exhibit101.htm







 







	
Contact:

	  	
Aric Spitulnik

	  	  	
Harriet Fried


	  	  	
TESSCO Technologies Incorporated

	  	  	
LHA


	  	  	
Chief Financial Officer

	  	  	
212-838-3777


	  	  	
410-229-1419

	  	  	
hfried@lhai.com


	  	  	
spitulnik@tessco.com

	  	  	  
























TESSCO Reports Second Quarter Earnings of $0.55 per Share







Quarterly Dividend of $0.18 Declared







 


HUNT VALLEY, MD, OCTOBER 23, 2013, TESSCO (NASDAQ: TESS)


 




	●	  	
Revenues were $147 million and core revenues* grew 5% compared to Q2 FY2013.


	●	  	
Operating margin increased to 5.2% compared to 4.4% last year.


	●	  	
EBITDA** was $1.06 per share.


	●	  	
FY 2014 EPS guidance raised to $1.90 - $2.10.


	●	  	
Aric Spitulnik elected to position of Chief Financial Officer.












TESSCO, Your Total Source® for the product and value chain solutions to build, use and maintain wireless systems, today reported its second quarter results for the period ended September 29, 2013.


 


TESSCO reported second quarter revenue of $146.5 million, and net income of $4.6 million or $0.55 per share.


 


“TESSCO made great progress again this quarter in the transition of our business to focus solely on being a total solutions provider, and in the replacement of the $213 million in annual revenues we generated from a third party logistics relationship that ended in fiscal 2013,” said Chairman and CEO Robert B. Barnhill, Jr.







“Our 59 percent growth in purchases from our public carrier customers, and the 22 percent growth in sales of our Ventev® proprietary products demonstrate that our customers recognize the benefit of a partner that can bring the right products and solutions together to deliver everything that is required, when and where it is needed at the lowest total cost.


 






  





  











  











 


“Our goal is to expand this level of success into our other customer markets, namely industrial and enterprise system operators, government, and resellers. Our confidence in achieving this goal is high because of the strength of our value proposition, product offering, marketing, sales and delivery strategies, and the new opportunities in the expanding world of voice, data and video wireless connectivity.”


 




Mr. Barnhill concluded, “I am also very pleased to announce that Aric Spitulnik has been elected to the position of Chief Financial Officer.  Over the past year, Aric – who joined TESSCO in 2000 and has served as the Company’s controller since 2005 – has taken a heightened role in all financial and strategic areas of our business.  We are delighted to recognize his contribution and talent with this appointment and are confident that his in-depth knowledge and experience will contribute to TESSCO’s continued success.”


 


Second-Quarter Fiscal 2014 Financial Results


For our fiscal 2014 second quarter, revenues totaled $146.5 million as compared to $197.2 million in the 2013 quarter, which included revenue from the since transitioned 3PL relationship, and $139.6 million in the 2013 quarter excluding revenues from that relationship. Core revenues* grew 5 percent from the prior-year period. The public carrier market produced 59 percent revenue growth as compared to the prior-year period, and the commercial dealer and reseller market produced 2 percent revenue growth. Revenues from the retailer, independent dealer agent and carrier market fell by 13 percent, while revenues from the private & government system operators decreased by 9 percent. Sales of our Ventev® design and manufacturing division, which supplies products into all of our markets, grew 22 percent as compared to the same quarter last year.







Second-quarter fiscal 2014 gross profit was $36.5 million compared to $38.6 million in last year’s second quarter, which included a $4.6 million gross profit contribution from the transitioned 3PL business. Largely due to the transition of the low-margin 3PL business, gross margin increased to 24.9 percent in this year’s second quarter from 19.6 percent in last year’s period.







Selling general and administrative (SG&A) expenses were $28.9 million, compared to $29.9 million in last year’s second quarter, primarily due to a reduction in expenses associated with the transitioned 3PL business. Operating margin rose to 5.2 percent from 4.4 percent in the prior-year quarter.







EBITDA** totaled $8.9 million, or $1.06 per diluted share, in the second quarter of fiscal 2014, as compared to $10.0 million, or $1.21 per diluted share, in the prior-year quarter.







