Avnet (AVT) revived its business quite well in fiscal 2010 after a disastrous 2009, driven by strong global demand. Business began to recover in the first quarter of fiscal 2010 as end demand improved and participants began to realize inventory in the technology supply chain at unsustainably low levels.
This propelled growth for the rest of fiscal 2010. Revenue is back to pre-recession levels and Asia continues to contribute the larger portion of the total. Asia was less impacted by the downturn and began its recovery phase before the western regions.
The recent acquisition of Bell Microproducts should further expand the scale of operations and provide cross-selling opportunities. We maintain our Outperform recommendation.
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