Earnings call transcript Q3 2023

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Operator

Welcome to the Avnet Third Quarter Fiscal Year 2023 Earnings Conference Call. And I would now like to turn the floor over to Joe Burke, Vice President of Treasury and Investor Relations for Avnet. Thank you, sir.

You may begin.

Joseph Burke

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

Form These Such XX-K the after obligation risks, results on -- Several forward-looking of the difficult contain forward-looking undertakes such call of cause forward-looking Some information in filings with contained conference to a statements are or subsequent not of are contribute forward-looking company's this circumstances XX-Q such company could materially undertake date and that information regarding the that statements of differences this in presentation, those uncertainties most are involve described the guarantee the presentation. SEC. and no this to and statements. assumptions the publicly the contained only in that detail predict. statements news new could release and speak as in the date or performance, from and supply any statements to factors and of differ recent update Avnet's actual

Phil? led Gallagher. call that, Jacobson, Avnet's let Avnet's Today's CFO. be by Phil CEO; will With over call me Gallagher, Phil and to Ken turn the

Philip Gallagher

our year you, XXXX and sales of solid Joe, delivered pleased thank exceeded results, of for the quarter we everyone, call. earnings share guidance. earnings conference top financial joining our I fiscal quarter you, another Thank that on and to us third end which am

areas affecting our uncertainty we achieved importantly, these More business. market despite the of and headwinds macro certain results

consecutive constant we sales or of per we quarter greater. $X X% adjusted fifth adjusted $X, which year-over-year grew earnings quarter, is per the of earnings currency, our and share in share of delivered In

Americas, a operating enabled our margin Electronic That, stronger-than-expected X% a in us efficiency. Avnet the operating manage business for coupled overall. a to sharp in continue performance X.X% We and Europe margin operations a with and achieve to with our focus on Components

growth seasonal EMEA a we During expected Asia The to sales New due Year from the Asia. Lunar sales the holiday overall markets. was an the decline saw the offset the quarter, in impact regions, in industrial, certain in Americas demand strength and we decline by from in in in overall aerospace. defense From key transportation most an segments, saw perspective, slowdown Asian vertical quarter, continued in and demand notably, and

component realign resulting lead to continue categories. on signals globally, in several Demand trending times down

shortages than pre-pandemic above as semi categories levels. continue we but categories. and on and levels, such lead improved pre-pandemic more see are IPD for and power modestly other other high-end times above to times products constraints times lead Overall, constrained However, MCUs, Lead modestly MOSFETs. have these are

of remained the raise environment due pricing suppliers higher The beginning the quarter. to components. quarter, stable At primarily prices, we a the input still saw during for the of costs the handful

our ratio quarter. of backlog in consistent of the the below at levels and to last all of current time similar regions a remained remains book-to-bill end result our conditions, As parity last quarter, lead demand relatively with

levels supply the the in inventory Inventory remain quarter as third elevated chain and across our well. increased

key elevated to and levels inventory are complete They customers' due products. a of constrained in continue end to as areas that are availability. their it demand softer to needed component parts to Our market combination certain relates overall certain conditions seek

adjustments our managing As a result, we are to through backlog.

outlook. hand the of in is are ensure the sales range. aligned We near-term cancellation up, quality the remain they're improve confident are our inventory While within to working to and to inventory still turnover our normal rates and on

to with So business. let turn highlights the that, me our for

delivering a X% Components EC margin. which led grew sales operating to year-over-year constant Our currency, business in income Electronic X%

X%, on we to above line leverage this continue is we EC so drive to sales quarter focus our demonstrates pleased operating margin ability as this top are that as targeted achieved growth. it milestone Our

I and am particularly sales pleased with the Americas team quarter solid delivering income. operating another of

level past delivered the its business several sales. Asia operating income operating highest EMEA Americas seasonally record and in the region business able The the to of years. margin second quarter despite sales delivered margin maintain was their Our our consecutive lower

quarters. record and our like mixed to the gross at leading Asia partners We the like has overall we to reduced X least to which of another in creation, in the consumer quarter-over-quarter customers softness expect profit by demand proof provide and for We supplier impacted conditions. sales next revenue key China, of continue value been further communications. despite for achieved saw dollars markets quarter demand verticals declines, and market we

