Avnet has lamented the "disappointing setback" of another set of below-par quarterly numbers in its fiscal Q1, with sales and operating profits both taking a hefty hit.
For the three months to 29 September, global revenue slumped 8.7 per cent year on year to just under $5.9bn (£3.65bn), with GAAP operating income more than cut in half to $100m.
The distributor's value-focused Technology Solutions (TS) business was once again the weakest link, with quarterly reported turnover down 15.1 per cent to $2.2bn. A sales decline of 18.4 per cent was suffered in EMEA, with the top line shrinking to $635.5m. Q1 worldwide operating profit for the division decreased 47.1 per cent annually to $34.4m, meaning margins have dropped from 2.5 to 1.6 per cent in the past 12 months.
The picture was marginally better in Avnet's Electronics Marketing (EM) components arm, with total reported revenue down 4.3 per cent to $3.65bn, and operating income declining 23.5 per cent to $146.3m. EMEA was again the laggard, with sales falling 14.7 per cent to $958.5m.
Avnet chief executive Rick Hamada lamented the fact that his firm's EMEA revenue has now suffered a year-on-year decline for five consecutive quarters.
"Our Q1 results represent a disappointing setback in our short-term performance expectations," he added. "Key segments of our served markets slowed during the quarter beyond our initial expectations, leading to a dramatic impact on our bottom-line results as our revenue in the higher-margin western regions declined double-digit percentages year over year."
For its second fiscal quarter, Avnet expects TS revenue to come in between $2.6bn and $3bn, compared with the $3.1bn sales posted in Q2 FY12. EM sales are forecast to be in the range of $3.35bn to $3.65bn, compared with $3.6bn in the corresponding period last year.
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