Avnet enjoyed a barnstorming second quarter in 2011, posting a 40 per cent jump in revenue from a year ago.
In the three months ending 1 January 2011, the distribution behemoth posted $6.7bn in revenue, compared with $4.8bn in 2010. Net profit stood at $141m, compared with $103.9m a year ago.
An orgy of spending in most market sectors saw both its Technology Solutions (TS) and its Electronic Marketing (EM) divisions grow in the quarter. Overall sales in EM hit $3.6bn during the quarter, up on $2.5bn in the same quarter in 2010. TS sales hit $3.2bn, an increase on the $2.3bn sales in Q2 last year.
Roy Vallee, chief executive of Avnet, said: "The December quarter capped an excellent calendar year as we continued to leverage the technology-driven economic recovery and delivered a fourth consecutive quarter of double-digit growth.
"With technology markets pointing towards continued growth, we are optimistic that we can continue to grow revenue and EPS, and deliver increased shareholder value going forward."
“The technology supply chain seems to be effectively adjusting to supply, backlogs and inventories as product lead times approach more normal levels,” Vallee said. Avnet has made 10 acquisitions since October 2009, the most prominent being Bell Micro last March. Vallee said the integration of the new firms is generating positive results.
"As we proceed with the integrations of recent acquisitions, we expect to continue improving our financial performance as we leverage our market position in mature markets, expand our presence in new higher growth markets, and fully realise the balance of expected synergy cost savings," he added.
Looking forward, Avnet are optimistic for Q3, predicting revenue of between $5.95bn and $6.55bn.
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