Avnet (AVT) 27 Oct 222023 Q1 Earnings call transcript

Please standby.

Our presentation will now begin. Welcome to the Avnet First Quarter Fiscal Year 2023 Earnings Conference Call. I would now like to turn the floor over to Joe Burke, Vice President of Treasury and Investor Relations for Avnet.

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

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

record in continue more with us take XXXX our technology conference prior position increasingly earnings durable to fiscal we chain. you, the global thank Thank a for results critical to an as quarter first call. Joe. And and year role supply fiscal company steps everyone delivered the on strategic Avnet you In joining year,

a our and guidance over a XX% solid to to On XX% currency suppliers margin. up year enabled drive us the that third pleased challenging the X.X%, of the nearly times quarter quarter a We across affecting with constant are A quarter significant of environment. achieved This combination customers, is of margins well us the solid shareholders, was, increased than sequentially team. growth touch by to kicked course, operating of allowed sales uncertain of year-over-year. and headwinds the in including of off despite of fiscal financial and we to we X% improved am to on X global greater our billion. driver our results higher and X% share management greater solid more even results face basis, exceeded which revenues results, deliver operations year-over-year. income value operating the positioned in profitability our continue We I on year-over-year. I to consecutive Efficient a in areas operating sales of end the In these meaningful year-over-year also business, management of sales of than which $X.X sales execution of achieved will our increase the continued all our operating Further, macro incredible regions minute. a another the quarter, basis. and certain effective of operations

changing Our as our as managed conditions served to customers has has supply market and face partners and uncertainties. team great they effectively suppliers and fast complexities chain

the inventory segments to over years, our suppliers last globally demand with we we to to continued And and quarter, complexity. are well business today’s supply in our help which and this made defense. maintain capabilities in we than serving necessary and industrial, continue customers navigate suppliers. ever vertical transportation, customers strong And and structural positioned and demand. key our them We invest as deeply are to aerospace and for engaged have more tower the us to like In two remains to expertise before, control meet organizational the with the enables changes chain

gaining by and chain at XX% Electronic the to sales sequentially topline, inventory were be engagements. of in Asia At levels quarter. X% in three Overall, to were our driven transportation, in in share in $X.X support to driven his primarily strong billings. highlights which sales aerospace commentary. to You that supply in and Asia quarter in industrial, defense. across sales you our levels record leading growth of see has strength results growth Asia regions. quarter, billion and for Americas Components sales in higher of and inventory will primarily notably Increased consistent regions currency, days verticals, the quarter. another In Asia comfortable year-over-year first business. up and Electronic further year-over-year, we by were the the in EMEA This markets. and record The Components region, both me were let quarterly to over nearly quarter and our continue the with the both the the from all will The transportation saw and industrial Americas EMEA quarter into our key successfully With reaching very second in benefited Ken business These reflects speak to our end increases heading that, specific also regions. up team for the constant sustained sequential growth turn need as prior sales and compared

pleased across at This across chain Day long-term the our to We and continue will benefits is as bring highlighted are expectation we we in serve our markets of our that key regions. addressing on diversified well are end supply reinforces relationships supplier markets Further, all in needs these prospects. their with growth end very continues positive focus enhanced these June. and growing growth markets Investor that proof the our have to

manage coordinate customers to with backlog. We suppliers and effectively closely continue to our

those result actions, quarter. continues near ratio into moderate a overall our it book-to-bill was As of our second to leading parity as

provide another for demand to unique in field capabilities our believe this digital to tools, We of value from we with strength continued a benefit margins increasing more the suppliers, record engineering operating customers environment. capabilities resulting quarter and engineers it’s to and supporting and important application continue is indicative of our revenue We uncertain creation. our in the design