Demand creation to our critical as supplier as remain us well and customer partners. expansion

Avnet their few grow the able top creation with a things increase I their to weeks our suppliers. Just one accounts. of first customer of leaders can ago, help to wanted And continue sales how of meet was them XX to discuss demand X and and was I

enable The medium our and to one revenues margin engineering digital the goals the our from creation. demand priority come our particularly to EMEA been this higher have margins, improving our X/X tools of term. Americas key strategic the in of the And success in that of and us is teams elements design regions. achieve should Roughly

certain increased due sequentially business. Now unwinding as to in the computing first devices Farnell's let's year-over-year of fiscal currency. more half primarily of margin to single-board ease supply continues year-over-year as XXXX. X% become highest Overall, on our expected during we Farnell's constraints pricing were down sales X% constant our the and margin turn at expect our quarter available. X% and components the and in held expand sequentially premiums Farnell the margins to operating to steady Farnell be operating business,

single-board be the begin continues September their the there we computers clear, sales production, healthy for improved components as and move into we to to be To available more quarter. expect when semi-electronic backlog to become a complete to realize

plan investments where substantial additional offerings Farnell's made have we past years inventory and potential the make a solid see and X accelerated growth investments We in for to the return. over

has Our inventory and sales in business nearly e-commerce total focus Farnell's growth its Farnell as of card, continues of increased levels off-the-board their opportunities. on-the-board year expanded to line Farnell to and past total both on mix XX% and continue platform. XX% e-commerce improve Farnell's placed inventories replenished have XX% with the orders through

Farnell's a excited Farnell see collaboration, is and about differentiator remain We synergistic Avnet. continue leverage opportunity to to unique which Electronic for and Components key and

is driving to operating milestone billion $X sales at of over near-term Our margins. annual double-digit Farnell

are component quarter, While become the levels with conditions on closely backlog third monitoring results our are for and inventory times products pleased available. we we our and market and sales more as impact of lead earnings the

to successfully rates We also few inflation manage over business, continue overall we of have and through quarters. higher our past the which done the interest impact on

way In exceed demand to supply overall begun same the over outstrip the that has demand. X product past supplier years,

metrics to by chain industry tracking play experiencing that inventory few out. our supported will view are current supply an Our that as correction, a we quarters take

we and inventory prioritize support As will regulate continue partners levels work our correction turns. through getting incoming right orders we supplier sales both to to improve with our and the and this phase, manage customers to

are Although end to correction overly supplier not we the is concentrated market. market underway, any

market market to the margins serve, markets due to overall that conditions and diverse our the when well normalize. positioned we are combined to share we balanced end believe expand components outperform to continue operating line gain We card, with market

into dive Ken it With that, quarter results. I'll to turn third to over deeper our

Kenneth Jacobson

demonstrates progress operating Thank third afternoon, the in further achieved interest thank everyone, X% you quarter believe you, income and performance our medium-term of for margin quarter Phil. Components income another targets, in toward and sales financial Avnet. Good business. Electronic our by operating your year-over-year we With our financial achieving growth, led

than Our currency, the sales On guidance of and year-over-year a of growth higher sequential sales In basis, were our historical trend growth. currency, is seasonal constant which X% for the quarter modestly top in was billion, X% sales end range. sequential sales were $X.X constant down our exceeding year-over-year. lower

