SYNNEX Corporation

synnex
Mar 29,2018

SYNNEX Corporation Reports First Quarter Fiscal 2018 Results

FREMONT, Calif., March 29, 2018 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal first quarter ended February 28, 2018.

 

Q1 FY18

Q1 FY17

Net change

 

Revenue ($M)

$4,552

$3,521

29.3%

 

Operating income ($M)

$111.9

$101.8

10.0%

 

Non-GAAP operating income ($M)(1)

$140.4

$118.9

18.2%

 

Operating margin

2.46%

2.89%

(43) bps

 

Non-GAAP operating margin(1)

3.09%

3.38%

(29) bps

 

Net income ($M)

$24.4

$61.8

(60.5)%

 

Non-GAAP net income ($M)(1)

$86.3

$73.1

18.1%

 

Diluted EPS

$0.61

$1.54

(60.4)%

 

Non-GAAP Diluted EPS(1)

$2.14

$1.82

17.6%

 
 

(1) Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangible assets together with the related tax effects thereon, and a charge related to repatriation tax and the remeasurement of deferred taxes. A reconciliation of GAAP to Non-GAAP financial measures is presented in the supplementary information section at the end of this press release.

"We started our 2018 fiscal year with solid momentum as we achieved record first quarter revenue and operating profit dollars," said Dennis Polk, President and Chief Executive Officer. "This quarter's performance speaks to the unique and differentiated solutions we are delivering to partners across our businesses, and our team's continued ability to operate efficiently and effectively in the markets we serve."

First Quarter Fiscal 2018 Highlights:

  • Technology Solutions: Revenue was $4.0 billion, up 33% from the prior fiscal year quarter. Adjusting for the Westcon-Comstor acquisition, Technology Solutions grew 12% over the prior year. Operating income was $82 million, or 2.0% of segment revenue, compared to $80 million, or 2.6% of segment revenue, in the fiscal first quarter of 2017. Non-GAAP operating income was $97 million, or 2.4% of segment revenue, in the fiscal first quarter of 2018, compared to $81 million, or 2.7% of segment revenue, in the fiscal first quarter of 2017.
  • Concentrix: Revenue was $508 million, an increase of 6% over the fiscal first quarter of the prior year. Operating income was $30 million, or 5.8% of segment revenue, compared to $21 million, or 4.5% of segment revenue in the prior fiscal year quarter. Non-GAAP operating income was $44 million, or 8.6% of segment revenue, in the fiscal first quarter of 2018, compared to $38 million, or 7.9% of segment revenue, in the fiscal first quarter of 2017.
  • The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 8.5% compared to 10.5% in the prior year fiscal first quarter. The adjusted trailing fiscal four quarters ROIC was 11.0%.
  • The debt to capitalization ratio was 43.8%, up from 33.1% in the prior fiscal year first quarter, primarily as a result of the Westcon-Comstor acquisition in the fiscal fourth quarter of 2017.
  • Depreciation and amortization were $22 million and $27 million, respectively.
  • Cash used in operations was approximately $6 million during the quarter.
  • The effective tax rate for the first quarter of fiscal 2018 was 29%, compared to 34% in the prior year period. The tax rate for the first quarter of fiscal 2018 excludes a charge of approximately $42 million, or $1.03 per diluted share, related to repatriation tax and the remeasurement of deferred tax accounts.

Second Quarter Fiscal 2018 Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2018 second quarter. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangibles and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

  • Revenue is expected to be in the range of $4.58 billion to $4.78 billion.
  • Net income is expected to be in the range of $71.9 million to $75.7 million and on a Non-GAAP basis, net income is expected to be in the range of $91.1 million to $94.9 million.
  • Diluted earnings per share is expected to be in the range of $1.77 to $1.87 and on a Non-GAAP basis, diluted earnings per share is expected to be in the range of $2.25 to $2.35.
  • After-tax amortization of intangibles is expected to be $19.2 million, or $0.48 per share.

Dividend Announcement

SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.35 per common share. The dividend is payable on April 27, 2018 to stockholders of record as of the close of business on April 13, 2018.

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 (800) 369-1162 in North America or (415) 228-5007 outside North America.  The passcode 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 where it will be archived for one year.

About SYNNEX Corporation

SYNNEX Corporation (NYSE:SNX) is a Fortune 500 corporation 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 to a broad range of enterprises.  SYNNEX distributes a broad range of information technology systems and products, and also provides systems design and integration solutions. Concentrix, a wholly-owned subsidiary of SYNNEX Corporation, offers a portfolio of strategic solutions and end-to-end business services focused on customer engagement, process optimization, technology innovation, front and back-office automation and business transformation to clients in ten identified industry verticals. Founded in 1980, SYNNEX Corporation operates in numerous countries throughout North and South America, Asia-Pacific and Europe.  Additional information about SYNNEX may be found online at www.synnex.com.

Use of Non-GAAP Financial Information

In addition to the financial results presented in accordance with GAAP, SYNNEX also uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), non-GAAP net income, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude acquisition-related and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.

