Earnings release
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Avnet Reports First Quarter 2027 Financial Results November 4, 2026 Record quarterly sales of $10.7 billion and earnings per share of $3.28 Electronic Components achieved operating margin of 4.8% on record operating income of $484 million Farnell achieved operating margin of 10.1% on record sales of $583 million PHOENIX--(BUSINESS WIRE)--Nov. 4, 2026-- Avnet, Inc. (Nasdaq: AVT) today announced results for its first quarter ended October 3, 2026. “We began fiscal 2027 by delivering another record quarter, reflecting stronger demand and solid execution across all of our businesses,” said Avnet Chief Executive Officer Phil Gallagher. “The fundamental backdrop for our industry remains positive, with continued growth across our core verticals such as industrial, aerospace and defense, transportation and AI and data center applications. Our team is diligently managing expenses and working capital while supporting significant and sustained demand. With momentum across our business, our outlook is robust, and we remain focused on executing our strategy, driving profitable growth and creating long-term value for our shareholders.” Fiscal First Quarter Key Financial Highlights: Record quarterly sales of $10.7 billion, an increase of 82% year over year and 29% sequentially. Sequential and year-over-year sales growth across all EC regions and Farnell. Excluding the extra week of sales in the fiscal first quarter of 2027, sales growth was 71% year over year and 21% sequentially. Diluted earnings per share of $3.28, compared with $0.61 in the prior-year quarter. Record adjusted diluted earnings per share of $3.63 increased 332% year over year. Adjusted diluted earnings per share grew 4 times greater than sales year over year. Operating income margin of 4.4% expanded 202 basis points year over year. Adjusted operating income margin of 4.7% expanded 210 basis points year over year. Adjusted operating income grew approximately 3 times greater than sales year over year. Electronic Components operating margin of 4.8% improved 189 basis points year over year. Farnell operating margin of 10.1% improved 576 basis points year over year. Return on working capital improved to 25% compared to 19% last quarter and 10% a year ago. Inventory days of 72 were relatively flat quarter over quarter. Net working capital days declined 5 days to 64 days quarter over quarter. Returned $30 million to shareholders in dividends. Key Financial Metrics ($ in millions, except per share data) First Quarter Results (GAAP)(1) Sep – 26 Sep – 25 Change Y/Y Jun – 26 Change Q/Q Sales(1) $ 10,718.0 $ 5,898.6 81.7% $ 8,295.4 29.2% Operating Income $ 474.7 $ 142.0 234.3% $ 231.0 105.5% Operating Income Margin 4.4% 2.4% 202bps 2.8% 165bps Diluted Earnings Per Share $ 3.28 $ 0.61 437.7% $ 1.49 120.1% First Quarter Results (Non-GAAP)(1)(2) Sep – 26 Sep – 25 Change Y/Y Jun – 26 Change Q/Q Adjusted Operating Income $ 498.1 $ 150.7 230.5% $ 317.9 56.7% Adjusted Operating Income Margin 4.7% 2.6% 210bps 3.8% 82bps Adjusted Diluted Earnings Per Share $ 3.63 $ 0.84 332.1% $ 2.28 59.2% Segment and Geographical Mix Sep – 26 Sep – 25 Change Y/Y Jun – 26 Change Q/Q Electronic Components (EC) Sales(1) $ 10,134.7 $ 5,499.7 84.3% $ 7,795.3 30.0% EC Operating Income Margin 4.8% 2.9% 189bps 4.1% 71bps Farnell Sales(1) $ 583.3 $ 398.9 46.2% $ 500.1 16.6% Farnell Operating Income Margin 10.1% 4.3% 576bps 9.0% 109bps Americas Sales(1) $ 2,861.8 $ 1,369.9 108.9% $ 2,060.7 38.9% EMEA Sales(1) $ 2,737.5 $ 1,665.9 64.3% $ 2,298.9 19.1% Asia Sales(1) $ 5,118.7 $ 2,862.8 78.8% $ 3,935.8 30.1%
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(1) The first quarter of fiscal 2027 contained 14 weeks, compared to 13 weeks in the first and fourth quarters of fiscal 2026. (2) A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release. Guidance for the Second Quarter of Fiscal 2027 Ending on January 2, 2027 Guidance Range Midpoint Sales $11.1B – $11.4B $11.25B Adjusted Diluted EPS (1) $3.90 – $4.10 $4.00 (1) A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release. The second quarter guidance implies sequential sales growth of approximately 5% at the midpoint and 12% when adjusting for the impact of the extra week of sales in the first quarter. Guidance for the second quarter assumes similar supply of