Arrow Enterprise Computing Solutions, an operating unit of New
Arrow Electronics Inc.
), recently declared the extension of its newly introduced Empower
program. The latest platform, which is a multivendor enablement
program, was specifically designed to augment the data-center
convergence selling of the solution providers in North America.
Arrow through its enhanced program will provide an advanced
platform to the solution providers to categorize and develop
converged data-center solutions in the vertical markets. The
Empower program offers complete enablement training, solution
scoping, designing live or virtual proof-of-concepts, configuration
as well as post-sales execution support.
Management averred that the company's latest program would
surely mitigate the increasing demand in the growing market for
data-center convergence solutions and will also help enhancing the
revenue streams of the solution providers through raising their
data-center convergence selling.
The company's broad portfolio of products and services with its
continued efforts to provide maximum consumer satisfaction have
achieved both - elevation of its position and rendering adequately
security to warrant a substantial market share in the present
scenario. Revenues from Arrow's Global enterprise computing
solutions (ECS) came in at $1.70 billion, up 2.0% year over year,
and in line with management's expectations. Previously, Europe was
considered as the key driver for the annual growth.
The company's domestic and foreign operations are subject to
significant competitive pressures. Arrow currently faces ominous
competition from major players of the industry, which include
Richardson Electronics Ltd.
). To compete successfully, Arrow must excel in terms of product
quality and innovation, customer service, technical and computing
capabilities and price competitiveness, which may appear to be
The current Zacks Consensus Estimate for the third quarter of
2012 is $1.04, reflecting a year-over-year growth of (13.61%).
Estimates for 2012 and 2013 are $4.51 and $5.01, representing
annual growth of (13.03%) and 10.89%, respectively. We currently
maintain a 'Neutral' recommendation on Arrow. The stock carries a
Zacks #3 Rank, translating into a short-term (1-3 months) 'Hold'
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