Tessco tumbles on quarterly loss due to impairment charge, pandemic hit

Tessco Technologies

13/05/2020 18:38

** Shares of wireless equipment provider  TESS.O  tumble
~25.3% to $4.81 - set for their worst day in four months
    ** Company reports Q4 loss compared with year-ago profit
mainly due to a rise in inventory, returns and accounts
receivable reserves to account for COVID-19 related uncertainty
and a goodwill impairment charge  urn:newsml:reuters.com:*:nBw428P4xa
    ** Company's retail revenue dropped ~43% after the pandemic
caused retail store closures and reduced foot traffic 
    ** "At this time, while we do see some build delays, we do
not expect a significant impact in fiscal 2021 (to public
carrier unit) given the plans and needs of the carriers" - CEO
    ** TESS also suspends its dividend 
    ** Stock has fallen ~57% so far in 2020

 (Reporting by C Nivedita in Bengaluru)
 ((C.Nivedita@thomsonreuters.com;))