Below is transcript of the TESSCO Technologies, Inc.(NASDAQ:TESS)’s Q3 2015 Earnings Conference Call, held on Friday, January 16, 2015, at 8:30 am EST. Royce & Associates, Renaissance Technologies and Springbok Capital was among TESSCO Technologies, Inc.(NASDAQ:TESS) shareholders at the end of the second quarter.
TESSCO Technologies, Inc.(NASDAQ:TESS) architects and delivers the product and value chain solutions to organizations responsible for building, operating and maintaining wireless broadband systems. The Company’s has two segments: commercial and retail.
Bob Barnhill – Tessco Corporation.
David Kerdell – Brahman Capital.
Operator: Good Day Ladies and Gentlemen and welcome to 3rd Quarter 2015 Tessco Technologies incorporated news conference call and my name is Mathew and I will be your operator for today. At this time all participants are in listen only mode we will conduct a question and answer session towards the end of this conference. If at any time during call you require assistance please press *0 and the operator will be happy to assist you. As a reminder this call is being recorded for replay purposes and now I would like to turn call over to Andrew Blaze here with Sheryl please proceed.
Good Morning! everyone and thank you for joining Tessco Technologies 3rd Quarter 2015 conference call joining me today are Robert Barnhill Tessco’s Chairman and chief executive officer and Erick [inaudible] company’s chief financial officer. Please note that management’s discussions today will contain forward looking statements about anticipated results and future prospects. Forward looking statements involve a number of risks and uncertainties and Tessco’s results may differ materially from those discussed today. Information concerning factors that may cause such a difference can be found in Tessco’s public discloser including the company most recent formed 10K and other periodic reports filed with the securities and exchange commission. With that introduction I would like to turn call over to Bob Barnhill Tessco Chairman and CEO. Bob…
Bob Barnhill: Thank you and Good Morning. Thank you all for joining us today on such short notice our earnings release call and this call is earlier than usual in order to communicate our results to you as soon as possible. I will give you summary and then Eric and I will give you more details. In summary a result of this quarter was disappointing, our lower-than-expected third-quarter earnings were largely the result of two primary factors. First, a carrier based sales which includes carriers, contractors, tower owners and some commercial resellers declined dramatically in the third quarter even more than we had expected and secondly we experienced higher than normal freight in and excess in obsolete inventory expenses. In addition we were not able to recognize significant revenue from our particular customer order. All of which accounted for 14 cent per share negative earnings impact. We continue to invest our growth initiatives while optimizing our organizational leadership and reducing our operating expenses.