Sales led Asia in by grew X% a year-over-year growth in the XX% by nearly with This Asia. XX% sales In constant Americas was in growth. Americas X% decline XX%. grew sales declined and of X% offset EMEA, growth with and year-over-year, the EMEA in currency,

operating constant in X% currency. sales in but constant Component the an declined currency. year-over-year, from X% From X% year-over-year Component constant sequentially or X% and in sales Electronic constant X% were X% currency prior year perspective, Farnell Electronic up sales group currency. in were lower grew Quarter-over-quarter, higher

computers, of single-board year-over-year Excluding sales grew Farnell in currency. sales constant X%

to third higher all regions the in improvement gross gross from quarter, improved due quarter. the across and basis margin The the year-over-year. to Asia points quarter-over-quarter For margin shift XX flat margins of regions was experienced mix primarily seasonal third was sales from Western in and every our of gross XX.X% sequential relatively

year-over-year X% as expenses $XXX maintain quarter, We were adjusted and sequentially. down the operating continue SG&A million expenses up to for discipline X% around

the compared negatively quarter. currency million to the by Foreign expenses as $XX operating in quarter second impacted third

As gross XX% profit than a points the quarter, lower a XX year than percentage basis and of basis in were adjusted quarter. expenses last dollars, XXX points operating ago lower

third and constant ninth sales operating than in than year-over-year the million, than currency. exceeding of grew quarter, growth more greater income Xx. the adjusted X% growth by is record we income For increased operating more our of which reported consecutive sales $XXX Xx This quarter

up XX $XXX quarter, year-over-year quarter-over-quarter. By adjusted operating XX up EC basis business, and year-over-year operating in X%, million, Electronic Components saw margin operating basis XX regions XX quarter-over-quarter. operating expanded Our margin basis XX% which was by and All EC Americas which basis group, points led the operating points year-over-year EC improved expansion, more by was third than points income was margin X.X% our XX points points. X margin improved basis up year-over-year. operating

continued the XXX currency year-over-year due in Farnell down year-over-year. premiums to component shortages quarter-over-quarter. margin operating X% of down operating basis XX% income was Farnell operating and be expected changes steady from held unfavorable foreign unwinding in pricing experienced was impacted but points margin to $XX rates. exchange Farnell the million, by quarter,

impacted During operating margin in Farnell the certain quarter, was recognized expenses nonrecurring also by quarter. the the

focus be the inventory, to growth operating from highest investment continued distribution margins continues their their and business benefit to overall in within on and centers. and our Farnell margin continue systems Avnet,

to fiscal levels become Farnell with XXXX, quarter components available. improvements beginning certain more at completion similar single-board computers of of remain when expect We for fourth impacting in the margin operating operating margins the

to below expenses income. operating Turning

interest borrowings million of expense negatively $XX $X.XX million increases. share This year-over-year. quarter in by rates interest primarily capital a increase increased quarter-over-quarter, to working and due higher million diluted combination adjusted in increases to from and impacted of per average earnings $XX support $XX Third by interest expense year-over-year

for exchange foreign per earnings year-over-year. adjusted share rates in quarter-over-quarter. Adjusted negatively which in XX.X% Differences flat $X Our earnings $X.XX diluted income decreased were rate share were quarter, but the diluted currency X% adjusted effective year-over-year by tax per was impacted the quarter.

Turning liquidity. to the balance sheet and

inventories. in working by $XXX increased million, the During capital increase quarter, including $XXX a million

increases million the impacted negatively working in currency $XX capital $XX inventory. which of million Foreign impacted by overall,

a of quarter-over-quarter. working result XX capital days capital working which for As this XX days the increase, quarter, increased were days

X approximately inventory and Our days days receivable quarter-over-quarter. days approximately X our increased by by days increased

Our good. continued The and last our shipments trend product as grew to customers managed as his with of the the with remarks, across inventory supply be the own the of their inventories chain and Consistent third turnover request consistent is quarter during Phil inventory mentioned and challenges. slowed through continues as production and in in quarter, this our broader timing customers. customers quality quarter, inventory for freshness rescheduling

of continues the on we million however. fourth cash In generate cash Our and generated positive to in flow operations quarter. than working than third to quarter, we capital from of our capital, expect greater operations, from be the cost $XX more Xx return

to end, liquidity. by from decreased approximately of quarter the $XXX and had an ended with borrowing teams to continue million we the available second leverage gross selling was $XX improvement additional We debt inventory collecting hand committed receivables and quarter. Our X.Xx, work which on quarter At million. on capacity our approximately of a provide

capital With our prioritize term, the capital we allocation, continue capital regard our near the business, in including needs of to and to working expenditures.

$XX During the for used third cash capital million. expenditures was quarter,

shareholder our believe in we map market, of term, increasing remain by which to reliable when the long committed our the road a share and our repurchases and to the dividend third value delivering undervalued increase the quarter. we be are shares to continued For case

per $X.XX In million. the dividend or third we quarter, $XX of paid our quarterly share

to or the current have quarter. million improved per on our left of increase Book $XX enter $XXX approximately for a repurchase value share share quarter. authorization a share approximately earnings we primarily We our as $X sequential to fourth a strong due share the

guidance. to Turning

the fourth we range earnings and $X.XX sales $X.XX. of of the quarter in the $X.X XXXX, of to For are fiscal to billion $X.X range guiding share adjusted per in diluted billion

and seasonality conditions to regions. market X%. similar interest sales between of current This an across shares on on based XX assumes traditional This the guidance of outstanding expense a X% and diluted a XX% is XX% implies in guidance sequential rate quarter basis. fourth quarter, Our also all assumes decline effective to guidance sales third tax million below compared and

solid In and closing, delivering to another I year-over-year margin expansion. quarter want growth team of for operating thank income our

Our to while to great our partners. our continues supplier deliver demonstrating customer and team results value

turn for it to up it will the Operator? operator open I that, With over back questions. to

Operator

[Operator question first line Instructions]. of Bhattacharya our from And with of comes the Bank Ruplu America.

Ruplu Bhattacharya

be you expected last but flat Europe Phil, and to they quarter, to both sequentially, grew. slightly had XQ, down Americas in revenues

ago, better demand you or verticals you So or then look products was better than today the XX do pricing had times can environment days stronger as what as are the when came are down, mean, coming are And at are I which that change demand in things markets in think you any And than pricing? weaker? about the thought? end expected, the which environment? versus talk -- you seeing lead the you -- is

Philip Gallagher

Yes. vertical, continues say this a probably right, industrial. it's in Thanks, always Americas. I a ago. few that. a our about. we with time than includes I e-bikes, It and mean, Europe everything, appreciate industrial frankly The transportation, last up or start be Ruplu. stronger we any cars, world automotive has quarter was market not bit anticipated that had little good. held to We'll trucks, your transportation -- really and very one talked I

two. those really So it's

more And in the then, Americas course, positive defense has really for been centric, and us. aerospace of

handful like I across a broad pretty verticals, are it's said, regions. there and So of it's -- pretty the

positive. So real

now. On the pricing trends, we're kind right of on holding

script that Actually, the suppliers touched briefly. a actually prices. the that quarter, of we we on So beginning the handful in in raised had of

But certain upwards not pricing would than the now went uncertain. right, of is XX%, everything, right environment this technologies, the are there. was other they Again, with input that, think costs I to because I still XX% key still stable. relatively say,

of overall Look, it the see out on And I kind we Well, I coming would going do demand into on typical bit a of question play buildups how bag we gave June I now inventory out some and -- know to with in guidance there got degree. now, a holding just some on right But just all It's it's thus, the verticals and quarter. steady. say, there, would forward? the seasonality But our right quarter. steady, mixed the Ruplu. some that environment, say, kind we very for there's

Ruplu Bhattacharya

the detail No, for Yes. Okay. there, Phil. thanks

on Let me ask Ken something inventory.

target flow and looks So about we it cycle? you cash was mean, we of what talked working -- cash free some think, X%. your cash capital up sequentially, issue, timing I I So like should think are about? inventory how free what's terms inventory, going flow, when near-term forward? in there And about think Was conversion

Kenneth Jacobson

Yes.

