Exhibit 99.1

TESSCO Reports First Quarter 2018 Financial Results

Quarterly Revenues Increase 9% Year Over Year

Quarterly Dividend of $0.20 Per Share Continued

HUNT VALLEY, MD, July 18, 2017—TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS), today reported financial results for its first quarter of fiscal 2018, ended June 25, 2017.

First-Quarter Highlights:

* EBITDA per diluted share and EBITDA (on which EBITDA per diluted share is based) are Non-GAAP financial measures. Non-GAAP financial measures indicated by an asterisk (*) either in the above chart or in the text of this press release are so indicated as a means to direct the reader to the discussion of Non-GAAP Information below and the reconciliation of Non-GAAP to GAAP results included as an exhibit to this press release.  

First-Quarter Revenue by Market:

“We continued to build on the sales momentum we have seen since last fall, achieving year-over-year revenue growth for the third consecutive quarter and year-over-year EPS growth for the second straight quarter,” said Murray Wright, President and Chief Executive Officer. “The improved top-line results primarily were driven by a 60% increase in sales to the public carrier market ecosystem and to a lesser extent by a solid performance in our VAR, private system and retail markets. This reinvigorated overall sales performance was in line with our expectations and led directly to the increase in our bottom line results.

“In my first nine months with TESSCO, we have implemented a number of new initiatives, incorporated them into a sound operating plan and executed on that plan,” Wright said. “Among these initiatives, we have enhanced our senior leadership, reorganized and revitalized our sales organization, improved our sales compensation plans to incentivize portfolio growth, regionalized our sales force and continued to invest in our ecommerce capabilities. We are improving how we engage with customers and vendor partners, as we develop

stronger relationships to drive increased sales. While we recognize that many of these changes will take hold over time, we are optimistic about the positive trend and the opportunities ahead of us. We look forward to building on our recent track record of year-over-year sales growth during our fiscal second quarter as we strive for improved profitability throughout this year.”

First-Quarter Fiscal 2018 Financial Results

For the fiscal 2018 first quarter, revenues totaled $140.0 million, compared with $128.9 million for the first quarter of fiscal 2017. The increase in revenues from the prior-year period resulted primarily from a significant increase in sales to the public carrier ecosystem and from strong VAR, private system and retail sales.

Gross profit was $29.2 million for the first quarter of fiscal 2018, up from $27.1 million for the same quarter of fiscal 2017. The year-over-year increase in gross profit was primarily the result of the increase in overall sales. Gross margin was 20.8% of revenue for the first quarter of fiscal 2018, compared with 21.0% for last year’s first quarter. The decrease in gross margin was largely due to changes in the customer and product mix, including the increase in lower-margin sales to the public carrier market.

Selling, general and administrative (SG&A) expenses were $27.9 million for the first quarter of fiscal 2018, compared with $27.0 million for the same quarter of the prior year. The increase in quarterly SG&A expenses year over year primarily resulted from increased variable costs associated with higher sales, as well as increased accruals related to the Company’s performance-based reward programs.  

Net income and earnings per share (EPS) were $0.7 million and $0.08, respectively, for the first quarter of fiscal 2018, compared with net income and EPS of $0.1 million and $0.01, respectively, for the prior-year first quarter. 

Balance Sheet and Cash Flows

Increasing sales to the Company’s public carrier customers at times require significant investments in inventory, and these customers generally demand more favorable payment terms. Therefore, increasing the Company’s positioning and market share with these customers requires a working capital investment. During the first quarter, sales to public carrier customers increased 60% over last year’s first quarter and 26% over the sequential fourth quarter of fiscal 2017. Accordingly, during the first quarter, the Company experienced increases in inventory and accounts receivable and a corresponding decrease in its cash position, including increased borrowings on its line of credit. As of June 25, 2017, cash and equivalents totaled $0.2 million, and the outstanding balance on the Company’s line of credit was $8.3 million. Cash flow used in operations was $14.1 million during the first quarter, primarily due to increases in inventory and accounts receivable. Inventory increased by $8.1 million during the first quarter to $72.1 million as of June 25, 2017. Trade accounts receivable increased by $15.0 million during the first quarter to $79.8 million. The Company is currently evaluating its line of credit facility in an effort to ensure its ability to continue to make appropriate investments in it business.  The Company believes the long-term benefit from serving these carrier customers more than offsets the investments in cash required to support this business. 

Cash Dividend 

TESSCO’s Board of Directors declared a quarterly cash dividend of $0.20 per common share payable on August 23, 2017 to common stockholders of record on August 9, 2017. Any future declaration of dividends, and the establishment of record and payment dates, is subject to future determinations of the Board of Directors.

Business Outlook

The Company is not providing earnings guidance at this time for fiscal 2018. 

