Avnet Reports Second Quarter Fiscal 2021 Financial Results

• $4.7
  billion in sales, $0.19 EPS and $0.48 adjusted EPS exceeded guidance
• Third consecutive
  quarter of operating margin improvement

PHOENIX, US – Media OutReach – 29 January 2020 – Avnet, Inc. (Nasdaq: AVT) today announced results for its second quarter
ended January 2, 2021.

Fiscal Second Quarter Key
Financial Highlights:

• Sales of $4.7 billion up
  from $4.5 billion in the prior year quarter, supported by record sales in Asia
  of $2.2 billion, up 16% year over year.

     o  
On constant currency
basis, organic sales increased 4.8% after adjusting for 14 weeks of activity in
the prior quarter.

• GAAP diluted earnings per
  share of $0.19, compared with a GAAP diluted loss per share of $0.19 in the
  prior quarter, a 200% increase.

     o  
Non-GAAP adjusted diluted earnings per share of $0.48,
compared with $0.36 in the prior quarter, a 33% increase.

• Farnell
  operating margins increased sequentially 97 basis points to 4.5%.
• GAAP
  operating income margin of 1.2%, compared with 0.4% the prior quarter, and an
  adjusted operating income margin of 1.7%, compared with 1.4% in the prior
  quarter.
• Achieved
  net working capital of 75 days, generating $85 million of cash flow from
  operations.
• Sales of Texas Instruments (TI) products were $50 million compared with
  $399 million in the prior year.

     o   When excluding TI, organic
sales grew 9.3% year over year on a constant currency basis.

 

CEO
Commentary

“Improvements
in our Farnell, EMEA and Americas businesses, complemented by a record revenue
quarter in Asia, reflect our continued progress in driving operational
efficiencies and enhancing key business lines through strategic investments.
We’ve seen tangible results from this back to the basics strategy over the past
two quarters with increased sales, improving returns on capital and a stronger
balance sheet. As a result, we are better positioned today to manage our
backlog and working capital to navigate uncertainties resulting from COVID-19,”
said Avnet Chief Executive Officer Phil Gallagher. “I am incredibly proud of
our team’s resilience amidst the challenges this past year. They’ve delivered
significant value in providing uninterrupted service at a global scale and in
working collaboratively with our customers and suppliers to manage forecasts,
navigate current market dynamics and mitigate supply chain risk.”

 

Key Financial Metrics

($ in millions, except per share data)

Second Quarter Results (GAAP)
		Dec — 20				Dec — 19				Change Y/Y			Sep — 20				Change Q/Q
Sales		$	4,668.2			$	4,534.8			2.9	%		$	4,723.1			(1.2)	%
Operating Income			57.2				46.5			23.1	%			18.5			209.3	%
Operating Income Margin			1.2	%			1.0	%		21	bps			0.4	%		84	bps
Diluted Earnings (Loss) Per Share (EPS)		$	0.19			$	0.05			280.0	%		$	(0.19)			200.0	%
Second Quarter Results (Non-GAAP)(1)
		Dec — 20				Dec — 19				Change Y/Y			Sep — 20				Change Q/Q
Sales		$	4,668.2			$	4,534.8			2.9	%		$	4,723.1			(1.2)	%
Adjusted Operating Income			79.6				82.2			(3.2)	%			65.1			22.3	%
Adjusted Operating Income Margin			1.7	%			1.8	%		(11)	bps			1.4	%		32	bps
Adjusted Diluted Earnings Per Share (EPS)		$	0.48			$	0.40			20.0	%		$	0.36			33.3	%
Segment and Geographical Mix
		Dec — 20				Dec — 19				Change Y/Y			Sep — 20				Change Q/Q
Electronic Components (EC) Sales		$	4,342.4			$	4,203.6			3.3	%		$	4,382.2			(0.9)	%
EC Operating Income Margin			2.4	%			2.2	%		17	bps			1.9	%		46	bps
Farnell Sales		$	325.8			$	331.2			(1.6)	%		$	340.9			(4.4)	%
Farnell Operating Income Margin			4.5	%			6.0	%		(155)	bps			3.5	%		97	bps
Americas Sales		$	1,101.5			$	1,186.6			(7.2)	%		$	1,205.7			(8.7)	%
EMEA Sales			1,346.3				1,425.8			(5.6)	%			1,480.7			(9.1)	%
Asia Sales			2,220.4				1,922.4			15.5	%			2,036.7			9.0	%
TI Sales
		Dec — 20				Dec — 19				Change Y/Y			Sep — 20				Change Q/Q
Sales of TI Products		$	49.6			$	399.2			(87.6)	%		$	241.0			(79.4)	%

(1)    
A reconciliation of non-GAAP financial
measures to GAAP financial measures is presented in the “Non-GAAP Financial
Information” section of this press release.