There We'd XXs. back down than part like say, the the and capitals stuff the like. was a we'd low of XXs that think to quarter, I some inventory get at the we and with it of would received higher quarter during lot but into of we it to up, ship stuff able the I timing. working weren't the received obviously, is is out. the that are end that

business the and mean, bulk is So foreign all the one regions. I across is the particular XX% or of about fact. between XX% Farnell so say currency, the really I XX% there's wouldn't board is EC

inventory couple And be we to really going take at get We inventory think of through flattish. quarters -- to being into elevated. so looking quarter, expect the levels still next it's a to

Ruplu Bhattacharya

I in squeeze can And real quick. Ken, one it. if more Got

it million points components revenues, lower even so basis X%, to grew sequentially. XX core sequentially on $XXX margins, the So

much us X% levels volumes this margin can I in can sustainable versus So level about that break And help versus that think of down sustainable? as this pricing? to performance, present you of how revenue what because going at think do you is mean, level was mix this or be forward, we

Kenneth Jacobson

Yes.

to foresee the favorable it. any X% or we really of don't say, we into getting But in out kind currently $X X% the dropping see we need in have look mid-$X we sales a quarter, current as mix. really to think have the dropping sustainable. margin below operating I quarter did billion we billion there, low I will make as

was half, more So for of growth. But still about half Americas, out thought. normal it point favorable it and seasonal a half than mix we I EMEA would and was below

December in see rest little coming margin regions. those of the better lower was did we'd regions, So bit those still of each the environment. in to expect expected it than in rates a And a out of although we terms was growth normal quarter, better than in

they talked mix. about did We drive So demand a better creation.

So been about in higher regions to all we've things bit as the well. helped it's all to talking margin little those gross a contribute

Operator

And line with question Fairbanks the Raymond from the next comes of Melissa James.

Melissa Fairbanks

guide. Congrats and like probably the talking for on nice inventory I'd good of Thanks on in far signal the You've I FX see this an about in you're We've really providing you're Really in? It's so to continued quarter environment. impact. it, tired the curious past progress kind the know great on suppliers if heard coming. this a increases new to price on quarter of margins. that levels. dig quarter. increases inventory few I'm is impacting bringing price are color more inflation the the seen but price also

channel, a distribution. there's that the including And inventory then have of separately, holding been in suppliers number back from

more expect the continue levels ease, potential these a rise this inventory as inventory. As suppliers for releasing to to happens? to we'd begin to your supply there continues Is

Kenneth Jacobson

clearly the muted but would is but growth it only pricing quarters the I a levels, take couple of it's how characterize impact, more ago. than to I also think was mean, the I'll first sales inventory say, an part. it, I'd Melissa, I not

component. So wouldn't XX% and I kind sales say, that's from let's you business, of inventory more the growth XX% than from coming wouldn't coming let's in the increase a I pricing, core characterize, our that overall, characterize as say, well. see

other back rise about a -- that's could it this would expected say, aiming it to we're rose the But our with going mean, say us is, give happens demand to we not contribute more possibility. because rise. handful increase than I what on that the resolve. the working quarter. if we the quarter. to are that Going inventory question that our did orders, to would or what this whether certain I more I inventory I of think levels suppliers to we're or That's coming to ones,

kind puts and inventory. the So kind it all in overall ins of takes outs and of of

Philip Gallagher

the Thanks, for the And Ken. Melissa, this Phil. questions. Thanks comments Yes. is and

On And has It's there's it's grown. of getting aging. inventory. concentration handful inventory. want really I inventory, the fresh to a not the reemphasize, good where It's inventory [indiscernible],

So right? it's or So not across the line not it's every technology. every board,

the classic say, So it's [indiscernible] really, in the there with a I handful. would concentration

And customers' Maybe the can we're and how then is on of it depends they the see do too customers, requirements. bit the going we're much balancing the previous, vertical, they demand other might inventory. the managing take? a thing Kind to how but back little we much have

real in these chain, in we're being And manage we're the the and customers. what the suppliers haul that and long supply to with needs for So customers trying technology are. center

little little one maybe So it AR and all combat as these a bit it well. we deals. extend kind It's where of next to can't a heard this can went maybe bit they every out of then as how quarter you they of quarter, on hand-to-hand take have take

