HUNT VALLEY, Md.-Tessco Technologies Inc. reported second-quarter net income of $1.9 million, up from year-ago profits of $1.7 million. However, revenues for the quarter fell 14 percent to $118.7 million from last year’s $137.6 million.
Tessco provides the wireless industry with network infrastructure products as well as mobile devices and accessories.
Despite the company’s falling revenues, its chairman, president and chief executive officer, Robert Barnhill, called the quarter “strong” and said the firm is “making excellent progress on the achievement of our imperatives resulting in 48 percent growth in commercial and government sales and earnings per share of 44 cents.”
The company said it would work to increase sales to its commercial and government customers, as well as diversify its customer base in order to avoid over-relying on too few customers.
Barnhill noted that Tessco repurchased 633,000 shares during the quarter, largely as a result of one transaction with a large former shareholder. In addition, he declared a stock dividend of one share for every two shares owned by shareholders.
News of the earnings pushed Tessco’s stock up $1.45 to $37.05 per share.
