Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenues of $22.2 billion and adjusted diluted earnings per share of $3.44, reflecting a year of focused management and strategic investments [3][6] - In Q4, sales reached approximately $5.6 billion, exceeding guidance, with a 6% sequential increase and slight year-over-year growth [16][20] - Adjusted operating margin for Q4 was 2.5%, with electronic components operating margin at 3% [20][21] - The gross margin for Q4 was 10.6%, down 99 basis points year-over-year, primarily due to a higher mix of sales from Asia [17][18] Business Line Data and Key Metrics Changes - Electronic components sales improved by 1% year-over-year and 6% sequentially, while Farnell sales increased by 3% year-over-year and 5% sequentially [16][17] - Farnell's operating income was $17 million with an operating margin of 4.3%, reflecting improvements in sales and cost structure [21] Market Data and Key Metrics Changes - Sales in Asia increased by 18% year-over-year, while EMEA sales declined by 17% and The Americas by 2% [16][17] - The book-to-bill ratio improved across all regions, with Europe and Asia both above parity [8][10] Company Strategy and Development Direction - The company is focused on optimizing working capital, generating healthy cash flows, and returning cash to shareholders through buybacks and dividends [6][14] - Investments in digital infrastructure and engineering capabilities are prioritized to enhance customer experience and data insights [14][15] - The company aims to stabilize and grow Farnell's margins while continuing to improve operational efficiency [21][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in EMEA, noting a modest increase in bookings and backlog [35][36] - The company anticipates continued growth in Asia, which has historically led market recoveries [14][48] - There is cautious optimism regarding inventory levels, with expectations of modest declines while maintaining necessary inventory for customer service [40][61] Other Important Information - The company reduced debt by $237 million during the fiscal year and returned $415 million to shareholders through share repurchases and dividends [25][26] - The company expects capital expenditures to normalize at approximately $25 million to $35 million per quarter in fiscal year 2026 [25] Q&A Session Summary Question: Changes in EMEA market conditions - Management noted increased optimism in EMEA with modest improvements in bookings and backlog [35][36] Question: Inventory trends and management - The company expects a modest decline in inventory next quarter while continuing to manage inventory levels effectively [39][40] Question: Future performance in Asia - Management is confident in continued strong performance in Asia, which has shown consistent year-over-year growth [48][49] Question: Improving margins at Farnell - The company is focused on continuous improvement in Farnell's margins, aiming for double-digit operating margins over the next few years [59][75] Question: Interest expense and inventory investment outlook - Management indicated that interest expenses are expected to remain stable, with inventory levels anticipated to decrease modestly [80]

Financial Performance - Avnet's Q4 FY25 revenue reached $5.62 billion, a 1% year-over-year increase[13] - The adjusted diluted EPS for Q4 FY25 was $0.81, a 34% decrease year-over-year[20] - Adjusted operating income for Avnet in Q4 FY25 was $143 million, a 26% decrease year-over-year, with an adjusted operating margin of 2.5%, down 94 bps[18] - Gross margin was 10.6% in Q4, influenced by a sales mix shift towards Asia[14] - SG&A expenses were $451 million, remaining relatively flat year-over-year but increasing 4% quarter-over-quarter due to foreign exchange impacts[14] Regional Performance - Asia experienced year-over-year growth, offsetting declines in EMEA and the Americas[8] - Asia's revenue was $2.691 billion, an 18% increase as reported and a 17% increase in constant currency[13] - Americas revenue was $1.327 billion, a 2% decrease as reported and in constant currency[13] - EMEA revenue was $1.600 billion, a 17% decrease as reported and a 21% decrease in constant currency[13] Balance Sheet and Liquidity - Inventory was $5.2 billion, a $35 million decrease quarter-over-quarter as reported, and a $185 million decrease excluding foreign exchange impacts[22] - The company returned $28 million to shareholders through a dividend of $0.33 per share[22] Outlook for Q1 FY26 - Avnet projects sales between $5.55 billion and $5.85 billion, with a midpoint of $5.70 billion, implying a 2% sequential sales growth[23, 24] - The company anticipates adjusted diluted EPS between $0.75 and $0.85, with a midpoint of $0.80[23]

Core Insights - Avnet reported revenue of $5.62 billion for the quarter ended June 2025, reflecting a 1% increase year-over-year and surpassing the Zacks Consensus Estimate of $5.36 billion by 4.73% [1] - The company's EPS was $0.81, down from $1.22 in the same quarter last year, but exceeded the consensus estimate of $0.72 by 12.5% [1] Financial Performance - Sales from Farnell reached $386.5 million, exceeding the three-analyst average estimate of $370.13 million, with a year-over-year increase of 3% [4] - Sales from Electronic Components amounted to $5.23 billion, surpassing the three-analyst average estimate of $4.99 billion, with a year-over-year change of 0.8% [4] - Operating income for Electronic Components was reported at $157 million, slightly above the average estimate of $156.63 million [4] - Operating income for Farnell was $16.5 million, compared to the average estimate of $9.62 million [4] - Corporate expenses showed a loss of $30.6 million, worse than the estimated loss of $22.24 million [4] Stock Performance - Avnet's shares have declined by 7.8% over the past month, while the Zacks S&P 500 composite increased by 0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Executive Summary [Fourth Quarter and Fiscal Year 2025 Overview](index=1&type=section&id=Fourth%20Quarter%20and%20Fiscal%20Year%202025%20Overview) Avnet reported Q4 FY25 sales of $5.6 billion, diluted EPS of $0.07, and adjusted EPS of $0.81, with Farnell achieving year-over-year growth | Metric | Q4 FY25 | Q4 FY24 | | :----- | :------ | :------ | | Sales | $5.6 billion | $5.6 billion | | Diluted EPS | $0.07 | $0.91 | | Adjusted Diluted EPS | $0.81 | $1.22 | - Farnell returned to year-over-year sales and operating income margin growth[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Phil Gallagher emphasized cost management and working capital optimization, boosting cash flow and expressing optimism for recovery - Managed costs effectively and made progress on working capital optimization to enhance operating cash flow[2](index=2&type=chunk) - Optimistic about recovery led by steady growth in Asia and Farnell's return to year-over-year growth[2](index=2&type=chunk) - Surpassed the high end of fourth-quarter sales and earnings guidance[2](index=2&type=chunk) Key Financial Highlights (Summary) [Fiscal Fourth Quarter 2025 Highlights](index=1&type=section&id=Fiscal%20Fourth%20Quarter%20Key%20Financial%20Highlights) Avnet's Q4 FY25 sales were flat at $5.6 billion, diluted EPS fell to $0.07, and adjusted EPS to $0.81, with operating income margins declining despite $139 million in operating cash flow | Metric | Q4 FY25 | Q4 FY24 | Change Y/Y | | :-------------------------- | :------ | :------ | :--------- | | Sales | $5.6 billion | $5.6 billion | 0.0% | | Diluted EPS | $0.07 | $0.91 | (92.3%) | | Adjusted Diluted EPS | $0.81 | $1.22 | (33.6%) | | Operating Income Margin | 1.3% | 3.0% | (170 bps) | | Adjusted Operating Income Margin | 2.5% | 3.5% | (100 bps) | | Cash flow from operations | $139 million | N/A | N/A | | Share repurchases | $50 million | N/A | N/A | | Dividends | $28 million | N/A | N/A | - Asia achieved its fourth consecutive quarter of year-over-year sales growth[5](index=5&type=chunk) [Fiscal Year 2025 Highlights](index=1&type=section&id=Fiscal%202025%20Key%20Financial%20Highlights) For FY25, Avnet's sales decreased to $22.2 billion, diluted EPS to $2.75, and adjusted EPS to $3.44, with operating income margins declining despite $725 million in operating cash flow and inventory reduction | Metric | FY25 | FY24 | Change Y/Y | | :-------------------------- | :------ | :------ | :--------- | | Sales | $22.2 billion | $23.8 billion | (6.7%) | | Diluted EPS | $2.75 | $5.43 | (49.3%) | | Adjusted Diluted EPS | $3.44 | $5.34 | (35.6%) | | Operating Income Margin | 2.3% | 3.6% | (130 bps) | | Adjusted Operating Income Margin | 2.8% | N/A | N/A | | Cash flow from operations | $725 million | N/A | N/A | | Share repurchases | $301 million | N/A | N/A | | Dividends | $113 million | N/A | N/A | - Reduced inventories by **$414 million** in constant currency[8](index=8&type=chunk) Detailed Financial Performance [Fourth Quarter 2025 Performance (GAAP & Non-GAAP)](index=2&type=section&id=Fourth%20Quarter%202025%20Performance%20(GAAP%20%26%20Non-GAAP)) Avnet's Q4 FY25 GAAP sales increased 1.0% to $5,617.8 million, but operating income and diluted EPS significantly decreased, while adjusted metrics also declined, with Asia showing strong growth | Metric | Q4 FY25 (GAAP) | Q4 FY24 (GAAP) | Change Y/Y | Q4 FY25 (Non-GAAP) | Q4 FY24 (Non-GAAP) | Change Y/Y | | :-------------------------- | :------------- | :------------- | :--------- | :----------------- | :----------------- | :--------- | | Sales | $5,617.8M | $5,563.0M | 1.0% | N/A | N/A | N/A | | Operating Income | $73.5M | $164.2M | (55.3%) | $142.9M | $193.4M | (26.1%) | | Operating Income Margin | 1.3% | 3.0% | (164 bps) | 2.5% | 3.5% | (94 bps) | | Diluted EPS | $0.07 | $0.91 | (92.3%) | $0.81 | $1.22 | (33.6%) | | Segment/Region | Q4 FY25 Sales | Q4 FY24 Sales | Change Y/Y | Q4 FY25 Op. Inc. Margin | Q4 FY24 Op. Inc. Margin | Change Y/Y | | :--------------- | :------------ | :------------ | :--------- | :---------------------- | :---------------------- | :--------- | | Electronic Components | $5,231.3M | $5,187.8M | 0.8% | 3.0% | 4.1% | (105 bps) | | Farnell | $386.5M | $375.2M | 3.0% | 4.3% | 4.0% | 25 bps | | Americas Sales | $1,327.0M | $1,353.8M | (2.0%) | N/A | N/A | N/A | | EMEA Sales | $1,599.7M | $1,920.3M | (16.7%) | N/A | N/A | N/A | | Asia Sales | $2,691.1M | $2,288.9M | 17.6% | N/A | N/A | N/A | [Fiscal Year 2025 Performance (GAAP & Non-GAAP)](index=6&type=section&id=Fiscal%20Year%202025%20Performance%20(GAAP%20%26%20Non-GAAP)) For FY25, Avnet's GAAP sales decreased to $22,200.8 million, operating income to $514.3 million, and net income to $240.2 million, with adjusted figures also showing declines | Metric | FY25 (GAAP) | FY24 (GAAP) | Change Y/Y | FY25 (Non-GAAP) | FY24 (Non-GAAP) | Change Y/Y | | :-------------------------- | :---------- | :---------- | :--------- | :-------------- | :-------------- | :--------- | | Sales | $22,200.8M | $23,757.1M | (6.6%) | N/A | N/A | N/A | | Operating Income | $514.3M | $844.4M | (39.1%) | $624.0M | $900.0M | (30.6%) | | Net Income | $240.2M | $498.7M | (51.8%) | $300.3M | $490.0M | (38.7%) | | Diluted EPS | $2.75 | $5.43 | (49.3%) | $3.44 | $5.34 | (35.6%) | [Sales in Constant Currency](index=14&type=section&id=Sales%20in%20Constant%20Currency) Avnet's overall sales in constant currency decreased in Q4 FY25 and FY25, with Americas and EMEA declining, while Asia showed strong growth across both periods | Category | Q4 FY25 Sales Y/Y % Change | Q4 FY25 Sales Y/Y % Change in Constant Currency | FY25 Sales Y/Y % Change | FY25 Sales Y/Y % Change in Constant Currency | | :-------------------- | :------------------------- | :-------------------------------------------- | :---------------------- | :------------------------------------------- | | Avnet Total | 1.0% | (0.7%) | (6.6%) | (6.7%) | | Americas | (2.0%) | (2.0%) | (10.5%) | (10.5%) | | EMEA | (16.7%) | (20.6%) | (23.7%) | (24.1%) | | Asia | 17.6% | 16.8% | 11.1% | 11.1% | | Electronic Components | 0.8% | (0.8%) | (6.3%) | (6.4%) | | Farnell | 3.0% | 0.8% | (9.5%) | (9.9%) | [Historical Segment and Geographical Financial Information](index=14&type=section&id=Historical%20Segment%20and%20Geographical%20Financial%20Information) Avnet provides detailed quarterly sales and operating income data by segment and geographic region for fiscal years 2025 and 2024, illustrating performance trends Fiscal Year 2025 Quarterly Sales and Operating Income (in millions) | Metric | Q4 FY25 | Q3 FY25 | Q2 FY25 | Q1 FY25 | | :-------------------- | :------ | :------ | :------ | :------ | | **Sales:** | | | | | | Electronic Components | $5,231.3 | $4,948.7 | $5,317.8 | $5,257.1 | | Farnell | $386.5 | $366.7 | $345.6 | $347.1 | | **Operating Income:** | | | | | | Electronic Components | $157.0 | $172.2 | $181.6 | $197.4 | | Farnell | $16.5 | $11.0 | $3.5 | $1.9 | Fiscal Year 2025 Quarterly Sales by Geographic Area (in millions) | Region | Q4 FY25 | Q3 FY25 | Q2 FY25 | Q1 FY25 | | :----- | :------ | :------ | :------ | :------ | | Americas | $1,327.0 | $1,274.2 | $1,368.8 | $1,329.9 | | EMEA | $1,599.7 | $1,559.0 | $1,582.8 | $1,668.2 | | Asia | $2,691.1 | $2,482.2 | $2,711.8 | $2,606.1 | Fiscal Year 2024 Quarterly Sales and Operating Income (in millions) | Metric | Q4 FY24 | Q3 FY24 | Q2 FY24 | Q1 FY24 | | :-------------------- | :------ | :------ | :------ | :------ | | **Sales:** | | | | | | Electronic Components | $5,187.8 | $5,245.8 | $5,812.1 | $5,914.4 | | Farnell | $375.2 | $407.8 | $392.8 | $421.2 | | **Operating Income:** | | | | | | Electronic Components | $210.1 | $216.9 | $247.9 | $272.8 | | Farnell | $15.1 | $16.3 | $15.7 | $17.7 | Fiscal Year 2024 Quarterly Sales by Geographic Area (in millions) | Region | Q4 FY24 | Q3 FY24 | Q2 FY24 | Q1 FY24 | | :----- | :------ | :------ | :------ | :------ | | Americas | $1,353.8 | $1,403.4 | $1,588.5 | $1,573.5 | | EMEA | $1,920.3 | $2,053.1 | $2,113.6 | $2,308.0 | | Asia | $2,288.9 | $2,197.1 | $2,502.8 | $2,454.1 | Consolidated Financial Statements (GAAP) [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The Consolidated Statements of Operations detail Avnet's GAAP financial performance for Q4 and full FY25 and FY24, including sales, gross profit, operating income, net income, and EPS | Metric (Thousands) | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :---------------------------------- | :-------- | :-------- | :--------- | :--------- | | Sales | $5,617,795 | $5,562,977 | $22,200,754 | $23,757,129 | | Gross profit | $593,684 | $642,880 | $2,384,956 | $2,766,442 | | Operating income | $73,452 | $164,189 | $514,254 | $844,367 | | Income before taxes | $7,404 | $101,324 | $250,569 | $632,263 | | Net income | $6,089 | $82,665 | $240,217 | $498,699 | | Diluted Earnings Per Share | $0.07 | $0.91 | $2.75 | $5.43 | | Cash dividends paid per common share | $0.33 | $0.31 | $1.32 | $1.24 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The Condensed Consolidated Balance Sheets present Avnet's financial position at June 28, 2025, and June 29, 2024, showing assets, liabilities, and shareholders' equity | Metric (Thousands) | June 28, 2025 | June 29, 2024 | | :---------------------------------- | :-------------- | :-------------- | | Cash and cash equivalents | $192,428 | $310,941 | | Inventories | $5,235,485 | $5,468,730 | | Total current assets | $10,018,737 | $10,370,552 | | Total assets | $12,118,553 | $12,209,147 | | Short-term debt | $87,284 | $492,711 | | Accounts payable | $3,487,419 | $3,345,510 | | Total current liabilities | $4,128,104 | $4,465,269 | | Long-term debt | $2,574,729 | $2,406,629 | | Total liabilities | $7,107,058 | $7,283,643 | | Shareholders' equity | $5,011,495 | $4,925,504 | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The Consolidated Statements of Cash Flows outline Avnet's cash generation and usage for FY25 and FY24, showing increased operating cash flow but higher financing cash usage | Metric (Thousands) | FY25 | FY24 | | :---------------------------------- | :--------- | :--------- | | Net income | $240,217 | $498,699 | | Net cash flows provided by operating activities | $724,504 | $689,984 | | Net cash flows used for financing activities | $(693,526) | $(433,799) | | Net cash flows used for investing activities | $(137,127) | $(225,484) | | Cash and cash equivalents at end of period | $192,428 | $310,941 | - Repurchases of common stock increased to **$303.5 million** in FY25 from **$162.7 million** in FY24[19](index=19&type=chunk) Non-GAAP Financial Information [Explanation of Non-GAAP Measures](index=9&type=section&id=Non-GAAP%20Financial%20Information_Explanation) Avnet uses non-GAAP measures like adjusted operating income, adjusted EPS, and constant currency sales to provide a clearer view of underlying business trends and performance - Non-GAAP measures are used to better assess and understand operating performance, especially when comparing periods or forecasting, by excluding items outside normal operating results or non-cash in nature[23](index=23&type=chunk) - Constant currency measures adjust for the impact of foreign currency exchange rate changes to evaluate current period performance against prior periods and understand underlying trends[22](index=22&type=chunk) - Adjustments to income tax expense and effective tax rate include effects of changes in tax laws, valuation allowances, unrecognized tax benefits, and audit settlements[24](index=24&type=chunk) [Non-GAAP Reconciliations (Fiscal Year 2025 & Quarters)](index=10&type=section&id=Non-GAAP%20Reconciliations_FY25) This section reconciles GAAP to non-GAAP financial measures for FY25 and its quarters, detailing adjustments that impact operating income, net income, and diluted EPS Fiscal Year 2025 Non-GAAP Reconciliations (in thousands, except per share amounts) | Metric | FY25 (GAAP) | Adjustments | FY25 (Adjusted) | | :-------------------------- | :---------- | :---------- | :-------------- | | Operating income | $514,254 | $109,779 | $624,033 | | Other expense, net | $(17,283) | $29,631 | $12,348 | | Income before income taxes | $250,569 | $139,410 | $389,979 | | Income tax expense | $10,352 | $79,343 | $89,695 | | Net income | $240,217 | $60,066 | $300,283 | | Diluted earnings per share | $2.75 | $0.69 | $3.44 | Q4 Fiscal Year 2025 Non-GAAP Reconciliations (in thousands, except per share amounts) | Metric | Q4 FY25 (GAAP) | Adjustments | Q4 FY25 (Adjusted) | | :-------------------------- | :----------- | :---------- | :-------------- | | Operating income | $73,452 | $69,425 | $142,877 | | Other expense, net | $(7,604) | $12,811 | $5,207 | | Income before income taxes | $7,404 | $82,236 | $89,640 | | Income tax expense | $1,315 | $19,302 | $20,617 | | Net income | $6,089 | $62,934 | $69,023 | | Diluted earnings per share | $0.07 | $0.74 | $0.81 | [Non-GAAP Reconciliations (Fiscal Year 2024 & Quarters)](index=12&type=section&id=Non-GAAP%20Reconciliations_FY24) This section reconciles GAAP to non-GAAP financial measures for FY24 and its quarters, detailing adjustments that significantly altered reported GAAP figures Fiscal Year 2024 Non-GAAP Reconciliations (in thousands, except per share amounts) | Metric | FY24 (GAAP) | Adjustments | FY24 (Adjusted) | | :-------------------------- | :---------- | :---------- | :-------------- | | Operating income | $844,367 | $55,680 | $900,047 | | Other (expense) income, net | $(15,736) | $27,730 | $11,994 | | Income before income taxes | $632,263 | $(3,089) | $629,174 | | Income tax expense | $133,564 | $5,631 | $139,195 | | Net income | $498,699 | $(8,720) | $489,979 | | Diluted earnings per share | $5.43 | $(0.09) | $5.34 | Q4 Fiscal Year 2024 Non-GAAP Reconciliations (in thousands, except per share amounts) | Metric | Q4 FY24 (GAAP) | Adjustments | Q4 FY24 (Adjusted) | | :-------------------------- | :----------- | :---------- | :-------------- | | Operating income | $164,189 | $29,245 | $193,434 | | Other (expense) income, net | $1,409 | $680 | $2,089 | | Income before income taxes | $101,324 | $29,925 | $131,249 | | Income tax expense | $18,659 | $1,035 | $19,694 | | Net income | $82,665 | $28,890 | $111,555 | | Diluted earnings per share | $0.91 | $0.31 | $1.22 | Business Outlook and Guidance [First Quarter Fiscal 2026 Outlook](index=2&type=section&id=Outlook%20for%20the%20First%20Quarter%20of%20Fiscal%202026) Avnet projects Q1 FY26 sales between $5.55 billion and $5.85 billion, with adjusted diluted EPS between $0.75 and $0.85, implying sequential growth across all regions | Metric | Guidance Range | Midpoint | | :-------------------- | :------------- | :------- | | Sales | $5.55B – $5.85B | $5.70B | | Adjusted Diluted EPS | $0.75 – $0.85 | $0.80 | - Guidance implies sequential sales growth of approximately **2%** at the midpoint, with growth across all regions[7](index=7&type=chunk) - Assumes similar interest expense to Q4 FY25, an adjusted effective tax rate of **22-26%**, and **85 million** average diluted shares outstanding[8](index=8&type=chunk) Average Currency Exchange Rates for Q1 Fiscal 2026 Guidance | Currency Pair | Q1 Fiscal 2026 Guidance | | :------------ | :---------------------- | | Euro to U.S. Dollar | $1.16 | | GBP to U.S. Dollar | $1.33 | [Guidance Reconciliation](index=15&type=section&id=Guidance%20Reconciliation) The company provides a reconciliation of its non-GAAP adjusted diluted EPS guidance to GAAP diluted EPS guidance for Q1 FY26, primarily adjusting for restructuring expenses | Metric | Low End of Guidance Range | High End of Guidance Range | | :------------------------------------------ | :------------------------ | :------------------------- | | Adjusted diluted earnings per share guidance | $0.75 | $0.85 | | Restructuring, integration, and other expenses (net of tax) | $(0.10) | $(0.20) | | GAAP diluted earnings per share guidance | $0.65 | $0.65 | Additional Information [Conference Call and Webcast Details](index=4&type=section&id=Today%27s%20Conference%20Call%20and%20Webcast%20Details) Avnet hosted a conference call and webcast on August 6, 2025, to discuss financial results and provide a business update, with replay details available - Conference call and webcast held on August **6, 2025**, at **9:00 a.m. PT** / Noon ET[10](index=10&type=chunk) - Access via live conference call (**877-407-8112** domestic / **201-689-8840** international) or Avnet's Investor Relations website (https://ir.avnet.com)[13](index=13&type=chunk) - An audio replay of the webcast will be available and archived on the website for one year[13](index=13&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements, subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially - Statements are subject to numerous assumptions, risks, and uncertainties, and actual results may differ materially[11](index=11&type=chunk) - Key risk factors include geopolitical events, military conflicts, pandemics, competitive pressures, semiconductor industry down-cycles, supplier relationships, international sales and operations risks (e.g., foreign currency, tariffs), acquisitions, supply chain disruptions, cybersecurity attacks, and general economic conditions[11](index=11&type=chunk) - The company assumes no obligation to update any forward-looking statement unless required by law[12](index=12&type=chunk) [About