Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 28, 2020 | Jul. 31, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 28, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33938 | |
Entity Registrant Name | TESSCO Technologies Incorporated | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-0729657 | |
Entity Address, Address Line One | 11126 McCormick Road | |
Entity Address, City or Town | Hunt Valley | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21031 | |
City Area Code | 410 | |
Local Phone Number | 229-1000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | TESS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,712,771 | |
Entity Central Index Key | 0000927355 | |
Current Fiscal Year End Date | --03-28 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 28, 2020 | Mar. 29, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 900 | $ 50,000 |
Trade accounts receivable, net | 73,854,000 | 82,868,400 |
Product inventory, net | 69,664,400 | 69,148,000 |
Prepaid expenses and other current assets | 14,384,900 | 11,707,500 |
Total current assets | 157,904,200 | 163,773,900 |
Property and equipment, net | 13,252,300 | 13,433,700 |
Intangible assets, net | 13,969,600 | 11,157,400 |
Deferred tax assets | 2,274,400 | 3,032,500 |
Lease asset - right of use | 13,282,600 | 13,949,800 |
Other long-term assets | 4,271,600 | 3,361,400 |
Total assets | 204,954,700 | 208,708,700 |
Current liabilities: | ||
Trade accounts payable | 75,431,400 | 75,512,600 |
Payroll, benefits and taxes | 5,832,900 | 4,258,300 |
Income and sales tax liabilities | 446,900 | 450,800 |
Accrued expenses and other current liabilities | 4,107,900 | 4,244,400 |
Revolving line of credit | 25,346,700 | 25,563,900 |
Lease liability, current | 2,600,200 | 2,579,200 |
Total current liabilities | 113,766,000 | 112,609,200 |
Non-current lease liability | 10,831,700 | 11,481,100 |
Other non-current liabilities | 899,900 | 915,700 |
Total liabilities | 125,497,600 | 125,006,000 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value per share, 500,000 shares authorized and no shares issued and outstanding | ||
Common stock, $0.01 par value per share, 15,000,000 shares authorized, 14,426,729 shares issued and 8,637,129 shares outstanding as of June 28, 2020, and 14,354,368 shares issued and 8,577,549 shares outstanding as of March 29, 2020 | 102,200 | 101,400 |
Additional paid-in capital | 65,762,300 | 65,318,500 |
Treasury stock, at cost, 5,789,600 shares as of June 28, 2020 and 5,776,819 shares as of March 29, 2020 | (58,555,000) | (58,496,200) |
Retained earnings | 72,147,600 | 76,779,000 |
Total shareholders' equity | 79,457,100 | 83,702,700 |
Total liabilities and shareholders' equity | $ 204,954,700 | $ 208,708,700 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 28, 2020 | Mar. 29, 2020 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars shares) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 14,426,729 | 14,354,368 |
Common stock, outstanding (in shares) | 8,637,129 | 8,577,549 |
Treasury stock (in shares) | 5,789,600 | 5,776,819 |
Consolidated Statements of Loss
Consolidated Statements of Loss - USD ($) | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Loss | ||
Revenues | $ 119,813,500 | $ 130,729,300 |
Cost of goods sold | 100,987,800 | 105,465,800 |
Gross profit | 18,825,700 | 25,263,500 |
Selling, general and administrative expenses | 23,734,400 | 28,096,500 |
Restructuring charge | 488,000 | |
Loss from operations | (4,908,700) | (3,321,000) |
Interest expense, net | 110,700 | 208,700 |
Loss before benefit from income taxes | (5,019,400) | (3,529,700) |
Benefit from income taxes | (388,000) | (1,036,900) |
Net loss | $ (4,631,400) | $ (2,492,800) |
Basic loss per share (in dollars per share) | $ (0.54) | $ (0.29) |
Diluted loss per share (in dollars per share) | $ (0.54) | $ (0.29) |
Basic weighted-average common shares outstanding (in shares) | 8,617,803 | 8,494,168 |
Diluted weighted-average common shares outstanding (in shares) | 8,617,803 | 8,494,168 |
Cash dividends declared per common share (in dollars per share) | $ 0.20 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Total |
Balance at Mar. 31, 2019 | $ 99,800 | $ 62,666,400 | $ (57,614,100) | $ 103,635,100 | $ 108,787,200 |
Balance (in shares) at Mar. 31, 2019 | 8,468,529 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 100 | 143,100 | 143,200 | ||
Proceeds from issuance of stock (in shares) | 9,250 | ||||
Treasury stock purchases | (189,100) | (189,100) | |||
Treasury stock purchases (in shares) | (10,488) | ||||
Non-cash stock compensation expense | $ 400 | 338,500 | 338,900 | ||
Non-cash stock compensation expense (in shares) | 41,256 | ||||
Cash dividends paid | (1,702,600) | (1,702,600) | |||
Net loss | (2,492,800) | (2,492,800) | |||
Balance at Jun. 30, 2019 | $ 100,300 | 63,148,000 | (57,803,200) | 99,439,700 | 104,884,800 |
Balance (in shares) at Jun. 30, 2019 | 8,508,547 | ||||
Balance at Mar. 29, 2020 | $ 101,400 | 65,318,500 | (58,496,200) | 76,779,000 | $ 83,702,700 |
Balance (in shares) at Mar. 29, 2020 | 8,577,549 | 8,577,549 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Proceeds from issuance of stock | $ 200 | 132,500 | $ 132,700 | ||
Proceeds from issuance of stock (in shares) | 23,676 | ||||
Treasury stock purchases | (58,800) | (58,800) | |||
Treasury stock purchases (in shares) | (12,781) | ||||
Non-cash stock compensation expense | $ 600 | 311,300 | 311,900 | ||
Non-cash stock compensation expense (in shares) | 48,685 | ||||
Net loss | (4,631,400) | (4,631,400) | |||
Balance at Jun. 28, 2020 | $ 102,200 | $ 65,762,300 | $ (58,555,000) | $ 72,147,600 | $ 79,457,100 |
Balance (in shares) at Jun. 28, 2020 | 8,637,129 | 8,637,129 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,631,400) | $ (2,492,800) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,228,000 | 960,800 |
Non-cash stock-based compensation expense | 311,900 | 338,900 |
Deferred income taxes and other | 758,100 | 1,087,100 |
Change in trade accounts receivable | 9,014,400 | 12,711,800 |
Change in product inventory | (516,400) | (29,562,300) |
Change in prepaid expenses and other current assets | (2,677,400) | (1,992,800) |
Change in other assets and other liabilities | (949,400) | |
Change in trade accounts payable | (704,000) | 17,709,600 |
Change in payroll, benefits and taxes | 1,574,600 | (543,200) |
Change in income and sales tax liabilities | (3,900) | (497,400) |
Change in accrued expenses and other current liabilities | 34,600 | 294,400 |
