The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: <_ALACRA_META_ABSTRACT>Ken, maybe just starting off, obviously, you've got a very good perspective on just what's going on within the semiconductor industry.
It seems like everybody is just talking about the recovery that we're starting to see.
More broadly speaking, maybe just give us your perspective of what you're seeing from a semi-cycle perspective? Are you starting
to see signs of a recovery? Maybe just talk about what you're seeing from a bookings, book-to-bill, backlog, and just inventory
perspective.
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Maybe just one quick clarification. How big is your Asia business?
And then, you talked about seeing a heavy turns business. I think a lot of the semiconductor companies at this conference have also
commented on that. What do you make on that? Is that unusual at this point in the cycle? Is that also limiting your visibility in some
of the out-quarters, at this point?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Yeah. That's an interesting point. Several of the companies that you [wrapped] have been presenting at our conference, have been
saying they've been sending out notifications and letters to their customers and warning them and encouraging them to get ahead
of these lead times that could be extending and maybe start placing more orders into backlog.
Are you seeing any customer being receptive to that and maybe booking a little bit further out in response to some of these letters
that are being sent?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Maybe, can you give us your view on just what you're seeing, in terms of demand trends via different end markets, right now?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. A question that I get a lot from investors these days is not just your results but just broader results. Like, if you look at your
results, how much of your results do you think are being driven by tariff-related pull-ins versus just the broader cyclical recovery?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Okay. Can you talk about, more specifically, what are some of your mitigation strategies? And also maybe just talk about China; what
percentage of your revenues are from China?
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AUGUST 12, 2025 / 9:30PM, AVT.OQ - Avnet Inc at KeyBanc Technology Forum
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Are there any questions? I'm wondering if you could just talk about just your gross margin mix across regions. Obviously, with
Asia being such a big percentage of your business, you are seeing a little bit of margin dilution there and it's half of your revenues.
What are you trying to do to offset that dilution?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Can you talk about what your long-term operating margin targets are? What are the levers for you to get there?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Yeah. You brought up Farnell. Can you give us an update on just what you're doing specifically with the Farnell improvement strategy?
And then, maybe just talk about the Farnell operating margins, how do they compare to your overall corporate margins?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: What percentage of your revenues does Farnell represent? When we think about the growth going forward for Farnell, is there an
opportunity for that to see outsized growth? Or should we be thinking about, what, sets of growth rate there?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Can you talk about where your inventories are? Just given where we are in the cycle, are you contemplating increasing
inventories at this point?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Okay. How many days of inventory are you at? What's --?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Can you talk about what you're seeing from a pricing perspective, right now?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Yeah. I think the last question for me is just when you think about just competition, can you just talk about, from a differentiation
perspective, how do you differentiate yourselves from some of the other big distributors out there like Arrow or World Peace?
Question: John Vinh, CFA - KeyBanc Capital Markets Inc - Analyst
: Great. Thanks very much, Ken.
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AUGUST 12, 2025 / 9:30PM, AVT.OQ - Avnet Inc at KeyBanc Technology Forum
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