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Tessco boosts full year outlook

Last updated: 10:29 09 Jan 2012 EST, First published: 11:29 09 Jan 2012 EST

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Wireless systems services provider Tessco Technologies (NASDAQ:TESS) increased its full year fiscal 2012 earnings outlook on Monday, after reporting strong third quarter estimates, as well an expected expanded relationship with one of its major customers.

For the full year fiscal 2012, Tessco said it expects to report earnings in the range of $1.90 to $2.10 per share. It had previously expected earnings between $1.80 and $2.10 per share.

According to Bloomberg Businessweek, analysts are expecting profits of $1.91 per share for the year.

For the third quarter, Tessco said it expects to report earnings between $0.55 and $0.60 per share, in line with analysts' $0.58 per share estimate.

Revenues for the quarter are expected to be about $225 million, including $85 million from its commercial segment, $33 million from its retail unit, and $107 million from its retail tier-one customers. Analysts are expecting $207 million in sales.

"Our results reflect our strong performance in each of our segments," said CEO Robert Barnhill.

"In our retail segment, we saw strong growth in our retailer, dealer agent and tier 2/3 carrier market and tremendous revenue growth from our tier one customers, mostly related to the expected expansion of our relationship with our major tier one carrier customer.

"In our commercial business, we continued to drive margin and profitability growth as we maintain our focus on providing product and value chain solutions to our customers."

Tessco also said it will continue with its quarterly dividend program, paying out a 15-cent per share dividend on February 15, to shareholders on record as of February 1.

The Hunt Valley, Maryland-based company will present its third quarter results after markets close on Tuesday, January 17.

Tessco offers a variety of services required to build, use and maintain wireless systems. Its shares rose 3.55 percent to $14.60, as of 11:09 am EDT Monday.

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