Avnet, Inc.
Apr 28, 2011

Avnet, Inc. Reports Third Quarter Fiscal Year 2011 Results

Strong Revenues Globally Drive Continued Growth in Profits

PHOENIX--(BUSINESS WIRE)-- Avnet, Inc. (NYSE:AVT) today announced results for the third fiscal quarter ended April 2, 2011.

 
Three Months Ended
April 2,   April 3,   Net
2011 2010 Change
  $ in millions, except per share data
Sales $ 6,672.4 $ 4,756.8 40.3 %
GAAP Operating Income $ 240.7 $ 167.2 44.0 %
Adjusted Operating Income (1) $ 257.0 $ 174.6 47.2 %
GAAP Net Income $ 151.0 $ 114.5 31.9 %
Adjusted Net Income (1) $ 169.7 $ 115.8 46.6 %
GAAP Diluted EPS $ 0.98 $ 0.75 30.7 %
Adjusted Diluted EPS (1) $ 1.10 $ 0.76 44.7 %
 

(1) A reconciliation of GAAP to non-GAAP financial measures is presented in the Non-GAAP Financial Information section in this press release.

Roy Vallee, Chairman and Chief Executive Officer, commented, "Our revenue in the March quarter was much stronger than expected at both operating groups, driving operating income margin higher sequentially and year over year. This solid performance drove a fourth consecutive quarter of record adjusted EPS with return on capital employed (ROCE) within our target range of 14% - 16%, even as we are integrating our most recent significant investments in value creating M&A. Electronics Marketing delivered another very strong quarter as double-digit organic growth drove both margins and returns above our long-term targets. As the technology markets continue to lead the economic recovery, we remain focused on driving performance across our portfolio of businesses and leveraging revenue growth into increased shareholder value and higher EPS."

Avnet Electronics Marketing Results

    Year-over-Year Growth Rates
Q3 FY11 Reported   Pro forma(2)
Revenue Revenue Revenue
(in millions)
 
Total

 

$ 3,925.2 36.0 % 18.3 %
Excluding FX (1)

 

35.6 % 18.0 %
Americas

 

$ 1,316.2 46.7 % 11.3 %
EMEA

 

$ 1,328.5 30.3 % -
Excluding FX (1)

 

30.5 % -
Asia

 

$ 1,280.5 32.1 % 14.8 %
 
Q3 FY11 Q3 FY10 Change
Operating Income

 

$ 224.8   $ 144.2   $ 80.6  
Operating Income Margin

 

  5.73 %   5.00 % 73 bps
 

(1) Year-over-year revenue growth rate excluding the impact of changes in foreign currency exchange rates.
(2) Pro forma revenue is defined later in this release. Pro forma growth rates are not presented for EM EMEA as revenue comparisons to prior year were not impacted by acquisitions.

Mr. Vallee added, "Demand for electronic components remained strong this quarter as sequential revenue growth of 10% was driven by above normal seasonal trends in all three regions. Growth was strongest in EMEA as high demand in the industrial and automotive markets drove revenue up 23% sequentially and 30% year over year. The combination of strong growth in the western regions, gross profit margin improvements and continued expense efficiencies resulted in operating income growing 2.2 times faster than revenue sequentially while operating income margin increased 57 basis points. ROWC increased 170 basis points year over year and was above our target of 30% globally as EM continues to translate growth into record economic profit. At EM, the book to bill ratio remained positive for the March quarter which indicates that end demand in our served markets remains solid. We are well positioned to continue leveraging our profitable growth initiatives and deliver returns within our target range."

Avnet Technology Solutions Results

    Year-over-Year Growth Rates
Q3 FY11 Reported   Pro forma(2)
Revenue Revenue Revenue
(in millions)
 
Total

 

$ 2,747.2 46.9 % 13.2 %
Excluding FX (1)

 

45.4 % 12.1 %
Americas

 

$ 1,506.6 38.9 % 20.4 %
EMEA

 

$ 847.0 59.5 % -2.9 %
Excluding FX (1)

 

57.8 % -3.9 %
Asia

 

$ 393.6 54.8 % 30.0 %
 
Q3 FY11 Q3 FY10 Change
Operating Income

 

$ 57.3   $ 49.9   $ 7.4  
Operating Income Margin

 

  2.09 %   2.67 % -58 bps
 

(1) Year-over-year revenue growth rate excluding the impact of changes in foreign currency exchange rates.
(2) Pro forma revenue is defined later in this release.

