TESSCO Technologies Incorporated : FY 2021 Annual Report

ANNUAL REPORT

FY21

Nadsaq: TESS

TESSCO

OUR CUSTOMERS OUR SUPPLIERS OUR INVESTORS

TOGETHER TOWARDS TOMORROW

We remove complexity for customers and

suppliers by offering far more than product

and credit lines.

We do this by applying extensive product technology and industry knowledge, creative problem solving, unsurpassed program management and efficient operations to help our suppliers and customers win new business.

Wireless technology takes an entire community to make it accessible and usable for companies, consumers, and first responders. Everything we do is intended to enable our suppliers and customers to maximize their growth and optimize profitability.

As a result, we provide our shareholders a unique and efficient way to invest in this rapidly growing and dynamic industry.

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We remain relentless in our drive for sustained profitable growth and increased shareholder value.

SANDIP MUKERJEE

PRESIDENT & CHIEF EXECUTIVE OFFICER

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TO OUR SHAREHOLDERS,

In last year's annual report, I shared a vision of Tessco's future. At that time, we were all unsure about the impact the pandemic could have on our people, our customers, our suppliers, and the world around us. I am grateful to the entire Tessco team for their unwavering dedication and commitment, which enabled Tessco to navigate unprecedented operational challenges while serving as an essential business for the wireless infrastructure industry. As we look to a post-pandemic future, I am confident that renewed emphasis on modern wireless infrastructure deployments, will help propel Tessco to sustained profitable growth.

The vision I articulated a year ago was focused on a transformation for Tessco; from a distributor of wireless infrastructure and mobile device accessories, to an industry force able to capitalize on the technology convergence that is driving growth in the wireless infrastructure construction and maintenance ecosystem. Today, with that goal still squarely in view, we are pleased to report substantive progress in each area of our strategic plan.

The strategy we detailed last year included four key elements:

• Divestiture of our retail-focused mobile device accessory business to allow us to dedicate all our assets, and focus to our infrastructure business.

• Driving growth and efficiency in our core infrastructure products distribution business.

• Developing our Ventev business into a leading innovator of products capable of helping customers resolve infrastructure construction challenges.
• Launching a software business to support the products our customers utilize in their networks and to address their biggest pain points, including construction, deployment, and management.

We completed the sale of our mobile device accessory business assets in December. This divestiture process was prolonged due to the pandemic, which meant that the "New Tessco" did not truly begin operation until the fourth quarter of our 2021 fiscal year. Even so, we made significant strides with our core distribution business. At the same time, Ventev moved ahead in focusing more on the development, production, and sale of standardized, industry-leading products. Additionally, we continued to develop our initial Tessco software product offering with very little incremental investment.

In fiscal 2022, we see significant lessening of the impacts of the pandemic and acceleration of investments in technology refreshes. With the progress made over the last year, we are well positioned to drive both top line sales growth and deliver organizational efficiencies. We continue to be relentless in driving this strategy while remaining focused on cash, profitability, and increased shareholder value.

Together Towards Tomorrow.

SANDIP MUKERJEE

PRESIDENT & CHIEF EXECUTIVE OFFICER

June 10, 2021

Leadership

Directors

Paul J. Gaffney, Chairman

Senior Vice President, Chief Technology and Supply Chain Officer, Kohls

Robert B. Barnhill, Jr.

Former President and Chief Executive Officer, TESSCO Technologies Incorporated

Jay G. Baitler

Former Executive Vice President, Staples, Inc., Contract Division

Tim Bryan

CEO of National Rural Telecommunications Cooperative (NRTC)

Stephanie Dismore

Senior Vice President and Managing Director, North America, HP

Kathleen McLean

Former SVP, CIO, and Chief Customer Officer, ADT Inc.