First-Quarter Fiscal 2018 Conference Call 

Management will host a conference call to discuss first quarter 2018 results tomorrow, July 19, 2017 at 8:30 a.m. ET. To participate in the conference call, please call: 855-319-5921 (domestic call-in) or 503-343-6034 (international call-in) and reference code #51620241.

A live webcast of the conference call will be available at http://tesscotechnologies.gcs-web.com/investor-resources/events. All participants should call or access the website approximately 10 minutes before the conference begins.

A telephone replay of the conference call will be available from 11:30 a.m. ET on July 19, 2017 until 11:59 p.m. ET on July 26, 2017 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #51620241. An archived replay of the conference call will also be available on the Company's website at http://tesscotechnologies.gcs-web.com/investor-resources/webcasts-and-presentations.

Non-GAAP Information 

EBITDA and EBITDA per diluted share are measures used by management to evaluate the Company’s ongoing operations, and to provide a general indicator of the Company's operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges). EBITDA is defined as income from operations, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization.  EBITDA per diluted share is defined as EBITDA divided by TESSCO’s diluted weighted average shares outstanding.

Management believes EBITDA and EBITDA per share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Because not all companies use identical calculations, the Company’s presentation of these Non-GAAP measures may not be comparable to other similarly titled measures of other companies. Neither EBITDA nor EBITDA per diluted share is a recognized term under GAAP, and EBITDA does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, neither EBITDA nor EBITDA per diluted share is intended to be a measure of free cash flow for management's discretionary use, as certain cash requirements, such as interest payments, tax payments and debt service requirements, are not reflected.

A reconciliation of Non-GAAP to GAAP results is included as an exhibit to this release.

About TESSCO Technologies Incorporated (NASDAQ: TESS)

TESSCO Technologies, Inc. (NASDAQ: TESS) is a value-added technology distributor, manufacturer and solutions provider. TESSCO was founded more than 30 years ago with a commitment to deliver industry-leading products, knowledge, solutions and customer service and 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, wireless backhaul and more. 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.  

Forward-Looking Statements 

This press release contains forward-looking statements as to anticipated results and future prospects. These forward-looking statements are based on current expectations and analysis, and actual results may differ materially. These forward-looking statements may generally be identified by the use of the words "may," "will," "expects," "anticipates," "believes," "estimates," and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. Forward-looking statements involve a number of risks and uncertainties. Our actual results may differ materially from those described in or contemplated by any such forward-looking statement for a variety of reasons, including those risks identified in our most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange

Commission, under the heading "Risk Factors" and otherwise. Consequently, the reader is cautioned to consider all forward-looking statements in light of the risks to which they are subject.

We are not able to identify or control all circumstances that could occur in the future that may adversely affect our business and operating results. Without limiting the risks that we describe in our periodic reports and elsewhere, among the risks that could lead to a materially adverse impact on our business or operating results are the following: termination or non-renewal of limited duration agreements or arrangements with our vendors and affinity partners that are typically terminable by either party upon several months or otherwise relatively short notice; loss of significant customers or relationships, including affinity relationships; loss of customers as a result of consolidation among the wireless communications industry; the strength of our customers', vendors' and affinity partners' business; negative or adverse economic conditions, including those adversely  affecting consumer confidence or consumer or business spending or otherwise adversely impacting our vendors or customers, including their access to capital or liquidity, or our customers' demand for, or ability to fund or pay for, the purchase of our products and services; our dependence on a relatively small number of suppliers and vendors, which could hamper our ability to maintain appropriate inventory levels and meet customer demand; changes in customer and product mix that affect gross margin; effect of “conflict minerals” regulations on the supply and cost of certain of our products; failure of our information technology system or distribution system; system security or data protection breaches; technology changes in the wireless communications industry or technological failures, which could lead to significant inventory obsolescence and/or our inability to offer key products that our customers demand; third-party freight carrier interruption; increased competition and the absence of significant barriers to entry which could result in pricing and other pressures on profitability and market share; our relative bargaining power and inability to negotiate favorable terms with our vendors and customers; our inability to access capital and obtain financing as and when needed; claims against us for breach of the intellectual property rights of third parties; product liability claims; our inability to protect certain intellectual property, including systems and technologies on which we rely; our inability to hire or retain for any reason our key professionals, management and staff; and the possibility that, for unforeseen or other reasons, we may be delayed in entering into or performing, or may fail to enter into or perform, anticipated contracts or may otherwise be delayed in realizing or fail to realize anticipated revenues or anticipated savings.  

TESSCO Technologies Incorporated
Aric Spitulnik
Chief Financial Officer
410-229-1419
spitulnik@tessco.com
or

David Calusdian
Sharon Merrill Associates
617-542-5300

TESS@investorrelations.com 

TESSCO Technologies Incorporated

Consolidated Statements of Income (Unaudited)

TESSCO Technologies Incorporated

Consolidated Balance Sheets

TESSCO Technologies Incorporated

Reconciliation of Net Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited)