Avnet boss restates that the worst is over

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Avnet boss restates that the worst is over

Simon Quicke

One of the most optimistic of channel CEO's Roy Vallee at Avnet got the chance again to sketch out his thoughts about the future as the distributor unveiled results that showed some improvement.

The yearly figures might have included some drops in numbers in terms of revenues and profits but in terms of how the fourth quarter compared to the third there were some signs of encouragement.

For the three months ended 27 June Avnet posted a net loss of $30m compared to $144.1m in the same period the year before.

"Business conditions remained challenged in the fourth quarter but I am pleased that we were able to grow revenue sequentially in both operating groups, significantly reduce expenses, achieve near-record working capital velocity and generate $330m in cash from operations," said Vallee.

Sales in the Technology Solutions division were down 15.8% year-on-year at $1.64bn with sales in EMEA down by 20.9%.

"Technology solutions met its revenue expectations for the second consecutive quarter furthering our belief that the markets we serve have reached bottom," said Vallee.

Revenue for 2009 was down year-on-year at $16.23bn and the net loss for the year of $1.12bn was a reversal on 2008's net income of $499.1m.

Looking ahead to the first quarter of its fiscal 2010 the distributor expects a return to more seasonal revenue patterns.

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