AVT - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Avnet Fourth Quarter Fiscal Year 2021 Earnings Call. I would now like to turn the floor over to Joe Burke, Vice President of Treasury and Investor Relations for Avnet. Joe, you may begin.

Joe Burke

Thank you, operator. Earlier this afternoon, Avnet released financial results for the fourth fiscal quarter of 2021. on Relations available company's of is website. release the section Investor the The the will earnings presentation could copy section slide A of website. that as the via link of Avnet's well be the accompany in as the release, on IR found remarks today's

the date actual company's in Such that in assumptions recent the some the conference in and to release could predict. this statements Today's the are regarding and the update forward-looking company Liguori, after are this factors differ filings guarantee could Gallagher, and contained performance, that, of Avnet's contribute or Form described those of Lastly, from results CFO. differences contain such risk, CEO; that Gallagher. forward-looking most speak materially and call to detail forward-looking this uncertainties in are and statements as date publicly Phil? call by subsequent led the Phil news supply on forward-looking let Several the not statements. call presentation, Phil statements information information of and XX-Q With over to contained that the involve difficult will XX-K to any and SEC. Avnet's cause or such turn obligation These Tom the of be the statements new Avnet's no with circumstances of me undertakes only presentation.

Phil Gallagher

like quarter by joining to past I fourth time and for Thank summer. taken hope healthy, everyone today safe, reflecting year. and year this you, is has XXXX enjoy start the Joe thank and conference I’d everyone our fiscal on earnings call. you, to some

extremely the first you Interim was ago year proud be our incredible during Avnet. and I supply am challenging to restrictions, this just to ground did this priority will team reinvigorate delivered strengths shared my and with work some ongoing Just to to lay Despite on leading I business. results. global And call, focus over named CEO during that truly earnings disruptions pandemic of period. our I immediate a today, team our be my

our We for and have the year. on journey as operating and continued lies and the post groups make improvements to record focused excited made are spending that the truly for important sales ahead. the revenue go-to-market notable fourth progress we right in strategy, a to both I able result, quarter things, am margin over

customers before long foundation the and we Now, performance. let by our to highlight our in XXXX. relationships utilizing diving investments decrease for this capabilities and decades partners. quarter supply me enabling year, our past chains. risk accomplishments differentiated demand We resulting levels based made our fiscal creation the past numbers personnel design on with industry-leading our in help some customers expertise our at supported record solutions We sales and significant strengthen engineering to their In of and fourth supplier for in semiconductor year’s suppliers into continued year IP&E

decades. we product detail that digitization continued anniversary XXXth on return later. income targets both market Farnell towards life our capital. of moving year for and Farnell for our the margin the multiple Electronic get growth and Tom cycle. our the allowing across respectively. across also for working in customer Components businesses and in on margin Avnet we role in invest operating critical to electronics support will the into more began entire X% to We XX% attributed supply dollars operating improved reflecting in finally, and We That share chain celebration turn, of our business played grew And us

of relationships that the customers expertise and matter. team the Avnet’s fiscal global year continued and this dedication the supply been team our suppliers not could across the this done prove is our all center that for more whole Throughout ever vital truly have than without technology globe. and to our of role chain Now, at

While still continue what times every experience as I and in am pleased market throughout book-to-bill with are operating very ratios persisted ahead, we’ve marketplace we to quarter where dynamic a a supply-driven what’s accomplished extended high driving excited to-date for lead region. the in we

increased As Further, such, to of priority supply on gain customers and year, to component XX% this XX% our technologies tightly visibility past backlog cost own and with we some managing working for continued our higher. chains. extended as a to manage certain closely be have even average

with As had always, along. when closely possible pass we where as I of and work to impact some costs we've customer to customers any our mitigate try these

turning the sequentially up quarter Slide results constant a billion, sales of quarter We fourth on and $X.X fourth X. basis. Now, to on currency year-over-year achieved

sales sales TI, the Electronic grew achieved Components Excluding strong and Farnell XX.X% operating in both year-over-year. delivered and quarter margins. record

as business. margin our to at We improvements given operating the the regions, the expect all made across execution the continued well we've line, progress market, of durable as solid strength

Electronic better in the and Looking on in Slide performance depth results suppliers Americas, for quarter. all EMEA and operating in and year is excellent relationships regions and our us positioning progress our the Strong XXXX. than at continued continued with Asia the of all contributed fiscal expected across X, improvements Components the results driving business to customers in

a Components long-term as fiscal invest for Electronic design to field we to and revenue, Demand relationships Components Creation Communications, demand vertical to continue Electronic also Computing be drivers. XX% major XXXX. segments our in terms roughly will advantage and application competitive enter creation In with stronger growth Global engineers Automotive, year segments, and continue supporting profitability the accounting of key be we tools, continues Industrial, in to digital our of drive engagements

allowing offerings their current We broad demand to based services while suppliers driving software Solutions and customers our will IoT including vertical address our with to enhance needs. value-added and for current continue also differentiate our solutions business solutions, their markets, capabilities, across

at this operating margin past saw quarter. X. of target $XXX sales our continues quarter Now, Revenues Farnell to record important turning sequentially and to and sequentially Farnell year-over-year on an progressing contributor were towards million be up increased Slide in the X.X%, XX%. to and

revenues XX% of to Our continued off digital Farnell’s nearly sales. attributed investment pay in with ecommerce capabilities to

also added on The XXX,XXX introduction and capabilities, XXXX. progressing We an SKUs business us mass of plans uniquely year service service to our SKUs Electronic throughout this Components additional to Farnell’s to from model production. product enable past combination the high quarter, fiscal new customers XX,XXX

continue As we fiscal Farnell’s capabilities value enhance digital expect increase. proposition in continue XXXX, to to our year we to

to our Now dive and over results. fiscal bit I'll deeper into to turn fourth with Tom that, a quarter year it

Tom Liguori

today's Thank Good Phil. and you, call. thank you for attending afternoon, everyone,

quarter progress we've very year. results the made the we are with the the last we over Phil stated, As pleased fourth posted in and

I While highlights. ahead, there still share excited work some is to am

Turning to grew by XX.X% our Slide year-over-year. X. In the fourth quarter, we top-line

$X.XX. EPS year's adjusted exceeded Our revenues quarter. fourth quarter for adjusted EPS $X.X $X.XX Both from billion in and revenues guidance our the and were the billion range and our prior and was $X.X grew

primarily strong As by performances mentioned, in EMEA, improvement and were revenues the Farnell Americas. Phil driven quarter and Asia operating exceptional in continued

Turning to XX. Slide

operating fiscal quarters; operating and execution to expenses, a profit XX% XX% four closer to a achieved controlled $XX.X for target ago year, us billion, We prior margins a dollars gross from Farnell. Components XX.X% the to Electronic we of and our from this year improving to OpEx X% expanding the ratio quarter. teams for of the consecutive increase for representing and XX.X% bringing improved efficiency; year. For sales year, Throughout the

working capital, And managed by to per the year Our asset we capital earnings fourth to reducing days $X.XX and grew teams finance share consistently in XX working quarter. end.

effectively cost gross region to we quarter. as was reaching Electronic to operating are constrained saw up from of improve sequentially, Components notable as statement margin work gross on to trend fourth XX.X% continues sequentially, quarter XX.X% Adjusted Farnell Moving up enhancing evidence continue and the income of in pricing percentage growth. improvements of profit Slide managing Every margins. their that expenses we margin this in X.X% million supply sequentially Gross associated with encouraging last XX. sales our an to OpEx due our $XXX XX.X% were toward increased a market.

the adjusted foreign in up losses million. million, from currency quarter. debt segments. due for currency tax the front, On working expectation our represents hedging rate, quarter foreign $X.X interest our transaction to expense activities. two capital, of slightly improvement associated Slide non-operating the was was our last $XX.X to XX.X% results XX, with we higher recorded On XX% cost We reaching through which quarter business us tax an the adjusted fourth which rate XX% annual a of a across get to booked highlight We

year at revenues Electronic segment, we versus increasing X.X% $X.X Looking prior and the sequentially. billion, Components achieved XX.X% of the

last Components segment, operating basis improvement point X.X% For point year-over-year. from quarter and the margins basis a XX improvement Electronic XXX were

the million, has and sales Americas. in demand supported benefited this quarter Components noted quarter was with and up driven operating improvement achieved sequentially continued totaling The our in and Electronic and $XXX As record by EMEA market a strong performance higher year-over-year. revenues by Asia sales earlier, Farnell, Farnell. strong sales group's

invest fiscal to inventory, margin our XX% XXXX. continued capabilities segment growth. by further to of and in enable We in The to year the ecommerce achieve end X.X% operating on an Farnell target had Farnell’s track quarter, the systems, of