 

CFO
Commentary

“During the second
quarter, we delivered sales of $4.7 billion and adjusted diluted earnings per
share of $0.48, driven by strong execution and a streamlined cost structure
that has allowed us to achieve increased revenue without adding significant
operating expense. Our year over year top line growth and careful working
capital management enabled us to achieve our goal of 75 net working capital
days,” said Avnet CFO Tom Liguori. “Our $75 million operating expense reduction
plan was fully implemented in the quarter, driving our ninth consecutive
quarter of positive operating cash flows. We remain on track to achieve our
$245 million operating expense reduction plan by the end of fiscal year 2022.
We are delivering improved financial and competitive performance, building
Avnet’s core distribution business while still strategically investing in
Farnell, where we see tremendous opportunity to deliver profitable growth.”

 

Additional Second Quarter Fiscal 2021 Updates

• Returned $21
  million to shareholders with dividends paid during the quarter.
• Achieved highest
  quarterly transportation revenue in 6 quarters in the Americas and Asia.
• Farnell
  selected as the authorized global distributor for National Instruments (NI).
• Avnet
  rejoined the Electronic Components Industry Association (ECIA) as a distributor
  member. 
• Named
  Infineon’s Best Performance GC Distribution Partner, Greater China PSS and
  Industrial Power Control Greater China.
• Named
  Micron’s Top EBU Demand Creation and Leading Automotive Tier One.

Outlook for the
Third Quarter of Fiscal 2021 Ending on April 3, 2021

		Guidance Range		Midpoint
Sales		$4.3B — $4.7B		$4.5B
Non-GAAP Diluted EPS(1)		$0.52 — $0.58		$0.55

(1)    
A
reconciliation of non-GAAP guidance to GAAP guidance is presented in the
“Non-GAAP Financial Information” section of this press release.

The above guidance is based
upon market conditions existing as of today, seasonally lower revenues in Asia,
gross margin improvement due to the mix shift from Asia to Americas and EMEA,
and ongoing cost reduction programs. It excludes amortization of intangibles,
any potential restructuring, integration, and other expenses and certain income
tax adjustments. The above sales guidance assumes approximately $50 million in
lower sales of Texas Instruments products as compared to the second quarter of
fiscal 2021. The above guidance assumes 100 million average diluted shares
outstanding and average U.S. Dollar to Euro and GBP currency exchange rates are
as shown below:

		Q3 Fiscal
		2021		Q2 Fiscal		Q3 Fiscal
		Guidance		2021		2020
Euro		$1.21		$1.19		$1.10
GBP		$1.36		$1.32		$1.28

Today’s
Conference Call and Webcast Details

Avnet will host a quarterly webcast and
teleconference today at 1:30 p.m. PT and 4:30 p.m. ET to discuss its financial
results and provide a corporate update. The webcast can be accessed via Avnet’s
Investor Relations web page at: https://ir.avnet.com/events-presentations.  

 

Those who would still
like to participate in the live call can dial 877-407-8112 or 201-689-8840. A
replay of the conference call will be available for 90 days, through April
27, 2021 at 5:00 p.m. ET, and can be accessed by dialing: 877-660-6853 or
201-612-7415 and using Conference ID: 13713922.

