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: Nikolay Todorov - Longbow Research LLC - Analyst
: Phil, congrats from me as well. I guess if you guys can touch on your assessment of the inventory situation at customers. I think there's been a lot
of mixed data points. Some of the connector suppliers have seen some excess inventory in auto. But generally, what is your view? How do you
assess the inventory situation at that end customers?
Question: Nikolay Todorov - Longbow Research LLC - Analyst
: Okay. And as a follow-up, Phil, just love to hear your thoughts on the overall trend of supplier consolidation in the industry. How do you see that
potentially impacting -- not so much interested in the potential impacts from the deals, but how does that impact customers and your ability to
maybe acquire additional customers that you're not currently working with?
Philip R. Gallagher - Avnet, Inc. - Interim CEO, Global President of Electronic Components Business & Member of Executive Board
Yes. And Nik, you meant acquiring additional suppliers, I think. But the -- so look, we don't sit in our supplier boardroom, so we're not sure exactly
who they're looking to buy or divest or what have you. I can tell you that it's not new. Yes, the acquisitions and mergers have certainly accelerated
over the last several years, and we all know who's been acquiring who. The last couple have -- actually, the last couple have actually benefited us
with -- as we announced this week, Cypress coming in with Infineon, Microsemi with Microchip. And we're always looking at the line card for the
gaps and overlaps and adding lines where they're key and critical from a technology standpoint. So all we can do is continue to execute with those
suppliers that we have and be a good supplier partner for them, and driving demand creation, customer expansion, revenue growth and do what's
right, work hard and then no pun intended, let the chips fall where they may.
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