Avnet Reports First Quarter Fiscal Year 2002 Results.Business Editors, Technology Writers PHOENIX--(BUSINESS WIRE)--Oct. 25, 2001 Avnet Avnet, Inc. (NYSE: AVT) is a technology B2B distributor headquartered in Phoenix, Arizona. The company states on their website that:
See: New York Stock Exchange :AVT AVT avian arginine vasotocin. See vasotocin. ) reported results today for its first quarter ended September September: see month. 28, 2001. Sales for the first quarter of fiscal 2002 were $2.20 billion as compared with $3.19 billion in the first quarter of last year. The Company reported a net loss of $19.2 million, or $0.16 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, for the first quarter of fiscal 2002, as compared with net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $82.4 million, or $0.68 per share on a diluted basis, in the first quarter of fiscal 2001. Including income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , last year's first quarter net income was $85.1 million, or $0.70 per share on a diluted basis. The current quarter results take into account the positive impact related to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of amortization of goodwill pursuant to recent changes in U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) amounting to approximately $0.08 per share. Roy Roy, city (1990 pop. 24,603), Weber co., N Utah, near Great Salt Lake; settled by Mormons 1877, inc. 1937. Computer equipment is manufactured, and many residents work at nearby Hill Air Force Base. Vallee, Avnet's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "We are obviously disappointed with our absolute results for the quarter, which reflect the extremely difficult environment in which we are operating. Although our two computer businesses, Computer Marketing (CM) and Applied Computing computing - computer (AC), have been negatively impacted by the business environment, it is our Electronics Marketing (EM) business that has been most severely affected by this downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. ." Mr. Vallee continued, "EM's sales for the first quarter of fiscal 2002 were down 44% as compared with the year ago first quarter, and on a sequential basis, its sales were down 20% as compared with the fourth quarter of fiscal 2001. CM's sales in the current quarter were down 8% and AC's sales were up 8% as compared with the fourth quarter of fiscal 2001." Mr. Vallee added, "I am pleased with the way our team has responded to the things we can affect. Our first quarter of fiscal 2002 results reflect a reduction in excess of $190 million of annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , as compared with the run rate of expenses at the end of the December December: see month. 2000 quarter. And, as we previously reported, we have reduced expenses by approximately another $40 million on an annualized basis as a result of actions which were taken at the end of September 2001." Mr. Vallee went on to say, "We have also worked hard to reduce our debt and working capital in response to the business environment. Since the end of December 2000, excluding the impact of our accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. program, we have reduced debt by over $1.0 billion driven primarily by a reduction in working capital." Mr. Vallee further commented, "The tragic events of September 11th did not have a meaningful impact on our first quarter results and, based upon what we have seen so far, we don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. expect a meaningful impact on our second quarter results. Short term, we expect the December 2001 quarter to be beneficially impacted by the typical seasonality which should drive sales growth at CM and AC, offset somewhat by slightly lower top line expectations for EM. Coupled with the significant cost reductions we have made, we continue to anticipate sequential earnings growth in our second quarter and are comfortable with consensus estimates of a loss of approximately $0.08 per share for that quarter." Mr. Vallee concluded by stating, "Long term, Avnet is well positioned for growth as the global economy and the technology industry we serve recover. As a result of the actions we have taken, Avnet now has more earnings leverage than at any other time in its history." As required by the recent changes in GAAP related to accounting for goodwill, the Company is currently evaluating the book value of its goodwill and the associated one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge related to the change in accounting principle, the amount of which cannot yet be estimated. The Company expects to complete its evaluation of goodwill by the end of its second quarter of fiscal 2002 and will restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state its first quarter of fiscal 2002 results to include this one-time charge related to the change in accounting principle. The impact of this restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. will be to reduce the book value of goodwill with the offset being recorded as a charge to the income statement in a special category entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: `cumulative effect of change in accounting principle'. In addition, as required by GAAP, all prior year financial statements have been restated to include the results of Kent Electronics, the June 8, 2001 acquisition of which was accounted for as a pooling-of-interests. Forward Looking Statements This press release contains certain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current expectations and are subject to uncertainty and changes in the forward-looking statements. The forward-looking statements herein include statements addressing future financial and operating results of Avnet. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in business conditions and the economy in general, changes in market demand and pricing pressures, allocations of products by suppliers, failure to obtain and retain expected synergies from newly acquired businesses, and other competitive and/or regulatory factors affecting the businesses of Avnet generally. More detailed information about these and other factors is set forth in Avnet's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal 2001. Avnet is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. Additional Information Phoenix, Arizona-based Avnet, Inc., a Fortune 500 company, is one of the world's largest distributors of semiconductors, interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. , passive and electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). components, enterprise network and computer equipment, and embedded Inserted into. See embedded system. sub-systems from leading manufacturers. Serving customers in 63 countries, Avnet markets, inventories and adds value to these products and provides world-class supply-chain management and engineering services. Avnet's Web site is located at www.avnet.com.
