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.
