• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • Arrow And Avnet Ride System Upgrade Waves In Recent Quarter

    February 20, 2012 Timothy Prickett Morgan

    Despite some issues in the European economy and stalled shipments of disk drives due to the flooding in Thailand, the two biggest master resellers of IT gear–Arrow Electronics and Avnet–turned in improving profits in their most recent quarters. But the revenues were a bit choppy.

    In the quarter ended December 31, Arrow’s Enterprise Computing Solutions (ECS) had just under $2 billion in revenues in the quarter, up 5.4 percent, and operating income hit $106.4 million, up a very tidy 19.5 percent. Arrow’s electronic components distribution business only grew 3 percent, to $3.4 billion, and the operating income for this part of Arrow actually fell by 2.9 percent to $176.7 million. Total sales in the quarter hit $5.44 billion, up 3.9 percent, and net income was $157.3 million, up 3.8 percent.

    For the full year, Arrow had sales in the ECS unit of $6.54 billion, up 17.2 percent, with operating income for this IT distribution business up a very impressive 37.3 percent to $262.9 million. Overall sales for the full 2011 year hit $21.4 billion (up 14.7 percent), with operating income of $908.8 million. Net income came to $598.8 million (rising 24.8 percent).

    In a conference call with Wall Street analysts, Michael Long, Arrow’s president and CEO, said that the ECS unit set records for revenues and operating income last year, in part through acquisitions that allowed the company to enter new businesses and new geographies. Andy Bryant, general manager of the ECS unit, said that profits were driven by a mix of higher-profit software and services distribution and added that hardware sales actually lagged a bit in the fourth quarter. (Intel pushing out its “Sandy Bridge-EP” Xeon E5 processor launch probably didn’t help.) Software for database, systems management, storage management, and virtualization were the hot software items. The company said that in North America, after a very strong refresh cycle for industry standard (meaning X86) servers and for proprietary systems (Power, Itanium, mainframe, and anything else) in prior quarters, sales of both types of systems cooled a bit. However, both X86 and proprietary systems grew in Q4 in Europe, which was good news indeed from the other side of the Pond.

    Long said that Arrow expected IT spending to be up somewhere between 3 and 5 percent this year and that Arrow would keep pace with that.

    Over at Avnet, overall sales in the fiscal second quarter ended in December were $6.69 billion, down 1.1 percent, and its Technology Solutions unit, which does IT hardware, software, and services distribution, had sales of $3.1 billion, down 3.5 percent. However, operating margins in Technology Solutions rose by 13 percent, to $118.9 million. Net income after some benefits came to $147 million, up 4.2 percent.

    Rick Hamada, Avnet’s CEO, said that supply chain issues for both components and IT gear put a damper on sales. On his conference call with Wall Street, Hamada said that sales of X86 servers and software rose by 35 percent in the second fiscal quarter and that storage revenues were up over 20 percent. So whatever was wrong, you can’t blame these areas.



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags:

    Sponsored by
    FalconStor

    Begin Your Journey to the Cloud with Hybrid Cloud Date Protection and Disaster Recovery

    FalconStor StorSafe optimizes and modernizes your IBM i on-premises and in the IBM Power Virtual Server Cloud

    FalconStor powers secure and encrypted IBM i backups on-premise and now, working with IBM, powers migration to the IBM PowerVS cloud and on-going backup to IBM cloud object storage.

    Now you can use the IBM PowerVS Cloud as your secure offsite copy and take advantage of a hybrid cloud architecture or you can migrate workloads – test & development or even production apps – to the Power VS Cloud with secure cloud-native backup, powered by FalconStor and proven IBM partners.

    Learn More

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    FormSprint Now Does QR Codes bsearch: Partial Key Searches and More

    Leave a Reply Cancel reply

Volume 21, Number 7 -- February 20, 2012
THIS ISSUE SPONSORED BY:

BCD
Infinite Corporation
Abacus Solutions
Micro Focus
American Top Tools

Table of Contents

  • IBM i Tech Refresh Coming This Spring
  • Big Blue Pulls The Plug On IBM i Discount Deal
  • looksoftware Completes RPG OA Roadmap
  • As I See It: Overrated
  • YouTube Follies: Windows On Power Systems-IBM i
  • 20i2, A Year Of IBM i Un-i-ty
  • Old School COBOL Gets New School Twist From Manta
  • Arrow And Avnet Ride System Upgrade Waves In Recent Quarter
  • Jack Henry Says SilverLake Banking System Still Has It
  • RPG & DB2 Summit Picks Tipton for Keynote

Content archive

  • The Four Hundred
  • Four Hundred Stuff
  • Four Hundred Guru

Recent Posts

  • To Comfort The Afflicted And Afflict The Comfortable
  • How FalconStor Is Reinventing Itself, And Why IBM Noticed
  • Guru: When Procedure Driven RPG Really Works
  • Vendors Fill In The Gaps With IBM’s New MFA Solution
  • IBM i PTF Guide, Volume 27, Number 27
  • With Power11, Power Systems “Go To Eleven”
  • With Subscription Price, IBM i P20 And P30 Tiers Get Bigger Bundles
  • Izzi Buys CNX, Eyes Valence Port To System Z
  • IBM i Shops “Attacking” Security Concerns, Study Shows
  • IBM i PTF Guide, Volume 27, Number 26

Subscribe

To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

Pages

  • About Us
  • Contact
  • Contributors
  • Four Hundred Monitor
  • IBM i PTF Guide
  • Media Kit
  • Subscribe

Search

Copyright © 2025 IT Jungle