Avnet reports Q2 fiscal results

Avnet achieved a fourth consecutive quarter of double-digit year over year revenue growth. Record Avnet Inc. revenue of US$6.8 billion increased 40% year over year, with organic growth up 14%. GAAP diluted earnings per share increased 33.8% year over year to $0.91.

Avnet’s revenue of $3.21 billion USD grew 38% year over year and 25% sequentially. This resulted in a fifth consecutive quarter of strong year-over-year growth. Organic revenue grew 7% year over year in constant dollars.

Roy Vallee, chairman and CEO, Avnet comments, "The December quarter capped an excellent calendar year as we continued to leverage the technology driven economic recovery and delivered a fourth consecutive quarter of double-digit year-over-year organic revenue growth. Reported revenue grew 40% year over year to a record $6.8 billion and adjusted operating income grew nearly 1.5 times faster than revenue.”

Valle says the operating leverage in Avnet’s model drove adjusted operating income margin up both sequentially and year over year, with return on capital employed (ROCE) within our target range of 14% – 16% for the fifth consecutive quarter. He adds that both operating groups delivered ROCE above 15% in the December quarter even as the company continued to invest in organic growth initiatives and value-creating mergers and acquisitions in all three regions. “With technology markets pointing towards continued growth, we are optimistic that we can continue to grow revenue and EPS and deliver increased shareholder value going forward," he says.

Regional revenue for Avnet Technology Solutions is mentioned below:

• Americas: $1.82 billion USD, up 30% year over year on a reported basis
• EMEA: $1.04 billion USD, up 55% year over year (or 66% excluding the impact of foreign currency exchange rates) on a reported basis
• Asia: $339.6 million USD, up 39% year over year on a reported basis

According to the company, year over year growth at Avnet was driven mostly by hardware refresh investments, including spending on industry standard servers, storage and networking products.

Avnet Technology Solutions expects to continue to improve its financial performance by leveraging its market position in mature markets, expanding its profitability, presence and supplier base in higher growth markets, and fully realising the balance of expected synergy cost savings from the recent acquisitions of Bell Microproducts and Tallard Technologies.

Avnet Technology Solutions recently announced the results for the Q2 fiscal year 2011 which ended on January 1, 2011.