ADDvantage Technologies Group Announces Changes at Nave Communications
September 07 2018 - 4:15PM
ADDvantage Technologies Group, Inc. (NASDAQ: AEY)
today announced changes to improve the operating strength of its
telecommunications segment. ADDvantage is a well-known reseller of
new and refurbished network, transport and customer-premise
equipment to the cable television and telecommunications
industries. As part of an overall strategy to strengthen revenue
and profitability in the telco segment, ADDvantage is
re-positioning its subsidiary, Nave Communications, as a
high-quality option for refurbished telecom equipment, including
the repair, testing, and certification of equipment.
A recent internal operational efficiency review
identified the need to centralize the business geographically. “We
acquired Nave in early 2014 and continued to operate it from its
facility in Baltimore, Maryland. We have determined that a more
central location would broaden the opportunities in what has
largely been an East-coast centric business thus far,” Joe Hart,
interim CEO, said.
“Nave has a diverse, long-term customer base and
sells well-known, trusted products from top OEMs including Cisco,
Lucent, Ciena and Fujitsu. Our path forward combines the best
attributes of the Nave operation with ADDvantage’s experience and
dedication to quality,” Hart said.
Effective immediately, Nave inventory management
and order fulfillment will move to Palco Telecom, a world-class
third-party 3PL reverse logistics provider in Huntsville, AL. This
move will allow Nave to begin serving a much wider geographic
customer base, opening up additional sales and revenue
opportunities. The movement of inventory and order fulfillment
operations will also streamline operations to improve inventory
efficiencies and shipping time while significantly reducing
operating costs.
The existing 90,000 sq. ft. warehouse and
operations facility in suburban Baltimore will be sublet to further
reduce operating costs. ADDvantage will reduce the Nave workforce
in Baltimore by 15 employees.
“I am pleased to announce we are investing in
equipment to provide product repair services to our customers, and
that we plan for service to be a contributor to our revenue in
2019. We are also improving our testing capabilities in response to
increased customer and industry demand for higher quality products.
We will be adding additional sales personnel as needed to support
this demand,” Don Kinison, vice president of sales, said.
“Customers will see an increased focus on quality and reliability
from Nave, backed up by enhanced warranties,” Kinison said.
About Nave Communications:
Nave Communications Company was founded in 1998
with the goal of providing our customers with high quality
telecommunications network equipment to meet their operational
needs. In 2014 ADDvantage Technologies Group, Inc. acquired Nave
Communications Company. Nave also provides equipment
decommissioning services. For more information, visit
www.ncctel.com
About ADDvantage Technologies Group,
Inc.
ADDvantage Technologies Group, Inc.
(NASDAQ: AEY) supplies the cable television (Cable TV) and
telecommunications industries with a comprehensive line of new and
used system-critical network equipment and hardware from a broad
range of leading manufacturers. The equipment and hardware
ADDvantage distributes is used to acquire, distribute, and protect
the communications signals carried on fiber optic, coaxial cable
and wireless distribution systems, including television
programming, high-speed data (Internet) and telephony. In addition,
ADDvantage operates a national network of technical repair centers
focused primarily on Cable TV equipment and recycles surplus and
obsolete Cable TV and telecommunications equipment.
ADDvantage operates through its subsidiaries,
Tulsat, Tulsat-Atlanta, Tulsat-Texas, NCS Industries, ComTech
Services, Nave Communications and Triton Datacom. For more
information, please visit the corporate web site
at www.addvantagetechnologies.com.
The information in this announcement may include
forward-looking statements. All statements, other than
statements of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
For further information |
KCSA Strategic Communications |
Company Contact: |
Elizabeth Barker |
Scott Francis (918) 251-9121 |
(212) 896-1203 |
ebarker@kcsa.com |
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