Avnet, Inc. (Nasdaq: AVT), a leading global technology solutions provider, today announced that William J. (“Bill”) Amelio is moving on from his role as CEO and as a member of the Avnet Board of Directors.
Rodney C. Adkins, Chairman of the Board, said, “Bill has been a great asset since joining Avnet’s Board of Directors in 2014 and for the past four years as CEO. He has been the driver behind our strategy of providing added value to our electronic components distribution business while extending into new growth opportunities, including digital commerce, Farnell and IoT.”
Phil Gallagher, Global President of Avnet’s Electronic Components business, has been appointed as the company’s interim chief executive officer.
Adkins said, “Phil has developed an incredible reputation within the company, as well as with our suppliers, customers and investors. The Board of Directors is thrilled that his steady hands will help guide the company and our important relationships to even greater success.”
Gallagher has worked at Avnet for over 30 years and has held executive leadership positions in sales, marketing, and operations. Recently, he was the Global President of Avnet’s Electronics Components business. Gallagher was formerly the President of the National Electronic Distributors Association and currently serves on the advisory board of the Women in Electronics Community.
“I want to thank Bill for his passion while leading Avnet over the past four years,” said Gallagher. “We continue to believe Avnet has a solid foundation from which to grow, with valuable assets, talented employees, and end markets where we see many attractive opportunities. My immediate priorities will be accelerating the profitable growth of our core distribution business and Farnell, as well as enhancing Avnet’s customer journey overall.”
Gallager rejoined Avnet in 2017 from TTI Inc., where, since April 2016, he served as corporate officer, senior vice president and member of CEO Paul Andrews’ executive staff, acting in the functional role as president, sales and marketing, TTI Americas. Gallagher had just come off a two-year hiatus after leaving Avnet.
Although Gallagher’s 2014 departure from Avnet was described as “retirement,” it was a signal that Avnet’s management staff was in turmoil. Rick Hamada, also a 30-plus-year veteran of Avnet, was named CEO in 2011. Avnet’s sales and earnings had slipped during Hamada’s tenure and Hamada was fired by Avnet’s board of directors in 2016.
Gallagher had been president of Avnet Technology Solutions since 2009. Although Gallagher’s roots were in the components business, Technology Solutions had been stumbling and corporate management asked Gallagher to take the helm. Technology Solutions never really regained solid footing: it was sold to Tech Data Corp. in September of 2016.
Gallagher, upon rejoining Avnet, said electronics distribution must adapt to the many changes impacting the industry. One of his first challenges was with Avnet’s supplier base. Following its acquisition of Linear Technology, Analog Devices had dropped Avnet and named Arrow Electronics Inc. as its sole global distributor. Analog Devices has since acquired Maxim Integrated Products, a longtime supplier to Avnet.
Preliminary Fourth Quarter Fiscal 2020 Earnings Results
Avnet expects to announce sales of $4.2 billion in the fourth quarter, GAAP diluted earnings per share from continuing operations of $0.53, and non-GAAP adjusted diluted EPS of $0.64. The GAAP and adjusted diluted EPS includes benefits of $0.42 from lower tax expense and $0.08 from lower interest expense and favorable foreign currency gains. Cash flow from operations during the fourth quarter is expected to be $288 million.
Avnet will report complete financial results for the fourth quarter and fiscal year 2020 on Thursday, August 6, after market close.