Avnet, Inc.

We stand by. Our presentation will now begin. Welcome to Avnet's third 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 Avnet.

Thank you, operator. Earlier this afternoon, Avnet released financial results for the third fiscal quarter of 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 on the link in the earnings release as well as on the IR section of APNIC'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 ABNET's most recent form, 10-Q and 10-K, 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, ABNET'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 third quarter fiscal year 2022 earnings conference call. I am very pleased to share that our team's continued focus on execution has yielded yet another quarter of strong financial performance and competitive gains across our business. Our focus on accelerating the growth of Farnell and on strengthening the operational efficiency and critical partnerships of our core distribution business is yielding consistent results. And this is demonstrated in the numbers. We posted 32% year-over-year revenue growth with Asia exceeding expectations by defying the traditional March quarter seasonality two years in a row. Margins were also very robust. In the quarter, Revenues of $6.5 billion were up sequentially and year-over-year. Our adjusted operating margin increased sequentially to 4.7% driven by the continued margin expansion of Farnell and Electronic Components Business. We are competing favorably across the board and are pleased to see continued improvement in our America's business where strong demand and expanded supply chain orchestration opportunities helped us grow revenue by over 40% year-over-year and achieve our fifth consecutive quarter of operating margin growth. We are also especially pleased with strong results from Fernell, which has proven to be an important needle mover for Total Avnet and is now responsible for 7% of our sales and 23% of our adjusted operating income. Robust demand was again widespread across our end markets. We continue to see strength in the automotive, transportation and industrial segments, and we expect the aerospace and defense segments to remain elevated over the coming quarters. Overall, we continue to forecast favorable demand conditions to hold throughout the second half of this calendar year. Before I turn to segment performance, I would like to briefly address the conflict in Ukraine. Our team has been deeply saddened by the violence that has unfolded and continues to closely monitor the safety of our colleagues in the region. Our thoughts are with all who have been affected by these tragic events. We have just a small number of employees in Ukraine, most of whom have safely left the country. We also have some in Russia and, of course, many partners, suppliers, and customers in the region. Due to that, we do expect some and many others. by Avnet and the Farnell employees to provide direct support to Ukrainian refugees entering Poland, including through the delivery of supplies and equipment. I couldn't be more proud of these efforts and the supportive culture we've built here at Avnet. Turning to the performance of our electronic components business, revenues were up 11% sequentially and 33% year-over-year in the quarter due to strong sales across all of the regions. We posted double-digit sequential growth in EMEA and in the Americas. And as previously mentioned, this is usually a seasonally slower quarter in Asia due to the lunar holiday. So we were very pleased to see results in Asia that exceeded our expectations for the March quarter, which we believe was driven by shared growth in the region, solid demand creation, and growth in the power and programmable logic controller segments. We saw a continued rebound in our Americas region, which was again up significantly year over year and sequentially. What's more, the team's ability to maintain expense levels while also capturing significant business opportunities from new and existing customers driving improved margins in the region. Of note, we have expanded opportunities in the Americas and EMEA to engage directly with tier one automotive and transportation companies. Very exciting. This broad engagement speaks to the value ADNIP brings with our deep expertise in supply chain orchestration and is exemplary of the new contracts we are winning across our business. Our book-to-bill ratios at the end of the quarter remain strong. Lead times remain consistently extended at this point in time. We continue to tightly manage our backlog and are satisfied with our inventory levels as we support strong demand across our operating regions. Our continued investments in digital and design tools and field application engineers are paying off as demonstrated by another solid quarter of design and engineering activity across all regions. These high levels of design registrations and wins in prior quarters resulted in yet another quarter of record demand creation sales and gross profits. Turning to Fresnel, sales were up over 18% year over year. a reflection of the impact of our investments in Farnell inventory and its e-commerce capabilities. We added over 19,400 SKUs in the quarter, which gets us well on our way toward our plans to add 250,000 SKUs through 2022. Our sustained investment in Farnell's e-commerce platform and improving the user experience has yielded meaningful results. 56% of our total sales and 72% of the total transactions were placed through Farnell's e-commerce platform this quarter. And we expect that to continue to see increased traffic and new customer acquisitions in quarters to come. Our e-commerce web speed is 54% faster than in the same quarter one year ago, providing a much better customer experience. Over the past 18 to 24 months, Farnell has added 40 new supplier partners, Quite a few of whom are existing electronic components partners. This really speaks to the distinct value proposition of Fresnel and the complimentary offering it provides alongside our electronic components business to Adnet, its customers, and suppliers. In summary, we're very pleased with our performance over the past several quarters. I'd like to personally thank our employees for their unwavering commitment to executing on our strategy and delivering top and bottom line growth. Their efforts, coupled with the durable changes we have made to our business over the last several years, have helped us gain considerable share and continue to position us to capture new opportunities as we progress through 2022. I remain very optimistic about what lies ahead for Avnet. I look forward to sharing more on these opportunities at our upcoming Investor Day. So with that, let me turn the call over to Tom to report on the financials for the quarter. Tom?