We recent this momentum. and Farnell’s are to extremely results pleased with the expect upon build

$XXX Slide to increased Turning inventory customer up keep balance the XX. past sheet and We million on with the to by quarter liquidity cash demand. in

our dollars XX, were capital days working improve noted. capital able to previously we working still were to While up, as

of $XXX debt the and and $X.X ended million We at debt of of cash billion net billion lines billion. comfortable $X.X with strong. remains credit. at We position coming in remain liquidity debt Our quarter our with with $X position available and equivalents

and $XX million increased was gross quarter, leverage the X.X Our by dividend was We X.X. net in to X.X% leverage returning debt shareholders. debt our

next book with the will ago with quarter our the Our I some for year increased up $XX expectations net on about comments $XX, share Slide value in compared period. wrap to XX. per

Electronic Our assumes constraints, inflation. ongoing demand, supply associated and continuing first price Components strong today quarter guidance

seasonal As to normal result, pattern. than the a perform expect we better

$X.XX are in billion adjusted $X.X QX, For the in to billion to of our we fiscal and of the $X.X guiding EPS range range $X.XX. revenues

While made demand we significant durable changes QX, expect supply continue to our persisting have through benefit also to pricing and the we business. to environment constraints

continue now on the shareholders. delivering before last operate margins all positioning X.X% customers the result for of open had to Avnet. As for changes, XX, to Phil? Slide latter we're year fiscal of manners spent a business some will these to value we Phil to our year ability and sustainable total you'll over we back and Q&A. to our the We the to see in challenging turn XXXX operating closing I confident range in it it by environments in macro half as to expect deliver comments, of X% efficiently

Phil Gallagher

Thanks, Tom.

year are in capitalize every on we As positive growth see our to XXXX, kickoff excited markets and fiscal we opportunity.

am well forecast, year and I'll XXXX. focus, that, and Because With strengths as and manage mitigate strategies fiscal suppliers cannot to supply over our chain financial investing our competitive is and incredibly and the working our our I and we navigate into in proud on operator excited Avnet. of leverage today the value around are market customers a at of next of as what and with about year. I in year global our more uninterrupted service Now work questions to this to going the delivered be in met to growth dynamics, time past our challenges risk. turn build digitization the hard earnings and positioned performance holds answers. this current providing resilience, They've employees. then for significant their business, team’s the store in scale and our well collaboratively for

Operator

you. Thank [Operator Instructions]

first Our question. comes Please from with your proceed Matt question Sheerin Stifel. with

Matt Sheerin

Thank first Phil, that question, And inventory you is in everyone. just regarding build afternoon, Yes. the quarter. the good My you. saw

with to do companies few that. one the supply seem be to a to You able chain be of

you balance could – And your to a So, you the words, through do I us you is portfolio? your In that already said that of you expect do run – where expect Is tell question lot sold. built it? is, you inventory across other mean, that them sheet?

Phil Gallagher

I Matt. Thanks, that. Yes. appreciate

in, in throughout quarter, this remember, doesn't June pretty out in doesn't actually the And are right? It case it all the near come the you comfortable quarter. the April with in comes this all or the of We So May, got to quarter. closing Matt. inventory end come build,

is. use the all little days with to inventory, it grew out. drive arguably, we reduced we probably But actually that now the more capital So doesn't we're top-line, right? continue the right? working So, So with to get comfortable inventory we're we days, and a bit where comfortable because as

the chain and We And are of meeting with the every involved supply suppliers basis We day. of inventory evaluating age folks much on quality. we're the our with pretty the a inventory and regular the comfortable level it. got

