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Network Hardware Resale Sustains Record of Impressive Annual Revenue Growth with Strong Year-over-Year Results as Secondary Equipment Market Booms

Febrero 11, 2008

Angelique Springer Davis
Network Hardware Resale

Market Leader’s Sales Increase 28 Percent Thanks to Expanding International Presence and Exemplary Responsiveness to Customers’ Needs

Santa Barbara, Calif. ─ February 4, 2008 ─ Network Hardware Resale (NHR), the leading provider of pre-owned and new networking equipment, today announced another year of record growth, reinforced by a continuing expansion into new and existing international markets. Revenues for 2007 were $176.7 million, surpassing the projected goal of $170 million and representing 28 percent year-over-year growth.

NHR’s stellar financial performance also contributed to positive EBITDA for the 32nd consecutive quarter. The company continues to lead the secondary market for pre-owned networking equipment, including routers, switches, access servers and IP telephony equipment from leading manufacturers such as Cisco, Extreme, Foundry and Juniper. As an alternate source for refurbished network gear, NHR continues to gain customer traction with its standard one-year warranty, stellar support, adoption of industry best practices as well as savings of up to 90 percent off OEM list prices.

In 2007, NHR opened its Asia-Pacific headquarters in Singapore, resulting in a growth spurt of 166 percent in that market and 34 percent throughout the region. At the same time, NHR achieved sustainable market momentum in historically strong markets, including the United States, the Netherlands, Germany, France and the United Kingdom and enters 2008 with solid growth indicators in emerging markets including Mexico, Eastern Europe, Middle East, Malaysia and India. More than 10,000 customers worldwide rely on NHR for the rapid delivery of refurbished, new-surplus and new gear to meet a wide range of production network, disaster recovery as well as testing and sparing requirements.

According to Mike Sheldon, president and CEO of NHR, the company’s impressive record of sustained growth is fueled by its expanding global reach, extensive product inventory and constant focus on service. “Many people assume that success in the secondary market requires only low prices, but responsiveness, flexibility and service set NHR apart as a single, trusted source for a wide range of networking needs,” he says. “That’s why we inventory an average of $100 million in legacy and current products for same-day order fulfillment while investing in industry certifications for sales and technical staff.”

Last month, NHR extended its customer support capabilities by unveiling an innovative maintenance alternative that provides substantial savings over traditional OEM contracts. The new service, called NetSure™, provides around-the-clock support by a team of Cisco-certified technicians for customized coverage of network core as well as distribution and access layers. In related news, NHR also announced that its entire global sales force has passed the Cisco Sales Expert exam, resulting in full CSE certification to ensure the highest levels of proficient, responsive service and support.

All these success factors were supported solidly by a poll of 400 NHR customers surveyed in late 2007. Nearly 90 percent of the respondents cited responsiveness, rapid equipment delivery, product availability and savings over OEM pricing as the main factors that drove their NHR purchases. Nearly 80 percent use gear purchased from NHR in production network environments while making purchases from NHR up to 10 times a year. Nearly 40 percent of the respondents expressed interest in finding more affordable, flexible technical services for remote offices and edge routers.