Melissa Fairbanks

be follow-up, just super really helpful. Ken. That's Maybe might Great. quick Okay. for this one

side. these some holding So this constraints the release of model? of change the Does pattern your behavior because the on "normal" countercyclical and not more cycle normal inventory this working potentially of changing is definitely capital of supplier in supply

Kenneth Jacobson

wouldn't I we way. it say guess, that I see

gone it think and going, therefore from creates go receivables inventory few could be true, what down still that collect Because and I to normal the so goes my those I get holds would a seasonality down, That right? take hasn't typically, cash. the down, but the right? that's more quarters sales, higher flow inventory that sales

quarter, next to quarter, to getting going We look countercyclical when inventory be create key the cash more got larger but at that we down is actually the this effect.

we changed. So don't believe it's

the down after in seen We inventory you've have a down. sales go seen the goes cycles, whereas couple the other inventory of quarters not

Operator

comes question next from line the with Stifel. And Matt Sheerin the of

Matthew Sheerin

think your And Yes. inventory up. to I or you Phil, that you're the obviously it correction some because comments few holding business expect just your is regarding you quarters. -- take said your of a I lagging correction seems mean, like suppliers

few up the were semiconductors of still within one year-on-year. You're companies that

getting year at the how you are So long in and here. visibilty of terms fiscal least rest sequential it And started trends, the that than seems expecting the calendar you're like just or through of will less your seasonal take, year? or

Philip Gallagher

the trends seasonality Matt. been all, of Well, window. thrown Thanks, the kind Yes. seasonal first and of of the out typical has

yes, I it's just reflects have, me to just quarter as far maybe and let coming off. it's revenue tell me the what forecast -- quarters, So cycle seeing. of to X And show that. based seen we've backlog It's fact say, it's the on before. than inventory in guide or the X different about And you burn couple a the a of we we're think tough very kind our gave estimate our we as pipeline

signals, many right? the mixed other ones i.e., continues some steady are I So be consumer mean, PC verticals, are automotive. to then so And mobile industrial and there's strong or Matt, and up, down,

think So it and demand customers, it's us we're our we that's so quarter many going We it's in getting estimate. from cycle. to just but to time, us X the X given see signals our mixed this allow what to different forecast, our

I think a correction, it's more Matt, than cycle.

Matthew Sheerin

of may suppliers and of lead you then of shipping sort cancellations of why will? And that function seeing customers maybe if seeing from cancellations times their it. other Got you pushouts ahead and own their from build, because terms inventory customers own and a is piling be that's of in it's your up,

Philip Gallagher

so. I know. don't think don't I Yes,

times in coming I think in. mean they're lead because are I many cases, catching -- up.

dates. I the old required promise -- really us, early. as not emphasize shipping not far to they're with earlier, -- as as to I'm dates going up mean, catching been or this, noted have We're working they're So

on So products earlier we those quarters anything lines. are not or taking in

of they month, just they're right? if got then they can't to out it so plan catching it quicker all customers pass are on thought. Some build it missing is goals than So the their the manufacturing can't coming because to a if they even up you quickly, in things in because

So it's believe is of shipping I one-off. We're earlier, bit that do not of to I kind seeing this like -- everyone said suppliers a want But time. the not early in are a that. at ship point early or

Matthew Sheerin

Got down guiding X% it. all know you're sequentially? down regions Would sequentially. to And I revenues roughly you expect be

Kenneth Jacobson

will and $X.XX so with more I little Yes. coming I a Matt, -- be would billion. was quarter, the and unfavorable say say, Americas the a third then would in as Year, Asia little I of it's mix EMEA normally, like they're we'd be the Lunar and kind bit up down up New than would think it mean, the than off less I bit