electronic components from Avnet’s suppliers compared to the first quarter. The second quarter guidance also excludes restructuring, integration and other expenses, foreign currency gains and losses, and certain income tax adjustments. The second quarter guidance assumes similar interest expense to the first quarter of fiscal 2027 and an adjusted effective tax rate of between 21% and 25%. The second quarter guidance assumes 87 million average diluted shares outstanding. The average currency exchange rates assumed for second quarter guidance are shown in the table below: Q2 Fiscal 2027 Q1 Fiscal Q2 Fiscal Guidance 2027 2026 Euro to U.S. Dollar $1.12 $1.15 $1.16 GBP to U.S. Dollar $1.33 $1.34 $1.33 Today’s Conference Call and Webcast Details Avnet will host a conference call and webcast today at 8:00 a.m. PT / 11:00 a.m. ET to discuss its financial results, provide a business update and answer questions. Live conference call: 877-407-8112 (domestic) or 201-689-8840 (international) Live webcast along with slides can be accessed via Avnet’s Investor Relations website at https://ir.avnet.com or by accessing the webcast directly at https://avt-q1-2027.open-exchange.net An audio replay of the webcast will be available after the completion of the call and archived on the website for one year Forward-Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations, and business of the Company. You can find many of these statements by looking for words like “believes,” “projected,” “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates,” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2026 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: geopolitical events and military conflicts; pandemics and other health-related crises; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors; relationships with key suppliers and allocations of products by suppliers; accounts receivable defaults; risks relating to the Company’s international sales and operations, including risks relating to repatriating cash, foreign currency fluctuations, inflation, duties and taxes, tariffs, sanctions and trade restrictions, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures, and investments; adverse effects on the Company’s supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers, and suppliers, including as a result of issues caused by military conflicts, terrorist attacks, natural and weather-related disasters, pandemics and health related crises, warehouse modernization, and relocation efforts; risks related to cyber security attacks, other privacy and security incidents, and information systems failures, including related to current or future implementations, integrations, and upgrades; general economic and business conditions (domestic, foreign, and global) affecting the Company’s operations and financial performance and, indirectly, the Company’s credit ratings, debt covenant compliance, liquidity, and access to financing; constraints on employee retention and hiring; and legislative or regulatory changes. Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made. About Avnet As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for more than a century. Through regional and specialized businesses around the world, we support customers and suppliers at every stage of the product lifecycle. We help companies
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adapt to change and accelerate the design and supply stages of product development. With a unique viewpoint from the center of the technology supply chain, Avnet is a trusted partner that solves complex design and supply chain issues so customers can realize revenue faster. Learn more about Avnet at www.avnet.com. (AVT_IR) AVNET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) First Quarters Ended October 3, September 27, 2026 2025 (Thousands, except per share data) Sales $ 10,717,980 $ 5,898,572 Cost of sales 9,644,004 5,283,807 Gross profit 1,073,976 614,765 Selling, general and administrative expenses 576,304 464,442 Restructuring, integration, and other expenses 22,936 8,291 Operating income 474,736 142,032 Other expense, net (11,239) (5,466) Interest and other financing expenses, net (91,854) (59,762) Income before taxes 371,643 76,804 Income tax expense 89,471 25,059 Net income $ 282,172 $ 51,745 Earnings per share: Basic $ 3.43 $ 0.62 Diluted $ 3.28 $ 0.61 Shares used to compute earnings per share: Basic 82,273 82,996 Diluted 86,005 84,462 Cash dividends paid per common share $ 0.37 $ 0.35 AVNET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) October 3, June 27, 2026 2026 (Thousands) ASSETS Current assets: Cash and cash equivalents $ 236,780 $ 155,396 Receivables 7,758,037 6,882,965 Inventories 8,175,066 6,069,419 Prepaid and other current assets 232,159 226,043 Total current assets 16,402,042 13,333,823 Property, plant and equipment, net 637,029 644,574 Goodwill 808,798 810,163 Operating lease assets 241,303 248,958 Other assets 376,168 387,875 Total assets $ 18,465,340 $ 15,425,393 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ 861,451 $ 733,952 Accounts payable 7,842,394 6,054,326 Accrued expenses and other 710,407 659,266
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Short-term operating lease liabilities 55,027 55,888 Total current liabilities 9,469,279 7,503,432 Long-term debt 3,306,435 2,478,864 Long-term operating lease liabilities 200,746 207,111 Other liabilities 204,913 213,483 Total liabilities 13,181,373 10,402,890 Shareholders’ equity 5,283,967 5,022,503 Total liabilities and shareholders’ equity $ 18,465,340 $ 15,425,393 AVNET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) First Quarters Ended October 3, September 27, 2026 2025 (Thousands) Cash flows from operating activities: Net income $ 282,172 $ 51,745 Non-cash and other reconciling items: Depreciation and amortization 19,249 16,839 Amortization of operating lease assets 16,860 13,934 Deferred income taxes 13,700 (5,983) Stock-based compensation 18,888 9,724 Other, net 7,016 (13,324) Changes in (net of effects from businesses acquired and divested): Receivables (893,321) (192,583) Inventories (2,121,749) (216,326) Accounts payable 1,810,176 218,297 Accrued expenses and other, net 4,601 (26,907) Net cash flows used for operating activities (842,408) (144,584) Cash flows from financing activities: Issuance of convertible notes, net of issuance costs — 633,750 Issuance of notes, net of discounts 545,551 — Repayments under accounts receivable securitization, net (474,600) (299,400) Borrowings (repayments) under senior unsecured credit facility, net 648,897 (290,861) Borrowings (repayments) under bank credit facilities and other debt, net (27,686) 10,352 Borrowings under term loans 375,000 266,932 Repayments of term loans (88,946) — Repurchases of common stock — (138,308) Dividends paid on common stock (30,424) (28,464) Other, net 2,979 1,137 Net cash flows provided by financing activities 950,771 155,138 Cash flows from investing activities: Purchases of property, plant and equipment (24,262) (24,589) Other, net 822 80 Net cash flows used for investing activities (23,440) (24,509) Effect of currency exchange rate changes on cash and cash equivalents (3,539) (3,008) Cash and cash equivalents: — increase (decrease) 81,384 (16,963) — at beginning of period 155,396 192,428 — at end of period $ 236,780 $ 175,465 Non-GAAP Financial Information
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In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted other income (expense), (iii) adjusted income before income taxes, (iv) adjusted income tax expense (benefit), and (v) adjusted diluted earnings per share. There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company’s results of operations, results excluding this impact are referred to as “constant currency.” Management believes sales in constant currency is a useful measure for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period. Management believes that operating income adjusted for restructuring, integration and other expenses, and amortization of acquired intangible assets, is a useful measure to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, and amortization of acquired intangible assets. Management also believes income tax expense (benefit), net income and diluted earnings per share adjusted for the impact of the items described above, foreign currency gains and losses and certain items impacting income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the effective tax rate based upon the expected long-term adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and diluted earnings per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public. Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income divided by sales and the adjusted effective income tax rate, which is defined as adjusted income tax expense divided by adjusted income before income taxes. Additionally, Return on Working Capital (ROWC) is calculated by taking adjusted operating income and annualizing the amount, then dividing by the average working capital for the quarter. Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP. Fiscal 2027 First Quarter October 3, 2026* ($ in thousands, except per share amounts) GAAP operating income $ 474,736 Restructuring, integration, and other expenses 22,936 Amortization of intangible assets 392 Adjusted operating income 498,064 GAAP other expense, net $ (11,239) Foreign currency loss 10,377 Adjusted other expense, net (862) GAAP income before income taxes $ 371,643 Restructuring, integration, and other expenses 22,936 Amortization of intangible assets 392 Foreign currency loss 10,377 Adjusted income before income taxes 405,348 GAAP income tax expense $ 89,471 Restructuring, integration, and other expenses 6,238 Amortization of intangible assets 94 Foreign currency loss 2,889 Income tax expense items, net (5,462) Adjusted income tax expense 93,230 GAAP net income $ 282,172 Restructuring, integration, and other expenses (net of tax) 16,698
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Amortization of intangible assets (net of tax) 298 Foreign currency loss (net of tax) 7,488 Income tax expense items, net 5,462 Adjusted net income 312,118 GAAP diluted earnings per share $ 3.28 Restructuring, integration, and other expenses (net of tax) 0.20 Amortization of intangible assets (net of tax) 0.00 Foreign currency loss (net of tax) 0.09 Income tax expense items, net 0.06 Adjusted diluted EPS 3.63 * May not foot due to rounding. Fiscal Quarters Ended Year June 27, March 28, December 27, September 27, 2026* 2026 2026 2025 2025 ($ in thousands, except per share amounts) GAAP operating income $ 724,782 $ 231,019 $ 205,535 $ 146,196 $ 142,032 Restructuring, integration, and other expenses 134,706 86,507 14,737 25,171 8,291 Amortization of intangible assets 1,457 364 364 364 364 Adjusted operating income 860,945 317,890 220,636 171,731 150,687 GAAP other income (expense), net $ (6,631) $ (4,405) $ (1,827) $ 5,067 $ (5,466) Foreign currency loss (gain) 10,714 3,726 3,444 (2,939) 6,483 Adjusted other income, net 4,083 (679) 1,617 2,128 1,017 GAAP income before income taxes $ 467,436 $ 160,158 $ 140,570 $ 89,905 $ 76,804 Restructuring, integration, and other expenses 134,706 86,507 14,737 25,171 8,291 Amortization of intangible assets 1,457 364 364 364 364 Foreign currency loss (gain) 10,714 3,726 3,444 (2,939) 6,483 Adjusted income before income taxes 614,313 250,755 159,115 112,501 91,942 GAAP income tax expense $ 133,047 $ 33,579 $ 46,238 $ 28,172 $ 25,059 Restructuring, integration, and other expenses 38,561 23,343 5,901 6,865 2,452 Amortization of intangible assets 344 87 86 86 85 Foreign currency loss (gain) 1,827 625 758 (1,091) 1,535 Income tax expense items, net (32,487) 40 (16,386) (8,157) (7,984) Adjusted income tax expense 141,292 57,674 36,597 25,875 21,147 GAAP net income $ 334,389 $ 126,579 $ 94,332 $ 61,733 $ 51,745 Restructuring, integration, and other expenses (net of tax) 96,145 63,164 8,836 18,306 5,839 Amortization of intangible assets (net of tax) 1,112 277 278 278 279 Foreign currency loss (gain) (net of tax) 8,887 3,101 2,686 (1,848) 4,948 Income tax expense items, net 32,487 (40) 16,386 8,157 7,984 Adjusted net income 473,020 193,081 122,518 86,626 70,795 GAAP diluted earnings per share $ 4.01 $ 1.49 $ 1.14 $ 0.75 $ 0.61 Restructuring, integration, and other expenses (net of tax) 1.15 0.75 0.11 0.22 0.07 Amortization of intangible assets (net of tax) 0.01 0.00 0.00 0.00 0.00 Foreign currency loss (gain) (net of tax) 0.11 0.04 0.03 (0.02) 0.06 Income tax expense items, net 0.39 — 0.20 0.10 0.10 Adjusted diluted EPS 5.67 2.28 1.48 1.05 0.84 * May not foot/cross foot due to rounding. Organic Sales Organic sales is defined as sales adjusted for the estimated impact of the extra week of sales in the first quarter of fiscal 2027 due to the 14-week fiscal first quarter and the 53-week fiscal year. Organic sales in constant currency is defined as organic sales (as defined above) excluding the impact of changes in foreign currency exchange rates.
