Exhibit 99.1

TESSCO Reports Second Quarter 2017 Financial Results

Achieves Sequential Improvement in Revenue and Earnings

Continues Quarterly Dividend of $0.20 Per Share

HUNT VALLEY, MD, Oct. 27, 2016—TESSCO TECHNOLOGIES INCORPORATED (NASDAQ: TESS), a consultative provider of the end-to-end wireless solutions to deploy network and connectivity systems, today reported financial results for its second quarter of fiscal 2017, ended September 25, 2016.

Second-Quarter Highlights:

Second-Quarter Revenue by Market:

Robert Barnhill commented, “Our second quarter was encouraging on several fronts.

“Overall, we achieved sequential growth in earnings, with $0.12 EPS and $0.38 EBITDA per share. We continue to maintain a strong balance sheet and declared our quarterly dividend of $0.20 per share.” 

“Going forward, we are excited to be building on a solid foundation at TESSCO,” said Murray Wright, President and Chief Executive Officer. “Many key investments in intellectual capital and technology have already been made. These investments should enable us to pursue our existing transformation strategy without significant outlays of additional capital. From an operational perspective, we are increasing our intensity and focus on execution, particularly in achieving top-line growth. Working from this foundation, we see opportunities to improve our productivity, agility, customer focus and speed. TESSCO is in a terrific position to capitalize on the growth of the wireless industry during the next several years, and I am excited to lead that process.”

Second-Quarter Fiscal 2017 Financial Results

* EBITDA per share and EBITDA (on which EBITDA per diluted share is based) are Non-GAAP financial measures. Non-GAAP financial measures indicated by an asterisk (*) 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.  

For the fiscal 2017 second quarter, revenues totaled $134.6 million, compared with $142.4 million in the second quarter of fiscal 2016 and $128.9 million in the first quarter of fiscal 2017.

Gross profit was $28.8 million for the second quarter of fiscal 2017, compared with $30.5 million for the same quarter of fiscal 2016 and $27.1 million for the first quarter of fiscal 2017. The year-over-year decline in gross profit was primarily the result of reduced sales to public carrier customers. Gross margin was 21.4% of revenue for the second quarter of fiscal 2017, unchanged from last year’s second quarter and up 40 basis points from the first quarter of fiscal 2017.

Selling, general and administrative (SG&A) expenses were $26.7 million for the second quarter of fiscal 2017. This compares with $25.9 million for the same quarter of the prior year and $27.0 million for the first quarter of fiscal 2017. The increase in SG&A expenses year-over-year was primarily driven by increased compensation and recruiting expenses related to the Company’s sales and marketing initiatives.

Net income and earnings per diluted share were $1.0 million and $0.12, respectively, for the second quarter of fiscal 2017, compared with net income and earnings per diluted share of $2.7 million and $0.33,

respectively, for the prior-year second quarter, and $0.1 million and $0.01, respectively, for the first quarter of fiscal 2017.

Cash Dividend 

TESSCO’s Board of Directors declared a quarterly cash dividend of $0.20 per common share payable on November 23, 2016 to common stockholders of record on November 9, 2016. 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 2017 due to the uncertainty that persists, primarily in the carrier market. While the Company currently anticipates modest sequential revenue growth in the third quarter, results are expected to be lower than in the third quarter of fiscal 2016, primarily because of near-term economic conditions, market pressure, pricing pressure in the retail market and the costs associated with ongoing investments in the Company’s transformations. 

Forecasting future results or trends is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. The nature of the business is that TESSCO typically ships products within several days after booking orders. The lack of an order backlog makes it even more difficult to forecast future results. The Business Outlook published in this press release reflects only the company’s current best estimate and it assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time.

Second-Quarter Fiscal 2017 Conference Call 

Management will host a conference call to discuss second quarter 2017 results tomorrow, October 28, 2016 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 #90563212.

A live webcast of the conference call will be available at www.tessco.com/go/corporatepresentations. 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 October 28, 2016 until 11:59 p.m. ET on November 4, 2016 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #90563212. An archived replay of the conference call will also be available on the Company's website at www.tessco.com/go/corporatepresentations.

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.

 Reclassification of Items in Statement of Income and Supplemental Results Summary

Prior to the third quarter of fiscal 2016, the Company classified indirect costs relieved from inventory upon a sale as selling, general and administrative expenses, as opposed to cost of goods sold. The financial results presented in this release correctly reflect indirect costs relieved from inventory as cost of goods sold for all periods. The accompanying Consolidated Statements of Income and Supplemental Results Summary have been adjusted to correct this immaterial error in the classification of indirect inventory costs in the income statement. This resulted in an increase in cost of goods sold, and a corresponding decrease in selling, general and administrative expenses, of $3.3 million and $6.6 million, for the three-month and six-month periods ended September 27, 2015, respectively. These corrections have no impact on previously reported revenues, operating margin, EBITDA, net income, earnings per share or on previously reported Consolidated Balance Sheets or Consolidated Statements of Cash Flows.

About TESSCO Technologies Incorporated (NASDAQ: TESS)

The convergence of wireless and the Internet is revolutionizing the way we live, work and play. New systems and applications are creating challenges and opportunities at an unprecedented rate.

TESSCO is there ‒enabling organizations to capitalize on the opportunities in wireless by providing Your Total Source® of end-to-end solutions. TESSCO delivers the knowledge and product and supply chain solutions required to build, use and maintain wireless voice, data, video, connectivity and control network systems. 

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; economic conditions that may affect consumer confidence or consumer or business spending or otherwise adversely impact customers' ability to fund or pay for our products and services; 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; fourth-party freight carrier interruption; increased competition; 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 fourth parties; product liability claims; 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
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)