TESSCO Technologies, Inc. (TESS)’s Q3 2015 Earnings Conference Call Transcript

We also note that the 4^th-quarter is traditionally our seasonally weakest of the year so we are expecting an earnings decline from the 3^rd-quarter. We fully expect to issue earning guidance for fiscal year 2016 results. For the carrier slow-down has had a significant impact on our results this year. We are taking the right action and we are executing the right strategy to build long-term profitable group. Thank you for your continued support for Tessco. Operator! You can now open the call for some questions.

Operator: Thank you.  Ladies and gentlemen if you wish to ask a question please press star followed by 1 on your touchtone telephone.  Your question has been answered or you wish to withdraw your question press star followed by 2. Press star 1 to begin, please stand by for your first question. And your first question comes from Neal Seltzer – William Blair. Please proceed.

Matt Farrell: Hay guys! It’s Matt Farrell on for Neal. My first question is, could you two provide a little more color on the slower spending by the carriers, is it still the same particular customer that you guys had discussed and in the last earnings call?

Bob Barnhill :  Yeah, the primary customer we are focused on that one supplier or one customer with the dash product and if you look at the overall pull back its basically AT&T stopped this spending mid year, Sprint did the same Verizon and Tmobile continued.  We have a good presence with both.  We are also part of this reorganization, we built a totally dedicated team for Verizon and we have a great sales leader that is from Verizon that is driving the Verizon customer segment.  So we have business from all of the carriers and remember it is a huge Eco system that you got the contractors as well as the tower owners and carriers on a direct basis and we know we are gonna do some great things with all of these companies when they really start .  One of the executives told me “ They were keeping their powder dry as they continue to go into the auctions for the spectrum”.  So everybody is very [inaudible]  in terms of how they allocate their capex expenses.