Name: Avnet CEO Tells Wall Street 'Our Stock Price Will Start Soar'
Uploaded: 2019-12-18
Duration: 3 min 45 s
Description: Bill Amelio says the giant electronic components supplier is on a roll with strong sales and earnings.

[MUSIC PLAYING] Bill, let's start by talking about what is Avnet. It's not a household name, even though it's been in business for 100 years. And it's a huge technology company listed on the Fortune 500. So give us a quick description about what does Avnet do. I want you to think about your favorite product for a second. That product started with a sketch on the back of a napkin. So we help customers take that sketch and make it into reality by getting the right components and the right electronics and the right technology into place, and we help them ramp that into production. And it becomes something that you use each and every day. You've been reinventing Avnet ever since you became CEO two years ago. What change did you see going on in the tech world that you said we've got to change this company and take it in a completely new direction? Well, we saw that we weren't participating early enough in the cycle with customers. That means at the time that the sketch is being designed. We had to get there earlier in order to be able to capture the hearts and minds of customers really early in the product lifecycle. Because we do that. That customer becomes a customer for life. We found that is a very powerful way to have a business model. Everyone's talking about the internet of things and how this is reshaping not only what's going on in the tech world, but also what's going to happen in our world. What's Avnet's role in these new technologies? Some estimates say that there'll be 50 billion connected devices by 2020. Can you imagine that? 50 billion devices. And we're right in the middle of all that. So how do we make it all work? Well, not only do we provide the devices, we work with customers to develop the entire solution, which includes the gateway, the network, the cloud, the analytics, and the data. And then we help them put that whole end to end strategy together. Pretty complex. And what happens at Avnet, we demystify that for our customers. And actually, you talk a lot about the importance of ecosystems in today's business environment. Why is this so important? Well, the idea is this, is we want to get working with customers early in our lifecycle. So we don't want to wait until the time frame during the production. We want to catch them in pre-production and in the design phase and then help shepherd them through the entire process. So what is Avnet's role in the ecosystem? Well, we start right at the beginning. From design, so we have great engineers that can help you think through the ideas that you have and make sure that we select the right products for you that's going to be in a cost optimized lead time and optimized way. Then we help you ramp up production. And we get you to the market effectively and efficiently. And we have tools that help you, in fact, design for manufacturing and make sure that you're designing at the lowest possible cost. You're here in New York to meet with Wall Street analysts and investors. And given that Avnet has gone through dramatic changes over the last few years, what's the key message that you want to get across to them? Key message is we're on track. We're making great progress. And we have a new-- there's a new Avnet. The new Avnet is one where we're mainly just entire lifecycle of products, from the time we design to the time we develop to the time we bring it to market in prototypes and to the time we do mass scale production. Well, you know that Wall Street is all about stock prices. And looking at Avnet stock, it's pretty much trading at the same price level it was two years ago when you became CEO. So what do you have to do to get that stock moving higher and to get investors to believe in your plan? The great news is this. We've now had four quarters in a row where we either beat or met our commitments. All we need is a couple more quarters of that and then them to understand the strategy that we've put in place and say, look, these guys got credibility. Couple more quarters, we believe them. And the friction will go away, and you'll see our stock price start to soar. 

Avnet CEO Tells Wall Street "Our Stock Price Will Start Soar"

Finance

Bill Amelio says the giant electronic components supplier is on a roll with strong sales and earnings.

bill. Let's start by talking about what is AB net. You know it's not a household name, even though it's been in business for 100 years, and it's a huge technology company listed on the Fortune 500. So give us a quick description about what does it do? I want you to think about your favorite product for a second. That product started with a sketch on the back of a napkin. So we help customers take that sketch and make it into reality by getting the right components and right electronics and right technology into place. And we help them ramp that into production, and it becomes something that you use each and every day. You've been reinventing, admit ever since you became CEO two years ago. What changed? Did you see going on in the tech world? That's that, you said We've got to change this company and taking a completely new direction. What we saw that we weren't participating early enough in the cycle with customers. That means at the time that the sketch is being designed. We had to get there earlier in order to be able to capture the hearts and minds of customers really early in the product lifestyle because we do that that custom becomes a customer for life. We found that is a very powerful way to have a business model. Everyone's talking about the Internet of things and how this is reshaping not only what's going on in the tech world, but also what's gonna happen in our world. What Avenue rule in these new technologies? Some estimates say that the lead 50 billion connected devices by 2020. Can you imagine that? 50 billion devices and we're right in the middle of all that. So how do we make it all work? Well, not only do we provide the devices we work with customers develop the entire solution, which includes the gateway, the network, the cloud, the analytics in the day. And then we help them put that whole end and strategy to get a pretty complex. And what happens that admit we demystify that for our customers. And actually, you talk a lot about the importance of equal systems in today's business in environment. Why is it so important? Well, the idea is, this is we want to get working with customers early in our life cycle, so we don't want to wait till the time frame that during the production, want to catch my pre production and in the design phase and then help shepherd him through the entire process. So what is Avenue its role in the ecosystem? We start right at the beginning from design that we have great engineers that could help you think through the ideas that you have and make sure that we select the right products for you that's going to be in a cost optimized lead time up to my sway. Then we help you ramp up production, and we get you to the market effectively and efficiently. And we have tools that help you, in fact, designed for manufacturing and make sure that you're designing at the lowest possible cost. You're here in New York to meet with Wall Street analysts and investors. And given that avenue has gone through dramatic changes over the last few years, what's the key message that you want to get across to them? Key messages were on track. We're making great progress and we have a new There's a new admit. The New Agnes one were were made itjust entire life cycle of products from the time we designed to the time we developed at the time, we bring it to market prototypes into the time we do masculine production. Well, you know that Wall Street is all about stock prices and looking at Avonex stock, it's pretty much trading at the same price level. It was two years ago when you became CEO. So what do you have to do to get that stock moving higher and to get investors to believe in your plan? The great news is this. We now have 4/4 in a row where we either beat or met our commitments. All we need is a couple quarters of that and then them to understand the strategy that we put in place and say, Look, these guys got credibility. Couple more quarters, we believe him, and the friction will go away and you'll see our stock price start to soar.