Mr. Vallee further added, "Technology Solutions revenue came in at the high end of expectations as the sequential declines were less than normal for a March quarter in the Americas and Asia regions. Pro forma revenue was down 12% sequentially versus a typical decline of 16% to 20% and was up 12% year over year in constant dollars. At a product level, this year-over-year growth was driven primarily by sales of servers and storage. Operating income margin decreased 58 basis points from the year ago quarter due primarily to the impact of acquisitions while the sequential decline of 119 basis points was worse than seasonal due primarily to product mix. We continue to see progress in recent M+A investments as operating income margin improved from the September quarter in both Latin America and the Asia region as we apply our value-based management discipline and grow the businesses. In EMEA, where the recovery has been weaker than in other regions, we completed the Bell Micro IT conversions which will lead to the realization of additional synergies as planned."

Cash Flow

Ray Sadowski, Chief Financial Officer, stated, "Strong profits combined with excellent working capital management resulted in $188 million of positive cash flow from operations for the quarter. At EM, working capital grew at half the rate of sales as a $22 million sequential decline in inventory contributed to a 2.5 reduction in its overall net days from the December quarter. During the quarter, we used $104 million to retire the Bell Micro convertible notes that were put to us which further strengthened our already strong balance sheet and credit statistics."

Outlook For Fiscal 4th Quarter Ending on July 2, 2011

The above EPS guidance does not include any potential restructuring charges or any charges related to acquisitions and post-closing integration activities. In addition, the above guidance assumes that the average Euro to U.S. Dollar currency exchange rate for the fourth quarter of fiscal 2011 is $1.44 to €1.00. This compares with an average exchange rate of $1.27 to €1.00 in the fourth quarter of fiscal 2010 and $1.37 to €1.00 in the third quarter of fiscal 2011.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations and are subject to uncertainty and changes in facts and circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as "will," "anticipate," "expect," believe," "forecast," and "should," and other words and terms of similar meaning in connection with any discussions of future operating or financial performance, business prospects or market conditions. Actual results may vary materially from the expectations contained in the forward-looking statements.

The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the Company's ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition activities and the successful integration of acquired companies, any significant and unanticipated sales decline, changes in business conditions and the economy in general, changes in market demand and pricing pressures, any material changes in the allocation of product or product rebates by suppliers, other competitive and/or regulatory factors affecting the businesses of Avnet generally.

More detailed information about these and other factors is set forth in Avnet's filings with the Securities and Exchange Commission, including the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also discloses in this press release certain non-GAAP financial information including adjusted operating income, adjusted net income and adjusted diluted earnings per share, as well as revenue adjusted for the impact of acquisitions and other items (as defined in the Pro Forma (Organic) Revenue section of this release). Management believes pro forma revenue is a useful measure for evaluating current period performance as compared with prior periods and for understanding underlying trends.

Management believes that operating income adjusted for restructuring, integration and other items is a useful measure to help investors better assess and understand the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet's normal operating results. Management analyzes operating income without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes.

Management believes net income and EPS adjusted for the impact of the items described above is useful to investors because it provides a measure of the Company's net profitability on a more comparable basis to historical periods and provides a more meaningful basis for forecasting future performance. Additionally, because of management's focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and EPS excluding the impact of these items provides an important measure of the Company's net results of operations for the investing public. However, analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.

Third Quarter Fiscal 2011

  Third Quarter Ended Fiscal 2011
      Diluted
Op Income Pre-tax Net Income EPS
  $ in thousands, except per share data
GAAP results $ 240,737 $ 213,161 $ 151,031 $ 0.98
Restructuring, integration and other charges 16,273 16,273 11,887 0.08
Loss on investments - 6,308 3,857 0.02
Income tax adjustments   -   -   2,959   0.02
Total adjustments   16,273   22,581   18,703   0.12
Adjusted results $ 257,010 $ 235,742 $ 169,734 $ 1.10
 

Items impacting the third quarter of fiscal 2011 consisted of the following:

Third Quarter Fiscal 2010

  Third Quarter Ended Fiscal 2010
      Diluted
Op Income Pre-tax Net Income EPS
  $ in thousands, except per share data
GAAP results $ 167,220 $ 156,594 $ 114,505 $ 0.75
Restructuring, integration and other charges 7,347 7,347 5,587 0.04
Gain on sale of assets - (3,202 ) (1,987 ) (0.01 )
Net tax benefit   -   -     (2,303 )   (0.02 )
Total adjustments

 

  7,347   4,145     1,297     0.01  
Adjusted results $ 174,567 $ 160,739   $ 115,802     0.76  
 

Items impacting third quarter of fiscal 2010 consisted of the following:

Pro Forma (Organic) Revenue

Pro forma or Organic revenue is defined as reported revenue adjusted for (i) the impact of acquisitions by adjusting Avnet's prior periods to include the sales of businesses acquired as if the acquisitions had occurred at the beginning of fiscal 2010; (ii) the impact of a divestiture by adjusting Avnet's prior periods to exclude the sales of the business divested as if the divestiture had occurred at the beginning of the period presented; (iii) the impact of the extra week of sales in the prior year first quarter due to the "52/53 week" fiscal year; and (iv) the impact of the transfer of the existing embedded business from TS Americas to EM Americas that occurred in the first quarter of fiscal 2011, which did not have an impact to Avnet on a consolidated basis but did impact the pro forma sales for the groups by $97 million in the third quarter of fiscal 2010. Sales taking into account the combination of these adjustments is referred to as "pro forma sales" or "organic sales".

Revenue adjusted for this impact is presented in the following table:

    Revenue  

Acquisition /
Divested

  Extra Week   Pro forma
as Reported Revenue in Q1 FY10 Revenue
(in thousands)
Q1 Fiscal 2011

 

$ 6,182,388 $ (41,261 ) $ - $ 6,141,127
Q2 Fiscal 2011

 

$ 6,767,495 $ (102,385 ) $ - $ 6,665,110
Q3 Fiscal 2011

 

$ 6,672,404   $ -   $ 6,672,404
Fiscal year 2011

 

$ 19,622,287 $ (143,646 ) $ -   $ 19,478,641
 
Q1 Fiscal 2010

 

$ 4,355,036 $ 884,224 $ (417,780 ) $ 4,821,480
Q2 Fiscal 2010

 

4,834,524 1,043,732 - 5,878,256
Q3 Fiscal 2010

 

4,756,786 987,295 - 5,744,081
Q4 Fiscal 2010

 

  5,213,826   878,290     -     6,092,116
Fiscal year 2010

 

$ 19,160,172 $ 3,793,541   $ (417,780 ) $ 22,535,933
 

"Acquisition Revenue" as presented in the preceding table includes the following acquisitions:

Acquired Business

     

Operating Group

     

Acquisition Date

Vanda Group TS October 2009
Sunshine Joint Stock Company TS November 2009
PT Datamation TS April 2010
Servodata HP Division TS April 2010
Bell Micro Products Inc. TS/EM July 2010
Tallard Technologies TS July 2010
Unidux EM July 2010
Broadband EM October 2010
Eurotone EM October 2010
Center Cell EM November 2010
itX Technologies TS January 2011
 

The table above also reflects the divestiture of New ProSys Corp. which occurred in January 2011.

Teleconference Webcast and Upcoming Events

Avnet will host a Webcast of its quarterly teleconference today at 2:00 p.m. Eastern Time. The live Webcast event, as well as other financial information including Ray Sadowski's, Chief Financial Officer, CFO Review of Results and financial statement reconciliations of GAAP and non-GAAP financial measures, will be available through www.ir.avnet.com. Please log onto the site 15 minutes prior to the start of the event to register or download any necessary software. An archive copy of the presentation will also be available after the Webcast.

