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TESSCO Teams With RFS to Provide DragonSkin Coaxial Cable

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TESSCO Technologies Incorporated TESS has teamed up with Radio Frequency Systems (RFS), a global designer of total-package solutions for wireless and broadcast infrastructure, to provide its customers with the DragonSkin coaxial cable. The Hunt Valley, MD-based company continues to operate as an essential component of the wireless telecom supply chain. TESSCO’s shares climbed 3.3% in yesterday’s trading, closing at $5.34.

Reportedly, RFS’ DragonSkin is the only in-building coaxial cable that is UL 2196 certified and meets the NFPA 72 Survivability standards. The half-inch cable has been designed to protect mission-critical communications for first responders in burning buildings. It enables cellular and public safety radio communications for people on all floors of a high-rise building. DragonSkin transmits radio frequency signals and operates during severe heat, withstanding temperatures up to 1010°C, for at least two hours.

Notably, TESSCO supplies more than 50,000 products from 400 of the industry’s top manufacturers in mobile communications, Wi-Fi, IoT and wireless backhaul, among others. However, the performance of the company’s Retail segment in the prior fiscal has been disappointing. The downturn was further affected in the fourth quarter by the significant impact of COVID-19 on the global retail market. The pandemic has caused retail store closures or reduced foot traffic in most of its retail customer locations.

Meanwhile, the Commercial segment continues to perform well with an increasing share in the Public Carrier market. TESSCO expects to see growth in this business in fiscal 2021. It also has a healthy balance sheet. While undertaking actions to slash costs, the company continues to advance its strategic initiatives by investing in its Ventev business, commercial sales and product teams, software and service initiatives, and technological advances.

TESSCO is well placed to capitalize on the exponential growth of the industry. It is undertaking measures to improve profitability in the long term. Shares of TESSCO have lost 7.5% compared with 0.1% decline of the industry in the past three months.

TESSCO currently has a Zacks Rank #4 (Sell).

Better-ranked stocks in the industry are Turtle Beach Corporation HEAR, Ooma, Inc. OOMA and Acacia Communications, Inc. ACIA, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Turtle Beach has a trailing four-quarter positive earnings surprise of 46.4%, on average.

Ooma has a trailing four-quarter positive earnings surprise of 228.2%, on average.

Acacia has a trailing four-quarter positive earnings surprise of 17.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.

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Turtle Beach Corporation (HEAR) : Free Stock Analysis Report
TESSCO Technologies Incorporated (TESS) : Free Stock Analysis Report
Acacia Communications, Inc. (ACIA) : Free Stock Analysis Report
Ooma, Inc. (OOMA) : Free Stock Analysis Report
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