SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation (#198) and a leading business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy to a broad range of enterprises. SYNNEX organized to provide products and services through two reportable business segments: Technology Solutions and Concentrix. Technology Solutions segment distributes peripherals, IT systems including data center server and storage solutions, system components, software, networking/communications/security equipment, consumer electronics, or CE, and complementary products. Within Technology Solutions segment, we also provide systems design and integration solutions. The Westcon-Comstor Americas business operates in North and Latin America and focuses in security, collaboration, networking, and data center. The expert technical knowledge and industry-leading partner programs are designed to keep our partners at the forefront of their markets to drive business and growth. Westcon-Comstor Americas goes to market under the Westcon and Comstor brands.Concentrix segment offers a portfolio of strategic solutions and end-to-end business services focused on customer engagement strategy, process optimization, technology innovation, front and back-office automation and business transformation to clients in ten identified industry verticals.
Robert T. Huang founded SYNNEX in November of 1980 and incorporated the company in the State of California as COMPAC Microelectronics, Inc. The name changed to SYNNEX Information Technologies in February of 1994, and immediately prior to its initial public offering, we changed our name to SYNNEX Corporation in October 2003. The company has generated a profit since inception.
Common Shares of SYNNEX stock began trading on the New York Stock Exchange under the stock symbol of “SNX” as an initial public offering on November 25, 2003. The offering was effected pursuant to a Registration Statement on Form S-1 (File No. 333-108543), which the Securities and Exchange Commission declared effective on November 24, 2003.
For the fiscal year ended November 30, 2003, SYNNEX had 1,664 full-time employees. We reported revenues for the fiscal year of approximately $4.1 billion and net income attributable to SYNNEX Corporation of approximately $30.0 million. At the time, we distributed and marketed approximately 15,000 products (as measured by active SKUs) from more than 100 original equipment manufacturers (OEM) suppliers to more than 15,000 resellers.
For the fiscal year ended November 30, 2016, SYNNEX had approximately 110,000 full-time and temporary employees worldwide. We reported revenues for the fiscal year of approximately $14.1 billion and net income attributable to SYNNEX Corporation of approximately $234.9 million.
Technology Solutions segment, we distribute more than 30,000 technology products (as measured by active SKUs) from more than 300 IT, CE and original equipment manufacturers, or OEM suppliers to more than 20,000 resellers, system integrators, and retailers throughout the United States, Canada and Japan. Concentrix segment, we provide a comprehensive range of strategic services and solutions to enhance our clients’ customer life cycles to acquire, support and renew customer relationships, to automate and optimize processes, to maximize the value of every customer interaction and to improve business outcomes. Our portfolio of services includes end-to-end process outsourcing to customers in various industry vertical markets delivered through omni-channels that include both voice and non-voice mediums and in more than 40 languages. Our portfolio of solutions and services support our clients and their customers globally.
Technology as well as our markets have changed significantly in the nearly four decades since the inception of what is SYNNEX today. In addition to growing organically, we have made a number of acquisitions in both segments. One of the most notable acquisitions was Concentrix Corporation in 2006. At the time, Concentrix was an integrated marketing company that provided call center, database analysis, and print on demand services to customers in the transportation, publishing, banking, healthcare and high technology industries. The Concentrix integration further expanded and strengthened SYNNEX capabilities and service offering. Concentrix generated revenue of approximately $1.6 billion for the fiscal year ended November 30, 2016 which was significantly helped by the successful integration of the IBM Customer Care Business acquired in 2014. Today, Concentrix is a leader in high value global services.
Technology Solutions Segment:
- 2017: Acquired Westcon-Comstor Americas
- 2013: Acquired Supercom (Canada)
- 2010: Acquired Jack of All Games
- 2010: Acquired Marubeni Infotec (Japan)
- 2008: Acquired New Age Electronics
- 2007: Acquired Redmond Group of Companies (Canada)
- 2007: Acquired PC Wholesale
- 2006: Acquired Azerty United (Canada)
- 2006: Acquired Telpar
- 2004: Acquired EMJ Data Systems (Canada)
- 2002: Acquired Gates/Arrow Distributing
- 2001: Acquired Merisel (Canada)
- 1997: Acquired ComputerLand
- 2017: Acquired Tigerspike
- 2016: Acquired Minacs
- 2014: Acquired IBM Customer Care Business
- 2011: Acquired gem (Ireland, Hungary)
- 2011: Acquired e4e (India, Scotland, U.S.)
- 2010: Acquired Encover, Inc.
- 2010: Acquired Aspire Technology, Ltd. (UK)
- 2007: Acquired Link2Support
- 2006: Acquired Concentrix
- 2004: Acquired BSA Sales
Kevin Murai joined SYNNEX in March of 2008 as Co-CEO, sharing the role with SYNNEX founder Bob Huang, and was elected to the Board of Directors. On December 1, 2008, Mr. Huang retired as President and Co-CEO after more than 28 years and became the Chairman of the Board of Directors. At that time, Mr. Murai became President and sole CEO of SYNNEX.
Robert Huang retired as Chairman of the Board of Directors and as a member of the SYNNEX Board of Directors effective June 21, 2010. The SYNNEX Board of Directors unanimously named Dwight A. Steffensen as non-executive Chairman of the Board, also effective on June 21, 2010. Mr. Steffensen continues in this capacity as an independent director.
SYNNEX continued to grow and evolve under Kevin Murai’s leadership. The five-year compound annual growth for revenue was over 6 percent for the last five years while the compound annual growth rate for non-GAAP operating income was slightly more than 11 percent. We are growing income at a faster rate than sales while continuing to drive shareholder value.