First quarter sales rose 9.2 percent year over year
GAAP diluted EPS rose 53 percent to $0.72; adjusteddiluted EPS rose 36 percent to $1.03 

PHOENIX, US - Media OutReach - October 26, 2018 - Avnet, Inc. (Nasdaq: AVT) today announced results for the first quarter endedSeptember 29, 2018.

First Quarter Key Financial Highlights

• Sales of $5.09 billion rose 9.2% year over year
• Sales grew 9.9% year over year in constant currency
• GAAP diluted EPS from continuing operations rose 53.2% to $0.72 year over year
• Adjusted diluted EPS from continuing operations increased 35.5% to $1.03 year over year
• GAAP operating income of $146.8 million rose 127.4% year over year
• Adjusted operating income of $182.5 million rose 33.7% year over year
• GAAP operating income margin of 2.9%
• Adjusted operating income margin of 3.6% expanded 66 basis points year over year
• Net working capital days declined by 1 day to 83 days

CEO Commentary

"We are pleased to report the continued positivetrend in profitability and growth entering fiscal year 2019," said Bill Amelio,Chief Executive Officer, Avnet. "With the introduction of Avnet's newcomprehensive ecosystem last year, we have expanded our portfolio of servicessignificantly, which has resulted in first quarter growth among both ourexisting customers as well as with new and non-traditional customers."

CFO Commentary

"Our focus on cost management resulted in a $26.4million reduction in selling, general, and administrative expenses year overyear on a 9.2% growth in revenue. We also took steps to realize greaterefficiencies longer term by opening a new distribution center in Hong Kong thisquarter," said Tom Liguori, Chief Financial Officer, Avnet. "We reduced networking capital days and remain on schedule for achieving our long term targetof 70 days. We continued implementing our capital allocation strategy byrepurchasing 3.3 million shares this quarter, and we increased our quarterly dividendby more than 5% to $0.20 per share for a total return to shareholders of $179.8million."

Additional First Quarter Fiscal 2019 Highlights

• The Electronic Components business sales rose 9.4% year over year to $4.7 billion with operating margins of 3.4%
• Premier Farnell sales rose 7.2% to $379 million, with operating margins rising to 10.8% compared with 9.2% last year
• Asia continued to deliver the strongest growth by region with year-over-year sales rising 18%
• Sales in the Americas rose 7.3% year over year and operating margin continued to improve as recovery continues in the Americas
• Book-to-bill ratio at the end of the quarter remained positive at greater than 1.0
• Cash and cash equivalents at the end of the quarter was $365.9 million; net debt (total debt less cash and cash equivalents) was $1.20 billion
• Cash used for operations was $85 million primarily for inventory to support second quarter sales
• Received $120 million of additional proceeds from finalizing the sale price of the Technology Solutions Business, which was used to repurchase shares
• Expanded share repurchase authorization by $500 million, repurchased 3.3 million shares, and increased quarterly dividend by 5.3% to $0.20 per share for a total return to shareholders of $179.8 million during the quarter

For the full press release, please visit: https://news.avnet.com/press-release/avnet/avnet-reports-first-quarter-fiscal-2019-financial-results

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About Avnet

From idea to design and fromprototype to production, Avnet supports customers at each stage of a product'slifecycle. A comprehensive portfolio of design and supply chain services makesAvnet the go-to guide for innovators who set the pace for technological change.For nearly a century, Avnet has helped its customers and suppliers around theworld realize the transformative possibilities of technology. Learn more aboutAvnet at www.avnet.com.