Matt Sheerin

for pretty significantly. that. you Thank And then was up Okay, regarding okay. that growth your order

to how you're sustainable sustainable? component your So the expect at versus that's the of from whether differently mix question is, pricing levels? short, doing favorable is is the or those benefiting constrained versus because you that and the much And or remain not? environment that and Do anything

Phil Gallagher

Yes. probably little bit It's of a a Matt. both,

shipping the mix. percent And and a of that that pretty been So try with we through margin. XX% mix going we're this the by And what also on And in GP are sure I'm But mix there'll the the okay? of of of then, have of along okay? on. We're the questions drive as on do in in percent, pleased. we lot much There than noted we bit those still it than pass higher little more stuff dollars customers times, script, there, combination comp across it's and our lot is we again, back to XX% we in things anywhere as profit But times of get at in position some that. that is on some region looking things. impacts lead a your course, also and the didn't and and definitely a lines along good from percentage extended just a definitely price still is increase we pass further gross That call we some us of the can the is be to Matt, seeing need, lead get board. that inventory to that we're That comment, The more clarify. increases. was tends pretty There the that. acceleration a to pleased we're where of also what working with and point.

Matt Sheerin

very Okay. congratulations as much and appointment on Great. Thanks CEO.

Phil Gallagher

Thanks, Matt.

Operator

you. Thank

Ruplu from Please question Bank with come your will proceed next with Our America. question. Bhattacharya

Ruplu Bhattacharya

taking my for questions. Thanks Hi.

next year. Farnell wanted fiscal you, the mean, - about a it to this added of I XXXX. like end ask said fiscal in I by getting you've to of So, you target XXX,XXX SKUs XX,XXX year looks

you're means almost going SKUs that next almost add So, year. XXX,XXX to double like

by going Or forward? think, cars and Just how more you sales you get that line how you that to wondering people more to Do into And add there affect penetrating you existing you can do of planning do think are and FAEs does happens? need more that, suppliers? do suppliers? hire the to OpEx

Phil Gallagher

looking a cars, where we get we Newark gaps years, what with the Farnell. able our call few Yes. have Thanks, position top Ruplu. right have pretty well for like the comfortable board them we're need to is we and Chris’ been overlaps. the we Farnell name in gaps brands we always we're line Appreciate technology. Where help to in Core that. and some lines along lines leverage to the looking Well, example for Avnet of board, to we we to we're it our set. have couple overlaps. always do that now mean, have Where be do whole team I with Where in Farnell call in cover at add with in of we've just Xilinx, last elementXX blushed the to and some technology.

So, we go it on add on Renasas SKUs, to and okay, and Xilinx Micron, on. added could that could IDT, go

for from that's - and a we're to position. where But expand shared count, there, the expanded our totally lines, bit a introduction. as expand We've allowing SKU SKUs. coming us our going in physical NPI, warehouse, It's come space right as to remember we've it's little count the online although okay? we've past, from late product just that’s but existing So, SKU our most of you it's new expanding critical

that's as far on as and happening we're track. So,

way by adding numbers quarters. are right, as your up gone we've it’s through So, the even them the

do So us application we're the I expansion. we the infrastructure. - Avnet as to leverage comfortable current FAE team some And leverage lead not Core with to leveraging engineers combined a that far new where really field have the doesn't FAEs. do managers. are It They side. to account really we Farnell on as SKU the in cost mean, really. adding we're that, wouldn’t

OpEx which side new be shouldn't a So, where leads on anyway. is than other Core real any to creation, demand there it expansion

Ruplu Bhattacharya

the Got on Phil. details it. And thanks that, for

question, just second I on my if For margins. ask Farnell can

which about XX% versus came basis ecommerce, and think of How from higher on So I improvement had mix that margin at the that the I margins. pricing much versus sequential points XXX and X.X%. mentioned you was volume? revenue, has of Because, you're you of one of FX half revenues think slides

mean, do I end XXXX. that sustainable? faster and XX% Do X.X% And of can the speeds think to of get up Thanks. at think we that? given So kind you was now, by you you're than there target that your to margins fiscal is get

