Distributor Avnet Misses Quarter Profit ExpectationsBy Reuters | Print
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The electronics components and computer products distributor Avnet said that its profitability -- the company posted a loss -- was hurt by an unfavorable geographic mix.
Aug 5 (Reuters) - Electronics components and computer products distributor Avnet Inc (NYSE:AVT) posted an adjusted quarterly profit that missed estimates, hurt by a drop in profit margins due to the regional business mix.
The company posted a fourth-quarter net loss of $30 million, or 20 cents a share, compared with net income of $144.1 million, or 95 cents a share, a year earlier.
Excluding items, the company posted a profit of 32 cents per share, according to Reuters Estimates.
Pro-forma revenue fell 25 percent to $3.77 billion.
Pro-forma revenue is adjusted for the impact of acquisitions to include the revenue recorded by these businesses as the acquisitions had occurred at the beginning of fiscal 2008, the company said.
Sales in the technology solutions segment fell 18 percent and 21 percent in Americas and Europe, Middle East and Africa (EMEA), respectively their higher margin markets, while in Asia they were up 23 percent.
Analysts were expecting a profit of 35 cents a share, excluding items, on revenue of $3.72 billion, according to Reuters Estimates.
For the first quarter of fiscal 2010, the company expects a profit of 29 cents to 37 cents a share, excluding stock-based compensation expense. It sees revenue of $3.6 billion to $4.2 billion.
Analysts are expecting a profit of 37 cents, on revenue of $3.7 billion.
Shares of the company closed at $25.58 Tuesday on New York Stock Exchange.
(Reporting by Mansi Dutta in Bangalore; Editing by Maju Samuel)