Components and enterprise distributor Avnet has noted a continued recovery in the market as indicated by a sequential climb in its first quarter revenues, however profits have yet to rebound.
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Coming hot on the heels of arch rival Arrow’s results, distributor Avnet today recorded a 3.1% year-on-year decline in fiscal Q1 2010 revenues to $4.36bn, but this represented a 15.6% increase on the $3.77bn posted last quarter.
Profit for the three months fell 43% on the same period a year ago to $90.3m, but was a marked improvement on the $30.9m loss the last quarter of fiscal 2009.
“While the impact of the global economic slowdown remained evident in our year-over-year revenue decline, our better than expected sequential growth rates provides additional confidence that the business environment is improving,” said CEO Roy Vallee.
Both operating group delivered revenues above seasonality, he added, though Avnet did enjoy a 14 week quarter instead of the usual 13.
Sales at the components division, Electronics Marketing fell 9.8% year-on-year to $2.44bn, but went up sequentially from $2.13bn, while Technology Solutions posted a 6.9% rise in revenues to $1.92bn, a 17% rise quarter-on-quarter.