AVNET, INC.
(MILLIONS EXCEPT PER SHARE DATA)
FIRST QUARTERS ENDED
-------------------
SEPTEMBER 28, SEPTEMBER 29,
2001 2000 % CHANGE
-------- -------- --------
Sales $ 2,201.2 $ 3,188.6 (31%)
Income (loss) from
continuing operations
before income taxes (33.9) 141.5 (124%)
Net income (loss) from
continuing operations (19.2) 82.4 (123%)
Income from discontinued
operations,
net of income taxes -- 2.7 (100%)
Net income (loss) (19.2) 85.1 (123%)
Earnings (loss) per share
from continuing operations:
Basic ($ 0.16) $ 0.70 (123%)
Diluted ($ 0.16) $ 0.68 (124%)
Net earnings (loss) per
share:
Basic ($ 0.16) $ 0.73 (122%)
Diluted ($ 0.16) $ 0.70 (123%)
AVNET, INC.
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS EXCEPT PER SHARE DATA)
FIRST QUARTERS ENDED
-------------------
SEPTEMBER 28, SEPTEMBER 29,
2001 2000
------------ ------------
Sales $ 2,201,195 $ 3,188,591
Cost of sales 1,890,633 2,701,018
----------- -----------
Gross profit 310,562 487,573
Operating expenses 306,937 308,562
----------- -----------
Operating income 3,625 179,011
Other income, net 594 251
Interest expense (38,071) (37,802)
----------- -----------
Income (loss) from
continuing operations
before income taxes (33,852) 141,460
Income taxes (14,645) 59,095
----------- -----------
Net income (loss) from
continuing operations (19,207) 82,365
Income from discontinued
operations, net of
income taxes -- 2,771
----------- -----------
Net income (loss) ($ 19,207) $ 85,136
=========== ===========
Earnings (loss) per share
from continuing operations:
Basic ($ 0.16) $ 0.70
=========== ===========
Diluted ($ 0.16) $ 0.68
=========== ===========
Net earnings (loss)
per share:
Basic ($ 0.16) $ 0.73
=========== ===========
Diluted ($ 0.16) $ 0.70
=========== ===========
Shares used to compute
earnings per share:
Basic 117,851 116,976
=========== ===========
Diluted 117,851 123,010
=========== ===========
AVNET, INC.
CONSOLIDATED BALANCE SHEETS
(THOUSANDS)
SEPTEMBER 28, JUNE 29,
2001 2001
----------- -----------
Assets:
Current assets:
Cash and cash equivalents $ 103,115 $ 97,279
Receivables 1,413,883 1,629,566
Inventories 1,782,248 1,917,044
Other 101,817 103,600
---------- ----------
Total current assets 3,401,063 3,747,489
Property, plant & equipment 416,716 417,159
Goodwill 1,426,888 1,404,863
Other assets 301,310 294,637
---------- ----------
Total assets 5,545,977 5,864,148
---------- ----------
Less liabilities:
Current liabilities:
Borrowings due within
one year 1,024,673 1,302,129
Accounts payable 828,999 853,196
Accrued expenses and other 370,845 414,740
---------- ----------
Total current liabilities 2,224,517 2,570,065
Long term debt, less due
within one year 919,142 919,493
---------- ----------
Total liabilities 3,143,659 3,489,558
---------- ----------
Shareholders' equity $2,402,318 $2,374,590
========== ==========
AVNET, INC.
SEGMENT INFORMATION
(MILLIONS)
FIRST QUARTERS ENDED
-------------------
SEPTEMBER 28, SEPTEMBER 29,
SALES 2001 2000
----------------- ------------ ------------
Electronics Marketing $ 1,237.6 $ 2,226.9
Computer Marketing 572.0 688.2
Applied Computing 391.6 273.5
---------- ----------
Consolidated $ 2,201.2 $ 3,188.6
========== ==========
OPERATING INCOME
-----------------
Electronics Marketing ($ 5.0) $ 173.5
Computer Marketing 10.8 19.7
Applied Computing 14.5 11.1
Corporate (16.7) (25.3)
---------- ----------
Consolidated $ 3.6 $ 179.0
========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion