Arrow consists of two core businesses: a global components distribution business and a computer products distribution and solutions business centered in North America, which serves enterprise computing resellers and original equipment manufacturers (OEMs). In 2003, Arrow North American Computer Products (NACP) accounted for more than 20 percent of Arrow's revenue and has increased sales and profits for ten consecutive quarters on a year-over-year basis. Even as demand for computing solutions and systems manufacturing has been declining, Arrow NACP has emerged as the market leader in sales, profitability, and new solutions for customers.

Our strategic decision to focus on the enterprise computing and OEM markets has resulted in a business that offers suppliers an efficient route to market and provides essential services to customers. Arrow Enterprise Computing leads the industry in offering the best server, platform, and storage solutions for value-added resellers. Many resellers face the challenges of supporting multiple platform environments. Our supplier-dedicated groups work together to provide an Arrow solution. In the OEM market, Arrow OEM Computing Solutions supports customers from the moment they begin product design to the shipment of the completed system from an Arrow facility to their end-customers.

Our two main value-added computer products businesses create opportunities to integrate solutions from the initial system design to the delivery of the system from a value-added reseller. In a recent engagement, an OEM customer developing a state-of-the-art security and IT management product chose Arrow OEM Computing Solutions to support the system design, procure materials, complete the system build, and provide service and warranty support. Arrow Enterprise Storage Solutions, a division of Arrow Enterprise Computing, has become the route to market by providing fulfillment services to the OEM's resellers. Resellers can demonstrate and test this storage solution for end-customers at Arrow's enterprise computing labs. This customer engagement is just one example of the solutions that Arrow NACP offers. Arrow North American Computer Products speeds toward the future as the leading, innovative provider to the enterprise and OEM computing marketplaces.