Turning weakness Farnell pound, business. single-board to we becomes meet fully and for a computers. in the were Farnell to robust fluctuations, that, single-board when such sales realize product are remains with profitability sales available. currency backlog ability ongoing and component by expect the British Farnell’s to impacted particularly an our computers that for affecting shortages demand Even

computer weakening Raspberry which Farnell Additionally, in impact Farnell quarter, recently became our share XX% single-board pound. Pi and are really excited and favorably revenue British increase the mid-term. distributor were above Operating of the market this margins impacted the development, of the Farnell’s we licensed the by will exclusive about during for

want Avnet we trends customers. durable we To We continued have and opportunity unique leverage synergistic more results fluctuation the Farnell to to and I about much stronger that. company expect see reflect and recent continue our impact Farnell I on excited to into Farnell’s changes Electronic and through currency reiterate and our that quarter. believe have today remain are the to to second collaboration business to We our conclude, Components and made serve better

been our While uncertain for There’s execute ability challenging continue we and a a in our never greater control to market, the in am supplier value teams and customer and quarter to cannot I look partners. the to first need environment has and confident deeper overall of forward With dive capabilities critical the I of it results. continuing to to at Avnet technology Ken role chain. to our into will the a turn to we play supply center that, deliver over

participating on Thank you, Phil. for Good today’s you thank call. afternoon, everyone, and

As performance. pleased we very Phil with our first are mentioned, quarter

top teams start we to the encouraged operating growth with first range. fiscal year-over-year continued Sales growth the our were end with of guidance growth. contributing in year-over-year, exceeding our great well billion, the in sales significant Our income up region year resulted XXXX. was each execution returns by constant to quarter, sales excellent and XX% XX% $X.X are currency and In the

Asian XX% in sales Farnell of We From XX% components and across or or sales grew record XX% in European in constant X% an to constant the billion currency. seasonal constant to our On grew over currency. currency, of currency. X% Components complete continue impacted sales sales in trend. by well a sales in is constant quarter operating certain year-over-year grew Americas, shortage Asia Components strong currency. first delivered XX% the grew year-over-year of group single-board X% above sales. Farnell the quarter-over-quarter declined X% be sales year-over-year, perspective, X% in Electronic Electronic in needed continued led constant our but grew computers. all by regions, negatively which sales a XX% or in quarter-over-quarter X% We currency typical team, basis, constant our also had $X.X which

computers, sales year-over-year. sales Excluding grew X% single-board of Farnell certain

XX.X% This by of points For declines to down the decline margin first regional in mix. and mix higher Asia was customer from sales product XX quarter, due basis gross was margin and driven gross primarily quarter-over-quarter.

to as for is year-over-year. continue a XX% profit times ability down operating X% We as million the demonstrating increased and Adjusted operating our million less gross Adjusted the been greater were lowest year-over-year X years. business. was sales, which quarter, of several sequentially dollars discipline than the grow quarter in and we the to expense drive past income quarter, grew continue has operating it around $XXX expenses $XXX leverage expenses the first than XX% as over adjusted maintain percentage down in X% operating of our to

operating operating Americas in operating basis points sales. year-over-year. in driven was margin pricing the and Americas Electronic combination consecutive income is of margin income the year-over-year. consecutive coming Farnell than into gross in because income our was X.X%, X% Farnell operating operating X% eighth points our towards margin are quarter by the currency Americas’ margin impact the Components up sales in team improvement first a has Most make decline basis margin X% operating related XXX the December income income with income million, year-over-year over of was margin year-over-year, quarter. up operating goals. is primarily lower operating margin. which the X.X% $XX was million, margin gross over XXX The margin. continued Electronic up improvements the and business XX% of XX.X% quarter-over-quarter we lower a and greater on Farnell This adjusted progress up year-over-year. by income third decline Farnell’s foreign quarter, despite encouraged operating was momentum our to quarter notably, Components $XXX Our quarter, the was

million rising and expense by interest diluted Turning negatively interest of working in rates. due investments expense capital support $XX share to quarter-over-quarter. first adjusted the expenses to to income, increased by primarily balances quarter-over-quarter, in from higher increase below debt per impacted operating quarter interest This $XX earnings $X.XX million

quarter the which as Adjusted in Our diluted increased XX% year-over-year. per tax XX% expected. effective income for $X was quarter, earnings the rate was share

