Avnet, Inc. (AVT) recently announced two major advances – ILS Technology under Avnet Embedded, Avnet Electronics Marketing Americas and Data Center Demonstration Resources of Cisco Systems Inc. (CSCO) under Avnet Technology Solutions.
With the introduction of ILS Technology, machine-to-machine (M2M) connectivity will be enhanced with edge-to-enterprise enablement and cloud services, which shall operate without hassles of custom programming in a safe and state-of-the-art manner. This shall be fostered by ILS’ deviceWISE M2M Deployment Kit and deviceWISE M2M Application Platform.
In the first financial quarter of 2012, the Electronics Marketing division accounted for approximately 59% of the total revenue of AVT, increasing 5.4% year over year to $3.82 billion. However, there was a slowing of demand observed in almost all regions worldwide including the Americas. We can hope that such progressive measures would ameliorate the forthcoming yields from the Americas by next quarter.
Avnet has decided to create a Cisco Data Center Lab and a Customer Test Drive Program for its Canadian reseller partners.
While the Data Center Lab is intended to provide its partners with a platform to demonstrate to the public its Cisco Unified Computing Systems B-Series and C-Series servers in various modern environments, the Test Drive Program would cater to the application of these solutions with the customers’ own data centers.
AVT knows perfectly how to best cater to the interests of not only its final customers but also ease out the work for its marketers. These investments will not only make it easier for its Canadian resellers to market their products but also make the application of these products easy and without complexities for the consumers.
The Technology Solutions accounted for approximately 41% of total revenue yields in the first fiscal quarter of 2012 coming in at $2.61 billion, which was quite appreciable considering the ongoing weakness of the EMEA region.
In the short-run, we have a Zacks #4 Rank, which translated to a short-term rating of Sell. We retain our long-term Neutral rating at the moment for Avnet, Inc.
AVNET (AVT): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
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