Avnet Reports Third Quarter Fiscal 2019 Financial Results

PHOENIX - Media OutReach - 26 April 2019 - Avnet, Inc.
(Nasdaq: AVT) today announced results for the third fiscal quarter
ended March 30, 2019.

Third Quarter Key Financial Highlights

• Delivered sales of $4.70 billion, in line with guidance

o   
In constant currency, sales rose 1.2% compared to the year ago
period

• GAAP diluted EPS from continuing operations totaled $0.87

o   
Adjusted diluted EPS was $1.09, up 4.8% sequentially and 6.9% from
a year ago

• GAAP operating income margin of 3.3%, was up 136 basis points
  sequentially

o   
Adjusted operating income margin was 3.8%, up from 3.6% a year ago

• Cash flow from operations totaled $269 million
• Premier Farnell (Farnell) adjusted operating margin rose to 12.4%
  from 10.8% in the prior year
• IoT pipeline now exceeds $600 million, and has expanded to new
  markets including industrial equipment and manufacturing
• Returned $139 million to shareholders with $117 million of share
  repurchases and dividends totaling $22 million

CEO Commentary

“I am pleased with the strong execution we demonstrated this
quarter,” said Avnet CEO Bill Amelio. “We saw continued strength in our
Americas and EMEA regions and solid performance in the higher margin
interconnect and passives segment. Overall, we improved operating income and
earnings per share and expanded our operating margins compared to a year ago.
These results demonstrate the progress of our transformation and the value our
unique ecosystem is delivering to our customers. With continued increases in
our solutions pipeline and strong execution momentum, we are well positioned to
achieve our long-term growth targets and deliver sustained shareholder
returns.”

CFO Commentary

“We executed well this quarter reducing costs, expanding operating
margin and growing EPS, all while facing macro-economic headwinds in Asia as
well as the Brexit uncertainties which impacted Farnell growth,” stated Tom
Liguori, Avnet Chief Financial Officer. “Farnell still delivered a strong
improvement in operating margin, which rose to 12.4% from 10.8% a year ago,
supporting the transformational potential of this business longer term. We
generated significant operating cash flow this quarter and returned $139
million to shareholders through stock buybacks and dividend.”

Additional Third Quarter Fiscal 2019 Highlights and Key
Developments

• Aligned with BitPay, the largest global
  blockchain payment provider, to accept cryptocurrency for products and services
  further breaking down the barriers facing customers who are striving to bring their
  ideas to market.
• Announced Avnet Direct Connect, a new
  service that delivers powerful financial efficiencies where Avnet handles all
  the hardware integration, configuration, QA testing and system delivery
  allowing customers to focus on their software-based innovation.
• Teamed up with Octonion and Orange to
  launch a customized, modular ‘plug and play’ Avnet SmartEdge Agile IoT device
  using Octonion’s Brainium meta-sensing (AI) software designed for the LTE-M
  network.
• Released a new development board based
  upon Xilinx technology, which offers engineers and makers a price-competitive
  development platform for rapidly prototyping breakthrough ideas in AI, IoT and
  robotics for smart home, automotive and industrial control applications.
• Completed the sale of real estate in
  Europe, which generated $41 million of cash flow and a gain on sale of $15
  million.

Awards and Notable
Recognition Received During the Quarter

• Named among the “World’s Most Admired Companies” for 2019, marking
  the 14^th time that the company has been recognized by FORTUNE for its
  strongly positive reputation
• Named one of the World’s Most Ethical Companies in 2019 by the
  Ethisphere^® Institute, a global leader in defining and advancing the
  standards of ethical business practices
• Won Preferred Partner Award from Kitron (EBV Elektronik, which
  operates in Europe, Israel and South Africa)
• Awarded Global Supplier of the Year and Supplier of the Year in
  EMEA (Avnet Silica) by ON Semiconductor
• Garnered the UK and Ireland Distributor of the Year award (Avnet
  Silica) from STMicroelectronics
• Won the 2018 TDK Senten Manten award (Farnell Europe); which
  translates as “Perfect Result”
• Received 2018 Business Award (Avnet Taiwan) from Askey Computer
  Corporation
• Won Fulfillment Excellence 2018 Supplier Award (Avnet China) from
  ABB

For the full
press release, please visit: https://news.avnet.com/press-release/avnet/avnet-reports-third-quarter-fiscal-2019-financial-results

 

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interest in marks other than its own.

 

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About Avnet

Avnet
is a global technology solutions provider with an extensive ecosystem
delivering design, product, marketing and supply chain expertise for customers
at every stage of the product lifecycle. We transform ideas into intelligent
solutions, reducing the time, cost and complexities of bringing products to
market. For nearly a century, Avnet has helped its customers and suppliers
around the world realize the transformative possibilities of technology. Learn
more about Avnet at www.avnet.com.