Avnet Sold $3B of IBM Products and Services in 2010, Reports 42% Sales Growth Q1 2011
Avnet Inc. said that it sold $3 billion worth of IBM Corp.'s products and services in its 2010 fiscal year, achieving more than 20 percent year-over-year growth in sales of the vendor's gear during the period.
Separately, the distributor reported Q1 2011 sales of $6.2 billion, a 42 percent increase from the same period last year when it recorded sales of $4.4 billion. The company said that it earned $138.2 million for the quarter, a 171.5 percent jump from the $50.9 million it earned at the same time last year.
Roy Vallee, Avnet chairman and chief executive, attributed the strong financial performance to the impact of key acquisitions, better competitive positioning in key technologies, a stronger presence in emerging markets and a wider global reach.
Avnet said that in the past 10 years, it has more than doubled its IBM business in North America and, going back to 1997, also has expanded the geographic reach of the relationship. Avnet currently sells IBM's products and services in North America, Latin America, EMEA and Asia Pacific.
"Our success wouldn't be possible without the commitment and investments IBM has made to develop and grow Avnet's channel partners," said Fred Cuen, Avnet general manager and senior vice president.
"We've collaborated closely to expand the skills and solutions offerings our partners take to market, while accelerating our partners' long-term success in emerging high growth markets," he said.
The distributor disclosed the sales figures at its annual IBM Partner Summit, held recently in San Antonio, TX. The two companies have worked together for some 25 years, officials said.
"We continue to invest in helping our channel partners deepen skills, deliver value to clients and pursue new opportunities for growth," said Rich Hume, IBM general manager, Global Business Partner and Midmarket.
"We see that commitment to growth reflected in Avnet's resources and programs that they have developed to help IBM Business Partners sell complete solutions that meet the business needs of IBM's customers worldwide," he said.