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TESSCO Technologies Inc. (TESS) Uses a Novel Business Model

This company is a seller for manufacturers of electronic components and a source for entities that require communication and automated solutions. It is able to generate superior business results through a novel operational model. The company is also a demonstration of strategic strength, having developed its operations around the needs of customers. It is a part of the Communications Equipment Industry, and is based in Hunt Valley, MD.

The management has just announced results for the Most Recent Quarter. Net income has grown by 6% over the 4th quarter for 2007, and has reached 32 cents per unit of stock. The company intends to focus on productivity to see its operations through the current slack economic conditions in the market. The company has already made impressive gains in this direction on its assembly and packaging lines. Future financial gains may result from the establishment of supply hubs in the logistic chain on either coast of the United States.

The company has entered in to an agreement with a trade credit provider to offer lines of credit for resellers. It has combined this offer with new electronic commerce solutions. These moves should accelerate top-line growth, while driving operating costs down. Such twin-benefit moves are most appropriate for the current market scenario in the Communications Equipment Industry.

The stock price has greeted the second week of May 2008 with a surge to $13.75. The Price to Earnings Ratio remains below 16 even at this level. More than a third of the stock is owned by top institutions.

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