Arrow Electronics, Inc. (NYSE:ARW) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 01:00 pm ET

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Arrow Electronics, Inc. (NYSE:ARW) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Arrow Electronics Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your host today, Steven O'Brien. Thank you. Please go ahead, sir.

Executive
Steven O'Brien

Thank you, Tican. This is Steven O'Brien with Arrow Electronics, and welcome to our second quarter 2020 earnings conference call. With us on the call today are Mike Long, Chairman, President and Chief Executive Officer; Chris Stansbury, Senior Vice President and Chief Financial Officer; Andy King, President, Global Components; and Sean Kerins, President, Global Enterprise Computing Solutions.

As a reminder, some of the figures discussed on today's call are non-GAAP. You can access our earnings release at investor.arrow.com, along with the CFO commentary, the non-GAAP earnings reconciliation and the webcast of this call. We will begin with a few minutes of prepared remarks, which will then be followed by question-and-answer period.

I will now hand the call to our Chairman, President and CEO, Mike Long.

Executive
Michael J. Long

Thanks, Steve, and thanks to all of you for joining us today. First off, I'd like to thank our global employees for their commitment, professionalism and teamwork during these extraordinary times. The critical engineering, design and supply chain services they provide to our customers, our suppliers and partners create technology that protects and improves our way of life. The health of our people always comes first. And thanks to their thoughtful and diligent work, our offices, our facilities have been kept safe, and our business is moving forward.

Over the course of a few months, we've learned a lot about the practices necessary to keep the business going while protecting our people. We remain diligent. We're increasingly optimistic that we have found a sustainable way to do business and actually thrive in the coming quarters. On April 30, we provided an outlook for the second quarter. We recognized then and now that to guide innovation forward, we must maintain our reputation for transparency. In addition, we have a long-held belief in the power of data from the billions of transactions we do with thousands of customers across dozens of industries.

As a result, I'm pleased to report that we exceeded our quarterly earnings guidance for the quarter. In fact, we've met or exceeded our guidance 46 times in the last 50 quarters. As we reflect on what we can do to achieve long-term success, it's important to recognize both the items that are in our control and those that are not. We can't control the demand for cars, data center equipment or electronic devices. However, we can continue to position our business for rapid sales acceleration and mix shift to higher-margin engineered components and solutions.

One way we're doing that is by adding to our engineering and our sales teams today. We've seen great opportunity to drive leverage from design, engineering and marketing that will benefit our customers and suppliers. Another way for Arrow to position for the eventual improvement in demand is