Hunt Valley-based Tessco Technologies Inc. said Wednesday that revenue and profits both fell about 18 percent in its most recent quarter compared with a year earlier, driven by its exit from a high-revenue business it considered too low margin.
The provider of products for wireless broadband systems produced $2.9 million in net income in its fiscal fourth quarter, which ended March 31. That's down from about $3.5 million in the year-earlier quarter.
Revenue fell to about $158 million from almost $195 million a year earlier, while earnings fell to 35 cents a share from 43 cents.
Tessco attributed the decrease to a planned exit from what it called a sizable but low-profit logistics relationship with a single customer.
"This now allows us to focus exclusively on our core business and building on the many opportunities materializing from the convergence of wireless and the Internet," said CEO Robert B. Barnhill Jr., adding that those "core" revenues grew 11 percent in the quarter compared with a year earlier.
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