Philip Gallagher

the And that's the and typical March Matt. Europe in from quarters. quarter largest coming are of typically down West, the one America is

Matthew Sheerin

to lastly is interest of level year-over-year, guiding just would try sheet balance to that Is borrowings. priority which to obviously terms there work expense, short-term that so. I for down in you're those think you million would or And that and your be a on significantly still $XX plan Okay. there? a that, up

Kenneth Jacobson

that as hit $XX got with we've I the there of we yes, we we Our debt, capital. that's pay down work be see additional a gets to But that's priority the million. the as clearly, with the headwind you can plateau think generated, robust peak kind expense working I think EPS the Matt, had there, would mean, lot And cash to fund the EPS, more down created the right? Yes. hadn't and well. the I that

Operator

Instructions]. [Operator

question next line Fargo. Wells the from Joe comes Quatrochi of with Our

Joseph Quatrochi

first ask in to I the change about you're collections My one, seeing. Yes. wanted that

then of regional we've just talked that it issues customers? last quarter banking quarter. of additional kind any there the and are you about this maybe you coupled kind across I banks? think to customer with of seeing that, seen change of behavior, And the that that sort spread guess, referenced some of again I in given were several

Kenneth Jacobson

same. mean, and Thanks, in say, receivables, overall little things aging receivables year-ends I Yes. December. of like actually think little But that's of from payment any of customers have bit, it Joe. the we're inventory that. And a more December of and that headwinds stretched that. out -- the from would improved from we're bankrupt, terms It's a of Part was I part are seeing I but near-term quality don't I and our of blip bit the think it's end going the customers equation collecting. an we

customers. I of and we our state working a pretty we're we're feel So steady good in terms with that think there in collections

we So there. good feel

not noise. before were and been regional had were impacted. able to happened But us, to us in get have bit debt some to before some would of On the their institutions noise deal banking to give that situation, some to of banking We a the these I close little it's We're we a that able we were -- congratulations that glad say. more and impact our to customers liquidity. an overall, treasury team right

Philip Gallagher

strategic AR, working add would us, AR just on I we for Yes, the with receivables knowingly just right? So -- are our are customers.

So haul, want again, to if keep keep we're because out. little long all the customers for inventory right in them conversations take them in, we They're get real or extended on now, afloat hold there's we'll going we no with the surprises we to the as We're -- afford they more can't receivables or in AR bit and if if ship the one-on-one we the viable again. some a cases.

a and credit been of the proud job far. phenomenal They've So -- really but I've collections team. done thus

Joseph Quatrochi

And a apologize as just if and then it. Got I follow-up, missed quick I it.

all total at by said last You was quarter. same the change relatively that Did really as that book-to-bill region?

Philip Gallagher

well. and Not relief that we're of of the some It's parity, as get some at are and as suppliers negative book-to-bill managing us moving if So Joe, NCNRs backlog below right? there, of is really. that well, allowing kind adjusting some where we're

of right? do much real our I'll right, -- real is and want call, own. that's, go need say, So some of suppliers on -- pipeline to for to you you this or right what get -- customers of is, know want too, "Hey, So most it because our reasons, the to they we the the self-inflicted need?" or it's don't And

are the seeing range. much as And The that rates within is cancellations. in not range, okay, XX% to -- much the thing XX% other we're in XX% our cancellation pretty

bad backlog, thing. again We which is are But cancel reluctant pushouts, right, which to the seeing not is necessarily interesting. the a still are some customers

Operator

this Everyone, further any closing turn to Gallagher I'd questions over floor for back at there Phil comments. time. like to are no the now

Philip Gallagher

Yes.

Let thank everyone call our attending great Have forward and day. today's in August. you to to at fiscal Thanks. look report fourth speaking a me earnings just quarter again earnings for

Operator

gentlemen, ladies today's conclude And this and teleconference. does

you your day. You at Thank may your disconnect this lines great and time. a for participation, have

Avnet (AVT) 3 May 232023 Q3 Earnings call transcript