Arrow Enterprise Computing Solutions, an operating unit of New
Arrow Electronics Inc.
), recently declared that it has included two new services, UC in
the Cloud solutions and Live Virtual Help Desk services. With the
addition of these solutions, the company would expand its service
profile in the North American region.
Arrow's UC in the Cloud services controlled by Meetrix will
provide an advanced, integrated and secured communications solution
to various types of small and mid size companies. This
software-as-a-service solution will augment the communication
services related to Internet protocol and business dealings.
The company's association with Live Virtual Help Desk is
expected to enhance its remote infrastructure-management services.
Arrow will offer various technical solutions along with
increased-margin and annuity-based service to the solution
providers. Management averred that the company's wide service range
would surely mitigate the increasing demand in the industry and
will also help enhancing the revenue streams of the solutions
The company's broad portfolio of products and services and its
continued efforts to provide maximum consumer satisfaction have
both elevated its position and rendered it more secure to hold a
substantial market share in the present scenario. Arrow has
retained a keen eye out for its market expansion through strategic
acquisitions in the global market. The company recently declared
the acquisition of Global Link Technology, Inc. (Global Link).
Management stated that this acquisition is likely to solidify the
company's foothold in the EAD market, especially in the Rocky
However, the company recently reported total sales of $5.15
billion in the second quarter of 2012, down 7% year over year and
5.3% sequentially. The current macro-economic challenges prevailing
in the European region and slow growth in China adversely affected
the company's businesses in the quarter.
Arrow currently faces ominous competition from major players of
the industry, which include
Richardson Electronics Ltd.
) in the industry. In order to retain its position in the global
market, it is imperative that the company continues to make such
momentous undertakings, keeping in mind the betterment of the
organization in both the long and short run.
The current Zacks Consensus Estimate for the third quarter of
2012 is $1.04, reflecting a year-over-year growth of (13.33%).
Estimates for 2012 and 2013 are $4.54 and $5.06, representing
annual growth of (12.50%) and 11.33%, respectively. We currently
maintain an 'Underperform' recommendation on Arrow. The stock
carries a Zacks #3 Rank, translating into a short-term (1-3 months)
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