Avnet Q1 Revenues Grow on Acquisitions
The distributor's strategy calls for more acquisitions in key geographic areas such as Asia.Distribution giant Avnet saw sales from its Technology Solutions group sales grow in its first fiscal quarter by 32.5 percent over the same period a year ago, jumping to $1.61 billion. In numbers from the quarter, which ended Sept. 29, the Phoenix-based distributors total revenue grew to $4.10 billion in the first quarter, an increase of 12.3 percent over the same period last year. Net income for the quarter was $105.5 million compared to last years net income of $64.1 million, according to earnings released Oct. 25.
For the Technology Solutions group, sales in Asia and EMEA (Europe, Middle East and Africa) grew by 31.6 percent and 20.1 percent, respectively, while sales in the Americas were down 5.1 percent. Chairman and CEO Roy Vallee said the company is trying to diversify its Technology Solutions revenue base beyond the Americashe predicted the group will soon be generating 40 percent of revenue from outside the Americas compared with 30 percent a year ago.