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

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.