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The following table presents the reconciliation of reported sales to organic sales for the first quarter of fiscal 2027. Quarter Ended October 3, 2026 Estimated Extra Week in Sales Q1-Fiscal Organic As Reported 2027(1) Sales (Thousands) Avnet $ 10,717,980 $ 654,000 $ 10,063,980 Avnet by region Americas $ 2,861,757 $ 145,000 $ 2,716,757 EMEA 2,737,489 181,000 2,556,489 Asia 5,118,734 328,000 4,790,734 Avnet by operating group EC $ 10,134,689 $ 615,000 $ 9,519,689 Farnell 583,291 39,000 544,291 (1) The impact of the additional week of sales in the first quarter of fiscal 2027 is estimated. Sales in Constant Currency The following table presents the percentage change in sales and the percentage change in sales in constant currency for the first quarter of fiscal year 2027 compared to the first quarter of fiscal year 2026. Quarter Ended October 3, 2026 Sales Organic As Reported Sales Sales Year-Year % Organic Year-Year % As Reported Change in Sales Change in Year-Year % Constant Year-Year % Constant Change Currency Change (1) Currency (1) Avnet 81.7% 82.8% 70.6% 71.7% Avnet by region Americas 108.9% 108.9% 98.3% 98.3% EMEA 64.3% 66.5% 53.5% 55.7% Asia 78.8% 79.7% 67.4% 68.3% Avnet by operating group Electronic Components 84.3% 85.4% 73.1% 74.2% Farnell 46.2% 46.7% 36.5% 37.0% (1) Percentage change in sales excluding the impact of the additional week of sales. Return On Working Capital (ROWC) The following table (in thousands) presents the calculation for ROWC. Q1 F27 Q4 F26 Q1 F26 Adjusted operating income $ 498,064 $ 317,890 $ 150,687 Annualized adjusted operating income (a)(1) $ 1,885,529 1,271,560 602,748 Average quarterly working capital: Accounts receivable $ 7,320,501 $ 6,192,612 $ 4,415,464 Inventory $ 7,122,242 $ 5,765,907 $ 5,328,179 Accounts payable $ (6,948,360) $ (5,340,109) $ (3,588,142) Average working capital (b) $ 7,494,383 $ 6,618,410 $ 6,155,501 ROWC = (a) / (b) 25.2 % 19.2 % 9.8 % (1) The annualization of adjusted operating income for the first quarter of fiscal 2027 factored in the extra week in the first quarter, or 14 weeks, and 53
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weeks for the fiscal year. Segment Financial Information Quarters Ended* October 3, September 27, 2026 2025 ($ in millions, except margins and sales mix) Electronic Components Sales $ 10,134.7 $ 5,499.7 Cost of goods sold $ 9,229.8 $ 4,992.6 Gross profit $ 904.9 $ 507.1 Gross profit margin 8.9 % 9.2 % Operating income $ 484.5 $ 159.0 Operating income margin 4.8 % 2.9 % Farnell Sales $ 583.3 $ 398.9 Cost of goods sold $ 414.2 $ 291.2 Gross profit $ 169.1 $ 107.7 Gross profit margin 29.0 % 27.0 % Operating income $ 58.6 $ 17.1 Operating income margin 10.1 % 4.3 % Total reportable segment operating income $ 543.1 $ 176.1 Corporate selling, general and administrative expenses (45.0) (25.4) Restructuring, integration, and other expenses (22.9) (8.3) Amortization of acquired intangible assets (0.4) (0.4) Avnet operating income $ 474.7 $ 142.0 Sales by geographic area: Americas $ 2,861.8 $ 1,369.9 EMEA 2,737.5 1,665.9 Asia 5,118.7 2,862.8 Avnet sales $ 10,718.0 $ 5,898.6 Sales Mix by geographic area: Americas 26.7 % 23.2 % EMEA 25.5 % 28.3 % Asia 47.8 % 48.5 % * May not foot due to rounding. Guidance Reconciliation The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the second quarter of fiscal 2027. Low End of High End of Guidance Range Guidance Range Adjusted diluted earnings per share guidance $ 3.90 $ 4.10 Restructuring, integration, and other expenses (net of tax) (0.10) (0.05) GAAP diluted earnings per share guidance $ 3.80 $ 4.05 View source version on businesswire.com: https://www.businesswire.com/news/home/20261104434220/en/ Investor Relations Contact InvestorRelations@Avnet.com Media Relations Contact
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Liam Creighton, 480-643-5027 Liam.Creighton@Avnet.com Source: Avnet