Avnet Joins Forces with NRF

Avnet Inc.’s (AVT - Analyst Report) Technology Solutions recently joined hands with retail trade association National Retail Federation (NRF) Foundation, to support value-added reseller partners in attaining the NRF Foundation Professional Retail Business Credential.

Retail Business Credential is an online test, which helps in the evaluation of business partner’s knowledge in the retail market. The idea behind this evaluation is to prepare the business partners to attain retail industry certification displaying their sound understanding of retail operations.

Per the agreement, the company was permitted to supervise the Retail Business Credential exam at private test sites. The company’s RetailPath practice provides a platform to the value-added reseller partners in preparing for the Professional Retail Business Credential.

Consequently, Avnet is well placed to fulfill its objective of enabling partners with end-to-end, progressive training on vertical markets.

Avnet’s Electronics Marketing division has entered a distribution agreement with Aldec Inc., a leader in electronic design verification. The company will distribute Aldec’s mixed-language FPGA design creation and simulation product, Active-HDL (Designer Edition), in the Asia Pacific region.

We believe that the company’s range of products and services, solid inventory and strong customer relationships have helped it secure a substantial share of the market.

The company pursues a policy of strategic acquisition for expansion of its geographic and market coverage in world markets. Avnet’s acquisitions, such as, Bell Micro, Tallard, itX Group Limited, Broadband Integrated Resources and Unidux Inc. are likely to fuel revenue growth.

However, this aggressive acquisition strategy puts pressure on margins, driving our long-term Neutral recommendation on the stock.

Based on better-than- expected results of the third quarter of fiscal 2011, we have a short-term Zacks #2 Rank (Buy rating) on the stock.

Avnet is one of the world’s largest distributors of electronic components and computer products. The company directly competes with Arrow Electronics Inc. (ARW - Analyst Report).

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