CENTENNIAL, Colo. - Arrow Electronics (NYSE:ARW), a global technology provider, has announced a strategic collaboration with SiMa.ai, a company specializing in embedded edge machine learning systems on a chip (MLSoC). Under the agreement, Arrow will become the exclusive distributor of SiMa.ai's products across Europe, the Middle East, and Africa (EMEA).
SiMa.ai's MLSoC is designed to deploy full pipeline real-world workloads on the edge, boasting high performance and power efficiency. The product is said to deliver the highest frames per second per watt (FPS/W) performance in the edge AI/ML market. The collaboration is set to cater to a variety of sectors, including industrial manufacturing, retail, aerospace, defense, agriculture, and healthcare.
Arrow will market SiMa.ai's offerings, which include the MLSoC, Palette Software, and development kits. Margit Tischler, vice president of engineering in EMEA for Arrow, emphasized the company's commitment to artificial intelligence at the edge and the value SiMa.ai adds to their AI product line.
Elizabeth Samara-Rubio, chief business officer at SiMa.ai, expressed enthusiasm for the distribution agreement, highlighting the opportunity to expedite customer access to their edge AI platform and support evolving AI/ML projects.
The partnership will be showcased at the Hardware Pioneers Max event in London, where Arrow will feature SiMa.ai at their booth. Additionally, SiMa.ai will join Arrow for a talk titled "Accelerate the Entire Vision Pipeline," focusing on the application of machine learning and AI in various industries.
Prospective customers interested in learning more about accelerating edge ML projects with SiMa.ai's technology can register for an upcoming Arrow webinar or book an AI consultation with Arrow experts.
Arrow Electronics, with 2023 sales of $33 billion, develops technology solutions for a wide range of manufacturers and service providers. This strategic collaboration is based on a press release statement and further details can be found on Arrow's website.
InvestingPro Insights
As Arrow Electronics forges a significant partnership with SiMa.ai to distribute cutting-edge machine learning technology in the EMEA region, investors are taking note of the company's financial health and strategic moves. Arrow's management has demonstrated confidence in the company's growth trajectory, as evidenced by aggressive share buybacks. This aligns with the company's strong free cash flow yield, making it an attractive proposition for shareholders looking for companies with high shareholder yield.
Arrow's commitment to innovation and expansion in the AI sector is also reflected in its financial metrics. With a market capitalization of $7.05 billion and a Price/Earnings (P/E) ratio of 10.25, Arrow is positioned competitively in the market. The company's valuation, as of the last twelve months leading up to Q1 2024, shows a Price/Book ratio of 1.23, suggesting that the stock might be trading at a reasonable value relative to its assets.
While the company is navigating through a challenging phase with an anticipated sales decline and a projected drop in net income for the current year, it is important to note that Arrow remains a prominent player in the Electronic Equipment, Instruments & Components industry. Investors looking to delve deeper into Arrow's financials and strategic outlook can explore further with InvestingPro, which offers additional insights into the company's performance and projections. There are 13 additional InvestingPro Tips available, providing a comprehensive analysis for informed decision-making. To access these insights and more, consider using the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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