Concentration of Risk

3 Months Ended

Jul. 01, 2012

Concentration of Risk [Abstract]

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 both the fiscal quarters ended July 1, 2012 and June 26, 2011, sales of products to the Company's top customer relationship, AT&T Mobility Inc. ("AT&T"), accounted for 38% and 28% of total revenues, respectively. For the fiscal quarter ended July 1, 2012, aside from AT&T, no customer accounted for more than 5% of total consolidated revenues, respectively.  As further described below, in April 2012, we were notified by AT&T that they intend to transition their retail store supply chain business away from TESSCO beginning in the second quarter of the Company's fiscal 2013.  We now anticipate that this business will be transitioned in all material respects at some point during the Company's third quarter of fiscal 2013.  This will result in a significant reduction in revenues but a lesser relative impact on overall profits.

The Company is dependent on third-party equipment manufacturers, distributors and dealers for all of its supply of wireless communications equipment. For the first quarter of fiscal years 2013 and 2012, sales of products purchased from the Company's largest vendor, Otter Products LLC, a significant portion of which are sold to the Company's largest customer AT&T, accounted for approximately 11% and 22% of total revenues, respectively.