Avnet](index=5&type=section&id=About%20Avnet) Avnet is a leading global technology distributor and solutions provider with over a century of experience, supporting customers and suppliers throughout the product lifecycle - Avnet is a leading global technology distributor and solutions provider, serving customers for over a century[14](index=14&type=chunk) - Supports customers and suppliers at every stage of the product lifecycle, helping accelerate design and supply stages[14](index=14&type=chunk) - Solves complex design and supply chain issues to help customers realize revenue faster[14](index=14&type=chunk)

Group 1 - Avnet, Inc. is one of the largest electronic component distributors globally, yet it remains relatively under the radar in the tech industry [1] - The company operates in a sector that is crucial for the supply chain of various technology products, indicating its significant role in the market [1] Group 2 - The article emphasizes the importance of understanding how businesses grow and how markets react, particularly in the tech, infrastructure, and internet services sectors [2] - It highlights the value of strong fundamentals paired with real potential in investment opportunities [2]

Core Viewpoint - Alvotech and Advanz Pharma announced a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommending approval for AVT06, a proposed biosimilar to Eylea® [1][5] Company Overview - Alvotech is a global biotech company focused on developing and manufacturing biosimilar medicines, aiming to be a leader in the biosimilar space with a pipeline that includes eight disclosed candidates targeting various therapeutic areas [11][12] - Advanz Pharma is a UK-based global pharmaceutical company specializing in specialty, hospital, and rare disease medicines, with a commercial presence in over 90 countries [13] Product Details - AVT06 is intended for treating adults with neovascular (wet) age-related macular degeneration (AMD), visual impairment due to macular edema secondary to retinal vein occlusion, diabetic macular edema, and myopic choroidal neovascularization [4][8] - In 2024, global sales of Eylea® were approximately US$9 billion, with one-third of these sales occurring in Europe [5] Clinical Study Results - A confirmatory clinical study (AVT06-GL-C01) demonstrated therapeutic equivalence between AVT06 and Eylea®, meeting its primary endpoint [6] Commercialization Rights - Alvotech is responsible for the development and commercial supply of AVT06, while Advanz Pharma holds exclusive commercialization rights for most European countries [5][7]

Core Viewpoint - Alvotech and Advanz Pharma have received a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommending approval for AVT06, a proposed biosimilar to Eylea® [1][5]. Company Overview - Alvotech is a global biotech company focused on developing and manufacturing biosimilar medicines, aiming to be a leader in the biosimilar space with a pipeline that includes eight candidates targeting various diseases [11][12]. - Advanz Pharma is a UK-based global pharmaceutical company specializing in specialty, hospital, and rare disease medicines, with a commercial presence in over 90 countries [13]. Product Details - AVT06 is intended for treating several eye disorders, including neovascular age-related macular degeneration (AMD) and diabetic macular edema (DME) [4][8]. - The global sales of Eylea® were approximately US$9 billion in 2024, with one-third of these sales occurring in Europe [5]. Clinical Study Results - A confirmatory clinical study (AVT06-GL-C01) demonstrated therapeutic equivalence between AVT06 and Eylea®, meeting its primary endpoint [6]. Commercialization Rights - Alvotech is responsible for the development and commercial supply of AVT06, while Advanz Pharma holds exclusive commercialization rights in most European countries [5][7].