Net cash provided by (used in) operating activities | 3,439,100 | (1,985,900) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (238,900) | (449,300) |
Purchases of internal use software | (2,973,700) | (1,421,000) |
Net cash used in investing activities | (3,212,600) | (1,870,300) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net (repayments) borrowings from revolving line of credit | (217,200) | 5,737,100 |
Cash dividends paid | (1,702,600) | |
Purchases of treasury stock and repurchases of stock from employees | (58,800) | (189,100) |
Other financing activities | 400 | (2,300) |
Net cash (used in) provided by financing activities | (275,600) | 3,843,100 |
Net decrease in cash and cash equivalents | (49,100) | (13,100) |
CASH AND CASH EQUIVALENTS, beginning of period | 50,000 | 30,300 |
CASH AND CASH EQUIVALENTS, end of period | $ 900 | $ 17,200 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Jun. 28, 2020 | |
Description of Business and Basis of Presentation | |
Description of Business and Basis of Presentation | Note 1. Description of Business and Basis of Presentation TESSCO Technologies Incorporated, a Delaware corporation (TESSCO, we, or the Company), architects and delivers innovative product and value chain solutions to support wireless systems. The Company provides marketing and sales services, knowledge and supply chain management, product-solution delivery and control systems utilizing extensive internet and information technology. Approximately 96% of the Company’s sales are made to customers in the United States. The Company takes orders in several ways, including phone, fax, online and through electronic data interchange. Almost all of the Company’s sales are made in United States Dollars. In management’s opinion, the accompanying interim Consolidated Financial Statements of the Company include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the Company’s financial position for the interim periods presented. These statements are presented in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain information and footnote disclosures normally included in the Company’s annual financial statements have been omitted from these statements, as permitted under the applicable rules and regulations. The results of operations presented in the accompanying interim Consolidated Financial Statements are not necessarily representative of operations for an entire year. The information included in this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 29, 2020, filed with SEC on June 5, 2020. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Jun. 28, 2020 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 28, 2020 | |
Intangible Assets | |
Intangible Assets | Note 3. Intangible Assets Intangibles, net on our Consolidated Balance Sheet as of June 28, 2020, consists of capitalized internally development computer software and an indefinite lived intangible assets. Capitalized internally developed computer software, net of accumulated amortization, was $13,174,200 as of June 28, 2020. Amortization expense of capitalized internally developed computer software was $648,500 as of June 28, 2020. Indefinite lived intangible assets were $795,400 as of June 28, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 28, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 4. Stock-Based Compensation The Company’s selling, general and administrative expenses for the fiscal quarter ended June 28, 2020 includes $ 311,900 of non-cash stock-based compensation expense. The Company’s selling, general and administrative expenses for the fiscal quarter ended June 30, 2019 includes $338,900 of non-cash stock-based compensation expense. Non-cash stock-based compensation expense is primarily related to our Performance Stock Units (PSUs), Restricted Stock Units (RSUs), Restricted Stock, and Stock Options, granted or outstanding under the Company’s Third Amended and Restated Stock and Incentive Plan (the “1994 Plan”) and 2019 Stock and Incentive Plan (the “2019 Plan” and together with the 1994 Plan, the “Plans”), which was approved at the Annual Meeting of Shareholders held on July 25, 2019. No additional awards may be granted under the 1994 Plan, although awards outstanding under the 1994 Plan remain outstanding and governed by its terms. Performance Stock Units: The following table summarizes the activity under the Company’s PSU program under the Plans, for the first three months of fiscal 2021: Three Months Weighted Ended Average Fair June 28, Value at Grant 2020 Date (per unit) Unvested shares available for issue under outstanding PSUs, beginning of period 68,355 $ 15.00 PSUs Vested (19,191) 14.17 PSUs Forfeited/Cancelled (33,116) 15.69 Unvested shares available for issue under outstanding PSUs, end of period 16,048 $ 14.57 The PSUs cancelled during the first quarter of fiscal 2021 primarily related to the fiscal 2020 grant of PSUs, which had a one-year measurement period (fiscal 2020). The PSUs were cancelled because the applicable fiscal 2020 performance targets were not attained. Per the provisions of the 2019 Plan, the shares related to these forfeited and cancelled PSUs were added back to the 2019 Plan and became available for future issuance under the 2019 Plan. If all unvested PSUs earned thus far are assumed to vest in accordance with terms of the applicable award agreement, total unrecognized compensation costs on these PSUs would be less than $0.1 million as of June 28, 2020, and would be expensed through fiscal 2022. Restricted Stock Units: On May 15, 2020, the Compensation Committee, with the concurrence of the full Board of Directors, granted an aggregate of 21,000 RSUs under the 2019 Plan to non-employee directors of the Company. These awards provide for the issuance of shares of the Company’s common stock in accordance with a vesting schedule that generally provides for the vesting of 25% of the award on or about each of May 15 of 2021, 2022, 2023 and 2024, provided that the participant remains associated with the Company (or meets other criteria as prescribed in the applicable agreement) on each such date. Restricted Stock: On May 15, 2020, the Compensation Committee, with the concurrence of the full Board of Directors, awarded an aggregate of 65,821 shares of the Company’s common stock as restricted stock under the 2019 Plan to non-employee directors of the Company in lieu of their annual cash retainer for fiscal 2021. The value of the restricted shares at the time of issue to each director was determined