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Network Hardware Resale Announces Sustained Revenue Growth through First Half of 2007 as Secondary Network Market Gains Further Momentum

Juli 25, 2007

Angelique Springer Davis
Network Hardware Resale

Sales Revenues Increase by 30 Percent as Leading Provider Responds to Accelerated Demand for Rapid Delivery of Highly Available, Pre-Owned Networking Routers and Switches

Santa Barbara, Calif. ─ July 25, 2007 ─ Network Hardware Resale (NHR), the leading provider of pre-owned and new networking equipment, today announced earnings for the first half of 2007. Revenues for the first half of 2007, ending June 30th, were $84 million, an increase of approximately 30 percent over the same period last year. Additionally, NHR posted positive EBITDA for the 30th consecutive quarter, reinforcing the company’s goal to reach its projected revenue goal of $170 million for the year.

NHR expedites the delivery of fully tested, pre-owned network routers, switches, access servers and IP telephony equipment from leading manufacturers, including Cisco, Extreme and Juniper. As a trusted, alternate source for refurbished networking gear at savings of up to 95 percent off OEM list prices, NHR has continued to expand its international footprint.

In June, the company opened an Asia-Pacific headquarters in Singapore to support accelerated momentum throughout the region while also extending the capabilities offered at locations in Europe and the United States. NHR’s Asia-Pacific revenues rose 46 percent during the first half of 2007 as compared to the same period last year. The company also is forecasting aggressive revenue growth in several European markets including the United Kingdom, which is on track to achieve a 60 percent year-over-year increase in sales revenue.

According to Mike Sheldon, president and CEO of NHR, the company’s consistent growth is fueled by a constant focus on business best practices to ensure product integrity and the highest levels of responsive customer service. “NHR is on course for another year of record revenues, thanks to a company-wide commitment to providing top-quality network gear—backed by exceptional service and standard one-year warranties,” he says. “We are well positioned to meet our customers’ ever-increasing business demands while also becoming an even more valuable partner by providing additional products, expanded technical support and complementary network services.”

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 currently offers a full range of production network, disaster recovery, testing and sparing as well as asset recovery solutions.

NHR also is a founding member of the United Network Equipment Dealer Association (UNEDA), an alliance of more than 300 of the top pre-owned network equipment dealers worldwide. NHR’s Sheldon serves as the president of UNEDA’s board of directors. The alliance recently announced the results of the first annual survey of this multi-billion dollar industry segment, validating the increasing role of secondary network providers in transforming the networking industry through greater equipment choices, improved product availability and lowered total cost of ownership (TCO).

“Providers of secondary network equipment answer a market need for quality products at reduced costs,” says Eric Goodness, research vice president at Gartner Inc. “As a result, this market is growing in size and legitimacy as network managers increasingly understand the viability of having an alternate procurement channel to meet a wide variety of production network, sparing and disaster recovery requirements. The secondary equipment market is also providing a strong challenge to OEM maintenance and support in terms of quality and cost.”