Components and enterprise distributor Avnet has noted a continued
recovery in the market as indicated by a sequential climb in its
first quarter revenues, however profits have yet to rebound.
Coming hot on the heels of arch rival
Arrow's results, distributor Avnet today recorded a 3.1%
year-on-year decline in fiscal Q1 2010 revenues to $4.36bn, but
this represented a 15.6% increase on the $3.77bn posted last
quarter.
Profit for the three months fell 43% on the same period a year
ago to $90.3m, but was a marked improvement on the $30.9m loss the
last quarter of fiscal 2009.
"While the impact of the global economic slowdown remained
evident in our year-over-year revenue decline, our better than
expected sequential growth rates provides additional confidence
that the business environment is improving," said CEO Roy
Vallee.
Both operating group delivered revenues above seasonality, he
added, though Avnet did enjoy a 14 week quarter instead of the
usual 13.
Sales at the components division, Electronics Marketing fell
9.8% year-on-year to $2.44bn, but went up sequentially from
$2.13bn, while Technology Solutions posted a 6.9% rise in revenues
to $1.92bn, a 17% rise quarter-on-quarter.
By Paul Kunert,
Microscope