Phil Gallagher

want you Do Tom? take to that,

Tom Liguori

Hi, Sure. Ruplu.

are would really with with trajectory, quarter. which faster we Farnell the part performance think, be doing due said, we The we this didn't on pricing market to first yes, to have really get state. would We they're all of margin the with and of it cylinders Farnell, have for can was been as than XX% steady at is to Farnell. look expected. volume the the ship X.X% X% is we what a in the original about environment, our yes, of the it, with all, way and op hitting So, volume ability a happy we’ve probably more X.X% market are if we That on a pricing, to favorable things favorable in it it

Ruplu Bhattacharya

quarter. all for the Thanks Okay. details. the on Congrats

Tom Liguori

Thank you, Ruplu.

Phil Gallagher

Thanks, Ruplu.

Operator

you. Thank

proceed Jim comes question next with with Citigroup. your question. Suva Please from Our

Jim Suva

Thank so much. you

of know I the a it's very came where completed were for modeling a and around things? about XXXX early outward of XX%, thoughts XX% year Any in revenue year I sales good is think very good of kind think growth. up just X%. of consensus you lot I outlook, But a X%, You changing fiscal thoughts off initial year? Any

Phil Gallagher

appreciate first, Well, Tom. let I Jim. go me that. Thanks,

for on the year-on-year growth at there. good exactly us job the You're – so,

a to The I really very Just look supply chains and market it's environment, downstream from backlog book-to-bill’s and to standpoint upstream that details. the is looks much, XXXX, I of now, more right the and from but things But it technology a suppliers it, in looks closely good. you and and track pretty pretty look let particular, because from much out. Tom that, beyond mean, tough I’ll positive a we there still call our customers. a in into and when solid get can with like at mean, change income across the guidance standpoint as December, much, we through don't and we pretty pervasive standpoint. vertical it's give and board quickly, from

So it feels very positive.

this as anything Tom, get we quarter well, As to? through want first you

Tom Liguori

better. Jim, changes we're help I, the operating When to look of you XXXX, the they be I we we've margins. market feel trying improved of confident, economy, the feel fiscal for where very the on We we just the with with, open just when the on further it depends it. because be posting at out, of are add, think or in probably would good spite we'd margins go have you do very we'll we didn't - consensus Ruplu, about made, year that because feel not market,

needs? the X% longer term, the good durable. we because Does help? think to margins, we sustainable signal that's it are on gave we significant changes of are than the path that the They and are So, a X.X% why

Jim Suva

that sold. and competitor day And then, is two that the basically they're that the quarter comes door a there solid build, your to came on while or last book-to-bill they question, and scrutiny that follow-up lot a my away, is be had everything said said inventory going of already they major they selling in your right Yes. delivery to

to you So, build? to everybody book-to-bill, inventory pretty chance the is you your inventory that you the already shortages square right say, build? in didn't have said the you wanted? parts triangulate comfortable sold or but it I'm Or in you the strength of the had trying inventory, feel

Tom Liguori

last your first two inventory Well, stock. that's a able be lot - to receive days would in and that get be in the of to all, of

But, inventory good It June. I'll not it suppliers, what And really not that, are about position flattish, getting days have leave of are good inventory we with the feel we come were our concerned in. right? we that appropriate the the So yes, Jim. So, We that in through that's - inventory. our is at. feel it only to site. with came It's we level is

Jim Suva

tuning Thank so Thank Okay. a congratulations profitability. for you. much really you and up great the and year

Tom Liguori

Thanks, Jim.

Operator

Joe with comes question next Fargo. proceed from with Please your Wells Our question. Quatrochi

Joe Quatrochi

taking the Thanks question. Yes. for

understand Sorry, guide, the maybe guess, I the just, build better Is to is I is, it's visit a than I revenue with being you to I relatively being the level strong seasonal. kind of demand as the inventory I’d to But in guess. to inventory? inventory of to it sequential I right want as try want guess, can flat us it stable of that just again. kind forward? building relative help inventory going understand understand think amount I