Turning and to the balance sheet liquidity.

of age quarter. specific including During to the working several sales chain working came and from inventory single approximately came quarter, a increase quality and With supply was that of are our resulting our from in approximately by $XXX $XXX we levels million support for with $XXX capital sales to comfortable Asia driven The the increased support we growth in Avnet’s capital million invested million increase respect end inventories. the engagements receivables in approximately increase our an at additional additional factors and $XXX the inventory, approximately sustained came inventory. quarter-over-quarter. in million in

to early expect inventory to engagement We specific in this the ship quarter. the related

mutually and customers of beneficial Additionally, screw high we our a continue the with suppliers solutions way golden to for as as have to levels certain components. to inventory come customers work

As working which the of quarter, within capital days days working XX our is range this capital was capital working of a result for days. increase, acceptable

a of of million capital first to expect of gross available to of in capital borrowing represented had significantly purchased ratios. shares. our of operations. increases capital. our million on the quarter, Our and because use leverage $XXX cash $XXX within we we in a X% and cost sales of X.X we working At our end $XXX led seasonal working flows to second well to increase $XXX returns the our cash approximately in capacity in generate the quarter, nearly approximately approximately which from of continue the quarter, than positive in leverage shares, The western regions. of operating increase an million end still at higher led be The of from required debt debt the our of outstanding corresponding quarter, million In times declines

second There repurchase quarter. the have million on outstanding X% the two Over quarters, last retired we approximately of our is shares. entering $XXX authorization current left share

levels multiple similar historically during back to have to second expect shares meaningful the discount lower We book quarter trade and shares traded to a than our buy our out. to value continue continued shares at as at

the share from our per increased quarterly increase During prior to over $X.XX quarter, quarterly the XX% also we and dividend dividend.

our During support fiscal to XXXX, a we new warehouse increase capital in to expect primarily Europe. expenditures

guidance, for the to range to in the diluted are sales $X.XX in second to $X.XX $X.XX we $X.XX. quarter of billion guiding Turning EPS adjusted of range fiscal billion and XXXX, the of

will quarter This second to down on compared current in XX% believe closing, markets XX dollar to holidays. uncertain rate the of quarter share quarter This currency guidance and deliver western differentiators to and is and I We enable X% sequential quarter, market tax of Q&A. our constant turn including to a a assumes are of shares Operator? regions of in at our up Operator $XX growth. Our positioned quarter. of the we between regions expense interest negative market that, Avnet’s the as to of implies end want that for delivering it X% future. results suppliers, recent a I With guidance that to outstanding and down market to because well decline conditions, to In open midpoint from the will assumes first first the basis. fewer our conditions. we today in on decline for to the based impact to guidance seasonal key U.S. an to days continue are over XX% positive strengthening continue it sales on changing serve sales million sales team another those as have back thank a and products similar diluted compared guidance earnings and last the financial despite in us diversification gain shipping effective typical sales million

Thank Instructions] you. Thank [Operator you.

Raymond question Fairbanks comes Melissa proceed your with from Our first Please with James. question.

record see great a and amid I modeling really guide, was a Hi, sales. was to refreshing kind as quarter low guys. from just uncertainty. at Congratulations of this wondering a OpEx on purposes, of all percentage

going needs we leverage that or go higher we operating see wondering is, sustainable to kind of to how OpEx Just the forward in trend expect as if can kind this forward, model? of

levels. would continue feel Melissa. might the some the Hey, Ken. of side. depending be absolute sustainable fiscal absolute OpEx can levers and this OpEx feel – pretty I general a But the around into good level sales. quarter about little that number now level had on This say, But overall decline, the OpEx of the would to did sustain of the The percentage in it have good is same we of OpEx, change year. we the of we it Sales we bit. pretty last GP on