Net income and diluted earnings per share totaled $4.6 million and $0.55 in the second quarter of fiscal 2014, respectively, as compared to $5.3 million and $0.64 in the prior-year quarter, respectively.







For the first half of fiscal 2014, TESSCO reported revenues of $290.6 million and net income of $8.9 million, or $1.06 per diluted share.  These results compare to revenues of $389.7 million and net income of $9.5 million, or $1.15 per diluted share, for the first half of fiscal 2013.  EBITDA** for the first half of fiscal 2014 totaled $17.0 million, or $2.04 per share, compared to $18.2 million, or $2.20 per share, for the first half of fiscal 2013.







Quarterly Cash Dividends


The Board of Directors declared a quarterly cash dividend of $0.18 per common share payable on November 20 2013 to holders of record on November 6, 2013.







Any future declaration of dividends, and the establishment of record and payment dates, is subject to further determinations of the Board of Directors.


 







  





  











  















Business Outlook


The Company raised its earnings per diluted share guidance for fiscal 2014 to a range of $1.90 to $2.10 from a range of $1.75 to $2.05.  As TESSCO’s fiscal year progresses and visibility increases, management may review and update its financial targets as appropriate.







Forecasting future results is inherently difficult for any business, and actual results may differ materially from those forecasted. The nature of our business is that we typically ship products within several days after booking orders. The lack of an order backlog makes it even more difficult to forecast future results. The Business Outlook published in this press release reflects only the Company's current best estimate and the Company assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time.


 



Second-Quarter Fiscal 2014 Conference Call




Management will host a conference call to discuss its second-quarter-2014 results on Thursday, October 24, 2013 at 10:00 a.m. ET. To participate in the conference call, please call 877-280-4957 (domestic call-in) or 857-244-7314 (international call-in) and reference code #58255259.


 


A live webcast of the conference call will be available at http://www.tessco.com/go/pressroom. All participants should call or access the website approximately 10 minutes before the conference begins.


 


A telephone replay of the conference call will be available from 2:00 p.m. ET on October 24, 2013 until 11:59 p.m. ET on October 31, 2013 by calling 888-286-8010 (domestic) or 617-801-6888 (international) and entering confirmation #40014034. An archived replay of the conference call will also be available on the company’s website at www.tessco.com/go/corporatepresentations.


 


Chief Financial Officer


Mr. Spitulnik, age 42, graduated from the State University of New York at Buffalo in 1994 with a BS/MBA accounting degree.  He was employed as an accounting professional for several public accounting firms before joining TESSCO in 2000.  Mr. Spitulnik was appointed controller in 2005 and a vice president in 2006. In 2012, he assumed the role of principal accounting officer and was appointed corporate secretary.  As chief financial officer, Mr. Spitulnik will manage the Company’s financial operations and support the Company’s growth strategies.







Thomas (“Ted”) Perez, age 39, who has been with TESSCO for six years in various accounting roles, will follow Mr. Spitulnik as the Company’s controller.  Mr. Perez holds a Bachelor of Science degree in accounting and an MBA with a finance concentration, both from Loyola University, and previously worked for several large public companies as well as the public accounting firm PricewaterhouseCoopers LLP.







*Core Revenues


“Core revenues” are our total revenues other than and excluding revenues related to the major 3PL relationship with a Tier 1 Carrier that transitioned at the completion of fiscal year 2013.  The amount of “core revenues” for a given period is determined by subtracting from total revenues, any revenues related to the major 3PL relationship for the corresponding period.  There are no revenues related to this relationship in fiscal 2014, and thus, total revenues and core revenues are the same for fiscal 2014.


 







  





  











  








 






**Non-GAAP Information


EBITDA, a measure used by management to evaluate the Company’s ongoing operations and as a general indicator of its operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges), is defined as income from operations, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization. Management believes EBITDA as well as EBITDA per share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Because not all companies use identical calculations, the Company's presentation of EBITDA and EBITDA per share may not be comparable to other similarly titled measures of other companies. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. EBITDA per diluted share is also a non-GAAP calculation defined as EBITDA divided by the Company’s diluted weighted average shares outstanding. Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not reflect certain cash requirements such as interest payments, tax payments and debt service requirements. The amounts shown for EBITDA as presented herein differ from the amounts calculated under the definition of EBITDA used in the Company's loan agreements. The definition of EBITDA as used in the Company's loan agreements is further adjusted for certain cash and non-cash charges/credits, including stock compensation expense, and is used to determine compliance with financial covenants and the ability to engage in certain activities such as incurring additional debt.


