Avnet 2006 Annual Report Download - page 11

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focused channels to service small- to medium-sized customers, global customers, defense and
aerospace customers, emerging customers and contract manufacturers. EM Americas also provides an
array of value-added services including engineering design, supply chain services, hi-reliability
processing, parametric assembly, cable assembly, fan assembly, taping, reeling and component
modification.
EMEA
‚ In EMEA, EM goes to market with seven sales and marketing divisions focused on a specific set of
suppliers, products or geographies. Divisions that are organized by semiconductors, IP&E products and
supply chain services address customers on both a pan European and regional basis. EM EMEA does
business in over 40 European countries, and over 10 countries in the Middle East and Africa. The
products and services sold by EM EMEA are similar to those in the Americas as described above.
Asia
‚ EM Asia is a value-added distributor of electronic components and services in 16 Asian countries, and
Australia and New Zealand. Avnet goes to market in China with four focused sales and marketing
divisions and separate divisions focused on South Asia, Taiwan and Japan. The products and services
sold by EM Asia are similar to those in the Americas as described above.
Following the acquisition of Memec on July 5, 2005, EM 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 provided 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 the services required to
implement these products and solutions to the VAR channel. 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 Hewlett-Packard. Other key suppliers TS
serves include:
‚ Advanced Micro Devices ‚ Network Appliance
‚ EIZO ‚ Oracle
‚ EMC ‚ Sun Microsystems
‚ Intel ‚ Symantec
TS markets and sells its products and services to the VAR channel and enterprise computing customers,
which include:
‚ Applied Computer Solutions ‚ Logicalis
‚ Dell Computer ‚ McKesson
‚ GE Medical Systems ‚ Pomeroy IT Solutions
‚ Insight Direct ‚ Sirius Computer Systems
‚ Key Information Systems ‚ Venture SystemSource
Sales for TS were $4.99 billion in fiscal 2006, representing 35.0% of Avnet's consolidated sales. TS's
fiscal 2006 global sales consisted of the following regional results: TS America sales of $3.44 billion, or 24.1%
of Avnet's consolidated sales; TS EMEA sales of $1.31 billion, or 9.2% of Avnet's consolidated sales; and TS
Asia sales of $240 million, or 1.7% of Avnet's consolidated sales.
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