Avnet, Inc. (NASDAQ: AVT) stock fell 0.77% after the company posted decent results for the second quarter of FY 20. During the second quarter, the company had also acquired the focused line card distributor Phoenics. The company has completed the construction of the Farnell new distribution facility in Europe. the company has ended the secondd quarter with a book-to-bill of 0.99. The company has completed the acquisition of Witekio which strengthens the software and IoT capabilities at the device level. The company has delivered on the target of $50 million of annual operating expense reductions, which is part of the three year $245 million cost reduction goal. AVT in the second quarter has generated $149 million in cash-flow from operations. The company had used the cash to buy back at $88 million of stock, pay $21 million in dividends and invest $51 million in two strategic acquisitions
AVT in the second quarter of FY 20 has reported the adjusted earnings per share of 40 cents, while reported 10.3 percent fall in the adjusted revenue of $4.53 billion in the second quarter of FY 20. Adjusted operating expenses rose $7 million sequentially to $443 million in the second quarter, primarily due to a reserve for a potential bad debt, which is unique to one customer. By region, Americas ended the quarter at 1.0, Asia was just below parity at 0.99, and EMEA was 0.94.
Moreover, electronic components performance reflected the slow demand environment, with revenues declining 10.2% year-over-year to $4.2 billion and also down 2.1% sequentially. The operating margins declined 39 basis points sequentially to 2.2%. The decline in operating margins is due to the slightly higher operating expenses with lower revenues. Gross Margin was flat sequentially. Further, Geographically, Americas reported the revenue of $1.2 billion, down 2.4% sequentially and 8.8% year-over-year. Despite the slowing, revenues in the second quarter were better than expected and appear to be stabilizing. EMEA posted the revenue of $1.4 billion was down 3.1% sequentially and 14.6% year-over-year. In constant currency performance was a bit better down 2.9% and 12.1% respectively. Overall, EMEA performance was in line with the company’s expectations.