Forward-Looking
Statements

This document contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
with respect to the financial condition, results of operations and business of
the Company. You can find many of these statements by looking for words like
“believes,” “plans,” “expects,” “anticipates,” “should,” “will,” “may,”
“estimates” or similar expressions. These forward-looking statements are
subject to numerous assumptions, risks and uncertainties. You should understand
that the following important factors, in addition to those discussed elsewhere
in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27,
2020 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form
8-K, could affect the Company’s future results of operations, and could cause
those results or other outcomes to differ materially from those expressed or
implied in the forward-looking statements: the scope and duration of the
COVID-19 pandemic and its impact on global economic systems, access to
financial markets and the Company’s employees, operations, customers, and
supply chain; competitive pressures among distributors of electronic
components; an industry down-cycle in semiconductors; relationships with key
suppliers and allocations of products by suppliers; risks relating to the
Company’s international sales and operations, including risks relating to the
ability to repatriate cash, foreign currency fluctuations, duties and taxes,
and compliance with international and U.S. laws; risks relating to
acquisitions, divestitures and investments; adverse effects on the Company’s
supply chain, operations of its distribution centers, shipping costs,
third-party service providers, customers and suppliers, including as a result
of issues caused by natural and weather-related disasters, pandemics and health
related crisis, social unrest or warehouse modernization and relocation
efforts; risks related to cyber-attacks and the Company’s information systems,
including related to current or future implementations; general economic and
business conditions (domestic, foreign and global) affecting the Company’s
operations and financial performance and, indirectly, the Company’s credit
ratings, debt covenant compliance, and liquidity and access to financing;
geopolitical events, including the uncertainty caused by the United Kingdom’s
exit from, and agreement for a new partnership with, the European Union; and
legislative or regulatory changes affecting the Company’s businesses.

Any forward-looking statement speaks only as of
the date on which that statement is made. Except as required by law, the
Company assumes no obligation to update any forward-looking statement to
reflect events or circumstances that occur after the date on which the
statement is made.

AVNET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		Six Months Ended
		January 2, 2021			December 28, 2019
		(Thousands)
Cash flows from operating activities:
Net income		$	274		$	45,420
Non-cash and other reconciling items:
Depreciation			44,002			49,822
Amortization			30,474			41,257
Amortization of operating lease assets			28,111			31,354
Deferred income taxes			(311)			(15,518)
Stock-based compensation			15,331			14,503
Asset impairment expense			15,166			—
Other, net			17,004			22,157
Changes in (net of effects from businesses acquired and divested):
Receivables			(94,831)			185,598
Inventories			51,185			94,182
Accounts payable			130,768			(52,711)
Accrued expenses and other, net			(29,779)			(71,858)
Net cash flows provided by operating activities			207,394			344,206
Cash flows from financing activities:
Borrowings (repayments) under accounts receivable securitization, net			11,800			(35,400)
Repayments under senior unsecured credit facility, net			(239,430)			(1,376)
Repayments under bank credit facilities and other debt, net			(1,480)			(1,301)
Repurchases of common stock			—			(198,630)
Dividends paid on common stock			(41,512)			(42,426)
Other, net			(2,301)			(4,887)
Net cash flows used for financing activities			(272,923)			(284,020)
Cash flows from investing activities:
Purchases of property, plant and equipment			(30,022)			(44,252)
Acquisitions of assets			(18,371)			(51,509)
Other, net			725			(13,098)
Net cash flows used for investing activities			(47,668)			(108,859)
Effect of currency exchange rate changes on cash and cash equivalents			12,492			(8,622)
Cash and cash equivalents:
– decrease			(100,705)			(57,295)
— at beginning of period			477,038			546,105
– at end of period		$	376,333		$	488,810

Non-GAAP
Financial Information

 

In addition to disclosing financial results that
are determined in accordance with generally accepted accounting principles in
the United States (“GAAP”), the Company also discloses certain non-GAAP
financial information including (i) adjusted operating income, (ii) adjusted
operating expenses, (iii) adjusted other income (expense), (iv) adjusted income
tax expense, (v) adjusted income from continuing operations, (vi) adjusted
diluted earnings per share from continuing operations, and (vii) sales adjusted
for the impact of significant acquisitions and other items (as defined in the
Organic Sales section of this document).

