IT Distributor Avnet's CEO: Software, Solutions Sales Stabilize
Technology sales and inventories showed signs of improvement for electronics and IT distributor Avnet (NYSE:AVT) in its fiscal Q3, but Avnet's electronics business continued to struggle, Avnet says in reporting its earnings.Avnet's Chief Operating Officer Rick Hamada believes the impact of Oracle's (NASDAQ:ORCL) acquisition of Sun Microsystems (NASDAQ:JAVA) will likely have a further positive effect on Avnet going forward, but that Avnet would be conservative in its forecasts along those lines. Sun makes up about 8 percent of Avnet's enterprise revenues, and Sun is Avnet's number 2 global partner. Oracle isn't quite as large, says Hamada, but is among the top 15 at Avnet.
"It's too early for us to make any prognostications or offer any opinions on what their plans are or how it will affect their customers," Hamada says. "But it seems like it will add a bit of confidence because of the commitment Oracle has said it has to Sun's product lines. Oracle's commitment has to have a calming affect on the customers overall."
During a conference call following Avnet's earnings announcement, Hamada told financial analysts that no news had been the worst news for Sun, but it's good news that Sun will now have a financially stable parent and that could help Avnet in Q4. >> Click here to read the full report