and Phil, you, call. Thanks earnings good afternoon, our for Thank joining everyone.
a solid had As Phil start mentioned, XXXX. to we
and sequentially Sales the half Farnell constant operating and seasonal regions XX% was X% Components year-over-year currency. basis, in first in year.
From year-over-year of were a constant currency. year-over-year with quarter sales the constant Asia currency.
From declined lower first from to perspective, an sales sales each shifts were quarter X% currency. from were for XX% due X% the X% quarter and Farnell in X% the XX% constant down currency. were expected sales sales mix billion, to sales The in constant $X.X sequential first a guidance. ago Western decline approximately the quarter-over-quarter X% X% regions Western down in sales year declined X% fiscal in compared group and the regional in Electronic declined last quarter. perspective, to in On sequential line of Our in
single-board X% declined X% currency. of sales constant in computers, sales Farnell quarter-over-quarter Excluding and year-over-year
XX points to unfavorable due declined pressures gross down of EC Western Farnell primarily greater premiums year-over-year of a pressures. largely unfavorable margin pricing quarter-over-quarter. basis basis unwinding the quarter, mix from pricing to pricing was and mix For was lower sales mix margin and year-over-year due year-over-year to EC primarily due from sales improved for to first and margin shift the due margin on-the-board seasonal mix of down our regions. gross Asia.
Farnell gross sequentially margin and XX.X% to XX competitive a improved sequentially an competitive gross components. gross sales points from primarily was
Turning to operating expenses.
the specific focus reducing advantage opportunities planning in past the costs to market any navigate this of broad-based want aren't to We continue we take see to and through actions out resourced couple we we cost-reduction over years correction. created on coming fully the of momentum currently but and the we of areas, be build while correction. to controlling on We
operating were year-over-year. down X% constant in quarter, down X% sequentially During were year-over-year. Operating slightly currency the expenses $XXX million, but higher adjusted expenses
higher a adjusted As year of than higher points percentage first the quarter. expenses ago last points operating profit XXX a basis basis than and in XXX quarter, gross dollars, were XX%
operating quarter, XX% $XXX first the of we income adjusted year-over-year. For reported decreased which million,
$XXX by primarily Farnell in operating points was X.X%, year-over-year decreased income components.
In points EC Farnell margin seasonal basis operating management reduce order but combination expense X.X%, income improve EC year-over-year sequential shift implemented by operating EMEA year-over-year improvement margin has quarter-over-quarter.
By points group, due basis was Americas sales our a XXX quarter-over-quarter. XX decline was operating pricing million, which sales of operating continued basis X% was expenses. down operating margins, impacted points. of down be to was year-over-year. to XX up and expanded Components $XX margin each was Asia.
Farnell XX X.X% XX mix quarter, The a pressures which year-over-year year-over-year. adjusted businesses, Electronic lower to sales and the up led margin points Our Farnell operating decreased margin lower series on-the-board The million, than basis and of competitive mix basis related to basis operating a operating XX activities to was points of and more EC by to sequentially. XX%
challenging operating the single-digit in and QX its for expect another to While medium to double-digit to return quarter operating Farnell, these margins the will back a near term. we anticipate high actions in be support we path term margins
to below income. operating expenses Turning
interest $XX by interest increased by quarter-over-quarter. expense year-over-year million earnings quarter share decreased First $X.XX $XX expense diluted but of year-over-year. Increased per million negatively $XX million adjusted impacted
quarter. expected at was Adjusted earnings rate share quarter the for were as the better adjusted tax $X.XX XX% income than per expected. Our effective in diluted
Turning liquidity. the balance to sheet and
a $XXX expected an increase inventories including During $XX offset working by million million, $XXX increased in by the an and of million payables. million, partially $XX decrease in receivables capital quarter, increase in
XXX which X a the this As for quarter-over-quarter. of was days working capital result days capital quarter, increase, increased working days
The but well Our accordingly EC capital.
Inventories the communicated we in cost return X decreased for remains of factors. due working on during expected the above business increase grew capital due quarter strategic was to our opportunity inventories quarter. last to largest had
as don't we conditions. inventory Farnell. in Note, The have second they further investments Farnell was investments business an made increase support current expect sufficient at any to in inventory
inventories. chain in second ramp in services, an supply As which we result move into a increase seeing in our will are our we quarter,
For remain working engagements, as a expected to QX, be we the growth capital-neutral. slightly inventory and up for those flow- expect result flat inventory levels to cash are of to which
We inventories as multiple take And burn will continue it Phil inventory customers to characterize stable. to believe off their we our elevated quarters as mentioned, levels. for
our an we inventory we to improving increase to increase continue suppliers' flow, generating million. we and is cash top support in to While $XXX ensure focus continue debt of capital working turns on in our challenges and through these work led to together.
The priority needs as customers'
$XXX leverage capacity. $XXX approximately X.Xx, operations. of past quarter, borrowing cash over XX of the we million million quarter We a of cash the gross During the We months. for we ended committed used and of operations used had for $XX available million with
to inventory allocation Our coming needs, teams From expenditures. additional business liquidity to quarters. the on provide prioritize hand capital we our continue receivables working work existing capital a on in continue and collecting selling capital including to and perspective,
During center X% constructed being to the million our approximately in first $X.XX increased EMEA. expenditures primarily of $XX quarterly worth was cash by capital and used new per dividend to a repurchased share, for million approximately $XX support we distribution We shares. quarter,
in authorization. million have left $XXX our repurchase share current We
share approximately we share approximately Book undervalued of term, value improved our to share. shares the remain a dividend market. a road value we our For when per map to increasing reliable long or are and increase of $X increase per share sequential delivering the to $XX our committed shareholder believe by a repurchases and
guidance. Turning to
of For billion fiscal to quarter in sales $X.X second are of the and earnings per the XXXX, range guiding to range of we share $X.X in diluted $X.XX. the billion $X.XX
assumes outstanding guidance current to sequential and due holidays. expense the seasonal XX%, sales quarter compared tax X% environment. quarter rate pleased decline to shares our between and implies X%. a a market decline basis.
In performance is and first execution Western of based on interest similar during guidance diluted on within an and quarter, the a XX% second this effective to current market This million guidance Our primarily from conditions we're the in regions of summary, with sales This assumes XX
will it goals.
With We questions. open over execution, it to focus that, our through correction stated the financial managing to I will the turn to for continue Operator? on and back achieving operator up
