TESSCO Technologies Inc. (NASDAQ: TESS) stock gains by 17.71% at last close whereas the TESS stock price plunged by 5.90% in the pre-market trading session. TESSCO Technologies is a value-added technology provider, producer, and solutions company in the wireless infrastructure ecosystem, servicing commercial clients.
TESSCO Technologies has released preliminary financial data for the first quarter of its fiscal year 2022, which concluded on June 27, 2021.
- TESS witnessed strong momentum in both their Carrier and VAR and Integrator businesses during the first quarter. Overall, they estimate total sales of about $105 million for the first quarter, representing a 9% year-over-year increase, with sales in the Carrier market projected to increase by nearly 19%, and revenues in our VAR and Integrator market expected to increase by roughly 2%.
- TESS sales bookings have grown even faster, up 37% year over year in the first quarter of fiscal year 2022, with the public carrier market increasing by 64% and the VAR and Integrator market increasing by 21%. Improved performance across several of its key areas, including Ventev and Tessco.com, drove their success in these areas, and they anticipate their expanding backlog to reflect into greater revenues in future quarters.
While TESS anticipates a pre-tax and adjusted EBITDA loss in the first quarter, they have increased their focus on cost reductions and foresee a considerable increase in overall profitability this fiscal year relative to fiscal 2021. Tesco’s board has approved a new operational strategy for the fiscal year 2022 with that aim in mind. The following are some of the financial highlights of this operational plan:
- Full-year revenue of $408 million to $442 million is expected, up from $373 million in fiscal year 2021.
- Full-year net loss of $6.5 million to $4.1 million, down from $14.3 million in fiscal year 2021.
- Full-year adjusted EBITDA is expected to range from $0.0 million to $2.4 million, relative to a loss of $12.8 million in fiscal year 2021.