Avnet Revenue Increases 9 Percent

Avnet earned $8.9 million, or 7 cents per share, in the second fiscal quarter ended Dec. 31, 2003, compared with a loss of $58.7 million, or 49 cents per share, in the year-ago quarter.

Revenue increased 9 percent to $2.55 billion from $2.35 billion.

The results, excluding restructuring charges, were $25.3 million, or 21 cents per share. In the year-ago quarter, the Phoenix-based distributor would have earned $7.1 million, of 6 cents per share, excluding charges.

Analysts had expected 18 cents per share, according to Thomson/First Call.

The Avnet Technology Solutions group, which includes Avnet Hall-Mark, had sales of $1.22 billion, a 7 percent increase from the second fiscal quarter last year.

The division had unusually high software sales, executives said.

"Sales came in at the high end of our guidance as Technology Solutions had a very strong quarter, well ahead of expectations. We are very encouraged by the strong Electronics Marketing book-to-bill for the quarter and the strength of shipments early in January 2004," said Chairman and CEO Roy Vallee in a statement.

In the current quarter, Avnet expects sales of $2.5 billion to $2.6 billion, and earnings to range between 22 cents and 25 cents per share.

For the first half of fiscal 2004, Avnet had $4.96 billion in revenue, compared with $4.52 billion in the first half of fiscal 2003.

The distributor also reported a loss of $2.4 million, or 2 cents per share, in the first half of fiscal 2004 compared with a loss of $59.1 million, or 49 cents per share, in the year-ago period.

Shares of Avnet closed at $24.46 Thursday, down $1.13, or 4 percent.