Avnet clocks a record breaking turnover

Rick Hamada, CEO, Avnet Inc.

Avnet, one of the largest distributors of electronic components, computer products and embedded technology in the world, closed its fiscal year 2010-2011 on a happy note by clocking a turnover of $26.5 billion, while operating income growing 1.4 times faster than revenue to over $1 billion for the first time.

The year 2011 saw Avnet adding more than $7 billion in its revenue basket through a combination of mergers and acquisitions, and organic growth. The company achieved this performance while making significant investments in acquisitions and integrating them into the business.

For its fourth quarter fiscal year 2011, Avnet’s revenue reached a record of $6.91 billion, and adjusted diluted earnings per share of $1.22 was a record for the fifth consecutive quarter. Avnet Technology Solutions’ reported revenue of $2.95 billion grew 41.2% year over year, and pro forma revenue grew 15.8% year over year.

Although Avnet Technology Solutions’ sequential growth was at the high end of typical seasonality, stronger growth in Asia and the Americas was offset by continuing sluggish growth in EMEA. Regional revenue for Avnet Technology Solutions’ fourth quarter fiscal year 2011 was:

• Americas – $1.61 billion USD, up 25.3% year over year on a reported basis
• EMEA – $876.8 million USD, up 64% year over year (or 46.1% excluding the impact of foreign currency exchange rates) on a reported basis
• Asia – $460.6 million USD, up 72.3% year over year on a reported basis

Rick Hamada, Chief Executive Officer, Avnet, Inc. commented, “We began our fiscal year with three significant value-creating acquisitions that expanded our global footprint in higher growth markets and increased our customer base and franchised supplier line card. These investments, combined with double-digit, year-over-year organic growth, added over $7 billion to our top-line. The Avnet team closed out the fiscal year with another quarter of record-breaking results. Revenue for the fourth quarter increased 32.6% year over year”

Industry-standard servers, storage and software all grew over 60% year over year due to investments made in acquisitions and its solutions sales model. Avnet TS also saw double-digit, year over year growth in networking and services.

Avnet is confident that the business will continue to perform and deliver expected results, despite market turbulence. Throughout the previous downturn, the Avnet team demonstrated its ability to consistently execute on the company’s strategies, deliver superior performance and adapt to on-going changes in the marketplace.