Neoware Leads Thin Client Computing Industry in 5 Year Growth
KING OF PRUSSIA, Pa., March 22, 2006 -- Neoware, Inc. (Nasdaq:NWRE), the leading supplier of software-powered thin client solutions for enterprises that make computing more secure, reliable, affordable and manageable, today announced that, according to recently released calendar year 2005 figures from IDC, Neoware continued to gain market share in 2005. The IDC report indicates that Neoware leads the rapidly growing thin client segment of the PC market in compound annual growth (CAGR) for worldwide shipments and revenue between 2001 and 2005, as well as in sales of increasingly popular Linux-based thin clients. IDC reported these numbers in the IDC Enterprise Thin-Client QView, 4Q05, No. 35034.
The report showed that Neoware grew faster than the overall market in both units and revenues in 2005, and that Neoware's unit shipment CAGR for 2001-2005, at 63 percent, was higher than other leading competitors for the same period. The worldwide thin client segment, in which revenues grew almost 27 percent in 2005, continued to consolidate and favor larger, global players, with the top three participants, Wyse, Neoware, and Hewlett Packard, taking 74.2 percent share of unit shipments for the year. Neoware was number two in share with 21 percent of unit shipments in 2005. IDC is forecasting 28 percent thin client revenue growth through calendar 2007, far outpacing the growth of personal computers.
"Clearly, the benefits of thin client computing -- improved security, lower management costs, and higher return on investment -- are resonating with IT managers around the world, and their increasing interest is reflected in the growth that the industry is experiencing," said Bob O'Donnell, vice president at IDC.
The most recent IDC report also highlighted the growth of Linux-based thin clients as "one of the big stories for the fourth quarter." Linux-based units represented 28 percent of the fourth quarter's total shipments and 23 percent of the year's total shipments. Neoware has the largest market share of the Linux segment, with 46 percent of the worldwide market share in 2005.
"Neoware continues to gain market share, and we believe that our thin client solutions offer customers the best choice in the marketplace," commented Michael Kantrowitz, Neoware Chairman and CEO. "We've invested in the software that powers and manages thin clients, integrating our software with open standards-based technologies that give our customers choice and flexibility. We believe that our ownership of key elements of the thin client software stack lets us provide our customers with better products and support. We have invested in global development centers in each of our geographic markets, that allow us to integrate our thin client solutions easily and quickly into unique customer environments, as well as support the largest global thin client deployments.
Our embrace of industry-standard thin client components based on high-volume PC technologies assures customers of the most capability and flexibility, as well as the highest quality and reliability. Our continued growth, as indicated by IDC, which is outpacing our competition, reinforces our belief that we are delivering superior thin client solutions that customers want.
The report "IDC Enterprise Thin-Client QView, 4Q05, No. 35034" may be found at www.idc.com.
