Avnet, Inc. (NASDAQ:AVT) Q2 2023 Earnings Call Transcript

Joe Quatrochi: Yes. That’s helpful. And just maybe as a follow-up with March quarter revenue guidance declining nearly on the midpoint, how do we think about cash flow generation? Should we start to think about that as maybe inflecting positive? And then just also on that note how do we think about CapEx? I know there’s maybe more of a onetime kind of CapEx this quarter? How do we think about the CapEx in the next couple of quarters?

Ken Jacobson: Yes. To answer the CapEx question first, I’d say, it’s maybe more consistent flow. So, $25 million-ish a quarter give or take something would kind of be the expectation there on CapEx. And I’d say the answer is yes on cash flow, but we’ve got some work to do to get the inventory levels down and collect the receivables. So, that’s clearly the goal when sales go down. Our model then needs less working capital, including less receivables and less inventory and it works through. So, it may take a little bit more time than we’d like. But that’s what we’re clearly focused on this next quarter and then going into the fourth quarter.

Joe Quatrochi: Thank you,

Ken Jacobson: Thank you.

Operator: Thank you. There are no further questions at this time. I would like to hand the call back over to Phil Gallagher, CEO for any closing comments.

Phil Gallagher: Thanks a lot. I want to thank everyone for attending today’s earnings call. Yes I look forward to speaking to you again in our fiscal third quarter earnings report in early May. Have a great 2023.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.