Wednesday, Avnet, Inc. (AVT), a distributor of electronic components and computer products, reported a loss for the fourth quarter compared to a profit last year, hit by impairment and other charges. However, on an adjusted basis, the company reported lower earnings, as revenues dropped 19.5% year-on-year.
Net loss for the quarter was $30.9 million or $0.20 per share, compared with net income of $144.1 million or $0.95 per share in the corresponding period last year.
Results for the most recent quarter included impairment charges and restructuring, integration and other items amounting to $78.9 million, or $0.52 per share.
Excluding items, net income for the quarter slid to $48 million from $128.2 million in the year-ago period. Earnings per share declined to $0.32 from $0.85in the same period last year and came below $0.35 per share projected by nine analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
Quarterly revenue declined 19.5% to $3.77 billion from $4.68 billion in the year-ago quarter. Street analysts expected the company to report revenues of $3.74 billion for the quarter.
After adjusting revenue for the impact of acquisitions that had occurred at the beginning of fiscal 2008, on a pro forma basis, revenue declined 24.7% from last year.
Electronics Marketing or EM segment sales declined to $2.13 billion from $2.73 billion in the year-ago period. Technology Solutions or TS segment sales decreased to $1.64 billion from $1.95 billion in the prior year quarter.
Operating loss was $20.5 million as compared with operating income of $170.6 million in the year-ago quarter. Gross profit declined to $442.8 million from $611.8 million in the year-ago quarter.
For the twelve-month period, net loss was $1.12 billion or $7.44 per share as compared with net income of $499.1 million or $3.27 per share last year. Revenue was $16.23 billion, down 9.6% from $17.95 billion in 2008
Looking ahead, the company expects first quarter earnings to be in the range of $0.29 to $0.37 per share. The guidance includes about $0.07 per share related to the expensing of stock-based compensation. In addition, guidance assumes an average Euro to U.S. Dollar currency exchange rate of $1.43 to €1.00.
Consolidated first quarter sales are forecasted to be between $3.60 billion and $4.20 billion. The company anticipates EM sales to be in the range of $2.05 billion to $2.35 billion and sales for TS to be between $1.55 billion and $1.85 billion.
Currently, for the first quarter, Street analysts expect the company to report earnings of $0.37 per share on revenues of $3.75 billion.
AVT is currently down $1.48 or 5.79% and trades at $24.10.
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