. be take solution across integrator one they by Cisco, the two-quarters Design-In an joining, for VAR and world ago program overall Program this their This the with places we most Ventev to in did that's I selected two-quarters needs is built

at that, we're pleased reporting quarter, this said remember last how into these translated was very actually orders. You initial were I And purchase quarter will I announcements revenue. quickly

this pace you the quarter-over-quarter from a So are progress and progress with optimistic. think, I partnership, why see and we

So one. where Point are segments: community-wireless point it's that's being we applications. demand from one essentially the two, seeing segment two today,

We access to demand. but we giving lot perspective, the Internet seeing announcing are specific are geographies not of digitization of an And a underserved is projects a IoT. second from or color from think where industrial from

routing, automation environmentally-friendly and driving answers warehouses, think And in where wireless enclosure the beginning. large lot enclosure need So question. where perspective, just I your they enterprises, Bill, are hope seeing we is we aesthetic that's in a demand. that and this of

Bill Dezellem

you It Do to does that believe market how for large you want you? degree. scale a to be could

Sandip Mukerjee

guidance, to where not within are be Yes, of not verticals and contained perspective, revenue success we we this not that. continue adoption are just -- giving expect I beyond the from and timing but a achieving revenue in, Bill, but just

Bill Dezellem

you. Thank Great.

large. How remarks, opening is sounds could Let you're big be utility with to I the describing Because may, market. market? it me that your switch, quite if like

Sandip Mukerjee

so. believe We

be The and be of energy. And overlay to grid about here faults to energy effort certainly customers. are alternate provide around modernization, part to able the sources be quickly how to to detect flows independent the grid response of their to to the able wireless it. the large to adopt to utility able be modernization for just-in-time and through dynamics grid carriers includes we're underlying being networks able reroute regulated excited So,

is through the lot as is is upgrades. fairly So you the States, infrastructure of might A going grid, imagine, United in this that large.

us, about. So, excited in front of we're the opportunity

Bill Dezellem

that forward? stay that thinking should one each it believe something a and this almost growth Or has to continuing Is of business be solid flow about lumpy? you be is continuous going quarter will we

Sandip Mukerjee

remarks, two Bill. So

part see a if mobile solutions started, First, the the There and overlay the from IoT to to that perspective, dispatch be is manage business right? this grid. a are getting just talked And are of this grid opportunity also we continuum, I industry. about fleet

this So perspective, from be business a will continuum. a

is, make projects to these water like construction boundaries. second cross I mean The all I point I mean, will tend projects,

our the point So mean in by first lumpy, that by completed, if by project and fiscal I to will this I on that you what needs continuity Yes. completion boundaries is and underscore of need see be Revenue But not the customers. the demands quarter based business. but

Bill Dezellem

the Would with your Great. we question the bucket? referenced you you And remedial in make then also Design And Service doing more is, that? to in talk money What strategy? release, I you strategy. that press are how that do guess

Sandip Mukerjee

call So, we the two in discrete earlier. there items release and press are referenced the during

effort our resell the either based customers. software customers from can or side and our So, that consume create first services to is to innovate their

customer feedback, We through our What are is, testing. to business are et dashboards, means models, finalize beta utilization real our on by infrastructure our cetera. getting real going customers having flows, we data that

of out FY project We end part in to of fiscal then 'XX. by the expect to these this able be this services and roll year complete the

aspect. is one that So

design attached is the attached distribute. Attached, we meaning, products to aspect second The services.

So attaching typically that design we I'm RF-design products. are services. have had power TESSCO light warehouse, services RF you previously and we've our if you getting services services. we require much up you aggressive also of are more shed to trying a those an or These design that market and tower about on, to those a giving an are capabilities getting to but just example And design service, light

to customers sell. arm, contribute they attached create revenue the positively a we and doing products from helping all an And the helping of configurations, RF customers we're above. an create to So, design, these are perspective,

Bill Dezellem

reason Or to And that separately service? gives come is buy then paid to products? to customers you for that something were a the that TESSCO just

Sandip Mukerjee

and how certain on for to we differentiates made paid is of This services. kind but products of definitely we're customer-by-customer it products, add a capability, distribution basis, our these decision basis. deal-by-deal Both, also value distribution

to Our monetize portfolio. objective is this

Bill Dezellem

I Would a asked know step I've like to queue? in you. you or I thank a few back have Great, more. few continue me questions.

