Significance of this deal is it adds another source to help clear inventories, plus reduces reliance on top-tier OEM sales, which some think may be slowing right now.
Also, QNTM has long wanted to improve its standing with distributors and balance its very strong OEM relationships with channel partners. The advantage of channel partners is they are much more flexible than OEMS about taking product so they help improve inventory management on an ongoing basis (even though they can be a double-edged sword -- and beat you up on margins in a glutted market).
Wednesday April 1, 9:01 am Eastern Time
Company Press Release
Quantum and SYNNEX Sign Distribution Agreement
SYNNEX's storage distribution expertise, comprehensive services and diverse market segments expected to expand
Quantum's customer base
FREMONT, Calif.--(BUSINESS WIRE)--April 1, 1998-- SYNNEX Information Technologies, Inc., a leading distributor of computer products and
peripherals, announced today that it has extended its business relationship with Quantum Corporation [Nasdaq:QNTM - news], one of the world's largest
manufacturers of hard disk drives. The company began integrating Quantum hard drives into PCs through its contract manufacturing business, and is now
distributing Quantum's desktop hard disk drive product line.
Quantum's hard drive product lines target two of the largest and fastest-growing computer markets: entry-level to high-end desktop PCs; and workstations,
servers, disk arrays and minicomputers. As an authorized distributor of Quantum's desktop PC storage products, SYNNEX is now distributing Quantum
5.25'' drives at 4 - 12GB capacities for consumer PCs, and 3.5'' drives at 2 - 8.4GB capacities for entry-level, mid-range and high-end PCs.
''SYNNEX is well known within the industry as a leader in hard disk drive distribution,'' said Marc Tanguay, director, North American distribution sales,
Quantum Corporation. ''SYNNEX's strong storage distribution track record, coupled with its integration expertise and diverse reseller base of VARs,
aggregators and ComputerLand franchisees make it an excellent distribution partner as we seek to expand our reseller customer base.''
''Quantum's reliable hard disk drives are an excellent fit with SYNNEX's storage distribution expertise and varied customer base,'' said Jerry Lumpkin, vice
president of marketing, SYNNEX. ''SYNNEX is the only distribution company offering distribution, aggregation, franchise and manufacturing logistic services
to resellers. Those services, and SYNNEX's entry into the channel assembly arena, uniquely qualify SYNNEX as a distributor who will grow Quantum's
reseller base.''
Company Information
Founded in 1980 and headquartered in Fremont, CA, SYNNEX Information Technologies, Inc., is a major international distributor of computer products and
peripherals. In 1997, SYNNEX expanded its operations to include ComputerLand Corporation (www.computerland.com), a wholly owned franchise and
aggregation subsidiary. SYNNEX (www.synnex.com) has U.S. distribution sales offices located in Fremont, CA and Greenville, SC. International distribution
offices are located in Japan, Mexico, and the United Kingdom. Sales revenue for fiscal year 1998 is expected to exceed $2.5 billion.
Founded in 1980, Quantum Corporation (www.quantum.com) has developed leadership positions in both fixed and removable storage products. One of the
highest volume global suppliers of hard disk drives and the leader in the mid-range tape market, Quantum is widely recognized as a quality leader in the
industry. The company sells a broad range of storage products to OEM and distribution customers worldwide. Quantum's sales for the fiscal year ending
March 1997 were $5.3 billion.
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Note to Editors:
SYNNEX is a registered trademark of SYNNEX Information Technologies, Inc. ComputerLand is a registered trademark of ComputerLand Corporation, a
wholly owned subsidiary of SYNNEX. Other brand and product names are registered trademarks or trademarks of their respective holders.
Contact:
SYNNEX Information Technologies, Inc.
Heather Kellogg
510/440-3530
eMail: heatherk@synnex.com |