 

There are also references to the impact of
foreign currency in the discussion of the Company’s results of operations. When
the U.S. Dollar strengthens and the stronger exchange rates of the current year
are used to translate the results of operations of Avnet’s subsidiaries
denominated in foreign currencies, the resulting impact is a decrease in U.S.
Dollars of reported results. Conversely, when the U.S. Dollar weakens and the
weaker exchange rates of the current year are used to translate the results of
operations of Avnet’s subsidiaries denominated in foreign currencies, the
resulting impact is an increase in U.S. Dollars of reported results. In the
discussion of the Company’s results of operations, results excluding this
impact are referred to as “constant currency.” Management believes organic
sales and sales in constant currency are useful measures for evaluating current
period performance as compared with prior periods and for understanding
underlying trends. In order to determine the translation impact of changes in
foreign currency exchange rates on sales, income or expense items for
subsidiaries reporting in currencies other than the U.S. Dollar, the Company
adjusts the average exchange rates used in current periods to be consistent
with the average exchange rates in effect during the comparative period.

 

Management believes that
operating income and operating expenses adjusted for restructuring, integration
and other expenses, goodwill and intangible asset impairment expenses and
amortization of acquired intangible assets and other, are useful measures to help
investors better assess and understand the Company’s operating performance.
This is especially the case when comparing results with previous periods or
forecasting performance for future periods, primarily because management views
the excluded items to be outside of Avnet’s normal operating results or
non-cash in nature. Management analyzes operating income and operating expenses
without the impact of these items as an indicator of ongoing margin performance
and underlying trends in the business. Management also uses these non-GAAP
measures to establish operational goals and, in most cases, for measuring
performance for compensation purposes. Management measures operating income for
its reportable segments excluding restructuring, integration and other expenses,
goodwill and intangible asset impairment expenses and amortization of acquired
intangible assets and other.

 

Additional non-GAAP metrics management uses is
adjusted operating income margin, which is defined as adjusted operating income
(as defined above) divided by sales.

 

Management also believes
income tax expense (benefit), net income and diluted earnings (loss) per share
adjusted for the impact of the items described above and certain items
impacting other income (expense) and income tax expense (benefit) are useful to
investors because they provide a measure of the Company’s net profitability on
a more comparable basis to historical periods and provide a more meaningful
basis for forecasting future performance. Adjustment to income tax expense
(benefit) and the effective income tax rate include the effect of changes in
tax laws including recent tax law changes in the U.S., certain changes in
valuation allowances and unrecognized tax benefits, income tax audit
settlements and adjustments to the adjusted interim effective tax rate based
upon the expected annual adjusted effective tax rate. Additionally, because of
management’s focus on generating shareholder value, of which net profitability
is a primary driver, management believes income from continuing operations and
diluted earnings (loss) per share from continuing operations excluding the
impact of these items provides an important measure of the Company’s net
profitability for the investing public.

 

Any analysis of results and outlook on a non-GAAP
basis should be used as a complement to, and in conjunction with, results
presented in accordance with GAAP. All amounts below relate to Avnet’s
continuing operations.

			Fiscal			Quarters Ended
			Year to Date			January 2,			October 3,
			2021*			2021			2020
			($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses			$	913,241		$	442,084		$	471,158
Amortization of intangible assets and other				(30,592)			(10,417)			(20,175)
Adjusted operating expenses				882,649			431,667			450,983
GAAP operating income			$	75,723		$	57,221		$	18,502
Restructuring, integration and other expenses				38,369			11,948			26,420
Amortization of intangible assets and other				30,592			10,417			20,175
Adjusted operating income				144,683			79,586			65,097
GAAP income (loss) before income taxes			$	11,105		$	34,403		$	(23,297)
Restructuring, integration and other expenses				38,369			11,948			26,420
Amortization of intangible assets and other				30,592			10,417			20,175
Other expenses – equity investment impairments				15,274			51			15,223
Adjusted income before income taxes				95,340			56,819			38,521
GAAP income tax expense (benefit)			$	10,831		$	15,240		$	(4,408)
Restructuring, integration and other expenses				7,178			2,577			4,601
Amortization of intangible assets and other				7,066			2,037			5,029
Other expenses – equity investment impairments				52			26			26
Income tax expense items, net				(13,498)			(10,788)			(2,710)
Adjusted income tax expense				11,629			9,092			2,538
GAAP net income (loss)			$	274		$	19,163		$	(18,889)
Restructuring, integration and other expenses (net of tax)				31,191			9,371			21,819
Amortization of intangible assets and other (net of tax)				23,526			8,380			15,146
Other expenses – equity investment impairments (net of tax)				15,222			25			15,197
Income tax expense items, net				13,498			10,788			2,710
Adjusted net income				83,711			47,727			35,983
GAAP diluted earnings (loss) per share			$	$ 0.00		$	0.19		$	(0.19)
Restructuring, integration and other expenses (net of tax)				0.31			0.09			0.22
Amortization of intangible assets and other (net of tax)				0.24			0.09			0.15
Other expenses – equity investment impairments (net of tax)				0.15			–			0.15
Income tax expense items, net				0.14			0.11			0.03
Adjusted diluted EPS				0.84			0.48			0.36