For a listing of Avnet's upcoming events and other information, please visit Avnet's investor relations website at www.ir.avnet.com.

About Avnet

Avnet, Inc. (NYSE:AVT), a Fortune 500 Company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide. Avnet accelerates its partners' success by connecting the world's leading technology suppliers with a broad base of more than 100,000 customers by providing cost-effective, value-added services and solutions. For the fiscal year ended July 3, 2010, Avnet generated revenue of $19.16 billion. For more information, visit www.avnet.com. (AVT_IR)

   
AVNET, INC.
FINANCIAL HIGHLIGHTS
(MILLIONS EXCEPT PER SHARE DATA)
     
 
THIRD QUARTERS ENDED
 
APRIL 2, APRIL 3,
2011 * 2010 *
 
Sales $ 6,672.4 $ 4,756.8
 
Income before income taxes 213.2 156.6
 
Net income 151.0 114.5
 
Net income per share:
Basic $ 0.99 $ 0.75
Diluted $ 0.98 $ 0.75
 
 
 
 
NINE MONTHS ENDED
 
APRIL 2, APRIL 3,
2011 * 2010 *
 
Sales $ 19,622.3 $ 13,946.3
 
Income before income taxes 621.0 384.9
 
Net income 430.2 269.3
 
Net income per share:
Basic $ 2.82 $ 1.78
Diluted $ 2.79 $ 1.76
 

* See Notes to Consolidated Statements of Operations on Page 13.

           
AVNET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(THOUSANDS EXCEPT PER SHARE DATA)
 
 
THIRD QUARTERS ENDED NINE MONTHS ENDED
 
APRIL 2, APRIL 3, APRIL 2, APRIL 3,
2011 * 2010 * 2011 * 2010 *
 
Sales $ 6,672,404 $ 4,756,786 $ 19,622,287 $ 13,946,346
Cost of sales   5,885,789     4,173,999     17,339,333     12,311,931  
 
Gross profit 786,615 582,787 2,282,954 1,634,415
 

Selling, general and administrative expenses

529,605 408,220 1,546,701 1,190,489

Restructuring, integration and other charges (Note 1 *)

16,273 7,347 73,452 25,419
       
Operating income 240,737 167,220 662,801 418,507
 
Other income, net 2,289 1,499 5,268 3,581
Interest expense (23,557 ) (15,327 ) (69,830 ) (45,925 )
Gain on sale of assets (Note 2 *) - 3,202 - 8,751
Gain on bargain purchase and other (Note 3 *) (6,308 ) - 22,715 -
       
Income before income taxes 213,161 156,594 620,954 384,914
 
Income tax provision 62,130 42,089 190,715 115,663
       
Net income $ 151,031   $ 114,505   $ 430,239   $ 269,251  
 
Net earnings per share:
Basic $ 0.99   $ 0.75   $ 2.82   $ 1.78  
Diluted $ 0.98   $ 0.75   $ 2.79   $ 1.76  
 
Shares used to compute earnings
per share:
Basic   152,859     151,890     152,333     151,519  
Diluted   154,611     153,215     154,172     152,932  
 

* See Notes to Consolidated Statements of Operations on Page 13.

         
AVNET, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
 
 
APRIL 2, JULY 3,
2011 2010
 
Assets:
Current assets:
Cash and cash equivalents $ 781,749 $ 1,092,102
Receivables, net 4,706,561 3,574,541
Inventories 2,514,163 1,812,766
Prepaid and other current assets   213,266   150,759
Total current assets 8,215,739 6,630,168
Property, plant and equipment, net 395,558 302,583
Goodwill 908,275 566,309
Other assets   320,405   283,322
 
Total assets   9,839,977   7,782,382
 
Less liabilities:
Current liabilities:
Borrowings due within one year 632,435 36,549
Accounts payable 3,412,849 2,862,290
Accrued expenses and other   679,733   540,776
Total current liabilities 4,725,017 3,439,615
Long-term debt 1,250,516 1,243,681
Other long-term liabilities   129,970   89,969
 
