Based in Phoenix, AZ, Avnet, Inc., (AVT) is one of the world's largest distributors of electronic components and computer products. The company s customer base includes original equipment manufacturers (OEMs), contract manufacturers, original design manufacturers and value-added resellers (VARs). Avnet maintains an extensive inventory, including electronic products from over 300 component and systems manufacturers, which it distributes to about 100,000 customers through 250 worldwide locations. The product set is composed of semiconductors (approximately 62% of 2006 revenue), computer products (30%), connectors (4%), and passives, and electromechanical & other (4%). Avnet operates in two segments the Electronics Marketing (EM) Group and the Technology Solutions (TS) Group. The EM Group distributes semiconductors and Interconnect, passive and electromechanical devices (IP&E), and provides supply chain management, inventory replenishment system and non-complex engineering design services. The TS Group distributes mid- and high-end servers, data-storage gear, networking equipment and software, besides offering some services. In fiscal 2005, the largest supplier to TS was IBM, accounting for 18.7% of AVT's total sales. The EM segment generated approximately 62% of the $15.68 billion of fiscal 2007 revenue, while TS contributed the remaining 38%.
The company has separate divisions to meet the individual requirements of different classes of customers like OEMs, independent software vendors (ISVs), system builders, system integrators, value-added resellers (VARs) and end-users. It provides real-time information about product availability and offers related services that enhance the value of the products sold. Avnet generates approximately 51% of its revenue from operations in the Americas 31% from Europe, the Middle East, and Africa (EMEA) and 18% from the Asia/Pacific region. Revenue contribution from the Asian market has grown every year for the last three years by a total of 159.7%. EMEA and the Americas have grown 45.9% and 43.7% during the same time period. In the past, management had pursued a strategic acquisition policy that increased the size of the firm. In the last two years, the company made two major acquisitions, which significantly increased the revenue base and expanded margins. Growth in the EMEA region is likely to be driven by rough and hazardous (RoHS) products. Europe leads other regions in the adoption of RoHS standards, so management expects the RoHS adoption in Europe to aid the learning curve for future RoHS sales in other regions.(Read more at Wikinvest )