HUNT VALLEY, Md.--(BUSINESS WIRE)--TESSCO Technologies Incorporated (NASDAQ: TESS) today announced the closing of its previously announced sale of most of the Company’s retail inventory, the Ventev brand as it relates to mobile device accessory products, and certain other retail-related assets to Voice Comm, LLC as the Company exits its retail business to focus on its more successful and higher-margin commercial segment.
“This planned exit from our retail business is an important step in executing on our strategy to focus on growth opportunities and better position the Company for the long term,” said Sandip Mukerjee, President and Chief Executive Officer of Tessco. “This is another milestone that our Board and management team have achieved to ensure the stability of the business and drive shareholder value creation. We are now fully dedicated to serving our commercial customers, and are in the process of redeploying our assets to take advantage of what is a once-in-a-generation opportunity amid the industry’s current and unprecedented rollout of new technologies.”
Tessco will continue to work with its retail customer and supplier partners to ensure a smooth transition. Tessco is retaining its Ventev brand for use in its commercial business products and operations.
The Company expects the exit from its retail operations will, going forward, generate approximately $8 million to $12 million in net cash flow in fiscal 2021 and another $4 million to $8 million in the aggregate over the next four years.
About TESSCO Technologies Incorporated (NASDAQ: TESS)
TESSCO Technologies, Inc. (NASDAQ: TESS) is a value-added technology distributor, manufacturer, and solutions provider serving commercial customers in the wireless infrastructure ecosystem. The Company was founded more than 30 years ago with a commitment to deliver industry-leading products, knowledge, solutions, and customer service. Tessco supplies more than 60,000 products from 350 of the industry’s top manufacturers in mobile communications, Wi-Fi, Internet of Things (“IoT”), wireless backhaul, and more. 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
