• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • Arrow, Avnet Report Better Than Expected Enterprise Sales

    November 16, 2009 Timothy Prickett Morgan

    The mood around master IT resellers Arrow Electronics and Avnet must be a lot more chipper than it was a year ago, with both companies reporting better-than-expected sales of enterprise computing gear in their most recent quarters.

    Taking the two companies in alphabetical order (we don’t play favorites here at The Four Hundred), Arrow reported revenues of $3.67 billion in the third quarter, down 14.5 percent from the year-ago quarter. Net income collapsed by 83.5 percent to $12.6 million, which certainly doesn’t sound like great news. Thing is, the news has been worse in the past year.

    Arrow said that its Enterprise Computing Solutions group, which sells servers, storage, and software, posted $1.13 billion in revenues in Q3, down 14 percent. “ECS sales were ahead of the midpoint of our expectations and above normal seasonality, fueled by a strong federal government year-end, as well as sequential increases in storage and services,” explained Michael Long, chief executive officer at Arrow, in a statement. “In our worldwide server business, the year-over-year declines have moderated,” he added.

    Arrow’s electronic components business also did better than expected, even though sales fell 15 percent to $2.54 billion. Sales in Asia grew, and declines in Europe and North America moderated.

    Paul Reilly, Arrow’s chief financial officer, said in a call with Wall Street analysts that the company had a pretty wide range of sales expectations for the fourth quarter, with overall revenues pegged at between $3.65 billion and $4.25 billion; ECS is expected to bring in between $1.4 billion and $1.6 billion of that, and component sales worldwide making up the remaining $2.25 billion to $2.65 billion. Earnings per share are expected to come in between 45 cents and 56 cents, which is a lot better than the 10 cents a share it got in the third quarter.

    Over at Avnet, sales in its first quarter of fiscal 2010 ended October 3 were down 3.1 percent to $4.36 billion, and net income fell by 43.6 percent to $50.9 million. Sales were helped because this quarter included a fourteenth week of sales because of the way the weeks broke down this year and last year.

    Avnet’s Technology Solutions group, which is the part that buys servers, storage, and software from IT vendors and sells them downstream to other distributors and resellers, had sales of $1.92 billion, rising 6.9 percent compared to the year-ago quarter. On a constant currency basis, the Technology Solutions group actually had a 10.5 percent sales bump. Sales of servers, storage, and software to resellers was up 9.2 percent in the Americas, down 9 percent in Europe, and up a stunning 71.4 percent in Asia. (At constant currency, European sales for Technology Solutions was flat.)

    Avnet’s Electronics Marketing group had sales of $2.44 billion in the first quarter of fiscal 2010, down 9.8 percent.

    “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 Roy Vallee, chief executive officer and chairman at Avnet, said in a statement. “Both operating groups delivered revenue growth at a rate that was above normal seasonality, even excluding the estimated $400 million beneficial impact of the extra week in this fiscal period.” Vallee said that sales in the Technology Solutions group were better than expected.

    Looking ahead, Avnet said that it expected the normal seasonality between its first and second fiscal quarters, adjusting for the extra week in Q1. Avnet expects sales to be between $4.1 billion and $4.7 billion, with Technology Solutions being $1.95 billion to $2.25 billion of that and Electronics Marketing being between $2.15 billion and $2.45 billion of that. Earnings per share, absent any charges, are expected to fall between 52 cents and 60 cents in fiscal Q2.

    RELATED STORIES

    Avnet and Arrow: System Sales Might Have Hit Bottom

    Distributors Arrow and Avnet Deal with the Meltdown

    Arrow Lets Mid-Market Resellers Buy Sales Campaigns

    Arrow Hit by X64 Downturn, Proprietary Servers Do OK

    Avnet Hit By Economic Downturn in Fiscal Q2

    Avnet Partners with Sanko for Turkish Expansion

    Avnet to Resell VDoc Content Management Suite in U.S.

    Arrow and Avnet Say Their June Quarters Exceeded Expectations

    Avnet Buys Ontrack for Asian Expansion

    Avnet Expands in the United Kingdom and Ireland with Horizon Buy

    Arrow Buys French Midrange Distributor



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 18, Number 41 -- November 16, 2009

    Sponsored by
    WorksRight Software

    Do you need area code information?
    Do you need ZIP Code information?
    Do you need ZIP+4 information?
    Do you need city name information?
    Do you need county information?
    Do you need a nearest dealer locator system?

    We can HELP! We have affordable AS/400 software and data to do all of the above. Whether you need a simple city name retrieval system or a sophisticated CASS postal coding system, we have it for you!

    The ZIP/CITY system is based on 5-digit ZIP Codes. You can retrieve city names, state names, county names, area codes, time zones, latitude, longitude, and more just by knowing the ZIP Code. We supply information on all the latest area code changes. A nearest dealer locator function is also included. ZIP/CITY includes software, data, monthly updates, and unlimited support. The cost is $495 per year.

    PER/ZIP4 is a sophisticated CASS certified postal coding system for assigning ZIP Codes, ZIP+4, carrier route, and delivery point codes. PER/ZIP4 also provides county names and FIPS codes. PER/ZIP4 can be used interactively, in batch, and with callable programs. PER/ZIP4 includes software, data, monthly updates, and unlimited support. The cost is $3,900 for the first year, and $1,950 for renewal.

    Just call us and we’ll arrange for 30 days FREE use of either ZIP/CITY or PER/ZIP4.

    WorksRight Software, Inc.
    Phone: 601-856-8337
    Fax: 601-856-9432
    Email: software@worksright.com
    Website: www.worksright.com

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Some Questions on Adopted Authority Programs Security Vendors Take Aim at HITECH Act for Healthcare IT Overhaul

    Leave a Reply Cancel reply

TFH Volume: 18 Issue: 41

This Issue Sponsored By

    Table of Contents

    • System for Sale Versus Service for Rent
    • The i 7.1s Have It; i5/OS V5R4 Extended
    • IBM Smart Business Moves into Italy, Solutions List Grows in U.S. and India
    • As I See It: High on Quack
    • FBI Arrests AS/400 Programmers in Madoff Scheme
    • IBM Converges Systems Software Into New Business Unit
    • Maybe They Should Have Called Them iBlocks?
    • Arrow, Avnet Report Better Than Expected Enterprise Sales
    • The Economic Meltdown Hits Different Industries Differently
    • Hewlett-Packard Eats 3Com for $2.7 Billion

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • Liam Allan Shares What’s Coming Next With Code For IBM i
    • From Stable To Scalable: Visual LANSA 16 Powers IBM i Growth – Launching July 8
    • VS Code Will Be The Heart Of The Modern IBM i Platform
    • The AS/400: A 37-Year-Old Dog That Loves To Learn New Tricks
    • IBM i PTF Guide, Volume 27, Number 25
    • Meet The Next Gen Of IBMers Helping To Build IBM i
    • Looks Like IBM Is Building A Linux-Like PASE For IBM i After All
    • Will Independent IBM i Clouds Survive PowerVS?
    • Now, IBM Is Jacking Up Hardware Maintenance Prices
    • IBM i PTF Guide, Volume 27, Number 24

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2025 IT Jungle