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

Matt: Okay and then kind of follow up to that is as you move into fiscal 16 and you see the spending gets to pick up at carriers, what rate would you expect the spending to return? Going back to historical rates or a more accelerated rate since they haven’t been spending recently?

Bob Barnhill : Yeah, that’s the real challenge.  I mean they are already starting to release contracts to some of their contractors to do the work but as they tell us they are still in the dark in term of when the bills are going to begin.  So I mean they have to deploy the spectrum, they didn’t buy all that stuff with the view of just sitting on it.  And as I mentioned in the call, competitively they have to start to move out.  We have seen [?] with the carriers over the years we have been doing business with them but never as dramatic as this has been.  I believe we will see they are getting their plans together, as we mentioned I don’t think we are gonna see a whole lot of growth in this fourth quarter.

Matt: Okay and then kinda moving over into retail segment.  Their partnership with Samsung, how  do you see that playing out in fiscal 16 ? Is that a revenue opportunity similar to what you see at iPhone in Apple products or is that a much larger opportunity as you start to move through the process of partnership?

Bob Barnhill : You know I think its gonna be a part of whole offer, the thing that we think is bad is that they are focused on enterprise in addition to retail. And that’s what we are trying to do is take our accessories into the enterprise market as well as into the retail market and with the focus of Samsung, you know their marketing, their efforts.  Its really gonna aid us in going into that market space.

Eric: Next particular trend that can show up in our private systems operators market is its not a retail play because its going after the end users and not through retailers.

Matt: Okay and then in regard to this reduction in fixed expense levels in 2016, just to clarify, is that 3 to 5% reduction in total expenses or is that terms like percentage of revenue or how should we kind of look at that as we move forward?