Avnet, Inc. (Nasdaq: AVT) today announced results for its first quarter ended October 3, 2020. Sales reached $4.7 billion, up from $4.2 billion in the previous quarter and $4.6 billion in the prior year quarter. Other highlights:
- GAAP diluted loss per share of $0.19, compared with earnings per share of $0.40 a year ago.
- Non-GAAP adjusted diluted EPS of $0.36 compared with $0.60 a year ago.
- Cash flow from operations totaled $122 million, and totaled $657 million over the trailing four quarter period.
- Reduced revolving debt by $63 million with net debt of $879 million at the end of the quarter.
- The first quarter sales of $4.7 billion and adjusted operating expenses of $451 million represent 14 weeks of activity compared to the normal 13-week quarter. Adjusted to a 13-week quarter, estimated organic sales were $4.4 billion and estimated adjusted operating expenses were $431 million.
“Our first quarter results reflect improving macroeconomic conditions and our renewed emphasis on effective execution within our Electronic Components business. Revenues were better than expected, driven by improving demand in our Asia region and across a variety of verticals, most notably auto. In the quarter, we sharpened our focus on our primary components distribution business and continued to diligently help our supplier partners deploy their technologies to meet the needs of our end customers,” said Avnet Interim CEO Phil Gallagher. “We are rebalancing our strategy, realigning our organizational structure and we continue to see great value in Farnell’s opportunity to strengthen Avnet’s global digital footprint to be more responsive to customer and supplier needs. I am proud of how Avnet is managing through this challenging environment and diversifying our revenue streams to deliver on our 2021 fiscal year priorities of improving top-line growth, generating greater operating margin and earning an adequate return on capital.”
“In our first quarter, we generated $122 million of cash flow from operations. This is our eighth consecutive quarter of positive cash flow, which illustrates our team’s continued execution in managing cash, working capital and debt as we proceed through the economic cycle,” said Avnet CFO Tom Liguori. “Our $75 million annual operating expense reduction plan is on track and we expect it will be fully implemented for our second quarter. All of these initiatives support our 2021 fiscal year priorities, as Phil stated, of improving operating income and returns on capital while growing revenues.”
The entire release and tables are available here.