SAN FRANCISCO—Electronics distributor Avnet Inc. Wednesday (Aug. 11) reported record sales of $5.21 billion for the quarter ended July 3, besting consensus analyst expectations for revenue and profit.
Sales for the quarter improved by 9.5 percent compared with the previous quarter and by 38.5 percent compared with the year-ago quarter, Avnet (Phoenix) said. The company reported a net income for the quarter of $141.1 million, or 92 cents per diluted share, up from $114.5 million in the previous quarter and a loss of $30.9 million in the year-ago quarter.
On a non-GAAP basis, excluding charges, Avnet also reported a net income for the quarter of $141.1 million, or 92 cents per diluted share.
Consensus analyst expectations called for Avnet to report sales for the quarter of $502 billion and a non-GAAP net income of about 80 cents per share, according to Yahoo Finance.
In a statement, Roy Vallee, Avnet's chairman and CEO, said the "V-shaped" recovery continued in the markets Avnet serves. " The combination of record revenue, gross profit margin expansion and productivity gains drove operating income margin up sequentially and year over year at both operating groups with the EMEA region delivering the most significant improvement," Vallee said.
Avnet's largest business group, Avnet Electronics Marketing, recorded sales for the quarter of $3.12 billion, up 46.9 percent year-over-year and up 49.6 percent in constant currency, Avnet said.
"The demand for electronic components remained strong across all three regions as better-than-normal sequential growth resulted in year-over-year revenue growth of 47 percent this quarter, establishing a new record for EM," Vallee said.
Avnet's other major business group, Avnet Technology Solutions, reported sales of $2.1 billion, up 27.5 percent year-to-year, the company said. It was the third consecutive quarter of double digit sales increases for the group, Avnet said.
For its full fiscal 2010, which also closed July 3, Avnet reported sales of $19.2 billion, up 18 percent from fiscal 2009. The company recorded a net income in accordance with generally accepted accounting principles of $410.4 million, or $2.68 per diluted share, compared to a loss of more than $1.1 billion in fiscal 2009.
For the current quarter, which closes Oct. 2, Avnet said it expects revenue to be between $5.6 billion and $6.2 billion, with non-GAAP earnings per share of between 76 and 84 cents.