Tessco sees big revenue growth

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Tessco Technologies Inc. is riding the market for cell phones and other wireless devices to steady growth in income.

The company last week reported a 38 percent jump in profits for its most recent fiscal year as it broadens its customer base beyond a few key contracts, such as Cingular.

The Hunt Valley, Md., company supplies wireless equipment and services to the telecommunications industry.

"Today, our products span all wireless technologies," Robert Barnhill, Tessco's chief executive officer, said during a conference call with industry analysts.

The company sells to about 8,600 government and private customers.

For the fiscal year ending April 1, Tessco's fourth-quarter net income reached $1.6 million, or 28 cents a share, compared with $1.1 million, or 17 cents per share, during the same period in 2006.

The company reported revenue of $127 million in the first three months of 2007, compared with $96.6 million in the same period one year earlier.

Its stock, TESS on the NASDAQ exchange, closed at $28.32 yesterday, down 21 cents or just under 1 percent, compared with Friday's closing price.

Stock-rating service TheStreet.com has given Tessco a "buy" rating since March 2005, citing "a steady pattern of [earnings per share] growth, good cash flow from operations, impressive stock performance and robust revenue growth. These strengths outweigh Tessco's low profit margins."

Tessco operates in three business segments, covering network infrastructure, mobile devices and maintenance equipment.