Sandip Mukerjee

President and Chief Executive Officer, TESSCO Technologies Incorporated

Officers

Sandip Mukerjee

President & Chief Executive Officer

Douglas A. Rein

Senior Vice President of Performance Systems & Operations

Aric M. Spitulnik

Senior Vice President & Chief Financial Officer

James R. Gaarder	Tammy S. Ridgely
Vice President	Vice President
Jesse Hillman	Jeffrey L. Shockey
Vice President	Vice President
Cynthia L. King	Mary Beth Smith
Vice President	Vice President
Thad Lowe
Vice President

Shareowner Information

Annual Meeting

The Annual Meeting of Shareowners of TESSCO Technologies Incorporated is scheduled to be held at 4 p.m. ET, July 28, 2021 and will be a virtual meeting, accessible by visiting www.proxydocs.com/tess.

Investor Relations

Analysts, investors and shareowners seeking additional information about TESSCO Technologies Incorporated are invited to contact:

Sharon Merrill	Aric M. Spitulnik
77 Franklin Street	375 West Padonia Road
Boston, MA 02110	Timonium, MD 21093
Telephone: [phone]	Telephone: [phone]
Facsimile: 617.423.7272	Facsimile: 410.229.1669
Internet: www.investors.com	Email: [e-mail]

A copy of the Company's Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission is available without charge on the SEC website, www.sec.gov, or upon request to the address above.

TESSCO on Nasdaq	Corporate Counsel
Tessco's common stock trades	Ballard Spahr LLP
on the Nasdaq Global Market	Baltimore, MD
under the symbol TESS.
Transfer Agent & Registrar	Independent Registered
EQ Shareowner Services	Public Accounting Firm
P.O. Box 64874	Ernst & Young LLP
Saint Paul, MN 55164	Baltimore, MD

Corporate Governance

The highest ethical standards have always been integral to Tessco's culture and business success. Each director, officer and team member is expected to observe the highest standards of ethical behavior in the performance of his or her duties for the Company. The Company's Code of Business Conduct and Ethics can be found in the Investors section of our website, www.tessco.com. From a corporate governance perspective, our eight member Board of Directors includes six independent directors. The standing committees of the Board of Directors are comprised of independent directors. In addition, each of the committees is chaired by an independent director. Tessco is an Affirmative Action-Equal Opportunity Employer M/F/D/V.

Forward-Looking Statements

This Annual Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, all of which are based on current expectation. All statements other than statements of historical facts contained herein, are forward-looking statements. These forward-looking statements may generally be identified by the use of the words "may," "will," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "seeks," "believes," "estimates," and similar expressions, but the absence of these words or phrases does not necessarily mean that a statement is not forward-looking. These forward-looking statements are only predictions and involve a number of risks, uncertainties and assumptions, many of which are outside of our control. Our actual results may differ materially and adversely 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 (the "SEC"), 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: the impact and results of any new or continued activism activities by activist investors; termination or non- renewal of limited duration agreements or arrangements with our suppliers and affinity partners which are typically terminable by either party upon several months or otherwise relatively short notice; loss of significant customers, suppliers or relationships, including affinity relationships; loss of customers or reduction in customer business either directly or indirectly as a result of consolidation among large wireless service carriers and others within the wireless communications industry; any deterioration in the strength of our customers', suppliers' or affinity partners' businesses; negative or adverse economic conditions, including those adversely affecting consumer confidence or consumer or business spending or otherwise adversely affecting our suppliers 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, 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; or our inability to maintain or upgrade our technology or telecommunication systems without undue cost, incident or delay; system security and data protection breaches and exposure to cyber-attacks, and the cost associated with ongoing efforts to maintain cyber-security measures and to meet applicable compliance standards; damage or destruction of our distribution or other facilities; prolonged or otherwise unusual quality or performance control problems; technology changes in the wireless communications industry or technological failures, which could lead to significant inventory obsolescence or devaluation and/or our inability to offer key products that our customers demand; third-party freight carrier interruption; increased competition from competitors, including manufacturers or national and regional distributors of the products we sell 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 suppliers and customers; our inability to access capital and obtain or retain financing as and when needed; transitional and other risks associated with acquisitions of companies that we may undertake in an effort to expand our business; 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; health epidemics or pandemics or other outbreaks or events, or national or world events or disasters, beyond our control, changes in political and regulatory conditions, including tax and trade policies; 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.