Distributor Avnet has reported a 1.8% rise in Q2 revenue from the previous fiscal year, with strong sales in Europe.
Avnet Technology Solutions, the IT arm, reported revenue of $3.1bn, at the high end of expectations due to better than seasonal growth in the EMEA. This figure was a fall of 4.6% year-over-year driven by 13.4% decline in Asia, it says.
Kevin Moriarty, CFO, said: "TS saw better than expected growth in our EMEA and Americas region which led to above-seasonal growth as revenue grew 29.4% sequentially in constant currency.
"Our EMEA region grew 34.5% sequentially in constant currency while Americas and Asia regions grew 29.2% and 13.7% respectively. Revenue of $3.12 billion declined 4.6% year-over-year and was down 2% in constant currency driven by 13.4% decline in our Asian region related primarily to our continuing components business."
The decline in the Americas gross profit margin was partially offset by increases in EMEA and Asia. 30% of revenue and an even higher percent of operating income is derived in the EMEA region.
Rick Hamada, CEO, added: "At a product level, networking of security, services and storage were all up year-over-year while our sequential growth was led by software services and storage."
Converged solutions continue to be a hot area, he says, as a key building block of today's data centre.