by the Compensation Committee to approximate the cash amount of the 2021 fiscal year board retainer per director. These shares of restricted stock were issued subject to a risk of forfeiture that will lapse in whole or in part on July 1, 2021, generally depending on the length of continued service of the recipient on the Board for fiscal 2021. Dividends accruing in respect of the shares of restricted stock, if any, will accrue but will not be paid until July 1, 2021 and only in respect of those shares for which the risk of forfeiture has then lapsed. As of June 28, 2020, there was approximately $0.7 million of total unrecognized compensation cost related to all outstanding RSUs, assuming all shares are earned. Unrecognized compensation costs are expected to be recognized ratably over a weighted average period of approximately three years. PSUs and RSUs are expensed based on the grant date fair value, calculated as the closing price of TESSCO common stock as reported by Nasdaq on the date of grant minus the present value of dividends expected to be paid on the common stock before the award vests, because dividends or dividend-equivalent amounts do not accrue and are not paid on unvested PSUs and RSUs. The Company accounts for forfeitures as they occur rather than estimate expected forfeitures. To the extent that forfeitures occur, stock-based compensation related to the restricted awards may be different from the Company’s expectations. Stock Options: 1/36 In addition, on May 15, 2020, performance-based stock options for an aggregate of 65,000 shares of common stock were granted under the 2019 Plan to certain officers of the Company. These stock options also have exercise prices equal to the market price of the Company’s stock on the grant date, and the terms thereof also provide for 25% vesting after one year and then 1/36 one half The value of each option at the date of grant is amortized as compensation expense over the service period. This occurs without regard to subsequent changes in stock price, volatility, or interest rates over time, provided the option remains outstanding. The following tables summarize the pertinent information for outstanding options. Three Months Weighted Ended Average Fair June 28, Value at Grant 2020 Date (per unit) Unvested options, beginning of period 465,374 $ 2.38 Options Granted 225,000 2.00 Options Forfeited/Cancelled (26,042) 1.85 Options Vested (44,500) 3.28 Unvested options, end of period 619,833 2.20 June 28, 2020 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 2021 225,000 $ 4.52 225,000 - 2020 405,000 $ 13.54 368,000 26,542 2019 66,500 $ 16.31 44,000 21,874 2018 230,000 $ 15.12 110,000 82,916 2017 410,000 $ 12.57 273,958 269,794 2016 100,000 $ 22.42 40,000 40,000 Total 1,060,958 441,126 Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2021 46.68 % 1.16 % 0.00 % 4.0 $ 2.00 2020 35.88 % 2.00 % 5.82 % 4.0 $ 2.53 2019 35.59 % 3.11 % 4.99 % 4.0 $ 3.38 As of June 28, 2020, there was approximately $1.3 million of total unrecognized compensation costs related to these options, assuming all shares are earned. These unrecognized compensation costs are expected to be recognized ratably over a period of approximately three years. |
Borrowings Under Revolving Cred
Borrowings Under Revolving Credit Facility | 3 Months Ended |
Jun. 28, 2020 | |
Borrowings Under Revolving Credit Facility | |
Borrowings Under Revolving Credit Facility | Note 5. Borrowings Under Revolving Credit Facility On October 19, 2017, the Company and its primary operating subsidiaries, as co-borrowers, and SunTrust Bank, as Administrative Agent and Lender, and Wells Fargo Bank, National Association, as a Lender, entered into an Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”), which amended and restated the terms of a previously established secured Revolving Credit Facility with the same lenders, and which resulted in, among other modifications, an increase in the Company’s borrowing limit to up to $75 million, from the previous borrowing limit of up to $35 million. Capitalized terms used but not otherwise defined in this and the following three paragraphs have the meanings ascribed to each in the Amended and Restated Credit Agreement. In addition to increasing the Company’s borrowing limit, and among other modifications, the Amended and Restated Credit Agreement extended the maturity date of the secured Revolving Credit Facility to October 19, 2021. The Amended and Restated Credit Agreement also set forth financial covenants, including a fixed charge coverage ratio to be maintained at any time during which the borrowing availability, as determined in accordance with the Amended and Restated Credit Agreement, falls below $10 million, as well as terms that could limit our ability to engage in specified transactions or activities, including (but not limited to) investments and acquisitions, sales of assets, payment of dividends, issuance of additional debt and other matters. The Amended and Restated Credit Agreement provides for a $5.0 million sublimit for the issuance of standby letters of credit, a $12.5 million sublimit for swingline loans and an accordion feature which, subject to certain conditions, could increase the aggregate amount of the commitments to up to $125 million, with the optional commitments being provided by existing Lenders or new lenders reasonably acceptable to the Administrative Agent. No Lender is obligated to increase its commitment. Availability is determined in accordance with a Borrowing Base, which has been expanded to include not only Eligible Receivables but also Eligible Inventory and is generally: (A) the sum of (i) 85% of Eligible Receivables; (ii) the Inventory Formula Amount for all Eligible Inventory which is aged less than 181 days ; and (iii) the lesser of (x) $4 million and (y) the Inventory Formula Amount for all Eligible Inventory which is aged at least 181 days ; minus (B) Reserves. Borrowings under the Amended and Restated Credit Agreement initially accrue interest from the applicable borrowing date at an Applicable Rate equal to the Eurodollar Rate plus the Applicable Margin. The Eurodollar Rate is the rate per annum obtained by dividing (i) LIBOR by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve Percentage. When the Applicable Rate is the Eurodollar Rate plus the Applicable Margin, the Applicable Margin is 1.50% if Average Availability is greater than or equal to $15 million, and 1.75% otherwise. On June 28, 2020, the interest rate applicable to borrowings