^* May not foot/cross foot due to rounding and differences in average
diluted shares between quarterly periods compared to the fiscal year to date.

				Quarters Ended
	Fiscal Year			June 27,			March 28,			December 29,			September 29,
	2020*			2020*			2020*			2019*			2019*
	($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses	$	1,842,122		$	451,099		$	469,646		$	464,873		$	456,503
Amortization of intangible assets and other		(81,555)			(18,952)			(21,071)			(21,454)			(20,078)
Adjusted operating expenses		1,760,567			432,147			448,576			443,419			436,426
GAAP operating (loss) income	$	(4,628)		$	1,920		$	(115,760)		$	46,475		$	62,738
Restructuring, integration and other expenses		81,870			23,796			19,211			14,265			24,598
Goodwill and intangible asset impairment expenses (benefits)		144,092			(1,744)			145,836			–			–
Amortization of intangible assets and other		81,555			18,952			21,071			21,454			20,078
Adjusted operating income		302,889			42,924			70,358			82,194			107,414
GAAP (loss) income before income taxes	$	(128,107)		$	(16,144)		$	(158,086)		$	12,086		$	34,038
Restructuring, integration and other expenses		81,870			23,796			19,211			14,265			24,598
Goodwill and intangible asset impairment expenses (benefits)		144,092			(1,744)			145,836			–			–
Amortization of intangible assets and other		81,555			18,952			21,071			21,454			20,078
Other expenses and early debt redemption		21,582			2,054			15,526			4,002			–
Adjusted income before income taxes		200,992			26,914			43,558			51,807			78,713
GAAP income tax expense (benefit)	$	(98,574)		$	(68,304)		$	(29,425)		$	6,870		$	(7,714)
Restructuring, integration and other expenses		18,648			4,659			4,372			3,377			6,240
Goodwill and intangible asset impairment expenses		6,433			207			6,226			–			–
Amortization of intangible assets and other		16,119			3,613			4,307			3,964			4,235
Other expenses and early debt redemption		6,238			506			4,992			740			–
Income tax benefit (expense) items, net		47,655			22,996			15,119			(4,071)			13,611
Adjusted income tax (benefit) expense		(3,481)			(36,323)			5,591			10,880			16,372
GAAP net (loss) income	$	(29,533)		$	52,160		$	(128,661)		$	5,216		$	41,752
Restructuring, integration and other expenses (net of tax)		63,222			19,137			14,839			10,888			18,358
Goodwill and intangible asset impairment expenses (benefits) (net of tax)		137,659			(1,951)			139,610			–			–
Amortization of intangible assets and other (net of tax)		65,436			15,339			16,764			17,490			15,843
Other expenses and early debt redemption (net of tax)		15,344			1,548			10,534			3,262			–
Income tax (benefit) expense items, net		(47,655)			(22,996)			(15,119)			4,071			(13,611)
Adjusted net income		204,473			63,237			37,967			40,927			62,341
GAAP diluted (loss) earnings per share	$	(0.29)		$	0.53		$	(1.29)		$	0.05		$	0.40
Restructuring, integration and other expenses (net of tax)		0.63			0.19			0.15			0.11			0.18
Goodwill and intangible asset impairment expenses (benefits) (net of tax)		1.37			(0.02)			1.39			–			–
Amortization of intangible assets and other (net of tax)		0.65			0.15			0.17			0.17			0.15
Other expenses and early debt redemption (net of tax)		0.15			0.02			0.11			0.03			–
Income tax (benefit) expense items, net		(0.47)			(0.23)			(0.15)			0.04			(0.13)
Adjusted diluted EPS		2.04			0.64			0.38			0.40			0.60

 

^* May not foot/cross foot due
to rounding and differences in average diluted shares between quarterly periods
compared to the fiscal year to date.

