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D&H Saw 6% Growth Through April 30

May 6, 2009

D&H Distributing, a North American computer products and consumer electronics distributor, announces it has sustained solid sales growth of 6% through the fourth quarter (Q4) of its fiscal year 2009 (which ended April 30, 2009), over last year. Categories where the distributor has seen the most sales increases comprise mobile devices, including notebooks and netbooks, networking, and servers.

The company still predicts areas of growth for the rest of the upcoming year with strategic focus on:
  • The maximization of economic stimulus opportunities in the healthcare and local government/education verticals (“EDs and MEDs”), including imaging and scanning, networking, computing and mobility products.
  • Continued growth in mobile categories such as netbooks, notebooks, cell phones and wireless networks, which can be integrated with various related technologies (storage, security, accessories) to create robust solutions.
  • The migration of small business system upgrades, driven by increased performance, cost-savings, energy-efficiency, etc. This includes both the refresh and deployment of back-office equipment such as servers, storage, networks and VoIP systems.
  • Digital signage technologies, which are still gaining SMB momentum.
D&H has been activating more than 1,500 new accounts per quarter over the past year, a figure that has held steady, with additional upswings in areas such as consumer electronics. This may be related to the fact that since December 2007, approximately 5.1 million jobs have been lost nationwide, with half of those being information/technology workers. Many of these displaced workers have launched or are launching their own smaller companies, creating a surge in the SMB space that likely has contributed to D&H’s customer growth.

The distributor attributes its resilience to several additional factors, including its ability to identify and evangelize opportunities in emerging technologies and recession-resistant categories, creating demand in the marketplace. Also, D&H has found that its vendor partners have depended more on D&H’s capabilities during the slowdown to help increase their own efficiencies, since many manufacturers were dealing with fewer in-house resources.

D&H has proactively addressed its resellers’ needs, maintaining the same superior level of customer service as ever, providing critical support through the worst months of the downturn. Such programs as the Business Assurance credit line increases; best practices training at its trade events and online; guidance on the economic stimulus plan, and other offerings helped D&H VARs navigate toward more profitable practices.

New Management Rises to the Challenge
This past quarter marked the end of the first year for D&H’s new management team, during which time Michael Schwab and Dan Schwab served dually as co-presidents. At the same time, D&H’s Jeff Davis was promoted to senior VP of sales, and Mary Campbell and Rob Eby were each appointed to VP posts. It’s a credit to the newly formed team that even in one of the most troubled environments in decades, their recent programs and services have been able to increase reseller business and bolster the company’s revenues. “We’ve worked hard to focus on the essentials, that is, maintaining the profitability of our partners,” said Dan Schwab, co-president at D&H. “We needed to effectively address our resellers’ requirements and execute specific support strategies. The same goes for our ability to follow through with our vendors’ initiatives. By staying committed to both, we’ve been able to generate growth for ourselves and our accounts, and to remain confident that there’s still opportunity to come in 2009.”

The following categories experienced sales increases in D&H’s Q4 FY ’09 (February to April ‘09), over last year:
  • Notebooks/netbooks: 54%
  • Processors/components: 39%
  • Mobile devices: 41%
  • Storage/Security: 28%
  • Server Products: 35%
  • Networking: 17%
About D&H Distributing
As the nation’s leading technology distributor, D&H provides a wealth of resources to empower solution providers and consultants, delivering a broad selection of SMB categories, products and applications. The company’s offerings span server and infrastructure, SOHO and mobile applications, consumer electronics and gaming. D&H’s multi-market expertise, account-dedicated sales teams, sterling service and flexible financing options are unmatched in the industry.

With an impressive 91-year history serving as a trusted advisor to the reseller channel, D&H has been able to consistently reinvent itself based upon changing market conditions. The company prides itself on creating business partnerships with an astute focus on ease-of-doing-business, relationships, value, performance and service.

D&H ships out of five separate locations in North America, including its US headquarters in Harrisburg and its Canadian headquarters in Mississauga, Ontario. Additional US warehouses are located in Atlanta, GA; Chicago, IL; and Fresno, CA. Call D&H toll-free at (800) 340-1001 or visit www.dandh.com.

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