Concentration of Risk

6 Months Ended

Sep. 30, 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 the fiscal quarter and six months ended September 30, 2012, sales of products to the Company's top customer relationship, AT&T Mobility Inc. ("AT&T"), accounted for 31% and 34% of total revenues, respectively. For the fiscal quarter and six months ended September 25, 2011, sales of products to AT&T, the Company's top customer relationship, accounted for 24% and 26% of total revenues, respectively. For the fiscal quarter and six months ended September 30, 2012, aside from AT&T, no customer accounted for more than 3% and 4% of total consolidated revenues, respectively. As further described below, in April 2012, we were notified by AT&T of their intention to transition their third party logistics 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 fully transitioned prior to close of the Company's fiscal 2013, which ends March 31, 2012. This will result in a significant reduction in revenues but a lesser relative impact on overall profits, in fiscal 2013.

The Company is dependent on third-party equipment manufacturers, distributors and dealers for all of its supply of wireless communications equipment. For both the fiscal quarter and six months ended September 30, 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 10% of total revenues. For the fiscal quarter and six months ended September 25, 2011, sales of products purchased from Otter Products LLC, accounted for approximately 15% and 19% of total revenues, respectively.