Avnet, Inc.

Please stand by. Our presentation will now begin. Welcome to the AFNET second quarter fiscal year 2022 earnings call. I would now like to turn the floor over to Joe Burke, Vice President of Treasury and Investor Relations for AFNET.

Thank you, operator. Earlier this afternoon, AFNET released financial results for the second quarter fiscal year 2022. The release is available on the investor relations section of the company's website. A copy of the slide presentation that will accompany today's remarks can be found via the link in the earnings release as well as on the IR section of AFNET's website. Lastly, some of the information contained in the news release and on this conference call contain forward-looking statements that involve risk, uncertainties, and assumptions that are difficult to predict. Such forward-looking statements are not the guarantee of performance, and the company's actual results could differ materially from those contained in such statements. Several factors that could cause or contribute to such differences are described in detail in Avnet's most recent form, 10Q and 10K, and subsequent filings with the SEC. These forward-looking statements speak only as of the date of this presentation, and the company undertakes no obligation to publicly update any forward-looking statements or supply new information regarding the circumstances after the date of this presentation. Today's call will be led by Phil Gallagher, Avnet's CEO. and Tom Liguori, Avnet's CFO.

With that, let me turn the call over to Phil Gallagher. Phil? Thank you, Joe, and thank you, everyone, for joining us for our second quarter fiscal year 2022 earnings conference call. I hope your 2022 is off to a great start. As many of you are aware, our priority since I took the helm has been to make durable changes to our business that would yield more consistent results, drive sustainable growth and position us to capture share across regions and segments. I'm pleased to say our team's focus on execution has yielded strong competitive gain to financial performance, which is again evident in our second quarter results. In the quarter, revenues were $5.9 billion, up both sequentially and year-over-year, and our adjusted diluted earnings per share was $1.51. Our adjusted operating income increased 21% from the prior quarter, and our adjusted operating margin also increased sequentially to 3.7%. We are competing favorably across the board, but we're particularly pleased to see further evidence that Farnell is a needle mover for Total Avnet. Looking at our core electronic components business on slide five, revenues were up both sequentially and year-over-year in the quarter, and we posted sequential growth across all three geographic regions. EMEA and Asia delivered solid results while we saw a nice rebound in our Americas region, which was up double digits year-over-year. We were pleased with the Americas team's ability to maintain expense levels while capturing significant business opportunities from new customers and expanded scope of work from existing customers, as that would be critical to continued success in the region. We're especially excited about the prospects for the region as 23-year company veteran Dayna Badhorn takes the reins as the new president of the Americas. In her prior positions at Adnet, Dayna has served in sales management, supplier management, and customer technical support and most recently as our strategy leader where she played an integral role in identifying growth opportunities to enhance AdNet's overall business portfolio. We are confident she will leverage her breadth of knowledge in guiding the Americas team to capture market share as well as new and expanded business opportunities with existing customers in the future. Our book-to-bill ratios at the end of the quarter remain strong. Lead times remain extended. With certain products like microprocessors, microcontrollers and power, continue to have extended lead times. We experience continued strong demand in key verticals such as automotive, industrial, defense, communications, and healthcare, pretty much across the board. We continue to tightly manage our backlog and we're satisfied with our inventory levels, which increase later in the quarter, primarily to support past dues and firm orders. It should be noted that investment is usually made in the December quarter to support the traditionally strong start to the calendar year in the western regions. Further, our continued investments in digital and design tools and field application engineers are paying off as demonstrated by another strong quarter of design and engineering activity across all regions. Strong levels of design registrations and wins in prior quarters resulted in record demand creation sales and gross profit in the current quarter. Turning to Farnell on slide six, sales were up 35.3% year over year to $441 million with notable performance from Farnell's America's Business. We continue to execute our commitment to our Farnell segment. We added over 22,000 SKUs in the quarter, which gets us to about 55% of the way toward our plans to add up to 250,000 SKUs through the fiscal year 2022. Supplementing our inventory investments, we're continuing to enhance and invest in Farnell's e-commerce capabilities. In the second quarter, 54.5% of total sales and 71.5% of total transactions were placed through Farnell's e-commerce platform. With additional critical updates to the platform and sustained investment in improving the user experience, we expect we'll continue to see increased traffic and new customer acquisitions in the quarters to come. In summary, we're pleased with our performance in calendar year 2021. and feel that the business is well positioned to weather macro challenges and continue to capture exciting new opportunities heading into 2022. Our incredible employees have demonstrated their strength and commitment to the business and our customers over the last year, and I'm confident in our team's ability to achieve even greater success in the quarters to come. With that, let me turn the call over to Tom to report on the financials for the quarter. Tom?