) business unit, Avnet Electronics Marketing Americas, recently
entered into a distribution contract with
). This will introduce Digi's wide range of machine-to-machine
(M2M) services including ARM-based embedded wired and wireless
units, wireless routers as well as gateways to Avnet's
distribution channel database catering to the needs of its
comprehensive clientele. This agreement would also help Avnet's
customers to deploy Freescale technology based several embedded
Digi's M2M technology is ideal for supervising various devices
and it is especially utilized in the field of medical, security,
energy, building automation and various other industries. In
addition, its ConnectCore system-on-module (SoM) service is
compatible with Freescale i.MX53 application and it is also
highly network compatible and scalable. This module is mostly
used in medical devices, security and surveillance tools,
industrial applications and digital signage.
Avnet shall render various technical support solutions for
upgrading Digi's services. With the venture, Digi will be able to
extend its coverage and efficiently address the need of more
Management was happy regarding its decision to conflate with
Digi International as it is considered as the market leader in
providing M2M services. Digi International's energy-efficient and
integrated solutions are expected to provide easier and less
costly solutions to the company's customers.
The company's continuous contract wins and strategic
acquisitions are expected to boost its long-term potential.
Recently the company reported revenues of $5.87 billion, down
8.7% year over year and nearly 7% sequentially in the first
quarter of 2013. The year-over-year decline was caused by the
company's weak businesses, especially in the Western region.
Avnet's domestic and foreign operations are subject to
significant competitive pressures. It faces stiff competition
Arrow Electronics Inc.
), which remains a fiercely formidable rival.
Arrow recently signed an agreement with
) business unit Aerojet. With this venture, Arrow will be engaged
in fulfilling the needs of Aerojet for electronic components.
Hence, the company must excel in terms of product quality and
innovation, customer service, technical and computing
capabilities and price competitiveness.
The current Zacks Consensus Estimates for the second quarter
of fiscal 2013 and for fiscal 2013 are 83 cents and $3.13,
representing year-over-year growth of (27.7%) and (22.9%),
respectively. The company currently retains a Zacks #3 Rank,
which translates into a short-term 'Hold' rating. However, we are
maintaining a long-term 'Underperform' recommendation on the
ARROW ELECTRONI (ARW): Free Stock Analysis
AVNET (AVT): Free Stock Analysis Report
DIGI INTL INC (DGII): Free Stock Analysis
GENCORP INC (GY): Free Stock Analysis Report
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