TESSCO Technologies Announces Sales Reorganization and Cost Reduction Initiatives
March 27 2017 - 4:01PM
Business Wire
New Sales Structure Designed to Better Serve
Customers and Improve Sales GrowthEstimated Pre-Tax Cost Reduction
Charges of $0.8 Million Expected for Q4 2017
TESSCO Technologies (NASDAQ: TESS), a value-added
distributor and solutions provider for the wireless industry, today
announced a sales force reorganization, as well as cost reduction
initiatives. The Company’s sales force reorganization combines its
commercial sales and product teams under one leader, Charles
Kriete, and combines its retail sales and product teams under
another leader, Liz Robinson. The Company believes the sales force
reorganization will strengthen its ability to service customers,
allow better collaboration between its salesforce and its vendor
partners, and improve sales growth, while also lowering overall
operating expenses.
As a result of the cost reduction initiatives, TESSCO expects to
report approximately $0.8 million in pre-tax charges (or
approximately $0.06 in earnings per share), primarily related to
severance expense in the fourth quarter of fiscal 2017, which is
the Company’s seasonally weakest quarter.
“We have been aggressively reviewing our growth strategy and
building a plan to improve sales, enhance profitability and
increase operational productivity,” said Murray Wright, President
and Chief Executive Officer. “This sales reorganization is a key
component of that strategy. During our review, it became clear that
we had significant opportunity to optimize our organization to more
effectively and efficiently serve our customers and our vendor
partners. We believe this new organization structure will help to
drive stronger top-line growth and improve overall profitability as
we begin our new fiscal year. These actions are also a key element
to our comprehensive plan to grow our business over the next
several years. We expect to provide more insight into our plans
during our fourth quarter investor conference call.”
Charles Kriete will lead TESSCO’s commercial sales and products
team as Senior Vice President of Commercial Sales, Product
Marketing and Supply Chain. Kriete joined TESSCO in January as
Senior Vice President of Product Management and Solutions. He has
more than 16 years of experience with a strong history of success
as a technology executive and entrepreneur, as well as a sales and
marketing leader. His most recent leadership experience was as the
Chief Marketing Officer of Kore Wireless Group, a global leader in
managed services and connectivity in the Machine to Machine /
Internet of Things market.
Liz Robinson has been promoted to Senior Vice President, Retail
Sales and Product Marketing and will lead TESSCO’s retail sales and
mobile products team. She has served in various sales management
roles at TESSCO, most recently as Vice President of Mobility.
Robinson is an accomplished wireless communications executive with
demonstrated ability to build and lead high-performing teams in
competitive environments. She has almost 20 years of experience at
TESSCO in sales, business development and product management, all
focused on developing the Company’s mobile device accessory
management and retail sales teams.
“Charles and Liz will be instrumental in spearheading this
streamlined approach to our sales structure,” Wright said. “Their
significant experience in their respective sales and product groups
will be crucial as we seek to drive accelerated growth in the new
fiscal year and beyond.”
Separately, TESSCO announced the resignation of Pete Peterson,
who was formerly Senior Vice President of Sales, for personal
reasons. “Pete made many important contributions in a short period
of time,” Wright said. “He has worked with Charles to ensure a
smooth transition for the commercial sales team.”
About TESSCO Technologies
TESSCO Technologies, Inc. (NASDAQ: TESS) is a value-added
technology distributor manufacturer, and solutions provider.
Founded more than 30 years ago with a commitment to deliver
industry-leading products, knowledge, solutions and customer
service, TESSCO supports customers in the public and private
sector. TESSCO supplies more than 50,000 products from 400 of the
industry’s top manufacturers in mobile communications, Wi-Fi,
Internet of Things and wireless backhaul. As Your Total Source®,
TESSCO is a single source for outstanding customer experience,
expert knowledge and complete end-to-end solutions for the wireless
industry. For more information, visit www.tessco.com.
Forward-Looking Statements
This press release contains forward-looking statements as to
anticipated results and future prospects. These forward-looking
statements are based on current expectations and analysis, and
actual results may differ materially. These forward-looking
statements may generally be identified by the use of the words
"may," "will," "expects," "anticipates," "believes," "estimates,"
and similar expressions, but the absence of these words or phrases
does not necessarily mean that a statement is not forward-looking.
Forward-looking statements involve a number of risks and
uncertainties. Our actual results may differ materially from those
described in or contemplated by any such forward-looking statement
for a variety of reasons, including those risks identified in our
most recent Annual Report on Form 10-K and other periodic reports
filed with the Securities and Exchange Commission, under the
heading "Risk Factors" and otherwise. Consequently, the reader is
cautioned to consider all forward-looking statements in light of
the risks to which they are subject.
We are not able to identify or control all circumstances that
could occur in the future that may adversely affect our business
and operating results. Without limiting the risks that we describe
in our periodic reports and elsewhere, among the risks that could
lead to a materially adverse impact on our business or operating
results are the following: termination or non-renewal of limited
duration agreements or arrangements with our vendors and affinity
partners that are typically terminable by either party upon several
months or otherwise relatively short notice; loss of significant
customers or relationships, including affinity relationships; loss
of customers as a result of consolidation among the wireless
communications industry; the strength of our customers', vendors'
and affinity partners' business; economic conditions that may
affect consumer confidence or consumer or business spending or
otherwise adversely impact customers' ability to fund or pay for
our products and services; changes in customer and product mix that
affect gross margin; effect of “conflict minerals” regulations on
the supply and cost of certain of our products; failure of our
information technology system or distribution system; system
security or data protection breaches; technology changes in the
wireless communications industry or technological failures;
fourth-party freight carrier interruption; increased competition;
our relative bargaining power and inability to negotiate favorable
terms with our vendors and customers; our inability to access
capital and obtain financing as and when needed; claims against us
for breach of the intellectual property rights of fourth parties;
product liability claims; our inability to hire or retain for any
reason our key professionals, management and staff; and the
possibility that, for unforeseen or other reasons, we may be
delayed in entering into or performing, or may fail to enter into
or perform, anticipated contracts or may otherwise be delayed in
realizing or fail to realize anticipated revenues or anticipated
savings.
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version on businesswire.com: http://www.businesswire.com/news/home/20170327006135/en/
TESSCO Technologies IncorporatedAric Spitulnik,
410-229-1419Chief Financial Officerspitulnik@tessco.comorDavid
Calusdian, 617-542-5300Sharon Merrill
AssociatesTESS@investorrelations.com
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