under the secured Revolving Credit Facility was 1.68%. Under certain circumstances, the Applicable Rate is subject to change at the Lenders’ option from the Eurodollar Rate plus the Applicable Margin to the Base Rate plus the Applicable Margin. Following an Event of Default, in addition to changing the Applicable Rate to the Base Rate plus the Applicable Margin, the Lenders’ may at their option set the Applicable Margin at 0.50% if the Base Rate applies or 1.75% if the Eurodollar Rate applies, and increase the Applicable Rate by an additional 200 basis points. The Applicable Rate adjusts on the first Business Day of each calendar month. The Company is required to pay a monthly Commitment Fee on the average daily unused portion of the secured Revolving Credit Facility provided for pursuant to the Amended and Restated Credit Agreement, at a per annum rate equal to 0.25%. In connection with the entering into of the Amended and Restated Credit Agreement, the Company, the other Company affiliate borrowers under the Amended and Restated Credit Agreement and other subsidiaries of the Company, referred to collectively as the Loan Parties, executed and delivered to SunTrust Bank, as Administrative Agent, a Reaffirmation Agreement, pursuant to which the obligations of the Loan Parties under a Guaranty and Security Agreement previously delivered by them in connection with the secured Revolving Credit Facility as previously existing (including the previously existing guaranty by the Loan Parties not otherwise Borrowers and the previously existing grant by the Company and the other Loan Parties of a continuing first priority security interest in inventory, accounts receivable and deposit accounts, and on all documents, instruments, general intangibles, letter of credit rights, and all proceeds) were ratified and confirmed as respects the Obligations arising from time to time under the secured Revolving Credit Facility provided for under the Amended and Restated Credit Agreement, and as respects certain other obligations of the Loan Parties to the Lenders and their affiliates arising from time to time, relating to swaps, hedges and cash management and other bank products. Borrowings may be used for working capital and other general corporate purposes, as further provided in, and subject to the applicable terms of, the Amended and Restated Credit Agreement. As of June 28, 2020, borrowings under the secured Revolving Credit Facility totaled $25.3 million and, therefore, the Company had $49.7 million available for borrowing as of June 28, 2020, subject to the Borrowing Base limitation and compliance with the other applicable terms of the Amended and Restated Credit Agreement, including the covenants referenced above. The line of credit has a lockbox arrangement associated with it and therefore the outstanding balance is classified as a current liability on our balance sheet. As of March 29,2020, borrowings under the secured Revolving Credit Facility totaled $25.6 million and, therefore, the Company had $49.4 million available on its revolving line of credit facility as of March 29, 2020, again subject to the Borrowing Base limitation and compliance with the other applicable terms of the Amended and Restated Credit Agreement, including the covenants referenced above. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share | |
Earnings Per Share | Note 6. Earnings Per Share The Company presents the computation of earnings per share (“EPS”) on a basic and diluted basis. Basic EPS is computed by dividing net income by the weighted average number of shares outstanding during the reported period. Diluted EPS is computed similarly to basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential additional common shares that were dilutive had been issued. Common shares are excluded from the calculation if they are determined to be anti-dilutive. Diluted EPS was equal to basic EPS for the fiscal quarter ended June 28, 2020 because the Company operated at a loss. The number of diluted weighted-average common shares would have been 8,686,214 for the fiscal quarter ended June 28, 2020, if the Company was at a positive earning position. At June 28, 2020, stock options with respect to 1,060,958 shares of common stock were outstanding, of which 855,958 were anti-dilutive. There were no anti-dilutive PSUs or RSUs outstanding as of June 28, 2020 . |
Business Segments
Business Segments | 3 Months Ended |
Jun. 28, 2020 | |
Business Segments | |
Operating Segments | Note 7. Business Segments The Company evaluates its business within two segments: commercial and retail. The commercial segment consists of the following customer markets: (1) public carriers, that are generally responsible for building and maintaining the infrastructure system and provide airtime service to individual subscribers; and (2) value-added resellers and integrators, which includes value-added resellers, the government channel and private system operator markets. The retail segment consists of the retail market which includes retailers, independent dealer agents and carriers. To provide investors with better visibility, the Company also discloses revenue and gross profit by its four product categories: ● Base Station Infrastructure - Base station infrastructure products are used to build, repair and upgrade wireless telecommunications systems. Products include base station antennas, cable and transmission lines, small towers, lightning protection devices, connectors, power systems, miscellaneous hardware, and mobile antennas. Base station infrastructure service offerings include connector installation, custom jumper assembly, site kitting and logistics integration. ● Network Systems - Network systems products are used to build and upgrade computing and internet networks. Products include fixed and mobile broadband equipment, distributed antenna systems (DAS), wireless networking, filtering systems, two-way radios and security and surveillance products. This product category also includes training classes, technical support and engineering design services. ● Installation, Test and Maintenance - Installation, test and maintenance products are used to install, tune, maintain and repair wireless communications equipment. Products include sophisticated analysis equipment and various frequency, voltage- and power-measuring devices, as well as an assortment of tools, hardware, GPS, safety and replacement and component parts and supplies required by service technicians. ● Mobile Device