IT Distributor Avnet's CEO: Software, Solutions Sales Stabilize

 
 
By Jessica Davis  |  Posted 2009-04-24 Email Print this article Print
 
 
 
 
 
 
 

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.

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Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com
 
 
 
 
 
 
 

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