inventory to one to inventory due get any quick Great. is these you Okay. going inventory the the just into maybe you going pricing And follow-up, to on constraints Great. there able probably the the any there am questions normalization risk we imagine get wondering some inflation. just lot balance. to is I are of forward I a is of as been of ease, Meaning value inventory, of accumulate some risk supply overstated? year next as that have maybe price

work we of we don’t suppliers. Yeah. a same have But some I through taking that because and commitments risk the and happens in protections terms from like but don’t we a have at that the lowering our huge see things losses price on customers risk inventory to we from say come there. inventory We of pricing. levels, time, huge would prices, if see do the

Melissa just to… Yeah.

Good. Okay.

have question. and not I increasing. the line range the this and the the apologize got will next we voice reserves is well quality it extremely – yeah, some But inventory important, ahead on for quite as and around within so inventory good, my get inventory, the here. the inventory and add of our aging thanks. to of The well was is I are in for allergies our I cough. Just model returns

it’s So current. relatively

Great. Okay. for all Thank That’s Excellent. me. you.

Thanks.

you. Thank

you. Thank

question your with Sheerin Please is next Stifel. Our with question. from proceed Matt

get just after Phil, your many the quarters finally questions. bit to my taking how trying of very positive. little perspective for your down book-to-bill looks seasonally, you outlook, parity on it Thanks a are like Yes. at

yet, suppliers customers. Texas sound are you of It hard way least that they like component going parts inventory semiconductor other the QX. straightens suppliers or their are the cautiously that Instruments big or digits, a and on with last looking suppliers, dealing until suppliers are in inventory start cutting and that that the those guided at out? to customers or Some still component see going it you at to seeing get imbalance double down cycle there to starting modeling more night correction doesn’t are are are is to are not some still other lagging

not but Yeah. we as it we we today outlook them, grow regions, Matt. that intentionally, it tells feel can a pretty look, if our we call still industrial, up straight hit at we question, we backlog those to our and the the XX [ph] pushing see defense/aero, it in the point solid. precedent, not time. It’s today, the in look is see six-month this transportation, you it’s next correct, as we with Thanks. But three-month number roll out today and a backlog are it have we are And from giving

in We consumer, some are not even, the and the of are. we say, others I’d are compute as -- exposed that

realistic, we XX helping that are last XX are here of but been kind what’s some am other the both that, you backlog, are is months down, and watching going I not months. -- because we to and think, really drive book-to-bills the know So, to coming on Matt, this that that’s pleased of I

as the much. as are not seeing we get We cancellations to

backlog we Managing customers push get if kind wanted we We the off stuff. books. them are with But not outs. the remove and to it screw some are seeing have that that all they golden our can of seen

are outlook I real. that we we that, just next or So some the driving, the see of is so sure months the three because frankly, it’s The based from teams. want to to make on roll-up this

Okay. that understand the gross sequentially on of was that. I down the then why Thanks And mix. margin, because for

said, has Looking forward, Europe as days. America and North fewer you selling

is remain year-over-year higher? expect So there or power you gross I guess, margin pricing be and why at be margin could gross to or some these would down, levels other reasons meaningfully

we still of this to our higher going mix quarter flattish, in that a would offset gets Yeah. Matt, due than of of had kind to a I we quarter are say but the by have second that and but offset customer better product mix Asia impact. holidays, some to

is think quarters, and margin you about back you get third the flattish you into some a the probably a perspective. margin would that gross when way right have mix to on then And of fourth higher So west, of get it.

how FX the natural on U.K. have it And you and OpEx noted hedge that that on currency the side? Europe, lastly a that the for basically and regions SG&A, the where in is of Okay. was it is swing related was that fav you like just much to down -- year-on-year, favorable in the

guess, overall $XX from benefit, Matt, perspective. perspective, $XX From Yeah. OpEx was and with currency somewhere I a million, reported million between a we got the

But a basis? year-over-year on

Year-over-year basis, yeah.

