Avnet Electronics Marketing Americas, an operating unit of Phoenix -based Avnet, Inc. (AVT), recently declared the launch of its latest Wi-Fi adapter device. The CC3000-based adapter kit, controlled with Pmod technology, will be engaged in providing secure and fast access of Wi-Fi -networks to the customers.
Avnet’s newly introduced device is likely to fulfill the mounting demand of Wi-Fi related solutions for the end-products of OEMs. Moreover, the company’s Pmod adapter tool embedded with LSR TiWi-SL technology gives an upgraded and cost-minimize approach to the clients to utilize Wi-Fi services. According to management, the device assembled with improved protocol stack and network process has the capacity to access the Wi-Fi network even from the basic 8-bit microcontroller or FPGA.
The company’s broad portfolio of products and services and its continued efforts to provide maximum consumer satisfaction have both elevated its position and rendered it more secure to hold a substantial market share in the present scenario. During the fourth quarter of fiscal 2012, revenues from Avnet’s Electronics Marketing (EM) segment has declined 5.0% from the year-ago quarter to $3.76 billion, within management’s guidance range of $3.75 billion – $4.05 billion. Nevertheless, we can still be hopeful of a better performance by this segment in the upcoming quarters. For the first quarter of fiscal 2013, the company projects EM sales to be in the range of $3.55 billion – $3.85 billion.
Avnet faces fierce competition from big players in the semiconductor industry. One of the stalwarts here is Arrow Electronics Inc. (ARW), which remains an immensely formidable rival, especially in the current times. In addition, there are several other big players such as Wesco International Inc. (WCC) and Anixter International Inc. (AXE) in the industry.
The current Zacks Consensus Estimates for the first quarter of fiscal 2013 and for fiscal 2013 are 84 cents and $4.11, representing a year-over-year growth of (6.79%) and 1.33%, respectively. The company currently retains a Zacks #4 Rank, which translates into a short-term ‘Sell’ rating. However, we are maintaining a long-term ‘Neutral’ recommendation on the stock.
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