Tessco Technologies Inc. saw 59% growth in orders from public network operators, as it transitions away from a third-party logistics relationship to offer full wireless solutions to network operators.
Revenues for the quarter were $147 million, with core revenues up 5% year-over-year. However, the transition impacted overall results, with total revenues down 26% from $197.2 million in the same period last year. Tessco has to make up for about $213 million in annual revenues that used to come from the discontinued third-party relationship.
The company’s Ventev Wireless division, which manufactures proprietary wireless products including mobile accessories and mobile infrastructure, recently added a new line of high-density Wi-Fi antennas, following on an earlier introduction of 802.11n/ac antennas. During the company’s recent quarterly call, chairman and CEO Robert Barnhill said that Ventev’s orders grew 22% compared to the same quarter of last year, and the company’s overall orders from network operators was up nearly 60% year-over-year.
“The strong 59% growth from our carrier and tower owner customers is a result of the aggressive spends that they’re making to enhance their systems and meet the surging demand for wireless broadband coverage and capacity,” Barnhill said. “The market is very strong right now, but we also believe that we’re being successful in expanding our market share through deliberate focus on selling full solutions and our outstanding offering and execution.”
Barnhill added that “probably, if we maintain strong carrier customer and Ventev results, our goal is to expand this level of success into our other customer markets, namely the industrial and enterprise system operators, government and resellers.”
For more on Ventev’s new antennas and perspective on trends in Wi-Fi related to 802.11ac, RCR’s Kelly Hill spoke with Jeff Lime, vice president of Ventev Wireless Infrastructure.