Accessories - Mobile device accessories include cellular phone and data device accessories such as replacement batteries, cases, speakers, mobile amplifiers, power supplies, headsets, mounts, car antennas, music accessories and data and memory cards. Retail merchandising displays, promotional programs, customized order fulfillment services and affinity-marketing programs, including private label internet sites, complement our mobile devices and accessory product offering. The Company evaluates revenue, gross profit, and income before provision for income taxes at the segment level. Certain cost of sales and other applicable expenses have been allocated to each segment based on a percentage of revenues and/or gross profit, where appropriate. Segment activity for the first quarter of fiscal years 2021 and 2020 are as follows (in thousands): Three Months Ended June 28, 2020 June 30, 2019 Commercial Retail Commercial Retail Segment Segment Total Segment Segment Total Revenues Public carrier $ 39,255 $ — $ 39,255 $ 33,486 $ — $ 33,486 Value-added resellers and integrators 57,223 — 57,223 65,194 — 65,194 Retail — 23,336 23,336 — 32,049 32,049 Total revenues $ 96,478 $ 23,336 $ 119,814 $ 98,680 $ 32,049 $ 130,729 Gross Profit Public carrier $ 3,728 $ — $ 3,728 $ 4,253 $ — $ 4,253 Value-added resellers and integrators 12,725 — 12,725 15,969 — 15,969 Retail — 2,373 2,373 — 5,042 5,042 Total gross profit $ 16,453 $ 2,373 $ 18,826 $ 20,222 $ 5,042 $ 25,264 Directly allocable expenses 7,462 1,832 9,294 9,570 3,015 12,585 Segment net profit contribution $ 8,991 $ 541 9,532 $ 10,652 $ 2,027 12,679 Corporate support expenses 14,551 16,209 Income before provision for income taxes $ (5,019) $ (3,530) Supplemental revenue and gross profit information by product category for the first quarter of fiscal years 2021 and 2020 are as follows (in thousands): Three Months Ended June 28, 2020 June 30, 2019 Revenues Base station infrastructure $ 68,855 $ 69,069 Network systems 19,400 22,552 Installation, test and maintenance 5,462 6,025 Mobile device accessories 26,097 33,083 Total revenues $ 119,814 $ 130,729 Gross Profit Base station infrastructure $ 11,418 $ 14,521 Network systems 2,133 3,927 Installation, test and maintenance 766 1,084 Mobile device accessories 4,509 5,732 Total gross profit $ 18,826 $ 25,264 |
Leases
Leases | 3 Months Ended |
Jun. 28, 2020 | |
Leases | |
Leases | Note 8. Leases The Company leases certain office spaces and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company’s leases include rental payments adjusted for inflation. The right-of-use lease asset and lease liability are recorded on our Consolidated Balance Sheet. Quantitative information regarding the Company’s leases is as follows: Three Months Ended June 28, 2020 Operating lease expense $ 871,900 As of June 28, 2020 Maturities of lease liabilities by fiscal year are as follow: 2021 $ 2,364,100 2022 3,164,000 2023 3,018,300 2024 2,725,700 2025 2,609,900 Thereafter 1,987,600 Total 15,869,600 Less: present value discount (2,437,700) Present value of lease liabilities $ 13,431,900 Weighted-average discount rate: 3.8% Weighted-average remaining lease term 5.1 years |
Shares Withheld
Shares Withheld | 3 Months Ended |
Jun. 28, 2020 | |
Shares Withheld | |
Shares Withheld | Note 9. Shares Withheld The Company withholds shares of common stock from its employees and directors at their request, equal to the minimum federal and state tax withholdings or proceeds due to the Company related to vested PSUs, stock option exercises and vested RSUs. For the three months ended June 28, 2020 and June 30, 2019, the aggregate value of the shares withheld totaled $58,800 and $189,100 , respectively. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Jun. 28, 2020 | |
Concentration of Risk | |
Concentration of Risk | Note 10. Concentration of Risk The Company’s future results could be negatively impacted by the loss of certain customer and/or vendor relationships. For the fiscal quarter ended June 28, 2020, revenue from the Company’s largest customer accounted for 10.4% of consolidated revenue. For the fiscal quarter ended June 30, 2019, no customer accounted for more than 10% of total consolidated revenues. For the fiscal quarter ended June 28, 2020, sales of products purchased from the Company’s largest supplier accounted for 21.6% of consolidated revenue. For the fiscal quarter ended June 30, 2019, sales of products purchased from the Company’s largest supplier accounted for 21.5% of consolidated revenue. No other suppliers accounted for more than 10% of consolidated revenue. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jun. 28, 2020 | |
Subsequent Events | |
Subsequent Events | Note 11. Subsequent Event On July 2, 2020, the Board of Directors adopted resolutions providing for the retirement of the Company’s then accumulated treasury stock, and for a corresponding reduction in capital. Immediately prior to the retirement, the Company held 5,789,600 shares of issued but not outstanding common stock as treasury stock, at a cost of $58,555,000 . Upon retirement, the cost of the treasury stock was netted against retained earnings, and the number of authorized and unissued shares of common stock correspondingly increased by 5,789,600 shares. The total number of authorized shares of common stock remains unchanged at 15,000,000 . The impact of these resolutions will be reflected within the consolidated financial statements beginning with the second quarter of fiscal 2021. There has been no change to the total stockholders’ equity as a result of such resolutions. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Jun. 28, 2020 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements not yet adopted: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. This ASU is effective for periods beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of this new standard will have on its Consolidated Financial Statements and will adopt the standard on the first day of the Company’s 2024 fiscal year. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 28, 2020 | |
Stock-Based Compensation | |
Schedule of Performance Stock Unit activity | Three Months Weighted Ended Average Fair June 28, Value at Grant 2020 Date (per unit) Unvested shares available for issue under outstanding PSUs, beginning of period 68,355 $ 15.00 PSUs Vested (19,191) 14.17 PSUs Forfeited/Cancelled (33,116) 15.69 Unvested shares available for issue under outstanding PSUs, end of period 16,048 $ 14.57 |