Core Insights - Avnet has been actively supporting the overseas expansion of domestic semiconductor companies since early 2020, recognizing the growing demand for domestic chips and the increasing scale of the domestic semiconductor industry [2][4] - The company has established a comprehensive local management structure in China, focusing on nurturing local talent to better adapt to the rapidly growing and diversifying market [5] Group 1: Domestic Semiconductor Industry - The domestic semiconductor industry has reached a significant scale, becoming an important force in the market, which prompted Avnet to introduce the "domestic line" to meet customer demand [2] - Despite the current low proportion of the "domestic line" in Avnet China's overall revenue, its annual growth rate is accelerating, indicating a positive trend for domestic semiconductor manufacturers [4] Group 2: Global Market Expansion - Avnet has leveraged its extensive global sales network to assist domestic semiconductor manufacturers in expanding their reach, enabling them to access opportunities in Asia, Europe, and the Americas [4] - The company has successfully helped several domestic semiconductor firms, such as a leading analog device manufacturer, to rapidly enter the European market, doubling their revenue within a year [1] Group 3: Focus on AI and New Energy Vehicles - Avnet is keen on expanding its customer base and product applications in the AI sector, with a goal to deepen engagement in AI-related industries by 2025, as the demand for AI products continues to rise [5] - The company recognizes the competitive pressures in the new energy vehicle sector and aims to provide value through innovative supply chain management and new product introduction to help manufacturers enhance their competitiveness [5]

Core Insights - The performance of Avnet's international operations is crucial for understanding its financial strength and growth potential [1][2] - The company's total revenue for the quarter ending March 2025 was $5.32 billion, a decrease of 6% year-over-year [4] International Revenue Analysis - Asia contributed 46.70% of total revenue, amounting to $2.48 billion, with a surprising increase of 7.29% compared to expectations [5] - EMEA generated $1.56 billion, representing 29.33% of total revenue, which was an 8.58% shortfall from analyst projections [6] Future Revenue Expectations - Analysts forecast total revenue of $5.38 billion for the current fiscal quarter, a decline of 3.3% year-over-year, with Asia and EMEA expected to contribute 45.5% ($2.45 billion) and 31.6% ($1.7 billion) respectively [7] - For the entire year, total revenue is projected to be $21.98 billion, a reduction of 7.5% from the previous year, with Asia contributing 45.8% ($10.08 billion) and EMEA 30.3% ($6.65 billion) [8] Strategic Considerations - Avnet's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting [9][10]

Core Viewpoint - The global semiconductor sales continue to grow in Q1 2025, but there is a significant performance divergence among major chip manufacturers, influenced by market and product differences, particularly in AI and storage sectors, while automotive chip manufacturers are struggling [1]. Chip Design (Including IDM) - Texas Instruments (TI) reported Q1 revenue of $4.07 billion, a year-over-year increase of 11% and a sequential increase of 2%. The company expects Q2 revenue between $4.17 billion and $4.53 billion [3]. - STMicroelectronics (ST) reported Q1 revenue of $2.52 billion, a year-over-year decline of 27.3%, with a net profit of $56 million, down 89.1% [5]. - NXP's Q1 revenue was $2.84 billion, down 9% year-over-year, with a significant decline in automotive market revenue [6]. - Qualcomm's Q1 revenue reached $10.98 billion, a year-over-year increase of 16.9%, driven by growth in mobile, automotive, and IoT sectors [8]. - MediaTek's Q1 revenue was NT$153.31 billion, up 14.9% year-over-year, exceeding operational targets due to increased market demand [9]. Semiconductor Manufacturing - TSMC's Q1 revenue was $25.53 billion, a year-over-year increase of 35.3%, with a gross margin of 58.8% [42]. - UMC reported Q1 revenue of NT$57.86 billion, a year-over-year increase of 5.9%, with a focus on 22/28nm process technology [46]. - World Advanced's Q1 revenue was NT$11.949 billion, a year-over-year increase of 24%, achieving a net profit of NT$2.414 billion [48]. Chip Distribution - WPG Holdings reported Q1 revenue of NT$248.83 billion, a year-over-year increase of 36.8%, driven by demand from AI and related sectors [58]. - Winstek Technology's Q1 revenue was NT$247.4 billion, a year-over-year increase of 28% [60]. - Arrow Electronics reported a 6% year-over-year decline in sales, totaling $5.3 billion [64]. Domestic Semiconductor Companies - Over 70% of semiconductor companies listed in A-shares reported year-over-year revenue growth in Q1 2025, with 60.63% of companies showing profit increases [35]. - Weir Shares reported a 14.68% year-over-year revenue increase in Q1, with a net profit increase of 55.25% [38]. - Zhaoyi Innovation's Q1 revenue was 1.909 billion yuan, a year-over-year increase of 17.32% [40].