Welcome!

News Feed Item

SYNNEX Corporation Reports Fiscal 2013 First Quarter

SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal first quarter ended February 28, 2013.

    Q1 FY13   Q1 FY12  

Net Change

Revenue ($M)   $2,461   $2,461   0.0%
Operating income ($M)   $55.9   $64.0   -12.6%
Operating margin   2.27%   2.60%   -33bp
Net income attributable to SYNNEX Corporation ($M)   $33.4   $38.2   -12.7%
Diluted EPS   $0.88   $1.02   -13.7%

“I am pleased to report solid quarterly results even as compared to the prior year’s exceptional profits which benefitted from the hard drive shortage and considering the recent weakening of key foreign currencies such as the yen. Steady operational execution within the core Distribution Segment aligned well with our mix shift into higher margin product and service offerings, including in our Technology Solutions Division," stated Kevin Murai, President and Chief Executive Officer. “Our GBS Segment’s strong revenue growth continues, driven by strategic investment and increasing momentum in our rapidly growing Concentrix business.”

Fiscal 2013 First Quarter Highlights:

  • Distribution: Revenue was $2.42 billion, essentially flat from the prior fiscal year quarter. Distribution income before non-operating items, income taxes and noncontrolling interest was $52.1 million, or 2.15% of distribution revenue compared with $62.4 million, or 2.57% in the prior fiscal year quarter.
  • Global Business Services (GBS): Revenue was $52.5 million, an increase of 16.5% over the prior fiscal year first quarter. GBS income before non-operating items, income taxes and non-controlling interest was $3.9 million, or 7.43% of GBS revenue compared with $2.0 million, or 4.42% in the prior fiscal year quarter.
  • Trailing fiscal four quarters ROIC was 10.1% for the fiscal first quarter of 2013, compared to 11.4% in the prior year fiscal first quarter.
  • The cash conversion cycle was 43 days, down two days from the prior fiscal year quarter.
  • The debt to capitalization ratio was 18%.
  • Depreciation and amortization were $4.3 million and $2.0 million, respectively.

Fiscal 2013 Second Quarter Outlook:

The following statements are based on the Company’s current expectations for the fiscal 2013 second quarter. These statements are forward-looking and actual results may differ materially.

“We anticipate that IT demand will remain mixed for products we sell and geographies we operate in. In addition, ongoing competitive pricing and a more limited ability to earn incremental incentives will impact our gross margin this quarter.” Mr. Murai continued, “Despite the near-term challenges, however, we remain focused on growing our business and expect our margins to improve in the second half of the year.”

  • Revenue is expected to be in the range of $2.425 billion to $2.525 billion.
  • Net income is expected to be in the range of $29.8 million to $31.0 million.
  • Diluted earnings per share are expected to be in the range of $0.78 to $0.82.

Conference Call and Webcast

SYNNEX will be discussing its financial results and outlook on a conference call today at 2:00 p.m. (PT). A webcast of the call will be available at http://ir.synnex.com. The conference call will also be available via telephone by dialing (888) 469-3219 in North America or (630) 395-0205 outside North America. The passcode code for the call is “SNX.” A replay of the webcast will be available at http://ir.synnex.com approximately two hours after the conference call has concluded.

About SYNNEX

SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation, is a leading business process services company, servicing resellers, retailers and original equipment manufacturers in multiple regions around the world. The Company provides services in IT distribution, supply chain management, contract assembly and business process outsourcing. Founded in 1980, SYNNEX employs approximately 12,000 full-time and part-time associates worldwide. Additional information about SYNNEX may be found online at www.synnex.com.

Safe Harbor Statement

Statements in this press release regarding SYNNEX Corporation, which are not historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms such as believe, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding the demand environment, growth in profitability and margins, expansion into higher margin product and service offerings, investment and growth in our GBS segment, competitive pricing, vendor rebates, and our revenue, operating margins, net income and earnings per share, are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to successfully integrate our recent acquisitions; diversion of management as a result of our recent acquisitions; loss of vendors and suppliers as a result of our recent acquisitions; market acceptance and product life of the platforms sold by companies recently acquired; general economic conditions and any weakness in IT and consumer electronics spending; the loss or consolidation of one or more of our significant OEM suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in the tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and contract assembly customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers, and negative trends in their businesses; any future incidents of theft; risks associated with our business process outsourcing and contract assembly business; risks associated with our anti-dilution share repurchase program; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2012 and from time to time in our SEC filings. Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.