 


A reconciliation of the Company's non-GAAP to GAAP results is included as an exhibit to this release.


 


About TESSCO


TESSCO Technologies Incorporated (NASDAQ: TESS), is Your Total Source® for making wireless work. The convergence of wireless and the Internet is revolutionizing the way we live, work and play. New systems and applications are creating opportunities and challenges at an unprecedented rate. TESSCO is there, thinking in new ways for exceptional outcomes for customers TESSCO architects and delivers, with innovation, productivity and speed, the product and value chain solutions to organizations responsible for building, using and maintaining wireless broadband systems.






  





  











  








 


Forward-Looking Statements


This press release, including the statements of Robert Barnhill and the discussion under the heading “Business Outlook,” contains forward-looking statements as to anticipated results and future prospects. These forward-looking statements are based on current expectations and analysis, and actual results may differ materially. These forward-looking statements may generally be identified by the use of the words "may," "will," "expects," "anticipates," "believes," "estimates," and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. Forward-looking statements involve a number of risks and uncertainties. Our actual results may differ materially from those described in or contemplated by any such forward-looking statement for a variety of reasons, including those risks identified in our most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission, under the heading “Risk Factors” and otherwise. Consequently, the reader is cautioned to consider all forward-looking statements in light of the risks to which they are subject.







We are not able to identify or control all circumstances that could occur in the future that may adversely affect our business and operating results. Without limiting the risks that we describe in our periodic reports and elsewhere, among the risks that could lead to a materially adverse impact on our business or operating results are the following: termination or non-renewal of limited duration agreements or arrangements with our vendors and affinity partners that are typically terminable by either party upon several months or otherwise relatively short notice; loss of significant customers or relationships, including affinity relationships; loss of customers as a result of consolidation among the wireless communications industry; the strength of our customers’, vendors’ and affinity partners’ business; economic conditions that may impact customers’ ability to fund or pay for our products and services; failure of our information technology system or distribution system; technology changes in the wireless communications industry; third-party freight carrier interruption; increased competition; our inability to access capital and obtain financing as and when needed; and the possibility that, for unforeseen reasons, we may be delayed in entering into or performing, or may fail to enter into or perform, anticipated contracts or may otherwise be delayed in realizing or fail to realize anticipated revenues or anticipated savings.











  





  











  






 


TESSCO Technologies Incorporated


Consolidated Statements of Income (Unaudited)








	  	 	
Fiscal Quarters Ended

	 	 	
Six Months Ended

	 
	  	 	
September 29, 2013

	 	 	
June 30, 2013

	 	 	
September 30, 2012

	 	 	
September 29, 2013

	 	 	
September 30, 2012

	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Revenues

	 	$	146,526,000	 	 	$	144,108,800	 	 	$	197,238,300	 	 	$	290,634,800	 	 	$	389,656,500	 
	
Cost of goods sold

	 	 	110,033,200	 	 	 	108,670,900	 	 	 	158,613,300	 	 	 	218,704,100	 	 	 	315,538,300	 
	
Gross profit

	 	 	36,492,800	 	 	 	35,437,900	 	 	 	38,625,000	 	 	 	71,930,700	 	 	 	74,118,200	 
	
Selling, general and administrative expenses

	 	 	28,903,400	 	 	 	28,474,100	 	 	 	29,887,000	 	 	 	57,377,500	 	 	 	58,449,400	 
	
Income from operations

	 	 	7,589,400	 	 	 	6,963,800	 	 	 	8,738,000	 	 	 	14,553,200	 	 	 	15,668,800	 
	
Interest , net

	 	 	67,000	 	 	 	54,600	 	 	 	12,000	 	 	 	121,600	 	 	 	69,400	 
	
Income before provision for income taxes

	 	 	7,522,400	 	 	 	6,909,200	 	 	 	8,726,000	 	 	 	14,431,600	 	 	 	15,599,400	 
	
Provision for income taxes

	 	 	2,941,300	 	 	 	2,617,000	 	 	 	3,457,100	 	 	 	5,558,300	 	 	 	6,124,000	 
	
Net income

	 	$	4,581,100	 	 	$	4,292,200	 	 	 	5,268,900	 	 	 	8,873,300	 	 	 	9,475,400	 
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Basic earnings per share

