Avnet 2002 Annual Report Download - page 17

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Applied Computing (""AC'')
AC was created from portions of EM (OEM Systems Product Business Group and Personal Computing
Components) and CM (Hall-Mark Computer Components) in 2000. AC focuses on the unique requirements
of the OEM market for computing technology. AC's 2002 sales were approximately $1.68 billion, representing
18.8% of Avnet's consolidated sales. AC's 2002 global sales consisted of the following regional results: AC
North America sales of $728.9 million, or 8.2% of Avnet's consolidated sales; AC EMEA sales of
$878.6 million, or 9.8% of Avnet's consolidated sales; and AC Asia/PaciÑc sales of $71.6 million, or 0.8% of
Avnet's consolidated sales.
AC consists of seven business units focusing on key market segments:
‚ Applied Computing Components serves the needs of manufacturers of general-purpose computers by
providing them with the latest technologies such as microprocessors, DRAM modules and
motherboards.
‚ Applied Computing Solutions provides technical design, integration, marketing and Ñnancing to
developers of application speciÑc computer solutions in the non-PC market place. Examples of these
types of customers are OEMs in the medical, telecommunications, industrial control and digital
creation market segments.
‚ Applied Computer Enabling Technologies serves systems integrators focusing on the mass storage
marketplace that produce applications such as NAS, SAN and Fiber storage products.
‚ Avnet FasTrac Services in the Americas oÅers technical service and support through a nationwide
service infrastructure.
‚ Applied Computing Market Development in Europe oÅers a specialized range of products, including
EIZO monitors, Wyse thin client PCs and network storage solutions for end users.
‚ Applied Computing System Builder provides services for networking products and server building
blocks for system builders.
‚ Avnet Convergent Technologies provides mobile computing, wireless and point-of-sales ID products
and services.
AC's coverage of Europe includes the United Kingdom, Germany, Spain, Italy, Austria (also services
eastern Europe), the Nordic region, the Benelux region, France and Switzerland. During 2001, AC expanded
its operations in Europe with the acquisition of RKE Systems and the EBV Microsystems Group, both
acquired as part of the VEBA Group of companies. AC's European operations accounted for over half of the
operating group's sales in 2002.
SigniÑcant Acquisitions
To better focus on its core business and to grow Avnet's presence in world markets for electronic
components and computer products, Avnet has pursued a strategic acquisition program. During the last three
years, the Company has completed sixteen acquisitions, six in North America, six in Europe, three in the
Asia/PaciÑc region and one in the Middle East.
Avnet's sole acquisition during 2002 was Gamma Optronik AB (""Gamma'') of Sweden. Gamma was a
privately owned, specialty distributor covering the Nordic territory and serving the industrial and scientiÑc
optronics market. Since its acquisition, Gamma has been operated as a part of Avnet's BFI-Optilas business
unit within EM in Europe. Gamma reported approximately $7.5 million in sales for its year ended June 2001
and employed 12 people.
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