Sales of TI Products

 

In
December, the termination of the Company’s electronic components distribution
agreement with Texas Instruments (“TI”) was completed. Sales of TI products by
quarter are outlined in the following table:

		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
		January 2,			October 3,			June 27,			March 28,			December 28,
		2021			2020			2020			2020			2019
		(in millions)
Sales of TI Products		$	49.6		$	241.0		$	322.5		$	400.6		$	399.2

Organic Sales

 

Organic sales is
defined as sales adjusted for the impact of significant acquisitions,
divestitures and other items by adjusting Avnet’s prior and current periods (if
necessary) to include the sales of acquired businesses and exclude the sales of
divested businesses as if the acquisitions and divestitures had occurred at the
beginning of the earliest period presented. Additionally, fiscal 2021 sales are
adjusted for the estimated impact of the extra week of sales in the first
quarter of fiscal 2021 due to the 14-week fiscal first quarter and the 53-week
fiscal year. Organic sales in constant currency is defined as organic sales (as
defined above) excluding the impact of changes in foreign currency exchange
rates.

 

As a result of
declining sales due to the termination of the TI distribution agreement
discussed further above, organic sales growth rates have also been adjusted to
exclude sales of TI products.

 

The following
table presents the reconciliation of reported sales to organic sales for the
second quarter and first six months of fiscal 2021.

	Quarter Ended										Six Months Ended
		Sales						Organic															Organic
		As Reported						Sales			Sales						Organic						Sales
		and Organic			TI Sales			Adj for TI			As Reported			Estimated			Sales			TI Sales			Adj for TI
		Q2-Fiscal			Q2-Fiscal			Q2-Fiscal			Q2-Fiscal			Extra			Q2-Fiscal			Q2-Fiscal			Q2-Fiscal
		2021			2021(1)			2021(1)			2021			Week(2)			2021			2021(1)			2021(1)
		(in millions)
Avnet		$	4,668.2		$	49.6		$	4,618.6		$	9,391.2		$	306.0		$	9,085.2		$	290.6		$	8,794.6
Avnet by region
Americas		$	1,101.5		$	14.0		$	1,087.5		$	2,307.1		$	77.0		$	2,230.1		$	82.5		$	2,147.6
EMEA			1,346.3			20.8			1,325.5			2,827.0			97.0			2,730.0			123.7			2,606.3
Asia			2,220.4			14.8			2,205.6			4,257.1			132.0			4,125.1			84.4			4,040.7
Avnet by segment
EC		$	4,342.4		$	49.6		$	4,292.8		$	8,724.5		$	284.0		$	8,440.5		$	290.6		$	8,149.9
Farnell			325.8			—			325.8			666.7			22.0			644.7			—			644.7

⁽¹⁾        
Sales adjusted for the impact of the termination of the TI distribution
contract.

⁽²⁾        
The impact
of the additional week of sales in the first quarter of fiscal 2021 is
estimated.

 

The following
table presents reported and organic sales growth rates for the second quarter and
first six months of fiscal 2021 compared to fiscal 2020.

		Quarter Ended									Six Months Ended
					Sales			Organic															Organic
					As Reported			Sales						Sales						Organic			Sales
		Sales			and Organic			Adj for TI						As Reported						Sales			Adj for TI
		As Reported			Year-Year %			Year-Year %			Sales			Year-Year %			Organic			Year-Year %			Year-Year %
		and Organic			Change in			Change in			As Reported			Change in			Sales			Change in			Change in
		Year-Year			Constant			Constant			Year-Year			Constant			Year-Year			Constant			Constant
		% Change			Currency			Currency(1)			% Change			Currency			% Change			Currency			Currency(1)
Avnet		2.9	%		0.7	%		9.3	%		2.5	%		0.7	%		(0.9)	%		(2.7)	%		3.7	%
Avnet by region
Americas		(7.2)	%		(7.2)	%		(0.5)	%		(4.0)	%		(4.0)	%		(7.2)	%		(7.2)	%		(2.7)	%
EMEA		(5.6)			(11.4)			(4.5)			(2.4)			(7.4)			(5.8)			(10.8)			(6.2)
Asia		15.5			14.6			25.7			10.1			9.6			6.7			6.2			15.1
Avnet by segment
EC		3.3	%		1.1	%		10.5	%		2.7	%		0.9	%		(0.7)	%		(2.4)	%		4.5	%
Farnell		(1.6)			(4.5)			(4.5)			(0.1)			(2.5)			(3.3)			(5.8)			(5.8)

⁽¹⁾        
Sales growth rates excluding the impact of the termination of the TI distribution
agreement.