Terrific. Thanks Okay. much. very

Matt. Thanks,

Thank you.

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

given outs operating at as push on A mentioned, quick and they be about that great? operating and nothing your of just levels, What think, operating ASR in ASP’s be it I of is if -- state, are you and but there, push that the margin cancellations, eye the question kind come because these would think elephant few up to on course, could address that know the pressure, Thank room, ratchet keep of you margins Do down under you sustainable far such. outs material an as kind order there’s margins? could a that, much. cancellations margin, you out concern investor so help that Phil

implied say, I would above being the we pretty guidance. guess, operating still feel I X% quarter about it’s in margin the second good Yeah.

impact out deterioration. our a in have on As you a deterioration that margins be clearly look operating there an meaningful we sales, would

So that’s a given.

clearly, general, we level when margins the those long-term like really there factors our market sustain feel opportunities feel meaningfully. about we we still OpEx and the think some that creation, temporary declines some, that I be about some lose can model. in we down think IP if sales it, come chain might go of on as can through we good supply mid- levels, good some that help But to the so give in positives gross the about good services, feel but us say, would demand margin,

about Great. include the kind And little a quick and a a by follow-up, that we on expense it November increase does that? more just interest can outlook, so plan of bit Fed, think

and would it kind contemplates at from the increase I quarter. Yeah. say of first are flattish potential we looking there

Thank you. Congratulations.

Jim. Thanks,

you. Thank

you. Thank

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

Great. Thanks for taking my questions.

First, elaborate I can control topic. on am tower you hoping the

Can across provides at sure Day. how talking their implications are what a this your spend using to way a minute about customers your two it into various you for I this are You inventory your I you. on Analyst financial with business? or the Thank you channels. and am maybe the we mentioned envision understand not customers topic, how but this deep dug

managing are at chains, to course, term This resolve coining center the that supply Will. started supply we supply of Yeah. chains breakdown, is of as and pandemic the Sure, the well. and We that’s creation we as demand market chain through that, Phil. is we technology the went bring right value

manufacturing a that right. verticals, of visibility were they sites, and started call to and we They all you And and just them, of this many SKUs. suppliers, and down that, able their there break many aggregate customers suppliers things There’s one will to chain. multiple or Milwaukee, loss it, to that started the different Day and lost right, control to of thousands clearly word In them. I we that’s of, them it manufacturing So tower. provider for are from had many where use driving supply hundreds come spoke then the OEMs had we the about rebuild end was, tens lot help right, transparency the filter the to that EMS SKUs, manufacturing frankly, drive the lot we build have different suppliers very how case at help was Investor can from

visibility and a as manage then the the really we analytics on them transparency suppliers there lead on it’s there’s in from forecasting to demand as the with in well coming help So times what’s front-end, their in to the as and coming MRPs.

So hopefully that helps explain what we are talking about there.

broadly I the it you are memory, to A microcontroller for know sort time? talk is about the still like things Can they can. there mix still We how happening between and parts situation? components a are edge. They that talk same unusual two so protracted situation in shortage the follow-up those you shortage certainly if severe then two can other think that’s you the at a foundry happening in dynamics very about speaking, in example, between dynamics? but distribution trending talk from have of about Can for are those talk companies, how buying oversupply. mixes to about have of while, disparate that’s this a I on the trailing those

Yeah. commodity there’s do I to I can. breakouts. tens best will hundred I the mean, different

that XX they are defense interconnect inventory, XXXX. by and weeks with the which part is, what times in, a interconnect bad lead to low back level, coming that’s aerospace for purpose go general the extended over we it’s the Will, in improved weeks into are notably the XX beginning in of, MLCC of space. We come levels two-day are that give particularly the go that come bit, you high the not of way, be connector back in the to case So capacitors lead that to large-sized have really automotive we Then some still those you weeks. know, see to a capital, the so, which think don’t going -- continue with a high mobiles XX to some are again, plus most even high in and I to most normal We just side, if wide more with I has a capacitors, But -- more size, start and still have aero XX that’s [Audio jump range side they thing. times weeks at getting weeks. but is we will at the in or eight lead the of in down look caps voltage large times don’t happening Will, weeks in Gap] why to

a to why it’s So lead summarize. of in passive is disparities, so which a huge there’s range just in times, Will, just tough connector,