Sandip Mukerjee

don't are and light questions I Bill. queue, into the business. help always have into your I shed visibility interesting our mean,

I will here. us So, ask help to operator the

Operator

questions have queue. on two the we Currently,

Bill Dezellem

into I'll queue then. the step back

Sandip Mukerjee

Bill. you, Thank

Operator

next comes Your from Tim question Capital Corporation. from Call Management

Your line open. is

Tim Call

Congratulations on the successful divestiture. Board reorganization retail and the

Sandip Mukerjee

Thank joining call. for you the

Tim Call

calendar growth both previous-three a and sequential carrier is new there and the in and reflects products? from sequential in in gains? integrator. the both adding In years, was markets of think year or revenue unusual Having expanding normal this decline strength. VAR revenue public market of early you these XG stages new divisions Or this in cycle Do just share

Sandip Mukerjee

to first, Well, the and TESSCO I'm to thank opportunity the going question take your team. take

and of with Never have. a believe team business in, for team, helping the and underestimate turn staying For this we the focus which proud power I of around. it I'm the

So that's one. point

technologies, have be a XG, advent XG XG In seen and will and new number adopted. cells the the model, enterprises, for this on what businesses, with adoption for XE increasing on availability technology new construction we things market of these brings as the The this calls, small a opportunity, in larger case, a technologies attractiveness business increasing of Second, are being now and emphasis discussed wireless, Tim, spectrum, from far we've carrier that side, I new of more together, industries intense of IoT X, prior. different WiFi WiFi And right? type to of with like is come have earlier than mean, construction.

alluded it's highlighted. all focus, I So, offer. I -- mix we the our have a a think, you of opportunity it's differentiated the It's And all strategy. simplicity market our X. Tim, and I from of things to believe

Tim Call

to vaccine see before sequential pandemic terrific swing. is growth recovery and even the get in It full we recovery

because other moderate, With down should SG&A go growth the we SG&A absent should much divestiture the of of retail in expect areas. divested? to How down, being should retail, go

Sandip Mukerjee

to shed broken question. we've I'm Aric? help to out think operations. color to more discontinued ask your me in the going Aric I Tim, this

Aric Spitulnik

see Yes, to we the financial direct that without SG&A statements is you presented in the related yesterday expenses the retail.

about million is for discontinued retail in line. operations that's $X the there SG&A So of

number. to streamline pulled going business away expect been for other to we more at gain more areas run we of SG&A expenses the on as simpler That the chip ongoing, gets out already do current efficiencies. Company and forward that standpoint. said, that rate that's and the So streamlined, continue being number, can We reduce looking and

Tim Call

Well, can pandemic. I congratulations go don't in companies and any don't future they portends December major of usually that's again. Board we this show growth hopefully, as an reorganization, when that amazing. other that a exit know through stronger even quarter, sequential And just divestiture the

Operator

Your questions your next from question from comes Steve Cole Mangrove.

Your line is open.

