HUNT VALLEY, Md.--(BUSINESS WIRE)--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.
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.