Monday, July 11, 2016

Avnet Shuffles CEO, Warns On Earnings

Phoenix-based technology distributor Avnet said this morning that it has appointed board member William ("Bill") J. Amelio as its interim CEO, replacing prior CEO Rick Hamada. According to Avnet, Hamada has stepped down from both the CEO position as well as the board. The reason for the resignation was not given, however, Avnet also revised its guidance for Q4, saying it is adjusting diluted earnings per share in the range of $0.80 to $0.86, down from $0.95 to $1.05, primarily due to issues with an ERP implementation in the Americas region of its Electronics Marketing operating group. The company says sales are expected to be in the range of $6.15 billion to $6.25 billion, compared with an earlier guidance of $6.25 billion. The ERP issue apparently resulted in approximately $100M less in revenues for the company, along with other incurred costs.