Avnet 2004 Annual Report Download - page 14

Laboratories, McKesson Information Solutions, Sirius Computer Systems, Software Spectrum and Venture
Systemsource.
Sales for TS were $4.35 billion in Ñscal 2004, representing 42.5% of Avnet's consolidated sales. TS's Ñscal
2004 global sales consisted of the following regional results: TS America sales of $2.95 billion, or 28.8% of
Avnet's consolidated sales; TS EMEA sales of $1.25 billion, or 12.2% of Avnet's consolidated sales; and TS
Asia sales of $156.2 million, or 1.5% of Avnet's consolidated sales.
As a global technology sales and marketing organization, TS has dedicated sales and marketing divisions
focused on speciÑc customer segments including OEMs, independent software vendors, system builders,
system integrators, VARs and end-user customers. TS's select line card strategy enables an exceptional level
of attention to the needs of its suppliers.
TS consists of the following primary divisions:
‚ Avnet Partner Solutions (formerly named Avnet Hall-Mark) is a value-added distributor of enterprise
computer systems, software, storage, networking solutions and services. Avnet Partner Solutions is one
of the industry's leading value-added distributors in the enterprise computing space in support of a
limited line card of the foremost systems, storage and software manufacturers. Avnet Partner Solutions
provides those manufacturers' products to VARs, along with complementary value-added services.
Avnet Partner Solutions also provides logistics, Ñnancial, marketing, sales and technical services,
including in-house engineering support, complex systems integration and conÑguration services. Avnet
Partner Solutions has locations in North America in addition to European oÇces in Austria, Belgium,
the Czech Republic, Germany, Hungary, Italy, Poland, Switzerland and the United Kingdom. Avnet
Partner Solutions also operates a division in Australia, serving resellers and end-users.
‚ Avnet Enterprise Solutions provides end-user customers with information technology solutions includ-
ing hardware, software, maintenance, Ñnancial and professional services. Avnet Enterprise Solutions is
a solutions integrator specializing in network solutions. Avnet Enterprise Solutions leverages its unique
suite of technical and Ñnancial strategies and services to minimize risk, maximize Öexibility and
optimize the use of capital on IT infrastructures, and thus bring value to businesses intent on managing
their total cost of technology infrastructure Ì from the data center, through the network, to the
desktop. Avnet Enterprise Solutions provides services to customers primarily in North America.
‚ 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 Components does business in all three of the global geographic
regions: Americas, EMEA and Asia.
‚ Applied Computing Solutions focuses on the unique needs of non-PC OEMs and system
builders/integrators. 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 Computing Solutions does business in all three of the
global geographic regions: Americas, EMEA and Asia.
‚ Applied Visual and Data Solutions concentrates on specialized displays, network products and storage
solutions, while targeting primarily VARs and system integrators with its wireless switch and wireless
standalone solutions. Applied Visual and Data Solutions does business in eight European countries.
Foreign Operations
As noted in the operating group discussions, Avnet's operations are deployed globally with signiÑcant
operations in the three major regions of the world: the Americas, EMEA, and Asia. Historically, Avnet's
operations in the Americas region (primarily the United States) have contributed the largest percentage of
consolidated sales. During Ñscal 2004, 2003 and 2002, the percentage of the Company's sales in the Americas
has been 53%, 56% and 60%, respectively. The EMEA region's contribution to Avnet's consolidated sales has
remained relatively stable in the 32% to 33% range over the same three-year period. The Asia region has been
continuously growing as a percentage of consolidated sales with 14%, 11% and 8%, respectively, of
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