Schedule of Stock Options | Three Months Weighted Ended Average Fair June 28, Value at Grant 2020 Date (per unit) Unvested options, beginning of period 465,374 $ 2.38 Options Granted 225,000 2.00 Options Forfeited/Cancelled (26,042) 1.85 Options Vested (44,500) 3.28 Unvested options, end of period 619,833 2.20 June 28, 2020 Grant Fiscal Year Options Granted Option Exercise Price Options Outstanding Options Exercisable 2021 225,000 $ 4.52 225,000 - 2020 405,000 $ 13.54 368,000 26,542 2019 66,500 $ 16.31 44,000 21,874 2018 230,000 $ 15.12 110,000 82,916 2017 410,000 $ 12.57 273,958 269,794 2016 100,000 $ 22.42 40,000 40,000 Total 1,060,958 441,126 |
Schedule of assumptions of Black-Scholes-Merton option pricing model | Grant Fiscal Year Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2021 46.68 % 1.16 % 0.00 % 4.0 $ 2.00 2020 35.88 % 2.00 % 5.82 % 4.0 $ 2.53 2019 35.59 % 3.11 % 4.99 % 4.0 $ 3.38 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Jun. 28, 2020 | |
Business Segments | |
Schedule of Revenue and Gross Profit by Market | Segment activity for the first quarter of fiscal years 2021 and 2020 are as follows (in thousands): Three Months Ended June 28, 2020 June 30, 2019 Commercial Retail Commercial Retail Segment Segment Total Segment Segment Total Revenues Public carrier $ 39,255 $ — $ 39,255 $ 33,486 $ — $ 33,486 Value-added resellers and integrators 57,223 — 57,223 65,194 — 65,194 Retail — 23,336 23,336 — 32,049 32,049 Total revenues $ 96,478 $ 23,336 $ 119,814 $ 98,680 $ 32,049 $ 130,729 Gross Profit Public carrier $ 3,728 $ — $ 3,728 $ 4,253 $ — $ 4,253 Value-added resellers and integrators 12,725 — 12,725 15,969 — 15,969 Retail — 2,373 2,373 — 5,042 5,042 Total gross profit $ 16,453 $ 2,373 $ 18,826 $ 20,222 $ 5,042 $ 25,264 Directly allocable expenses 7,462 1,832 9,294 9,570 3,015 12,585 Segment net profit contribution $ 8,991 $ 541 9,532 $ 10,652 $ 2,027 12,679 Corporate support expenses 14,551 16,209 Income before provision for income taxes $ (5,019) $ (3,530) |
Schedule of Revenue and Gross Profit by Product | Supplemental revenue and gross profit information by product category for the first quarter of fiscal years 2021 and 2020 are as follows (in thousands): Three Months Ended June 28, 2020 June 30, 2019 Revenues Base station infrastructure $ 68,855 $ 69,069 Network systems 19,400 22,552 Installation, test and maintenance 5,462 6,025 Mobile device accessories 26,097 33,083 Total revenues $ 119,814 $ 130,729 Gross Profit Base station infrastructure $ 11,418 $ 14,521 Network systems 2,133 3,927 Installation, test and maintenance 766 1,084 Mobile device accessories 4,509 5,732 Total gross profit $ 18,826 $ 25,264 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 28, 2020 | |
Leases | |
Schedule of quantitative information regarding the Company's leases | Three Months Ended June 28, 2020 Operating lease expense $ 871,900 As of June 28, 2020 Maturities of lease liabilities by fiscal year are as follow: 2021 $ 2,364,100 2022 3,164,000 2023 3,018,300 2024 2,725,700 2025 2,609,900 Thereafter 1,987,600 Total 15,869,600 Less: present value discount (2,437,700) Present value of lease liabilities $ 13,431,900 Weighted-average discount rate: 3.8% Weighted-average remaining lease term 5.1 years |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 3 Months Ended |
Jun. 28, 2020 | |
US | Geographic Concentration Risk | Revenue | |
Concentration Risk | |
Concentration risk (as a percent) | 96.00% |
Intangible Assets - (Details)
Intangible Assets - (Details) | 3 Months Ended |
Jun. 28, 2020USD ($) | |
Goodwill and Other Intangible Assets | |
Capitalized computer software | $ 13,174,200 |
Indefinite lived intangible assets | 795,400 |
Internally developed computer software | |
Goodwill and Other Intangible Assets | |
Amortization expense | $ 648,500 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Selling, general and administrative expenses | ||
Stock-based compensation | ||
Stock-based compensation (in dollars) | $ 311,900 | $ 338,900 |
Stock-Based Compensation - PSUs
Stock-Based Compensation - PSUs (Details) - Performance Stock Units - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 28, 2020 | Mar. 29, 2020 | |
PSU Activity | ||
Unvested shares available for issue under outstanding PSUs, beginning of period (in shares) | 68,355 | |
Vested (in shares) | (19,191) | |
Forfeited/cancelled (in shares) | (33,116) | |
Unvested shares available for issue under outstanding PSUs, end of period (in shares) | 16,048 | 68,355 |
Unvested PSUs, Weighted-Average Fair Value at Grant Date | ||
Unvested shares available for issue under outstanding PSUs, beginning of period (in dollars per share) | $ 15 | |
Vested (in dollars per share) | 14.17 | |
Forfeited/cancelled (in dollars per share) | 15.69 | |
Unvested shares available for issue under outstanding PSUs, end of period (in dollars per share) | $ 14.57 | $ 15 |
Additional stock based compensation information | ||
Measurement period | 1 year | 1 year |
Maximum | ||
Additional stock based compensation information | ||
Unrecognized compensation costs (in dollars) | $ 0.1 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and RSUs (Details) - USD ($) $ in Millions | May 15, 2020 | Jun. 28, 2020 |
RSUs | ||
Stock-based compensation | ||
Granted (in shares) | 21,000 | |
Annual vesting percentage | 25.00% | |
Unrecognized compensation costs (in dollars) | $ 0.7 | |
Unrecognized compensation costs, period for recognition | 3 years | |
Restricted stock awards | ||
Stock-based compensation | ||
Granted (in shares) | 65,821 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Rollforward (Details) | May 15, 2020trancheshares | May 15, 2020shares | Jun. 28, 2020$ / sharesshares | Mar. 29, 2020$ / sharesshares | Mar. 31, 2019$ / sharesshares | Apr. 01, 2018shares | Mar. 26, 2017shares | Mar. 27, 2016shares |
Outstanding Options | ||||||||
Unvested options, beginning of period (in shares) | 465,374 | |||||||
Options Granted (in shares) | 225,000 | |||||||
Options Forfeited/Cancelled (in shares) | (26,042) | |||||||
Options Vested (in shares) | (44,500) | |||||||
Unvested options, end of period (in shares) | 619,833 | 465,374 | ||||||
Weighted Average Fair Value at Grant | ||||||||
Unvested options, beginning of period (in dollars per share) | $ / shares | $ 2.38 | |||||||
Options Granted (in dollars per share) | $ / shares | 2 | |||||||
Options Forfeited/Cancelled (in dollars per share) | $ / shares | 1.85 | |||||||
Options Vested (in dollars per share) | $ / shares | 3.28 | |||||||
