Concentration of Risk

9 Months Ended

Dec. 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 nine months ended December 30, 2012, sales of products to the Company's top customer relationship, AT&T Mobility Inc. ("AT&T"), accounted for 30% and 33% of total revenues, respectively. For the fiscal quarter and nine months ended December 25, 2011, sales of products to AT&T, the Company's top customer relationship, accounted for 45% and 34% of total revenues, respectively. For the fiscal quarter and nine months ended December 30, 2012, aside from AT&T, no customer accounted for more than 2% and 3% of total consolidated revenues, respectively.  As further described below, in April 2012, TESSCO was notified by AT&T of their intention to transition their third party logistics retail store supply chain business, which makes up the vast majority of the Company's AT&T revenues, away from TESSCO beginning in the second quarter of the Company's fiscal 2013.  TESSCO now anticipates that this business will be fully transitioned prior to the close of the Company's fiscal 2013, which ends March 31, 2013.  This will result in a significant reduction in revenues but is expected to result in 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 nine months ended December 30, 2012, sales of products purchased from the Company's largest vendor, Otter Products LLC, a significant portion of which were sold to the Company's largest customer AT&T through our third party logistics relationship with that customer, accounted for approximately 10% of total revenues. For the fiscal quarter and nine months ended December 25, 2011, sales of products purchased from Otter Products LLC, accounted for approximately 23% and 20% of total revenues, respectively.