"In January 2011, we reported that our largest customer was assessing cost reduction business model changes that could affect our supply chain relationship. Earlier this month, this customer indicated to us that the current business model will stay in place at least into the beginning of our next fiscal year and that additional business will flow through TESSCO in the meantime. Consequently, we currently expect an increase in revenues and an accompanying decrease in gross profit margin. We expect a gradual increase in orders to us in our second fiscal quarter with larger increases expected to follow in our third quarter. This customer also indicated that, over time, it expects to continue to explore business model changes in an ongoing effort to lower total costs. "