Feeds

Profit warning – Avnet's turn

Cost cuts

  • alert
  • submit to reddit

Avnet is the latest on the block with a profits warning.

The distie giant says its electronics components division has been particularly badly hit with Q1 sales ended September down 44 per cent on the same period last year and 20 per cent sequentially

Avnet's applied computing division, which flogs CPUs and other components to systems builders, and computer marketing, its VAR wholesale business were also "negatively impacted", with sales 7 per cent up sequentially for the AAC and down 8 per cent for ACM. Collectively, these two saw sales rise 3 per cent in the quarter.

Avnet is now forecasting a loss on continuing operations of $0.17 to $0.20 per share. It says that is already undertaking a cost-cutting exercise, which will see operating expenses reduced by $175m approx. compared with the end of calendar year 2000.

And, "in response to current revenue levels, additional actions were taken at the end of September 2001 that will reduce expenses by another $40 million on an annualized basis". ®

Avnet press release

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.