Quarterly sales grew 12% year over year to $5.05 billion; GAAP diluted EPS of $0.33 decreased 30%; Adjusted diluted EPS of $1.04 rose 33%

PHOENIX - MediaOutReach - 25 January 2019 - Avnet, Inc.(Nasdaq: AVT) today announced results for thesecond quarter ended December 29, 2018.

SecondQuarter Key Financial Highlights

• Sales rose 11.7% year over year (13.1% in constant currency) to$5.05 billion
• GAAP diluted EPS from continuing operations decreased 30% yearover year to $0.33

o   Non-GAAP adjusted diluted EPS rose 33% year over year to $1.04

o   Foreign exchange rates negatively impacted adjusted diluted EPS by$0.02

• GAAP operating income rose 18% year over year to $96.1 million

o   Adjusted operating income rose 28% year over year to $178.8million

• GAAP operating income margin was 1.9%, up from 1.8% a year ago

o   Adjusted operating income margin was 3.5%, up from 3.1% a year ago

• Returned $197 million to shareholders with $175 million of sharerepurchases and dividends of $22 million

CEOCommentary

"Oursecond quarter results demonstrate the tremendous progress we are making intransforming Avnet into a global technology solutions company," said Avnet CEOBill Amelio. "Even with the current uncertainties in Asia, Avnet posted stronggains in revenue and profitability compared to a year ago. Our unique ecosystemapproach is really starting to pay off with our suppliers and customers. Withthe addition of Softweb Solutions, we now have the software and hardware todeliver an end-to-end IoT capability that can lower costs, speed time tomarket, and reduce complexity for our customers."

CFO Commentary

"This quarter, we continued to executebroadly across our stated goals including accelerating the Americas, optimizingour cost structure and reducing share count," stated Tom Liguori, Avnet ChiefFinancial Officer. "We delivered year-over-year, double-digit sales growthwhile reducing selling, general and administrative expenses by $12 million. Ourdiluted share count decreased by 10 million shares year over year or 8%. Ourremaining buyback authorization stands at $440 million at the end of thequarter which we will utilize appropriately to signal our continued confidencein Avnet's long-term outlook."

Additional Second QuarterFiscal 2019 Highlights and Key Developments

• ExpandedAvnet's Internet of Things (IoT) capabilities with the acquisition of SoftwebSolutions. The integration of Softweb's best-of-breed artificial intelligence(AI) software for IoT applications, along with its data services and digitalprocess capabilities, provides Avnet with rapid design, development, anddeployment capabilities that can help customers increase efficiency, speed timeto market and help their businesses transform.
• Capitalizedon the significance of electronica, a leading trade show for electronics, by buildingAvnet City. This was the first time Avnet used an industry event to bringtogether under one exhibit the expanse of Avnet's end-to-end ecosystem. Thewell-received Avnet exhibit included community-oriented events hosted byHackster.io and element14, and demonstrations highlighting the Company'sinnovation capabilities, including robotics, AI and virtual reality.
• Demonstratedat CES the depth and breadth of Avnet's IoT R&D resources including itsrole as a lead partner for Microsoft Azure Sphere; the unveiling of Avnet's SmartEdgeAgile, which is ideal for developing machine learningapplications such as predictive maintenance and remote monitoring; and Avnet'sSmartEdge Industrial IoT Gateway, which is designed for automation applicationsthat require strong end-to-end security.
• Generated$72 million of cash flow from continuing operations during the quarter.
• Recordedrestructuring, integration and other expenses of $62 million during the secondquarter primarily for non-cash impairment and severance costs. These chargeswere incurred in connection with the continued transformation of our IT,distribution center and business operations including the re-prioritization ofour IT initiatives and resources. Second quarter transformation projects areexpected to deliver approximately $10 million in savings per quarter once fullyimplemented.

Awards and NotableRecognition Received During the Quarter

• ReceivedROHM Semiconductor's Global Distributor Award
• NamedSupplier of the Year by L3 Technologies for the second year in a row
• ReceivedInfineon's Top Distributor Award in Asia and Greater China
• Recognizedby Micron with the Most Valuable Demand Creation Distributor Award in Asia
• Receivedseveral TE Connectivity awards in China/Asia for Excellent Solution Design andGrowth

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

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About Avnet

Avnetis a global technology solutions provider with an extensive ecosystemdelivering design, product, marketing and supply chain expertise for customersat every stage of the product lifecycle. We transform ideas into intelligentsolutions, reducing the time, cost and complexities of bringing products tomarket. For nearly a century, Avnet has helped its customers and suppliersaround the world realize the transformative possibilities of technology. Learnmore about Avnet at www.avnet.com.