Avnet 2005 Annual Report Download - page 13

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Following the fiscal 2006 acquisition of Memec, EM has established Avnet-Memec specialty semicon-
ductor distribution sales and marketing divisions in each of the three major economic regions to continue
to focus on demand creation for particular suppliers and specialty needs for certain customers in those
regions. Additionally, the Memec acquisition provides Avnet entry into the Japanese market where
Avnet-Memec, Japan will continue to operate as a distinct sales and marketing division for EM.
Technology Solutions (""TS'')
TS markets and sells mid- to high-end servers, data storage, software and networking solutions, and the
services required to implement these solutions, to the VAR channel and enterprise computing customers. TS
also focuses on the worldwide OEM market for computing technology, system integrators and non-PC OEMs
that require embedded systems and solutions including engineering, product prototyping, integration and other
value-added services.
TS is a leading partner for system vendors such as IBM and HP. Other key suppliers TS serves include
Advanced Micro Devices, Cisco Systems, EIZO, EMC, Intel, Network Appliance, Oracle and Storage
Technology Corp. TS markets and sells its products and services to the VAR channel and enterprise
computing customers, which include ABS Computer Technologies, ASAP Software, Dell Computer,
Evolving Solutions, GE Medical Systems, Intel, Key Information Systems, Sirius Computer Systems,
Software Spectrum and Venture SystemSource.
Sales for TS were $4.81 billion in fiscal 2005, representing 43.4% of Avnet's consolidated sales. TS's
fiscal 2005 global sales consisted of the following regional results: TS America sales of $3.27 billion, or 29.5%
of Avnet's consolidated sales; TS EMEA sales of $1.31 billion, or 11.8% of Avnet's consolidated sales; and TS
Asia sales of $230.8 million, or 2.1% of Avnet's consolidated sales.
As a global technology sales and marketing organization, TS has dedicated sales and marketing divisions
focused on specific 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 is a global value-added distributor of enterprise computing systems, software,
storage, complex technology 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, financial, marketing, sales and technical services, including in-house
engineering support, complex systems integration and configuration services. Avnet Partner Solutions
has locations in North America in addition to European offices 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, independent software vendors and
system integrators.
‚ Avnet Computing Components serves the needs of manufacturers of general-purpose computers and
system builders by providing them with the latest technologies such as microprocessors, DRAM
modules and motherboards. Avnet Computing Components does business in all three of the major
economic regions: Americas, EMEA and Asia.
‚ Avnet Applied Computing Solutions focuses on the unique needs of non-PC OEMs and system
builders/integrators. Avnet Applied Computing Solutions provides technical design, integration and
financing to developers of application specific 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. Avnet Applied Computing Solutions does business in all three of
the major economic regions: Americas, EMEA and Asia.
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