If you jump products the reductions compute, primarily area. and that supporting time get experiencing over to are semi you side, we -- consumer in again, lead

weeks to have to amps example, weeks, XX op weeks, to from come has XX some down remain XX regulators are logic, the You lead although, the in of still that’s programmable XX i.e., weeks, memory to you mentioned anywhere programmable for improved, weeks voltage weeks. XX XX logic, discretes, still weeks some weeks demand even one like things XX recent. XX like, of way But is outpacing still power times MCUs and

So be much controller pointed pretty weeks. XX-bit, the as you and end there across much space the change then XX to Low Board. out, not XX XX it’s XX-bit, weeks -- weeks. end X-bit, might Higher

and that, go the are do our supply say, that So chain are would services. we time the -- control and our this through though towers we way, to by do have I customers the every commodities, using we but how for you

the on to Board. we what continue across in do see the we So update market

by in as to glad are are that the as do what we on We a call to separate session way, for this seeing overall. well anybody

high a answers the what’s to out bag I think at and disparities level. the outlook least what’s is. and there, at mixed that certainly the which hope confusion as So It’s complexity driving market a

you. Thank

Will. Thank you,

you. Thank

proceed is from Please of Ruplu next Bank with your America. question. Our question with Bhattacharya

had touch pretty first Hi. this quarter. you Farnell. XX%. did the but impact strong quarter, I last Thanks if taking margin very sales even XX% My margins can strong performance, revenues how e-commerce this was it then quarter my plus, question question. you I on at And that for is mean, on was wondering

So sequential much quarter? just and any would FX, the on how color margin for trend was much third how a sequential that the margins how was decline, volume, think you Farnell we about just say should

Yeah.

sales will turn call Ruplu. really, computing. is over So I and still it Thanks, really that We are for most first the E-commerce that to strong. Ken. board on of go

Farnell range components line the the So board the so semis items are revenue. of IP&E of XX% represented through roughly and the on that to coming that XX% XX% still activity, in

are really, stats that that impacted. -- other and overall a really Farnell things we pleased with still. So with They had couple those pleased overall

Now touch then and let single-board FX pound on loss. with bit the a some computing with drove the the volume that Ken

operating the Yeah. would because pricing for it’s by I driven the of XX% decline just XX%-XX%, From perspective, was that the sales was driven and FX. impact gross say, by XX% a about margin on margin

Okay. the there. Thanks for details

the on forward, we For the and the between next margins quarters, we the in how trend the you just America, of same the there should core some think my a quarter and going December on what and follow-up, margins mix September the into I that quarter? June sequentially And there the question and It your thoughts just that were can then Asia, about region again regional quarter? core with on going how impacts think business? for North question demand do sustains should Europe strong about a you ask looks think like had versus

Yeah.

hit So touch on Ken and I margin. the the [ph] will revenue on

backlog well. record our mixed in we know what watching really are are So Asia-Pac. us team’s really we quarter messages with to the their also execution I really, didn’t in there’s with pleased that as another And all Asia-Pac for say,

as reality backlog to it and And we forward. and assertive in which our okay, that’s possible pretty as is -- would the performance look pretty integrity I say, into you there’s making in our we from leadership the For as very, the Asia-Pac are in the think quarter, we steady December backlog very positive. QX, team seeing sure clean as the and September move

and Year how impacts will a at go Asia far that wouldn’t holiday March. So will March we Chinese the traditional out, look as quarter, New we in -- of but see that

but we We is the will us Ken, touch margin? the quarter do talk in December about for that you Asia looking good pretty today. right on next see now as quarter,