	 	$	0.56	 	 	$	0.53	 	 	$	0.66	 	 	$	1.09	 	 	$	1.19	 
	
Diluted earnings per share

	 	$	0.55	 	 	$	0.51	 	 	$	0.64	 	 	$	1.06	 	 	$	1.15	 














  





  











  








TESSCO Technologies Incorporated


Consolidated Balance Sheets








	  	 	
September 29,2013

	 	 	
March 31, 2013

	 
	  	 	
(unaudited)

	 	 	
(audited)

	 
	  	 	 	 	 	 	 
	
ASSETS

	 	 	 	 	 	 
	
Current Assets:

	 	 	 	 	 	 
	
Cash and cash equivalents

	 	$	3,230,500	 	 	$	4,468,000	 
	
Trade accounts receivable, net

	 	 	75,059,700	 	 	 	82,177,600	 
	
Product inventory

	 	 	66,221,700	 	 	 	60,913,600	 
	
Deferred tax assets

	 	 	6,220,200	 	 	 	6,227,300	 
	
Prepaid expenses and other current assets

	 	 	2,613,000	 	 	 	3,482,300	 
	
Total current assets

	 	 	153,345,100	 	 	 	157,268,800	 
	  	 	 	 	 	 	 	 	 
	
Property and equipment, net

	 	 	22,788,400	 	 	 	23,202,000	 
	
Goodwill, net

	 	 	11,684,700	 	 	 	11,684,700	 
	
Other long-term assets

	 	 	2,132,200	 	 	 	2,144,500	 
	
Total assets

	 	$	189,950,400	 	 	$	194,300,000	 
	  	 	 	 	 	 	 	 	 
	
LIABILITIES AND SHAREHOLDERS’ EQUITY

	 	 	 	 	 	 	 	 
	
Current Liabilities:

	 	 	 	 	 	 	 	 
	
Trade accounts payable

	 	$	58,815,400	 	 	$	65,209,300	 
	
Payroll, benefits and taxes

	 	 	7,395,000	 	 	 	11,678,500	 
	
Income and sales tax liabilities

	 	 	2,368,600	 	 	 	2,530,700	 
	
Accrued expenses and other current liabilities

	 	 	1,072,600	 	 	 	1,048,900	 
	
Revolving line of credit

	 	 	--	 	 	 	--	 
	
Current portion of long-term debt

	 	 	249,900	 	 	 	249,700	 
	
Total current liabilities

	 	 	69,901,500	 	 	 	80,717,100	 
	  	 	 	 	 	 	 	 	 
	
Deferred tax liabilities

	 	 	3,951,800	 	 	 	3,951,800	 
	
Long-term debt, net of current portion

	 	 	2,331,300	 	 	 	2,458,300	 
	
Other long-term liabilities

	 	 	4,112,100	 	 	 	4,370,200	 
	
Total liabilities

	 	 	80,296,700	 	 	 	91,497,400	 
	  	 	 	 	 	 	 	 	 
	
Shareholders’ Equity:

	 	 	 	 	 	 	 	 
	
Preferred stock

	 	 	--	 	 	 	--	 
	
Common stock

	 	 	94,000	 	 	 	91,500	 
	
Additional paid-in capital

	 	 	52,843,400	 	 	 	50,481,600	 
	
Treasury stock, at cost

	 	 	(49,866,700	)	 	 	(48,438,300	)
	
Retained earnings

	 	 	106,583,000	 	 	 	100,667,800	 
	
Accumulated other comprehensive loss

	 	 	--	 	 	 	--	 
	
Total shareholders’ equity

	 	 	109,653,700	 	 	 	102,802,600	 
	  	 	 	 	 	 	 	 	 
	
Total liabilities and shareholders’ equity

	 	$	189,950,400	 	 	$	194,300,000	 














  





  











  








TESSCO Technologies Incorporated


Reconciliation of Net Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited)








