Recently announced,
Avnet, Inc.
(
AVT
) opened a new technology integration center in Joinville, Brazil.
This marked a significant step towards proliferation of its
value-added services in Latin America.
This 48,000 square feet technology center has shipping capacity of
more than 135,000 technology system platforms in a year along with
the ability to provide other advanced solutions such as hardware
integration, software configuration, logistics support etc. These
technologically superior services are targeted for the wide array
of Avnet Embedded and Technology Solutions' original equipment
manufacturers (OEMs) clientele including the vast value-added
resellers (VARs) and supply chain partners across Latin America.
Avnet's decision to develop its own technology center at Brazil
shows the company's commitment and determination to provide
seamlessly advanced technology integration services to its customer
bases across the globe. With this venture, Avnet now has its
self-operated technology centers in North America, South America,
Europe and Asia-Pacific.
Benefits of this venture appear to be numerous. Firstly, the center
allows for market expansion across the burgeoning economy of Latin
America. Secondly, it brings forth avenues of growth for its niche
segment, especially Avnet Embedded. Apart from this, Avnet's
resolve to open its own center further bolsters faith in the
uniqueness and consistency of services it provides, not to mention
the goodwill enhancement the company would enjoy thoroughly across
the global economy following this act.
In a separate story, the company announced conflation of Avnet
Technology Solutions (TS) with
Polycom, Inc.
(
PLCM
) on June 26, 2012 with the intent of providing a range of Polycom
RealPresence video and voice solutions through a distribution
agreement pertaining to the U.S. and Canada. This distribution
agreement shall promote sales in the unified communications (UC)
and video collaboration businesses comprehensively, providing
technologically advanced and inexpensive solutions to consumers.
During the third fiscal quarter of 2012, Avnet's TS segment posted
an annual decline in revenues of nearly 8% to reach $2.52 billion.
We can be hopeful of a better performance from this segment in the
company's last fiscal quarter of 2012 with the current turn of
events and the ongoing restructuring activities being implemented
by management.
The current Zacks Consensus Estimates for the fourth quarter of
fiscal 2012 and for fiscal 2012 are $1.09 per share and $4.17 per
share, respectively. The company currently retains a Zacks #3 Rank,
which translates into a short-term 'Hold' rating. We also have a
'Neutral' recommendation on the company's stock.
AVNET (AVT): Free Stock Analysis Report
POLYCOM INC (PLCM): Free Stock Analysis Report
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