Avnet Results

By Jessica Davis  |  Posted 2008-10-24 Email Print this article Print
 
 
 
 
 
 
 

Disappointing revenues, low visibility and more interest in lease financing characterized the quarter for technology distributors Ingram Micro and Avnet, reporting their earnings on Oct. 23. The reports come in the aftermath of a Wall Street meltdown that is causing a global economic crisis. It's a "different universe," says Ingram Micro's CEO.

 

Avnet's revenues grew for the quarter versus the same period a year ago, on acquisitions, but net income fell.

Avnet's Technology Solutions operating group saw sales of $1.79 billion in Q1, up 11.5 percent year over year on an "as reported" basis. On a pro forma basis Technology Solutions revenue fell 3.3 percent year over year.

"The revenue slowdown for Technology Solutions continues to be more pronounced than what we are experiencing at [the Electronics Marketing operating unit] as pro forma revenue declined in all three regions this quarter," CEO Roy Vallee said in a prepared statement.

Avnet will be taking further cost-cutting measures across the company of 3 percent to 5 percent, said Paget.

 

 

 

Avnet results

 

Current Quarter

 

Year-Ago Quarter

Revenues

 


(as reported)

 

(as reported) (as reported)

$4,494

 

$4,099

 

Revenues
(pro forma)

 

$4,495

 

$4,455

 

Net income

 

Net income Net income

$93

 

$106

 

(in millions)

 

 

 

 

 

 

 

 

 

 

 

 


"The cuts will be very prescriptive," Paget said. "We don't peanut butter these. We look toward businesses that are performing and those that are not, and deal with those that are not performing.

"We are doing a lot around freight costs," he added.  "I do a lot more videoconferencing than I've ever done in the past to cut down on travel. Certainly there may be some headcount reductions."

 
 
 
 
Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com
 
 
 
 
 
























 
 
 
 
 
 

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