Total liabilities   6,105,503   4,773,265
 
Shareholders' equity $ 3,734,474 $ 3,009,117
 
 
AVNET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(THOUSANDS)
         
 
NINE MONTHS ENDED
APRIL 2, APRIL 3,
2011 2010
Cash flows from operating activities:
 
Net income $ 430,239 $ 269,251
 
Non-cash and other reconciling items:
Depreciation and amortization 59,100 46,084
Deferred income taxes (12,284 ) 35,234
Stock-based compensation 25,015 24,007
Gain on sale of assets - (8,751 )
Gain on bargain purchase and other (22,715 ) -
Other, net 45,348 11,793
 
Changes in (net of effects from businesses acquired):
Receivables (391,624 ) (732,466 )
Inventories (262,696 ) (356,434 )
Accounts payable 45,038 583,878
Accrued expenses and other, net   81,209     (27,305 )
 
Net cash flows used for operating activities   (3,370 )   (154,709 )
 
Cash flows from financing activities:
Borrowings under accounts receivable securitization program, net 485,000 -
Repayment of notes (109,600 ) -
Proceeds from bank debt, net 42,238 14,909
Proceeds from (repayment of) other debt, net 13,572 (1,440 )
Other, net   3,231     3,998  
 
Net cash flows provided by financing activities   434,441     17,467  
 
Cash flows from investing activities:
Purchases of property, plant, and equipment (105,221 ) (42,905 )
Cash proceeds from sales of property, plant and
equipment 2,356 6,334
Acquisitions of operations, net of cash acquired (690,997 ) (36,361 )
Cash proceeds from divestitures   10,458     11,785  
 

Net cash flows used for investing activities

  (783,404 )   (61,147 )
 
Effect of exchange rates on cash and cash equivalents   41,980     9,042  
 
Cash and cash equivalents:
- decrease (310,353 ) (189,347 )
- at beginning of period   1,092,102     943,921  
 
- at end of period $ 781,749   $ 754,574  
 
           
AVNET, INC.
SEGMENT INFORMATION
(MILLIONS)
 
 
THIRD QUARTERS ENDED NINE MONTHS ENDED
 
APRIL 2, APRIL 3, APRIL 2, APRIL 3,
SALES: 2011 2010 2011 2010
 
Electronics Marketing $ 3,925.2 $ 2,886.6 $ 11,104.5 $ 7,841.8
 
Technology Solutions 2,747.2 1,870.2 8,517.8 6,104.5
       
Consolidated $ 6,672.4   $ 4,756.8   $ 19,622.3   $ 13,946.3  
 
 
 
 
OPERATING INCOME (LOSS):
 
Electronics Marketing $ 224.8 $ 144.2 $ 600.3 $ 317.8
 
Technology Solutions 57.3 49.9 219.2 189.5
 
Corporate   (25.1 )   (19.5 )   (83.2 )   (63.4 )
 
 
$ 257.0 $ 174.6 $ 736.3 $ 443.9
 
Restructuring, integration and other charges   (16.3 )   (7.4 )   (73.5 )   (25.4 )
 
Consolidated $ 240.7   $ 167.2   $ 662.8   $ 418.5  
 

AVNET, INC.
NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL 2011

(1) The results for the third quarter of fiscal 2011 included restructuring, integration and other charges which totaled $16,273,000 pre-tax, $11,887,000 after tax and $0.08 per share on a diluted basis and were incurred primarily in connection with the acquisitions and integrations of acquired businesses. The charges included restructuring charges consisting of severance of $4,427,000 pre-tax and facility exit related costs, fixed asset write downs and related costs of $3,293,000 pre-tax which were incurred primarily as a result of the integration activities associated with the acquisitions. Integration costs of $7,969,000 pre-tax included professional fees associated with legal and IT consulting, facility moving costs, travel, meeting, marketing and communication costs that were incrementally incurred as a result of the integration activity. Also included in integration costs are incremental salary and associated employee benefit costs, primarily of the acquired businesses' personnel who were retained by Avnet for extended periods following the close of the acquisitions solely to assist in the integration of the acquired business' IT systems and administrative and logistics operations into those of Avnet. These identified personnel have no other meaningful day-to-day operational responsibilities outside of the integration effort. Transaction costs of $3,529,000 pre-tax consisted primarily of broker fees, professional fees for legal and accounting due diligence and related costs. The Company recorded other charges of $902,000 pre-tax and a reversal of $3,847,000 pre-tax primarily related to the release of liabilities associated with a prior acquisition and to adjust restructuring reserves established in prior years which were no longer needed.

