Network Hardware Resale Announces Third Quarter Financial Results
Aggressive Growth Continues as Company Achieves Record Inventory Levels for Expediting Responses to Customers’ Networking Needs during Busiest Time of Year
Santa Barbara, Calif. - October 30, 2006 - Network Hardware Resale (NHR), the leading provider of pre-owned and new networking equipment, today announced record third-quarter earnings that deliver resounding proof of the company’s consistent efforts to expand its geographical reach while also maintaining strong revenue growth. Revenues for the third quarter, ending Sept. 30, were $34.7 million.
Year-to-date revenues at the close of the third quarter exceed $99.8 million, an increase of 31 percent over the same period last year. In addition, gross revenues contributed to positive EBITDA for the 27th consecutive quarter. “We are proud to announce NHR already has passed the $100 million mark for the year,” said Karen Anne Platt, chief financial officer. “Reaching this milestone in early October reinforces our ability to surpass NHR’s projected revenue goal of $135 million for 2006.”
NHR serves more than 10,000 customers worldwide, including Global 1000 organizations, small and mid-sized enterprises, government entities, educational institutions, healthcare organizations and telecommunications service providers. The company has made exceptional strides worldwide, including strong sales in the Asia-Pacific region, which exceeded $3 million in revenue for 2006 by the end of the third quarter. Additionally, the company reported record inventory of approximately $110 million.
“As we enter into our busiest time of the year, NHR can respond rapidly to our customers’ ever-increasing needs for overnight delivery of highly affordable network solutions,” said Mike Sheldon, president and CEO of NHR. “With our extensive inventory and continued fast-track growth, NHR is well positioned to sustain our market momentum and stellar record of business success.”
Founded in 1986, NHR is celebrating its 20th anniversary this year, with plans to broaden its product portfolio as well as expand its international footprint. The company operates on a global basis with an extensive inventory of pre-owned Cisco, Juniper and Extreme and routers, switches, access servers and IP telephony equipment. In September 2006, NHR also entered into an asset recovery and reseller agreement with Dell Networking to accelerate the deployment of high-performance, scalable networks.
NHR currently offers a full range of complete network fulfillment, disaster recovery, testing and sparing as well as asset recovery solutions. As one of the first in the secondary market to provide standard one-year warranties on all equipment, NHR continually embraces business best practices to ensure product integrity and the highest levels of quality customer service. As a result, the company enables budget-constrained IT managers to maximize their technology investments.