Arrow Electronics Inc., Melville, N.Y., reported that revenue in the first quarter 2003, ended March 31, rose to $1.98 billion from $1.84 billion a year earlier, but the electronics distributor recorded a net loss due to restructuring charges.
The loss was $905,000, or 1-cent a share, compared to a loss of $600.9 million, or $5.93 per share, in the same period in the prior year, which included a charge of $603 million due to a change in accounting standards.
Excluding special items in the first 2003 fiscal quarter related to restructuring and acquisitions, the company posted a profit of $10.1 million, or 10 cents a share.
In a prepared statement, William E. Mitchell, Arrow's president and chief executive, said the distributor completed the acquisition of Pioneer-Standard Electronics Inc.'s Industrial Electronics Division at the end of February and "successfully integrated that business into Arrow over the ensuing weekend. As a result, our first quarter includes an estimated one to two cents of earnings per share from the acquisition."
That integration helped Arrow boost revenue for its global electronic components distribution business to $1.49 billion, a 13% sequential increase and up 11% over last year's first quarter, with increases posted in all regions, the distributor said.
Excluding foreign exchange fluctuations and the estimated impact of Pioneer-Standard's IED business, component revenue grew 9% sequentially and 4% from last year's first quarter. Operating income as a percentage of sales was 3.4%, up 40 basis points sequentially but down 30 basis points from last year's first quarter.
Computer products sales worldwide totaled $490 million, down 15% from the seasonally strong fourth quarter and up 1% over last year's first quarter. Operating income was 3.2% of sales, down 90 basis points sequentially but up 80 basis points over the year-ago quarter.