Tom Liguori

current always days working our capital, So Joe, look capital. we working at

If back year, XX $XXX with XX, we're XX days, added you we million, at last even the days. had we consistently go

are So, this it inside of if And tight opposite view it. not of days quite have an it not, is they we actually they line A, up our inventory. we that, are the sell company. buildup can in so inventory positive are and We abnormal

Phil Gallagher

Yes.

a an I the the asked - - think quality, There got of questions when on asset. inventory the is there is is it's inventory. glad, good

on to and and working improvement in overall based on we continuous Okay? see as return the well working businesses capital. And measure seen improvement we our continue we've there capital return will

and it doing the I at by luxury region. look that and business have I by So,

the Americas, in Newark. bit to look little Farnell, a bit little You little in a start at in bit

region like it's million unit. a there $XX came business. when was frankly and balanced, and and So, it one there it’s look a or by one in really well SKU that region you $XXX a or million by in pretty all at business not It's

Joe Quatrochi

that terms clearly your think of getting, XX% follow-up, higher, times we thinking I the in just relative for any lead online, Okay. about as there you're XX% how build customers helpful? do the color about would close Is be the then, Just that normal? to as mean, it And a higher?

Phil Gallagher

You mean, times am Joe. our lead I sorry, from suppliers?

Joe Quatrochi

am from getting I demand of terms your talking in you're visibility like customers. that

Phil Gallagher

XX% MRPs, consignment or in, EDI so getting Well, programs, stores, part feeds, lot Yes. chain, forecast where implant Yes. a of business is Joe, actually of supply our of businesses management. we're that's

we're triangulate basically customers world. we're with thousands to then, make getting closely. our managing So, to across that of And the sure upstream suppliers

as now, inside your shared we right backlog, question, six back, quarter, again, XX%. it whether maybe December earlier The XX% XX%, see on to looks our is very chain So, have the I or months before positive. demand somewhere supply good roughly orders adjustments hard looks very on say, I'd normal our this forecast adjustments or

we're it's increasing point time. at this that and So, in not adjustment confident seeing

our MRPs Because the So seeing question is, getting get of is with looks pretty managing demand from which the end that it it's up lead load I are we is it as pretty times, now We further. right longer we as driving see stable. book-to-bill times which And and right? into some their good suppliers. that booking what today people why well, is lead The you extended out higher

Joe Quatrochi

you. helpful. Thank Got it. That's

Phil Gallagher

You Thank Joe. bet, you.

Operator

you. Thank

Securities. your comes William Our next proceed question. Truist with Please question from Stein with

William Stein

But getting results inventories. supply I'm trying good to quarter a similar or demand We inventory with certainly in historical changes congratulations very me time on to see a going so. last happened the my have lead you're it understand certain not the outlook. and might Great. maybe ask balance having am build question levels. and the the this the for to alarming, and taking likely I that Thanks somewhat seems horse. pretty It's between question, shorter the in time hard stuff beating very for and relative pardon

that, I So are happening. is backlog if balance might for wondering you during the average times Thank moderating why maybe and think I'm the way the wondering Really – or or the quarter? full how that’s supply/demand between increasing about, it I wonder duration can't backlog dollars, the But, the now? the are maybe the disclose of about still whether you you. kits And and book-to-bill, they today? lead changed if actual get probably it’s so

Phil Gallagher

Well, book-to-bill in one, is across well the excess board Will. just of or

that’s on that and so. way three or been now for quarters work So,

we that do back we supplier what try again has what typical So, to - demand been. is, customers’ to triangulate the

the the their shift this what book-to-bill backlog Last got today what us. today, were, what bookings quarter, is quarter last backlog year. So, we've on with information was, and is all the that the what

So And we closely. really the information is, that that and manage that coming. relationships strength data you have where and once

have make of before got you're now book-to-bill, the of this of one's definitely go sure verifying supply as to chain, been COVID and in types reality discuss that we situation. and You times unprecedented situations which driving given and of responsibility a the to need these the the to reality backlog, the really used bunch I've word responsible, be seen we've

products, out looking same it's we've programmer is lead all modest about extended. see and analogues, at as some to some now starting interface sitting there with the if the here. area as out times, and go capacitors as is talked far now right As controllers, any improvement we're some - that’s right Not I'm logics of