Unvested options, end of period | $ / shares | $ 2.20 | $ 2.38 | ||||||
Stock Options, Vesting Based On Performance, One | Tranche one | ||||||||
Stock Options: | ||||||||
Vesting percentage | 25.00% | |||||||
Vesting period | 1 year | |||||||
Stock Options, Vesting Based On Performance, One | Tranche two | ||||||||
Stock Options: | ||||||||
Monthly percentage of vesting of share based compensation | 2.78% | |||||||
Additional vesting period after the initial period | 3 years | |||||||
Stock Options, Vesting Based On Performance, Two | ||||||||
Stock Options: | ||||||||
Number of vesting milestones | tranche | 2 | |||||||
Stock Options, Vesting Based On Performance, Two | Tranche one | ||||||||
Stock Options: | ||||||||
Vesting percentage | 50.00% | |||||||
Stock Options, Vesting Based On Performance, Two | Tranche two | ||||||||
Stock Options: | ||||||||
Vesting percentage | 50.00% | |||||||
Grant Fiscal Year 2021 | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 225,000 | |||||||
Weighted Average Fair Value at Grant | ||||||||
Options Granted (in dollars per share) | $ / shares | $ 2 | |||||||
Grant Fiscal Year 2021 | Stock Options Vesting Based On Service | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 160,000 | |||||||
Grant Fiscal Year 2021 | Stock Options Vesting Based On Service | Tranche one | ||||||||
Stock Options: | ||||||||
Vesting percentage | 25.00% | |||||||
Vesting period | 1 year | |||||||
Grant Fiscal Year 2021 | Stock Options Vesting Based On Service | Tranche two | ||||||||
Stock Options: | ||||||||
Monthly percentage of vesting of share based compensation | 2.78% | |||||||
Additional vesting period after the initial period | 3 years | |||||||
Grant Fiscal Year 2021 | Stock Options Vesting Based On Performance | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 65,000 | |||||||
Grant Fiscal Year 2020 | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 405,000 | |||||||
Weighted Average Fair Value at Grant | ||||||||
Options Granted (in dollars per share) | $ / shares | $ 2.53 | |||||||
Grant Fiscal Year 2019 | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 66,500 | |||||||
Weighted Average Fair Value at Grant | ||||||||
Options Granted (in dollars per share) | $ / shares | $ 3.38 | |||||||
Grant Fiscal Year 2018 | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 230,000 | |||||||
Grant Fiscal Year 2017 | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 410,000 | |||||||
Grant Fiscal Year 2016 | ||||||||
Outstanding Options | ||||||||
Options Granted (in shares) | 100,000 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options By Grant Date (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 15, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 26, 2017 | Mar. 27, 2016 | |
Outstanding options | |||||||
Options Granted (in shares) | 225,000 | ||||||
Options Outstanding (in shares) | 1,060,958 | ||||||
Options Exercisable (in shares) | 441,126 | ||||||
Grant Fiscal Year 2021 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 225,000 | ||||||
Option Exercise Price (in dollars per share) | $ 4.52 | ||||||
Options Outstanding (in shares) | 225,000 | ||||||
Grant Fiscal Year 2020 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 405,000 | ||||||
Option Exercise Price (in dollars per share) | $ 13.54 | ||||||
Options Outstanding (in shares) | 368,000 | ||||||
Options Exercisable (in shares) | 26,542 | ||||||
Grant Fiscal Year 2019 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 66,500 | ||||||
Option Exercise Price (in dollars per share) | $ 16.31 | ||||||
Options Outstanding (in shares) | 44,000 | ||||||
Options Exercisable (in shares) | 21,874 | ||||||
Grant Fiscal Year 2018 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 230,000 | ||||||
Option Exercise Price (in dollars per share) | $ 15.12 | ||||||
Options Outstanding (in shares) | 110,000 | ||||||
Options Exercisable (in shares) | 82,916 | ||||||
Grant Fiscal Year 2017 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 410,000 | ||||||
Option Exercise Price (in dollars per share) | $ 12.57 | ||||||
Options Outstanding (in shares) | 273,958 | ||||||
Options Exercisable (in shares) | 269,794 | ||||||
Grant Fiscal Year 2016 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 100,000 | ||||||
Option Exercise Price (in dollars per share) | $ 22.42 | ||||||
Options Outstanding (in shares) | 40,000 | ||||||
Options Exercisable (in shares) | 40,000 | ||||||
Stock Options Vesting Based On Service | Grant Fiscal Year 2021 | |||||||
Outstanding options | |||||||
Options Granted (in shares) | 160,000 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Valuation Assumptions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 28, 2020 | Mar. 29, 2020 | Mar. 31, 2019 | |
Valuation assumptions | |||
Resulting Black Scholes Value (in dollars per share) | $ 2 | ||
Grant Fiscal Year 2021 | |||
Valuation assumptions | |||
Expected Stock Price Volatility (as a percent) | 46.68% | ||
Risk-Free Interest rate (as a percent) | 1.16% | ||
Expected Dividend Yield (as a percent) | 0.00% | ||
Average Expected Term | 4 years | ||
Resulting Black Scholes Value (in dollars per share) | $ 2 | ||
Grant Fiscal Year 2020 | |||
Valuation assumptions | |||
Expected Stock Price Volatility (as a percent) | 35.88% | ||
Risk-Free Interest rate (as a percent) | 2.00% | ||
Expected Dividend Yield (as a percent) | 5.82% | ||
Average Expected Term | 4 years | ||
Resulting Black Scholes Value (in dollars per share) | $ 2.53 | ||
Grant Fiscal Year 2019 | |||
Valuation assumptions | |||
Expected Stock Price Volatility (as a percent) | 35.59% | ||
Risk-Free Interest rate (as a percent) | 3.11% | ||
Expected Dividend Yield (as a percent) | 4.99% | ||
Average Expected Term | 4 years | ||
Resulting Black Scholes Value (in dollars per share) | $ 3.38 | ||
Stock Options | |||
Valuation assumptions | |||
Unrecognized compensation costs (in dollars) | $ 1.3 | ||
Unrecognized compensation costs, period for recognition | 3 years |
Borrowings Under Revolving Cr_2
Borrowings Under Revolving Credit Facility (Details) - Revolving Credit Facility $ in Millions | Oct. 19, 2017USD ($) | Jun. 28, 2020USD ($) | Mar. 29, 2020USD ($) | Oct. 18, 2017USD ($) |
Credit Facility | ||||
Maximum borrowing capacity | $ 75 | $ 35 | ||
Maximum aggregate commitment amount | $ 125 | |||
Borrowing base as a percent of eligible receivables | 85.00% | |||
Interest rate (as a percent) | 1.68% | |||
Increase of applicable rate upon event of default (as a percent) | 2.00% | |||
