Arrow Electronics, Inc
) recently signed a global distribution agreement with Intematix
Corporation, wherein it will provide ChromaLit remote phosphor used
in LED lighting.
Using remote phosphor in LED lighting has emerged a unique trend
that creates opportunities for lighting customers and partners to
gain competitive advantage in the market.
Arrow currently offers a broad line of LED lighting solutions as
well as engineering and design support through their Lighting
Design Center and other tools. The recent agreement with Arrow will
enable Intematix to access additional blue LED and associated
A number of new LED lighting system manufacturers have adopted
ChromaLit to lower costs and increase performance.
Conventional LED designs comprise a blue chip, which is coated
with a phosphor compound. ChromaLit uses a phosphor composite that
is separated from the blue LED energy source and enables lower
system costs, efficient manufacturing processes, exceptional light
quality and generates up to 30% higher system efficacy.
Earlier, Arrow Electronics signed a global distribution
contract with Microchip Technology in order to improve its
customer services by offering a wide array of products.
This agreement will add Microchip's service solutions and
several embedded semiconductors, microcontrollers, wireless support
solutions and memory devices to Arrow's product database. The
recent deal will also facilitate access to Microchip's other
service offerings through Arrow's Nu Horizons Electronics.
Management remains optimistic regarding its decision to conflate
with Microchip as its improved design and technology would enhance
the company's existing product offerings.
Although the recent series of contract wins and acquisitions
will positively impact business, economic environment remains a
concern. Arrow reported total sales of $5.15 billion in the second
quarter of 2012, down 7% year over year and 5.3% sequentially. The
current macroeconomic challenges prevailing in the European region
and slow growth in China adversely affected the company's business
in the quarter.
We currently maintain an 'Underperform' recommendation on Arrow.
The stock carries a Zacks #3 Rank, translating into a short-term
(1-3 months) 'Hold' rating.
ARROW ELECTRONI (ARW): Free Stock Analysis
To read this article on Zacks.com click here.