But you’re it's at could the broad drilling we're So best it's that pretty That is that's on. readily this really call in that's point the on Will, inventory we right. really lot of without making do the - sure time available down. probably said, today, got a stuff There I

Tom Liguori

and good QX at as do level, We book-to-bills fine. amount it's inventory a It's thing. we of have QX guidance or revenue And look And we said, our revenue strong, for to I inventory appropriate. go Phil the would level have addition is as positive. back at the

that. We are not concerned of

Phil Gallagher

Again, mentioned unprecedented right? Will, to think little supply I is done, it's I services, right? supply Avnet say which in move all going the script – just chain. unfortunate with - don't Not the and no, now, it's still think we're with we just that, been I dealing technology what’s right a is what And we're in the know unfortunately more happened chain is, it's value I obviously and well, pandemic, building put

who So and maybe before some today opportunities we're chain seeing let's increased from, weren't or existing more services. supply we us say, customers saying, actually coming need help of to suppliers hey, customers seeing inside opportunities with

supply in all for do I and addition a we think of positives, you combination will So, there what to demand that's creation. chain the if

is So, our concern there this on end at no point again,

William Stein

you. Great. Thank

Phil Gallagher

Will. Thanks,

Tom Liguori

Will. Thanks

Operator

Instructions] [Operator Thank you.

Our proceed with with comes question Please Hari your Goldman from next Toshiya Sachs. question.

Toshiya Hari

had the you so the and months you Phil, is much can I on to and today Thank that the six months on congratulations from guess, supply relative gap got at suppliers taking big ago? describe quick guys. And supply to results. that to a between going from for three exists up today Hi, strong similar and How demand? question as well. do demand? a your I've customers, would point expect signals then expect demand And or catch what indications you ago, follow-up. forward, your I you question, based

Phil Gallagher

all here our all quarter, things pretty to we going on on our Not in for billings But that how of cancellation only track shared bookings, now, detail front we so again right have rates Toshiya, XX to is based which that. I I book-to-bill. me, again what the I backlog, XX, the darn to it on up adjustments in are and next feeling right are free XX, good days. December not now, we're through apologize

swings XX put it point, market. it's in backlog, days look value that we would a very point. an again, that we level then, outside And high a And quite what confidence normal. right, is at this to when XXX I really it’s bring which Again bit asset and that's you So, days, at our do. at a

Toshiya Hari

Okay.

be that, Is say And So would of is a do it kind expect be fair statement? XXXXis supply calendar constrained? the the beyond to to then you for that balance that, year, of fair TBD?

Phil Gallagher

a think and And I information, fair pretty okay? there a that writing right that's is now. Yes, suppliers lot statement, are our lot again, of of therefore

like some are as a give go. that's can they seeing. them – guidance out to are what more of standpoint you of And I'd from far more But there them as,

Toshiya Hari

improving great in both then, And Components in margins just to doing margins. follow-up, and Okay. job your at a as ask Farnell. you're wanted about Electronic a Obviously, quick operating

percent. And the Xs. XX-ish on as high I as the mid were think side, margins Farnell pre-pandemic, EC think you're I in

for a of curious, stretch kind your EC. view? XX% you. path back that is Thank X.X% for in there bit of a and Or to So, Farnell is a

Tom Liguori

to for to our continues low you the path we out to Clearly and on put Farnell And update steps. Xs. X% XX% next once X.X%, game assumes a gets And solidly EC the we Toshiya, will levels, that, in plan both. those get which is we

Toshiya Hari

Thanks, Tom.

Tom Liguori

You bet.

Operator

There this closing you. at Gallagher back turn are questions time. Phil no now for Thank it comments. I'd to further any

Phil Gallagher

rest it. Thanks again today's our stays healthy summer. call. October Hope and thank to forward for results. this everyone to just I very appreciate Take I you really the fiscal quarter speaking much. attending earnings of everyone safe. Enjoy in first Really look earnings XXXX for care.

Operator

gentlemen, and today's Ladies this conference. concludes

you time. your lines disconnect your for this at may Thank participation. You

Avnet (AVT) 12 Aug 212021 Q4 Earnings call transcript