rommma - Fotolia
Avnet missed analysts’ estimates by a hair in its fourth quarter, reporting revenues of $6.2bn.
Compared to analyst estimates of $6.21bn, this was roughly in line with forecasts, but was down 8.4% compared to the same quarter last year. The distributor reported net profits of $96.8m.
For the year, the company reported profit of $506.5m, or $3.80 per share with sales of $26.2bn.
"In the June quarter, our Technology Solutions (TS) group delivered seasonal sequential growth while Electronics Marketing (EM) sequential growth was below our normal seasonal range” said Bill Amelio, interim CEO of Avnet, ahead of the conference call.
“Even with the year-over-year decline in revenue, our gross profit margin increased and our Avnet Advantage programme resulted in $70m of annual expense reduction exiting fiscal 2016."
"Moving forward, we are defining a clear strategy that leverages our strengths, and we are focusing on accelerating growth, taking cost out of the business and delivering services that will add value for our partners."
In July, Avnet announced that it had agreed to buy the maker of Raspberry Pi, Premier Farnell, for £691m, after topping an offer from Daetwyler Holding. With the pound in tatters, following Brexit, many overseas firms have been scrambling to buy UK companies on the cheap.
Commenting on the acquisition, Amelio said: "We have also increased the pace of some of our strategic investments as we focus on building and enhancing our global capabilities. Our recent offer to acquire Premier Farnell is one example of how we aim to strengthen our digital footprint worldwide. With disciplined execution against our priorities, we can drive sustained growth over time."