	  	 	
Fiscal Quarters Ended

	 	 	
Six Months Ended

	 
	  	 	
September 29, 2013

	 	 	
June 30, 2013

	 	 	
September 30, 2012

	 	 	
September 29, 2013

	 	 	
September 30, 2012

	 
	
Net income

	 	$	4,581,100	 	 	$	4,292,200	 	 	$	5,268,900	 	 	$	8,873,300	 	 	$	9,475,400	 
	
Add:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Provision for income taxes

	 	 	2,941,300	 	 	 	2,617,000	 	 	 	3,457,100	 	 	 	5,558,300	 	 	 	6,124,000	 
	
Interest, net

	 	 	67,000	 	 	 	54,600	 	 	 	12,000	 	 	 	121,600	 	 	 	69,400	 
	
Depreciation and amortization

	 	 	1,261,300	 	 	 	1,212,900	 	 	 	1,247,200	 	 	 	2,474,200	 	 	 	2,495,100	 
	
EBITDA

	 	$	8,850,700	 	 	$	8,176,700	 	 	$	9,985,200	 	 	$	17,027,400	 	 	$	18,163,900	 
	
EBITDA per diluted share

	 	$	1.06	 	 	$	0.98	 	 	$	1.21	 	 	$	2.04	 	 	$	2.20	 














  





  











  









	
TESSCO Technologies Incorporated

	 
	
Supplemental Results Summary (in thousands) (Unaudited)

	 
	  	 	 	 	 	 	 
	  	 	
Three months ended September 29, 2013

	 	 	
Six months ended  September 29, 2013

	 
	  	 	
Total

	 	 	
Total

	 
	
Market Revenues

	 	 	 	 	 	 
	
Public Carriers, Contractors & Program Managers

	 	$	40,948	 	 	$	78,331	 
	
Private & Government System Operators

	 	 	31,059	 	 	 	58,952	 
	
Commercial Dealers & Resellers

	 	 	36,433	 	 	 	72,477	 
	
Retailer, Independent Dealer Agents & Carriers

	 	 	38,086	 	 	 	80,875	 
	
Revenue, excluding Major 3PL relationship

	 	 	146,526	 	 	 	290,635	 
	
Major 3PL relationship

	 	 	--	 	 	 	--	 
	
Total revenues

	 	 	146,526	 	 	 	290,635	 
	  	 	 	 	 	 	 	 	 
	
Gross Profit

	 	 	 	 	 	 	 	 
	
Public Carriers, Contractors & Program Managers

	 	 	9,015	 	 	 	16,909	 
	
Private & Government System Operators

	 	 	8,377	 	 	 	16,178	 
	
Commercial Dealers & Resellers

	 	 	10,093	 	 	 	20,340	 
	
Retailer, Independent Dealer Agents & Carriers

	 	 	9,008	 	 	 	18,504	 
	
Gross profit, excluding Major 3PL relationship

	 	 	36,493	 	 	 	71,931	 
	
% of revenues

	 	 	24.9	%	 	 	24.7	%
	
Major 3PL relationship

	 	 	--	 	 	 	--	 
	
Total gross profit 

	 	 	36,493	 	 	 	71,931	 
	
% of revenues

	 	 	24.9	%	 	 	24.7	%
	  	 	 	 	 	 	 	 	 
	
Direct expenses

	 	 	17,797	 	 	 	35,412	 
	
Segment net profit contribution

	 	 	18,696	 	 	 	36,519	 
	
% of revenues

	 	 	12.8	%	 	 	12.6	%
	
Corporate support expenses*

	 	 	11,174	 	 	 	22,087	 
	
Income before provision for income taxes

	 	$	7,522	 	 	$	14,432	 
	
% of revenues

	 	 	5.1	%	 	 	5.0	%
	  	 	 	 	 	 	 	 	 
	
Growth Rates Compared to Prior Year Period:

	 
	
Revenues

	 	 	 	 	 	 	 	 
	
