TESSCO plunges as revenue falls, profit disappears

Tessco Technologies

31/10/2019 19:31

** TESSCO Technologies  TESS.O  shares on track for biggest
one-day percentage drop since April 27, 2012 after reporting
decline in revenue and break-even on the bottom line for fiscal
second quarter while withdrawing previously announced financial
forecasts.
    ** TESS shares last down 18.3% at $13.14 after falling as
low as $12.77. Trading volume exceeds 5 times 10-day moving avg.
    ** TESS said it just broke even for its fiscal Q2 2020
compared with net income of $1.2 mln in the year-ago quarter.
Revenue fell to $141.8 million from $158.6 mln year-ago.
    ** TESS said its public carrier business declined slightly
y/y due to project delays and noted that its VAR and integrator
revenue were down 6% y/y. It also cited weakness in its retail
market 
    ** Citing the weak Q2 results and difficulty in forecasting
results for Q4 it rescinded previous guidance but said it
expects positive Q3 earnings. Last quarter it said it had
forecast aggregate year-over-year revenue and earnings growth
for the final nine months of its fiscal year.

 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))