Philips Semiconductors And Avnet Announce Global Franchise Agreement Valued At More Than $1 Billion Over the Next Three Years.SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 16, 1999-- Agreement Launches New Philips Semiconductors Distribution Strategy Philips Semiconductors, an affiliate of Royal Philips Electronics (NYSE NYSE See: New York Stock Exchange :PHG), and Avnet, Inc. (NYSE:AVT AVT avian arginine vasotocin. See vasotocin. ) today announced a global distribution agreement with a projected goal of more than $1 billion in resale revenue through Avnet over the next three years. This is the first worldwide distribution agreement, effective January 1, 2000, authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by Philips Semiconductors. This announcement also represents the first element of a new distribution strategy for Philips Semiconductors. As part of this strategic global franchise agreement, Avnet will be authorized on a worldwide basis to market and sell semiconductors and advanced silicon systems from Philips Semiconductors. The two companies are developing strategic plans together that leverage best practices from around the world. The activities will include cooperative sales and marketing, global logistics initiatives and E-Business solutions designed to increase the levels of service the two companies can provide to customers throughout the world. Avnet is currently a Philips Semiconductors distribution partner in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and several countries in Asia. The new agreement extends the relationship on a global basis and offers benefits to the customers of both companies. As part of the global franchise agreement, both partners will support each other with a goal of achieving equally strong positions in all regions. Customers of both companies that are expanding international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. will be able to take advantage of global programs that cross traditional regional boundaries. Avnet has been particularly strong with logic, discretes, and microcontroller A single chip that contains the processor (the CPU), non-volatile memory for the program (ROM or flash), volatile memory for input and output (RAM), a clock and an I/O control unit. products and will be building programs around other Philips Semiconductors core products such as communications and consumer ICs. "Avnet Electronics has established itself as a world-class electronics distribution organization and an excellent Philips Semiconductors partner as we pursue expanded opportunities that meet our customers growing needs," said Arthur van der Poel, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Philips Semiconductors. "As part of a successful partnership, we must react quickly to global market opportunities and create transparent business practices that help customers take advantage of our solutions in an efficient manner. Avnet has demonstrated that innovation, responsiveness and advanced logistics are part of the Avnet business model, and we are pleased to name Avnet as our first Global Franchise Partner." "Philips Semiconductors has a leading line of technology products, particularly in the communications, consumer, computing computing - computer and industrial/automotive market segments; and we are pleased to extend our successful relationship to a higher level of partnership," said Roy Vallee, CEO, Avnet, Inc. "Philips Semiconductors advanced design expertise and manufacturing strength give us the confidence to expand our working relationship and leverage our successes. Our mutual clients can build their businesses and receive products and services regardless of where operations are located, and we will help them meet their needs in a transparent manner." Global Market Segment Focus Philips Semiconductors is changing its sales model from a regional structure to a global market segment approach. Called "Going Global", the initiative represents a major step in the development of our direct marketing and sales organization with a focus on relationship building, market-driven growth and world-class service levels. Another core element involves significant emphasis on leveraging distribution. A new category of distribution is being created called Global Franchise Partners, the first of which is Avnet. Two other tiers include regional distributors and local or country-specific distributors. The Global Franchise Partners are established organizations that share a common view of current and future customer needs, and have the potential to work with Philips Semiconductors to expand the potential for advanced semiconductor and silicon solutions. Philips Semiconductors has the strongest portfolio of standard products and leading positions in communications, consumer and PC-related ICs suited to the distribution channel. Philips Semiconductors is number one in RF and television ICs, and number three in a number of markets including telecommunications, discretes, and power management. About Avnet Phoenix, Arizona-based Avnet, Inc., a Fortune 500 company with annual sales exceeding $6.4 billion ($8.7 billion pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma including acquisitions), is one of the world's largest distributors of semiconductor, interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. , passive and electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). components and computer products from leading manufacturers. Serving customers in 59 countries, Avnet markets, inventories and adds value to these products and provides an industry leading suite of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. . The Company's Web site is located at www.avnet.com. About Philips Semiconductors Philips Semiconductors is the eighth largest semiconductor supplier in the world according World Accord is an international charity based in Waterloo, Ontario, Canada. It was formed in 1980 as the Canadian arm of Outreach International, a charity loosely affiliated with Community of Christ. to Dataquest's 1998 market share report. Philips Semiconductors' innovations in digital audio, video and mobile technology place the company in a leadership position in the consumer, multimedia and wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. markets. As a global company, offices in 40 countries serve major markets. Philips Semiconductors, headquartered in Eindhoven, The Netherlands, an affiliate of Royal Philips Electronics. Please join us at the Philips Semiconductors website: www.semiconductors.philips.com for further information. |
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