Results for the first nine months of fiscal 2011 included restructuring, integration and other charges which totaled $73,452,000 pre-tax, $52,876,000 after tax and $0.34 per share on a diluted basis and consisted of $23,361,000 pre-tax for severance, $16,259,000 pre-tax for facilities related costs, fixed asset write downs and related costs, $24,066,000 pre-tax for integration costs, $15,597,000 pre-tax for transactions costs associated with acquisitions and $1,848,000 pre-tax for other charges as well as a reversal of $7,679,000 pre-tax primarily related to the release of liabilities associated with a prior acquisition and to adjust reserves related to prior year restructuring activity that were no longer needed.

The results for third quarter of fiscal 2010 included restructuring, integration and other charges which totaled $7,347,000 pre-tax, $5,587,000 after tax and $0.04 per share on a diluted basis and consisted of $6,477,000 pre-tax for a value-added tax exposure in Europe related to an audit of prior years, $2,157,000 pre-tax for acquisition-related costs and a credit of $1,287,000 pre-tax related to the reversal of previously recognized restructuring reserves which were determined to be no longer necessary.

The results for the first nine months of fiscal 2010 included restructuring, integration and other charges which totaled $25,419,000 pre-tax, $18,789,000 after tax and $0.12 per share on a diluted basis. Restructuring costs of $15,991,000 pre-tax related to the remaining cost reductions that began in fiscal 2009 and consisted of severance, facility exit costs and fixed asset write-downs associated with the exited facilities. The Company also recognized $2,931,000 of integration costs associated with acquired businesses, $6,477,000 pre-tax for the value-added tax exposure previously mentioned, $3,261,000 of other charges including acquisition-related costs and a credit of $3,241,000 related to the reversal of restructuring reserves established in prior periods.

(2) The Company recognized a gain on the sale of assets amounting to $3,202,000 pre-tax, $1,987,000 after tax and $0.01 per share on a diluted basis during the third quarter of fiscal 2010 and $8,751,000 pre-tax, $5,370,000 after tax and $0.03 per share on a diluted basis during the first nine months of fiscal 2010 as a result of certain earn-out provisions associated with the sale of the Company's prior equity investment in Calence LLC.

(3) During the third quarter of fiscal 2011, the Company recognized a loss of $6,308,000 pre-tax, $3,857,000 after tax and $0.02 per share on a diluted basis related to the write down of investments in smaller technology start-up companies.

During the first nine months of fiscal 2011, the Company recognized a gain on bargain purchase and other of $22,715,000 pre-tax, $25,720,000 after tax and $0.17 per share on a diluted basis. During the first quarter of fiscal 2011, the Company acquired Unidux, Inc., a Japanese publicly traded electronics component distributor, through a tender offer. Even though the purchase price per share offered by Avnet, Inc. was below book value, it represented a premium to the trading levels at that time and 95% of the Unidux shareholders tendered their shares. After evaluating all assets acquired and liabilities assumed, the consideration paid was below the fair value of the acquired net assets and, as a result, the Company recognized a gain on bargain purchase of $30,990,000 pre- and after tax, and $0.20 per share on a diluted basis. The Company also recognized other charges of $1,967,000 pre-tax, $1,413,000 after tax and $0.01 per share on a diluted basis primarily related to the write down of two buildings in EMEA. As mentioned above, the Company recognized a loss on investments of $6,308,000 pre-tax.

Investor Relations Contact:
Avnet, Inc.
Vincent Keenan
Investor Relations
480-643-7053
investorrelations@avnet.com

Source: Avnet, Inc.

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