This represents a decrease in revenue of 3.1% over the same quarter during the previous year, and a 0.6% decrease excluding the impact of changes in foreign currency exchange rates. Organic revenue growth, excluding sales from acquisitions, declined 6.5% when compared to the previous year’s first quarter.
Net income for the first quarter fiscal 2010 was $50.9 million, or $0.33 per share on a diluted basis, as compared with net income of $90.3 million, or $0.59 per share on a diluted basis, for the first quarter last year.
While revenue and net income are still down year over year, the pace of sales decline when compared to a year ago has slowed, after adjusting for the extra week in the first quarter of 2010, reinforcing the belief that demand is returning, albeit at a gradual rate. Avnet Technology Solutions, a distributor of computer products and embedded technology, reported sales of $1.92 billion U.S. dollars, which is an increase of 6.9% over the first quarter of fiscal year 2009.
Avnet Technology Solutions’ operating income was $51.4 million in the first quarter fiscal year 2010, and operating income margin was 2.68%. On a reported basis, Avnet Technology Solutions revenue in EMEA was flat year over year, excluding the impact of changes in foreign currency exchange rate.
Avnet Electronics Marketing, a distributor of electronic components, reported sales of $2.44 billion U.S. dollars during Avnet’s first quarter of fiscal year 2010, which is a decrease of 9.8% from the same quarter in fiscal year 2009. The group’s operating income was $81.4 million and operating income margin was 3.34%
On a reported basis, Avnet Electronics Marketing revenue in EMEA was down 4.4% year over year, excluding the impact of changes in foreign currency exchange rates. With markets appearing to stabilize, Avnet shift more attention toward growth. Avnet will continue to leverage its strong balance sheet and robust cash flow generation to pursue organic growth initiatives and value-creating acquisitions to enhance its competitive position in the market.