Pioneer-Standard Pioneers Transformation

"This is the beginning of an exciting transformation of Pioneer Standard," according to a statement by CEO Art Rhein. The move will give Pioneer the financial flexibility to do a better job of meeting the strategic business needs of VARs and enterprise end users, he added.

Pioneer-Standard's Computer Systems Division (CSD) acts as a distributor and solution provider of enterprise computer products, computer system solutions and services by Hewlett-Packard, IBM, Intel, Oracle and more. Pioneer's CSD accounted for 56 percent, or $1.3 billion, of the distributor's consolidated sales for the fiscal year ending March 31, and generated operating earnings of $47.8 million.

After conducting a long-term strategic review, Pioneer concluded that its "computer business enjoyed a much stronger market position in a more stable industry with significant growth opportunities," Rhein said. Pioneer hasn't yet announced any impact to VAR programs, but executives are positive about the potential opportunities. "We are very excited about our future as a computer systems company and have established goals that include growing sales at a rate better than the 8 to 10 percent (CAGR) forecasted for worldwide information technology spending," Rhein said.