Avnet Inc. today reported revenue for the third quarter of fiscal 2003 ended March 28 rose to $2.34 billion from $2.21 billion in the year-ago period, which the company pointed to as a sign of stability in its end markets and modestly improving global demand.
The Phoenix distributor said net income reached $1.5 million, or 1-cent per share, compared with a net loss of $1.3 million, or 1-cent per share, in the same quarter last year.
Avnet said it also generated free cash flow of approximately $97 million, primarily through cash generation from operations and further reductions in working capital.
In a statement, Roy Vallee, Avnet chairman and chief executive, said the distributor has begun to "see stability in the technology end-markets we serve, and this quarter we saw a slight improvement in the electronic components markets worldwide."
"Enterprise revenues were higher than we expected due to higher than anticipated growth in our Electronics Marketing group and the stronger euro, Vallee said. "Despite enterprise revenues declining slightly from the prior sequential quarter, net income, excluding special charges, increased by $2.5 million sequentially, and for the third quarter in a row we achieved year-over-year growth in net income excluding special charges."
Providing guidance for the fiscal fourth quarter, Avnet said it expects revenue of $2.25 billion to $2.3 billion and earnings per share excluding special items of 8 cents to 11 cents and net earnings per share of 3 cents to 8 cents.