Avnet, Inc. Reports First Quarter Fiscal Year 2012 Results

Nov. 2, 2011 - PRLog -- For its first quarter of fiscal year 2012, Avnet’s revenue was $6.43 billion, which is an increase of 3.9% year over year. Adjusted diluted earnings per share were $0.90, down 3.2% year over year, mostly due to higher than normal other expense of $5.4 million primarily related to foreign currency.

Avnet delivered a strong Q1 performance despite a challenging macro environment. Following seven consecutive quarters of solid year over year returns, growth in the technology markets Avnet serves softened at the global level more than expected. Sequential revenue declined more than normal seasonality due primarily to the double-digit sequential revenue declines experienced in the EMEA region at both operating groups after adjusting for the impact of acquisitions and currency.

Avnet Technology Solutions’ reported revenue of $2.6 billion grew by 1.9% year over year, while organic revenue in constant dollars increased 6.3%.

Regional revenue for Avnet Technology Solutions’ first quarter fiscal year 2012 was:
•   Americas - $1.39 billion USD, with pro forma revenue up 13.3% year over year
•   EMEA - $778.5 million USD, with pro forma revenue down 5.9% year over year (or 12.5% excluding the impact of foreign currency exchange rates)
•   Asia - $442.8 million USD, with pro forma revenue up 35.6% year over year

Avnet Technology Solutions experienced solid year over year improvements in profitability and returns during the quarter. Gross profit margin improved 75 basis points sequentially and 37 basis points year over year. In addition, operating income increasing 14.7% year over year, and operating income margin increasing 28 basis points year over year to 2.5%. All three Avnet Technology Solutions regions contributed to this improvement. Return on working capital (ROWC) also increased both sequentially and year over year.

Avnet Technology Solutions continues to focus on geographic markets and data center technologies with high growth potential in order to expand its data center solutions sales. During the quarter, software sales grew greater than 40% year over year, while hardware sales grew more than 30%, led by industry standard servers and storage. Services revenue also grew by double digits year over year.

For more details, see the press release attached or visit http://ir.avnet.com/.