Steve Cole

added that how building what ago? future? the sales in year the businesses, kind translated one like from your two might Yes. if of had look you're these different had out how it's year the different or little this might speak that on and engine business. a into parts over for you it really have couple. looked of than curious that's I'm a look business curious could like additions, -- you've last if I the I'm bit about also you you what a And of couple key people today And

Sandip Mukerjee

Steve.

staying support. So Appreciate our thanks call. for up to your attend

and of two Ventev April, people XXXX, the heads believe calendar around I we are team; you referring are So, Thad of sales our taken who presidents our to who Eddie on responsibilities. Franklin, May has two additional Lowe, and brought leads vice that some on up

you Let progress. about sales sales take through you me strategies and asked

our well. Ventev and to first, the include remarks broaden overall that address me let as solutions I'll So and

So et year the end directly. users, users Company operators, strategy, ago, and private reversing we VARs, as on will end talked resellers focus the first, from you perspective, about one focus About system not much sales and cetera. regionalization, calls these had focus the remember on a rundown to of a on that path self-maintained bringing direct users,

we So, we a lens have have on an chance specifications. projects, to drive early

We build with chance have through VARs. partners directly early sell end more whether have to we or the to a user our and inventory complete bonds

down. doubled once a very coming It's things, strategy pandemic. timing embarked have So, Eddy a nicely that up lined with on we with unfortunate of particular perspective, century all on have in we from these that Board,

I we believe, changed. from I critical the results, But thing the have mean, So that progress is are of a us. ahead perspective,

Second thing of focus is within and Company. the we've in just resources we've governance brought steam lot of makeup a terms development, allocated to more in where terms business

of new by this I we've it's attention, winning those has given us, resources. for breaking well. Broadening we not system. into for sort quarters perspective, integrator is -- in the strategy, project. that we as VAR of our few past, an spaces the We're existing is just go enclosure of and not to out the productization, when it by been outlined and as So Ventev sell and important way, on carrier all and TESSCO things the right Steve, our are opposed -- bandwidth logos, driving so building top to a segment this From ago that capability a mean, focus on and as

Thad So Lowe instrumental in has strategy. been driving that

and we driving leading we call we an solutions, with that our enclosure, increasingly want perspective. solutions, a road As under industry from the together we other design software stickiness, a makeup which discussed in terms I a from with that we services, from parties of value-add and map, distribute time, map the augment that get over very portfolio now of or perspective, bring good value-add customers from differentiation, have relationship antenna leadership, to from it's to products. road that stickiness capability. what we means pretty Ventev And are of full agile on our call, supply, and customer Thad's end-to-end that power third feedback cable of products

a with it's these the leadership of gentlemen So, effort. mean, I team always together team, two rest the

fundamentally helped. I and go-to-market we that are hope we go-to-market how with. what We reshaping Steve,

Steve Cole

No, answer. very that's excellent, comprehensive

more. add one just me Let

that You've the oil spoken be the out end market kind to teams curious, how things. some mining, other say, there might IoT that you growth, I longer are just industry you today? at looking into you're intermediate even potential? growth of at these some of but at looking looked have and not the greater areas verticals, things even the term, stratification seen some to different I'm seeing know Or are gas you've and as TESSCO now, pushing where there's called and let's you're and

Sandip Mukerjee

Well, vertical as discuss is we will are mean I way going and carrier call, our second market. on segment you one the answer this on short is and large VAR into every the deep give as Steve, integrator industry. I we call, this

the I gas, mining, mean, government and own Within utilities, and VAR characteristics. every unique federal think and integrator each market, pointing have as its government, oil vertical, you're out, requirements I

bringing to of to table. back call solutions. That's basis. perspective essence per And strategy alluded we'll to I focus of that these and So capture deepen we on on better the the perspective. from and helps to mean be an the end a understand during solutions and to the the and industry consumers ultimate more the of are focused technologies. complete our vertical us from a focus domain going directly I and that's user to build sharpen continue engineering what sales uniqueness knowledge That

Operator

Bill one for time Dezellem. That from will have last We be question.

Your line is open.

