Tessco Technologies Inc., the Hunt Valley telecommunications equipment maker, said yesterday that first-quarter revenue surged 44 percent, pushing up net income by a third, partly because of growing demand for products for the wireless communications industry
Net income was $1.6 million, or 34 cents per diluted share, compared with $1.2 million, or 26 cents per diluted share, in the year-ago period. Tessco said revenue for the quarter, which ended June 25, was $62.5 million, a record, compared with $43.5 million for the same quarter a year ago.
Tessco's quarterly report, commented William Benton, an analyst at William Blair & Co., reflected "nice growth across the board. It looks great. Profitability increased dramatically."
Shares jumped $8, or 27 percent, yesterday to close at $37.50.
In a conference call with analysts and investors yesterday, Robert B. Barnhill Jr., Tessco's chairman and chief executive officer, characterized the quarter as "great."
"It was our fifth consecutive quarter of record level revenues and gross profit. We continue to gain momentum by providing the service and product solutions that make wireless work ... ," Barnhill said.
He said the company's strong quarter was owed primarily to growing demand for products that enable the convergence of Internet and wireless communications networks. Barnhill said sales of communications network infrastructure products grew 54 percent in the quarter, while products for testing and maintaining communications networks doubled.
"It's an exciting time to be part of the wireless industry," Barnhill told investors.