Copyright 2013 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

SNX-F

SYNNEX Corporation
Consolidated Balance Sheets
(currency in thousands)
(unaudited)
                     
February 28, November 30,
  2013     2012  
ASSETS
Current assets:
Cash and cash equivalents $ 232,074 $ 163,699
Short-term investments 15,739 15,933
Accounts receivable, net 1,196,077 1,401,087
Receivable from affiliates 328 285
Inventories 916,196 923,340
Current deferred tax assets 23,400 23,390
Other current assets   59,585     52,727  
Total current assets 2,443,399 2,580,461
 
Property and equipment, net 120,423 122,923
Goodwill 184,531 189,088
Intangible assets, net 25,905 29,049
Deferred tax assets 648 619
Other assets   39,034     41,122  
Total assets $ 2,813,940   $ 2,963,262  
 
LIABILITIES AND EQUITY
Current liabilities:
Borrowings under securitization, term loans and lines of credit $ 82,283 $ 52,698
Convertible debt 142,824 141,436
Accounts payable 947,011 1,111,833
Accrued liabilities 145,987 181,270
Income taxes payable   14,271     7,470  
Total current liabilities 1,332,376 1,494,707
 
Long-term borrowings 72,618 81,152
Long-term liabilities 54,841 58,783
Deferred tax liabilities   8,212     9,265  
Total liabilities   1,468,047     1,643,907  
 
SYNNEX Corporation stockholders' equity:
Preferred stock - -
Common stock 37 37
Additional paid-in capital 328,365 324,292
Treasury stock (21,814 ) (21,611 )
Accumulated other comprehensive income 24,690 35,405
Retained earnings   1,014,269     980,900  
Total SYNNEX Corporation stockholders' equity 1,345,547 1,319,023
Noncontrolling interest   346     332  
Total equity   1,345,893     1,319,355  
Total liabilities and equity $ 2,813,940   $ 2,963,262  
SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except for per share amounts)
(unaudited)
       
 
Three Months Ended

 

February 28, 2013 February 29, 2012
 
Revenue $ 2,460,839 $ 2,460,694
 
Cost of revenue   (2,304,752 )   (2,291,422 )
 
Gross profit 156,087 169,272
 
Selling, general and administrative expenses   (100,147 )   (105,284 )
 

Income before non-operating items, income taxes and noncontrolling interest

55,940 63,988
 
Interest expense and finance charges, net (5,493 ) (6,035 )
Other income, net   1,261     2,099  
 
Income before income taxes and noncontrolling interest 51,708 60,052
 
Provision for income taxes   (18,317 )   (20,898 )
 
Net income 33,391 39,154
 
Net income attributable to noncontrolling interest   (22 )   (931 )
Net income attributable to SYNNEX Corporation $ 33,369   $ 38,223  
 
Net income per share attributable to SYNNEX Corporation:
Basic $ 0.91   $ 1.05  
Diluted $ 0.88   $ 1.02  
Weighted-average common shares outstanding:
Basic   36,663     36,303  
Diluted   38,030     37,632  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
As more and more companies are making the shift from on-premises to public cloud, the standard approach to DevOps is evolving. From encryption, compliance and regulations like GDPR, security in the cloud has become a hot topic. Many DevOps-focused companies have hired dedicated staff to fulfill these requirements, often creating further siloes, complexity and cost. This session aims to highlight existing DevOps cultural approaches, tooling and how security can be wrapped in every facet of the bu...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
SYS-CON Events announced today that Pulzze Systems will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems Inc, provides the software product "The Interactor" that uniquely simplifies building IoT, Web and Smart Enterprise Solutions. It is a Silicon Valley startup funded by US government agencies, NSF and DHS to bring innovative solutions to market.
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, d...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, discussed how AI can simplify cloud operations. He covered the following topics: why cloud mana...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
Translating agile methodology into real-world best practices within the modern software factory has driven widespread DevOps adoption, yet much work remains to expand workflows and tooling across the enterprise. As models evolve from pockets of experimentation into wholescale organizational reinvention, practitioners find themselves challenged to incorporate the culture and architecture necessary to support DevOps at scale.
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...