TESSCO Technologies doesn't supply distributor caps, but it does wear one. The company distributes communications products from about 380 manufacturers. TESSCO sells network systems products (broadband radios, bi-directional amplifiers); base station infrastructure equipment (towers and site hardware, antennas); installation test and maintenance equipment (tools, device repair parts); and mobile devices and accessories. The company also offers training services. TESSCO sells to wireless carriers, as well as wireless product resellers and installers, manufacturers, retailers, government agencies, and others. While 97% of its sales are in the US, the remaining 3% are made in more than 100 countries.
Revenue rose about 16% in 2011. The commercial segment, accounting for 97% of sales, was up 16%, thanks mainly to strong sales of commercial lines of network infrastructure and mobile devices and accessories. The consumer segment decreased 6%. The company has recorded a net income from 2007 to 2011.
Breaking down sales within the commercial segment, network infrastructure sales rose 26% behind demand for radio frequency propagation, site support, and broadband products. Network infrastructure products are used for constructing and repairing wireless telecommunications, computer, and Internet networks.
Mobile devices and accessories (cell phone and data device accessories that include replacement batteries, cases, and hand-free kits) went up 14% mainly as a result of strong sales to smaller resellers. Sales to TESSCO's largest customer, AT&T Mobility, which accounts for about 26% of its revenue, were flat in 2011. Most of the products bought from Otter Products, which accounted for 13% of sales, were sold to AT&T Mobility. That company also accounts for about 47% of sales of mobile devices and accessories.
Installation, test, and maintenance revenue fell 11% because of lower sales from Nokia, which ended its agreement for repair and replacement parts in 2010. This category's products are used for the operations of wireless communications equipment.
Private-label products -- which can compete with other branded products sold by TESSCO -- account for about 10% of sales. A large share of these products are made in China.
TESSCO was founded in 1952 as an electronics distributor by the father of CEO Barney Barnhill. Barnhill owns about a quarter of TESSCO. – less