Fee commitment (as a percent) | 0.25% | |||
Outstanding principal balance | $ 25.3 | $ 25.6 | ||
Available borrowing capacity | $ 49.7 | $ 49.4 | ||
Minimum | ||||
Credit Facility | ||||
Inventory age | 181 days | |||
Maximum | ||||
Credit Facility | ||||
Maximum borrowing availability amount required | $ 10 | |||
Inventory age | 181 days | |||
Amount included in formula to determine borrowing base | $ 4 | |||
Base rate | ||||
Credit Facility | ||||
Interest rate spread on variable rate basis upon event of default (as a percent) | 0.50% | |||
Eurodollar rate | ||||
Credit Facility | ||||
Value from which Eurodollar Reserve Percentage is subtracted | 1 | |||
Interest rate spread on variable rate when average availability is greater or equal to $15 million | 1.50% | |||
Average availability threshold | $ 15 | |||
Interest rate spread on variable rate when average availability otherwise | 1.75% | |||
Interest rate spread on variable rate basis upon event of default (as a percent) | 1.75% | |||
Standby letters of credit | ||||
Credit Facility | ||||
Maximum borrowing capacity | $ 5 | |||
Swingline loan | ||||
Credit Facility | ||||
Maximum borrowing capacity | $ 12.5 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Antidilutive Securities | ||
Diluted weighted average common shares, at positive earning position | 8,686,214 | |
Options outstanding (in shares) | 1,060,958 | |
Stock Options | ||
Antidilutive Securities | ||
Anti-dilutive equity awards (in shares) | 855,958 | |
Performance Stock Units | ||
Antidilutive Securities | ||
Anti-dilutive equity awards (in shares) | 0 | 0 |
RSUs | ||
Antidilutive Securities | ||
Anti-dilutive equity awards (in shares) | 0 | 0 |
Business Segments - Segment Act
Business Segments - Segment Activity (Details) | 3 Months Ended | |
Jun. 28, 2020USD ($)segmentproduct | Jun. 30, 2019USD ($) | |
Business Segments | ||
Number of reportable segment | segment | 2 | |
Number of product categories | product | 4 | |
Market unit activity | ||
Revenues | $ 119,813,500 | $ 130,729,300 |
Gross Profit | 18,825,700 | 25,263,500 |
Loss before benefit from income taxes | (5,019,400) | (3,529,700) |
Segments | ||
Market unit activity | ||
Directly allocable expenses | 9,294,000 | 12,585,000 |
Loss before benefit from income taxes | 9,532,000 | 12,679,000 |
Corporate | ||
Market unit activity | ||
Directly allocable expenses | 14,551,000 | 16,209,000 |
Public carrier | ||
Market unit activity | ||
Revenues | 39,255,000 | 33,486,000 |
Gross Profit | 3,728,000 | 4,253,000 |
Value-added resellers and integrators | ||
Market unit activity | ||
Revenues | 57,223,000 | 65,194,000 |
Gross Profit | 12,725,000 | 15,969,000 |
Retail | ||
Market unit activity | ||
Revenues | 23,336,000 | 32,049,000 |
Gross Profit | 2,373,000 | 5,042,000 |
Commercial Segment | ||
Market unit activity | ||
Revenues | 96,478,000 | 98,680,000 |
Gross Profit | 16,453,000 | 20,222,000 |
Commercial Segment | Segments | ||
Market unit activity | ||
Directly allocable expenses | 7,462,000 | 9,570,000 |
Loss before benefit from income taxes | 8,991,000 | 10,652,000 |
Commercial Segment | Public carrier | ||
Market unit activity | ||
Revenues | 39,255,000 | 33,486,000 |
Gross Profit | 3,728,000 | 4,253,000 |
Commercial Segment | Value-added resellers and integrators | ||
Market unit activity | ||
Revenues | 57,223,000 | 65,194,000 |
Gross Profit | 12,725,000 | 15,969,000 |
Retail Segment | ||
Market unit activity | ||
Revenues | 23,336,000 | 32,049,000 |
Gross Profit | 2,373,000 | 5,042,000 |
Retail Segment | Segments | ||
Market unit activity | ||
Directly allocable expenses | 1,832,000 | 3,015,000 |
Loss before benefit from income taxes | 541,000 | 2,027,000 |
Retail Segment | Retail | ||
Market unit activity | ||
Revenues | 23,336,000 | 32,049,000 |
Gross Profit | $ 2,373,000 | $ 5,042,000 |
Business Segments - Product Cat
Business Segments - Product Category (Details) - USD ($) | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Revenue and Gross Profit from External Customers | ||
Revenues | $ 119,813,500 | $ 130,729,300 |
Gross Profit | 18,825,700 | 25,263,500 |
Base station infrastructure | ||
Revenue and Gross Profit from External Customers | ||
Revenues | 68,855,000 | 69,069,000 |
Gross Profit | 11,418,000 | 14,521,000 |
Network systems | ||
Revenue and Gross Profit from External Customers | ||
Revenues | 19,400,000 | 22,552,000 |
Gross Profit | 2,133,000 | 3,927,000 |
Installation, test and maintenance | ||
Revenue and Gross Profit from External Customers | ||
Revenues | 5,462,000 | 6,025,000 |
Gross Profit | 766,000 | 1,084,000 |
Mobile device accessories | ||
Revenue and Gross Profit from External Customers | ||
Revenues | 26,097,000 | 33,083,000 |
Gross Profit | $ 4,509,000 | $ 5,732,000 |
Leases - Quantitative informati
Leases - Quantitative information (Details) | 3 Months Ended |
Jun. 28, 2020USD ($) | |
Leases | |
Operating lease expense | $ 871,900 |
Maturities of discounted lease liabilities by fiscal year are as follow: | |
2021 | 2,364,100 |
2022 | 3,164,000 |
2023 | 3,018,300 |
2024 | 2,725,700 |
2025 | 2,609,900 |
Thereafter | 1,987,600 |
Total | 15,869,600 |
Less: present value discount | (2,437,700) |
Present value of lease liabilities | $ 13,431,900 |
Weighted-average discount rate - Operating leases | 3.80% |
Weighted-average remaining lease term | 5 years 1 month 6 days |
Shares Withheld (Details)
Shares Withheld (Details) - USD ($) | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Shares Withheld | ||
Tax withholding for share based compensation | $ 58,800 | $ 189,100 |
Concentration of Risk (Details)
Concentration of Risk (Details) - Revenue | 3 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Customer Concentration Risk | Largest customer | ||
Concentration Risk | ||
Concentration risk (as a percent) | 10.40% | |
Supplier Concentration Risk | Largest Supplier | ||
Concentration Risk | ||
Concentration risk (as a percent) | 21.60% | 21.50% |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Jul. 02, 2020 | Jul. 31, 2020 | Jun. 28, 2020 | Mar. 29, 2020 |
Subsequent Event | ||||
Treasury stock (in shares) | 5,789,600 | 5,776,819 | ||
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 | ||
Subsequent Event | ||||
Subsequent Event | ||||
Amount of treasury stock retired | $ 58,555,000 | |||
Stock increased | 5,789,600 | |||
Common stock, authorized (in shares) | 15,000,000 | |||
Subsequent Event | Treasury Stock Retirement 2020 Resolutions | ||||
Subsequent Event | ||||
Change to total stockholders' equity | $ 0 |