Public Carriers, Contractors & Program Managers

	 	 	58.6	%	 	 	70.9	%
	
Private & Government System Operators

	 	 	-9.4	%	 	 	-7.7	%
	
Commercial Dealers & Resellers

	 	 	2.2	%	 	 	7.8	%
	
Retailer, Independent Dealer Agents & Carriers

	 	 	-13.1	%	 	 	-4.9	%
	
Revenue, excluding Major 3PL relationship

	 	 	5.0	%	 	 	10.9	%
	
Major 3PL relationship

	 	 	-100.0	%	 	 	-100.0	%
	
Total revenues

	 	 	-25.7	%	 	 	-25.4	%
	  	 	 	 	 	 	 	 	 
	
Gross Profit

	 	 	 	 	 	 	 	 
	
Public Carriers, Contractors & Program Managers

	 	 	60.0	%	 	 	67.5	%
	
Private & Government System Operators

	 	 	-9.3	%	 	 	-7.0	%
	
Commercial Dealers & Resellers

	 	 	3.0	%	 	 	9.4	%
	
Retailer, Independent Dealer Agents & Carriers

	 	 	-4.0	%	 	 	2.4	%
	
Gross profit, excluding Major 3PL relationship

	 	 	7.1	%	 	 	12.1	%
	
Major 3PL relationship

	 	 	-100.0	%	 	 	-100.0	%
	
Total gross profit

	 	 	-5.5	%	 	 	-3.0	%
	  	 	 	 	 	 	 	 	 
	
Direct expenses

	 	 	-1.6	%	 	 	0.2	%
	
Segment net profit contribution

	 	 	-9.0	%	 	 	-5.8	%
	
Corporate support expenses*

	 	 	-5.4	%	 	 	-4.7	%
	
Income before provision for income taxes

	 	 	-13.8	%	 	 	-7.5	%
	  	 	 	 	 	 	 	 	 
	
* Includes corporate overhead, facilities expense, depreciation, interest and company-wide pay-for-performance bonus expense

	 





 






  





  











  













	
TESSCO Technologies Incorporated

	 
	
Supplemental Results Summary (in thousands)

	 
	  	 	 	 	 	 	 
	  	 	
Three months ended September 29, 2013

	 	 	
Six months ended September 29, 2013

	 
	
Revenues

	 	 	 	 	 	 
	
Base station infrastructure

	 	$	67,888	 	 	$	137,429	 
	
Network systems

	 	 	21,838	 	 	 	40,901	 
	
Installation, test and maintenance

	 	 	12,588	 	 	 	22,350	 
	
Mobile device accessories

	 	 	44,212	 	 	 	89,955	 
	
Total revenues

	 	 	146,526	 	 	 	290,635	 
	  	 	 	 	 	 	 	 	 
	
Gross Profit

	 	 	 	 	 	 	 	 
	
Base station infrastructure

	 	 	18,765	 	 	 	37,654	 
	
Network systems

	 	 	3,745	 	 	 	7,563	 
	
Installation, test and maintenance

	 	 	2,780	 	 	 	5,130	 
	
Mobile device accessories

	 	 	11,203	 	 	 	21,584	 
	
Total gross profit

	 	$	36,493	 	 	 	71,931	 
	
% of revenues

	 	 	24.9	%	 	 	24.7	%
	  	 	 	 	 	 	 	 	 
	
Growth Rates Compared to Prior Year Period

	 
	  	 	 	 	 	 	 	 	 
	
Revenues

	 	 	 	 	 	 	 	 
	
Base station infrastructure

	 	 	19.0	%	 	 	29.4	%
	
Network systems

	 	 	-1.5	%	 	 	2.5	%
	
Installation, test and maintenance

	 	 	3.7	%	 	 	-1.9	%
	
Mobile device accessories

	 	 	-58.3	%	 	 	-59.3	%
	
Total revenues

	 	 	-25.7	%	 	 	-25.4	%
	  	 	 	 	 	 	 	 	 
	
Gross Profit

	 	 	 	 	 	 	 	 
	
Base station infrastructure

	 	 	12.0	%	 	 	20.8	%
	
Network systems

	 	 	-5.9	%	 	 	-1.0	%
	
Installation, test and maintenance

	 	 	-1.6	%	 	 	-4.4	%
	
Mobile device accessories

	 	 	-25.6	%	 	 	-27.9	%
	
Total gross profit

	 	 	-5.5	%	 	 	-3.0	%