Bill Dezellem

in to circle I'd tessco.com. to? the that you've In what and do Would quarter update of is tessco.com doing results an you like previous leading the terms there. provided that, same are this you to to calls, enhance back

Sandip Mukerjee

don't actually progress. every but question exhibits Yes. onetime the We shared quarter, We some that tessco.com. Last our on absolutely wanted some address Bill, some I to tessco.com. to do It quarterly illustration we've intend take revenue of and we done things to a was will thing. give your about quarter, to the

the talked we mean, I we of reference, investments with the digital a platforms. part our as making progress and about just earlier call are So during

made around We IT project improved is further we have being with in we up overall store talked our to transformation are earlier infrastructure of to that we've where the business once The business headed. modifications call be follow to use to catalog. just tessco.com end-user our wrapped we've customers overall buying with their processes And progress cart our more to will significant in understand then able the their experience. underlying completed. and behavior, our we about the terms catalog attach better customers' and So concerns intimately processes,

at So high I'm a capturing level.

team Franklin and sales team this attention. sell, also like -- In appropriate It's Eddie progress, for of de member what giving like the it's another another means it excited terms TESSCO, details, to we're says, made recovery that we're substantive has that right? of like and about turnaround continues the and

Bill Dezellem

you. was quarter, Thank carrier slow. bit Last a

carrier Would that up how or it And may you discuss may please experienced you quarter, This quarter? was what XX% sequentially. this growth relate to not quarter? last

Sandip Mukerjee

So a few remarks, Bill.

market proud, the share terms been that commentary earlier we've come So growth. have what able think in do to through I'm of I in and of very should

you continue pedal, push if We that to will.

one that's So remark.

project paid it. I I tied I is in Nolan a or right? financial thing, in We maintained to exercise. projects either our this always is think then on a part That second participate that And complete. are Tim schedule The project that earlier, to construction the get question the aren't said of lumpy, construction I larger customers really carriers based these Maggie they get particular from a mean Call themselves when quarters. our mean, response one

So minimize this our we based just will will the we will on in. projects always try the be to lumpy. lumpiness But share, participate as number grow we of

in not quarter-over-quarter, particular of like better improved we are not seeing this than results. But segment. and quarter, historical but the the harbinger. it's integrator, definitively in margins, achieving what Aric terms as And So you are VAR said, carrier in best improved

Bill Dezellem

call? throughout specifically And lumpiness? gains this of is that share referenced the that that the to growth, is a traditional of you've also Or function sequential tied some it market

Sandip Mukerjee

It is both, Bill.

Bill Dezellem

this Great. XG quarter. mentioned roughly And of you'd revenues XX% is then that

revenues? to looking when than as will be XG or XX% road what's of Carrier maps, the Just at speculation at segment your greater

Sandip Mukerjee

what should I last I'm Company will I And this that tell predict, seeing I the you told -- am question. be today, Difficult just is mean, the to being what Bill. seeing.

a me address way. this So let in complete

are XG-related today, revenues. So seeing of segment, definitively the continuation Carrier a within we

So that construction has not gone down dramatically.

I thing we larger these sites XG, upgrading will are are the to made and cetera. carrier next related of equipment, directly, XG between is then Second with construction sharing the XG sites business with seeing, XG-only this the et sites these and XG third, and there ecosystem XG are carriers mean where is plus projects upgrades. And to I've and this OEMs systems, radios, these XG, I I through, are are construction projects. for right? as cells, XG site. I've decade-long intensity. larger time, you will said, decade, of density, And up which continue, small a have over as think, mean the cycles, know, smaller both distribution been

but predict, our the becomes how So, excited, others, revenue when and one much as technology we CAGR, newer growth which more we're technology, comes than see will. of if from about difficult dominant today, we're what largest based on excited to the you

Bill Dezellem

for you Thank Great. time. the

Sandip Mukerjee

Thank you. I'm assuming if questions, Operator, the also at there I'm no looking are clock.

So, this call. I'm head to concluding going towards

for the all those all I thank look to especially who quarter. you, with thank want ask want I had and a team of we're company, overall focus making you. progress I and the questions. next of First, to soon, chance TESSCO you you to to Thank as forward speaking of the a

Operator

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

now may disconnect. You

Tessco (TESS) 2 Feb 212021 Q3 Earnings call transcript