Yeah.

overall the bit has because to of sales, So are for next a from this Asia going an increase holidays, in little the an less shipping you days. see sales because mix, west quarter, softer Asia

So and higher. see become then you you get into the would become and less third west percentage quarter, the Asia

of we perspective, mix, higher but kind would think margin put margin, pressure the product cadence to on a levels operating anything I customer a will have in think about from in sales business the that’s more business. the talking and just not that. how that I the Asia QX will mix will from offsetting so core of a better operating have a seasonality we about it say general are So

the with and business way core right the into this and is being that operating about west our quarters to we flattish goes gross get equal fourth a So the and all think has we seasonality mix margin. things next quarter up higher would higher margin that third into expected of as

it. mentioned going Phil, quick up. we for can details. have about and as that Got think was follow how Did revenue Phil, what of one should I a you, if Thanks forward? demand more just percent the creation total

forward. revenue Yeah. high forward, still being funnel it our demand XX% looks We record of The roughly dollars. design moving creation big part the is did, move there’s XX%, another story with and and a of our success as Ruplu, total wins as good as registrations revenue we was,

on creation. bullish pretty demand So, our

all the details. Appreciate Okay. for Thanks it.

Ruplu. Thanks,

Thank you.

comes Cardoso Our Joseph with JPMorgan. with next question. question your proceed from Please

question. the for Thanks Hey.

one one Farnell benefits in that you the themselves. the have margins on just a pricing you and quarters, this quarter. a called In First is seen margins prior out follow-up quick

margins did So any you the I on and if in just pricing benefits was Farnell see what was curious, that? the magnitude of quarter so, September

between but any I say Yeah. those the little little point meaningful saw FX would a we a to U.K. Farnell competitors company, the really pressure. I we a main noise the benefits and couple due that to was the times it, various there, say down, margin anything the got and commodities we pressure this pressure if where is currencies Farnell lead bit have but here come being of A on in U.S. out. purely saw of and have difference nothing wouldn’t pricing primarily so quarter from pricing based might based

my quarter, clarity. up, about follow last spoke the then for ASP for just And you Thanks seeing EC. Understood. inflation No.

trend inflation? suppose, in single-digits the start it cycling X% that think I to kind terms any shift you see you some the somewhere we that was level X% high of that the for same I importantly, any of are are then could question, moderation? more where about forward, been you range of are still of seeing thinking and seeing peak And to are seeing how guys. going signs are you has or EC there Thanks past in kind we

Hey, Joe.

shot. Let a me take

up at future we on think kind our the right? least about end, broke talked I last of pricing quarter, the inflation of you

Correct.

Yeah.

XX% I ASP Okay. GP XX% than our this Yeah. anything, price GP been is growth it sure started then affect See, have we am to dollars that’s as not said would some of more percent roughly increases, that moderate. see your our doesn’t of last to of for quarter much. question and our quarter we part not margin

point. So some of lot work the system of carryover, increases the through been would from at have to but a seem price this that have

got So, in of we quarter, comment? any have further increases, Ken that. on year-on-year, would impact some price we little any but seen very

No.

necessarily prices. supplier mixed lowering a that’s our about don’t mean, I think least long-term, as but I from the of we right. hear hearing about partners at as far I commentary bag, And lot them think,

increases to kind it and are clearly of continue yes, viewing price so prices the and but now, have right conversation we So, monitor how not but that’s on moderated, around the lot tone ASP. a lowering

the all guys. Appreciate color, question. the for Thanks

Thank you, Joe.

are this back Phil questions Thank the for to remarks. time. no I’d Gallagher you. There over at to further like call turn any closing

Sure. around again forward a really want at speaking everyone And call to we terrific earnings fiscal today’s Avnet -- more January. the Thank for for to world in to report and look thank thank you second I quarter very attending I one the much. performance. team want time our you earnings just again, all of

rest Okay. of Have year. a the you. Thank good

This concludes conference. today’s

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