Electronic parts distributor,
Avnet Inc.
's (
AVT
) business segment, Avnet Electronics Marketing Americas, recently
extended its distribution agreement with
OCZ Technology Group, Inc.
(
OCZ
) through its operating unit, Avnet Embedded.
Currently, the company is engaged in supplying solid-state drive
(SSD) products from OCZ Technology in the Americas, Europe, the
Middle East and Africa. Now, with the extension of the contract the
company will also distribute advanced SSD product lines in the
growing markets of Latin America and the Caribbean islands.
In addition, Avnet shall also render various support services
such as customized pre-sales solutions, technical services, several
types of logistics services, marketing and financing solutions for
augmenting the supply of OCZ Technology's product lines in the
Latin American and the Caribbean markets. Management stated that
the expanded agreement with OCZ Technology would not only broaden
the company's product portfolio in the emerging markets but also
address the need of improved storage solutions of the customers
more efficiently.
The company's expansion plans comprising extension of the
existing operations and adding new products to its product lines,
particularly in the growing markets, are expected to boost its
long-term potential. During the fourth quarter of fiscal 2012,
revenues from Avnet's Electronics Marketing (EM) in the Americas
surged 8.9% from the year-ago quarter to $1.4 billion. Now, this
move is seen as a positive aspect for the company's Electronics
Marketing (EM) business, which will help driving the segment's
performance going forward.
Avnet faces fierce competition from big players in the
semiconductor industry. One of the stalwarts here is
Arrow Electronics Inc.
(
ARW
), which remains an immensely formidable rival, especially in the
current times. In addition, there are several other big players
such as
Wesco International Inc.
(
WCC
) and
Anixter International Inc.
(
AXE
) in the industry.
The current Zacks Consensus Estimates for the first quarter of
fiscal 2013 and for fiscal 2013 are 84 cents and $4.11,
representing a year-over-year growth of (6.79)% and 1.33%,
respectively. The company currently retains a Zacks #4 Rank, which
translates into a short-term 'Sell' rating. However, we are
maintaining a long-term 'Neutral' recommendation on the stock.
ARROW ELECTRONI (ARW): Free Stock Analysis
Report
AVNET (AVT): Free Stock Analysis Report
ANIXTER INTL (AXE): Free Stock Analysis Report
OCZ TECHNOLOGY (OCZ): Free Stock Analysis
Report
WESCO INTL INC (WCC): Free Stock Analysis
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