 

Historical Segment
Financial Information

					Fiscal 2021
		Fiscal			Second Quarter			First Quarter
		Year to Date			January 2,			October 3,
		2021*			2021			2020
		(in millions)
Sales:
Electronic Components		$	8,724.5		$	4,342.4		$	4,382.2
Farnell			666.7			325.8			340.9
Avnet sales		$	9,391.2		$	4,668.2		$	4,723.1
Operating income:
Electronic Components		$	188.4		$	103.9		$	84.4
Farnell			26.6			14.6			12.0
			215.0			118.5			96.4
Corporate expenses			(70.3)			(39.0)			(31.3)
Restructuring, integration and other expenses			(38.4)			(11.9)			(26.4)
Amortization of acquired intangible assets and other			(30.6)			(10.4)			(20.2)
Avnet operating income		$	75.7		$	57.2		$	18.5
Sales by geographic area:
Americas		$	2,307.1		$	1,101.5		$	1,205.7
EMEA			2,827.0			1,346.3			1,480.7
Asia			4,257.1			2,220.4			2,036.7
Avnet sales		$	9,391.2		$	4,668.2		$	4,723.1

* May not foot/cross foot due to rounding

				Fiscal Year 2020
				Quarters Ended
					Fourth Quarter			Third Quarter			Second Quarter			First Quarter
		Fiscal Year			June 27,			March 28,			December 28,			September 28,
		2020*			2020*			2020*			2019			2019
		(in millions)
Sales:
Electronic Components		$	16,340.1		$	3,867.6		$	3,974.7		$	4,203.6		$	4,294.2
Farnell			1,294.2			292.1			335.1			331.2			335.8
Avnet		$	17,634.3		$	4,159.7		$	4,309.8		$	4,534.8		$	4,630.0
Operating income (loss):
Electronic Components		$	349.1		$	58.9		$	84.8		$	93.1		$	112.3
Farnell			75.5			10.4			23.4			20.0			21.8
			424.6			69.3			108.2			113.1			134.1
Corporate expenses			(121.6)			(26.3)			(37.8)			(30.9)			(26.7)
Restructuring, integration and other expenses			(81.9)			(23.8)			(19.2)			(14.3)			(24.6)
Goodwill and intangible asset impairment expenses			(144.1)			1.7			(145.8)			–			–
Amortization of acquired intangible assets and other			(81.6)			(19.0)			(21.1)			(21.4)			(20.1)
Avnet operating (loss) income		$	(4.6)		$	1.9		$	(115.8)		$	46.5		$	62.7
Sales by geographic area:
Americas		$	4,755.3		$	1,149.3		$	1,203.6		$	1,186.6		$	1,215.8
EMEA			5,753.4			1,344.2			1,512.5			1,425.8			1,470.9
Asia			7,125.6			1,666.2			1,593.7			1,922.4			1,943.3
Avnet		$	17,634.3		$	4,159.7		$	4,309.8		$	4,534.8		$	4,630.0

* May not foot/cross foot due to rounding

Guidance Reconciliation

 

The following table presents the reconciliation of non-GAAP adjusted
diluted earnings per share guidance to the expected GAAP diluted earnings per
share guidance for the third quarter of fiscal 2021.

		Low End of			High End of
		Guidance Range			Guidance Range
Adjusted diluted earnings per share guidance		$	0.52		$	0.58
Restructuring, integration and other expense (net of tax)			(0.12)			(0.08)
Amortization of intangibles and other (net of tax)			(0.09)			(0.07)
Income tax expense adjustments			(0.05)			0.05
GAAP diluted earnings per share guidance		$	0.26		$	0.48