In the first fiscal quarter of 2018, non-GAAP net income and non-GAAP diluted earnings per share also exclude the impact of a provisional adjustment relating to the enactment of the Tax Cuts and Jobs Act of 2017. This adjustment includes an estimated transition tax on accumulated overseas profits and the estimated remeasurement of deferred tax assets and liabilities to the new U.S. tax rate. These estimates may be impacted by new guidance issued by regulators, additional information obtained related to earnings and profits in foreign jurisdictions and the impact of our financial position as of the measurement date of November 30, 2018. SYNNEX expects the accounting for the tax effects of the Tax Cuts and Jobs Act will be completed during the one-year measurement period.

Additionally, SYNNEX refers to growth rates at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the Company's business performance. Financial results adjusted for currency are calculated by translating current period activity in the transaction currency using the comparable prior year periods' currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.

Trailing fiscal four quarters ROIC is defined as the last four quarters' tax effected operating income divided by the average of the last five quarterly balances of borrowings (excluding book overdraft) and equity, net of cash and cash equivalents in the United States. Adjusted ROIC is calculated by excluding the tax effected impact of acquisition-related and integration expenses, restructuring costs and the amortization of intangibles from operating income and equity.

SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of SYNNEX' operational results and trends that more readily enable investors to analyze SYNNEX' base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of SYNNEX' non-GAAP financial information to GAAP is set forth in the supplemental information section at the end of this press release.

Safe Harbor Statement

Statements in this news 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, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding SYNNEX' expectations and outlook for the fiscal 2018 second quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, tax rate, after-tax amortization of intangibles and acquisition-related and integration expenses, currency impact, the frequency and occurrence of dividend declarations, the anticipated benefits of the non-GAAP financial measures, and estimates related to the Tax Cuts and Jobs Act of 2017, as well as expectations relating to the accounting thereof, 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: general economic conditions and any weakness in information technology and consumer electronics spending; the loss or consolidation of one or more of our significant original equipment manufacturer, or 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 tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration 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; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2017 and subsequent 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 2018 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 and share amounts in thousands, except for per share amounts)

(unaudited)

 
 

February 28,
2018

 

November 30,
2017

ASSETS

     

Current assets:

     

Cash and cash equivalents

$

372,344

   

$

550,688

 

Restricted cash

5,643

   

5,837

 

Short-term investments

5,698

   

5,475

 

Accounts receivable, net

2,620,279

   

2,846,371

 

Receivable from related parties

1,265

   

77

 

Inventories

2,323,259

   

2,162,626

 

Other current assets

197,278

   

168,704

 

Total current assets

5,525,766

   

5,739,778

 

Property and equipment, net

346,705

   

346,589

 

Goodwill

871,106

   

872,641

 

Intangible assets, net

558,408

   

583,051

 

Deferred tax assets

31,687

   

31,687

 

Other assets

124,111

   

124,780

 

Total assets

$

7,457,783

   

$

7,698,526

 
       

LIABILITIES AND EQUITY

     

Current liabilities:

     

Borrowings, current

$

694,560

   

$

805,471

 

Accounts payable

2,427,847

   

2,626,720

 

Payable to related parties

20,631

   

16,888

 

Accrued compensation and benefits

166,770

   

204,665

 

Other accrued liabilities

389,123

   

354,104

 

Income taxes payable

42,242

   

33,359

 

Total current liabilities

3,741,173

   

4,041,207

 

Long-term borrowings

1,121,206

   

1,136,089

 

Other long-term liabilities

192,360

   

124,008

 

Deferred tax liabilities

87,605

   

113,527

 

Total liabilities

5,142,344

   

5,414,831

 

Stockholders' equity:

     

Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding

   

 

Common stock, $0.001 par value, 100,000 shares authorized, 41,145 and 41,092 shares issued as of February 28, 2018 and November 30, 2017, respectively.

41

   

41

 

Additional paid-in capital

474,653

   

467,948

 

Treasury stock, 1,431 and 1,419 shares as of February 28, 2018 and November 30, 2017, respectively

(78,775)

   

(77,133)

 

Accumulated other comprehensive income (loss)

(45,701)

   

(61,919)

 

Retained earnings

1,965,221

   

1,954,758

 

Total stockholders' equity

2,315,439

   

2,283,695

 

Total liabilities and equity

$

7,457,783

   

$

7,698,526

 

 

SYNNEX Corporation

Consolidated Statements of Operations

(currency and share amounts in thousands, except for per share amounts)

(unaudited)

 
 

Three Months Ended

 

February 28, 2018

 

February 28, 2017

Revenue:

     

Products

$

4,048,763

   

$

3,046,621

 

Services

503,607

   

474,248

 

Total revenue

4,552,370

   

3,520,869

 

Cost of revenue:

     

Products

(3,824,096)

   

(2,880,553)

 

Services

(314,323)

   

(298,533)

 

Gross profit

413,951

   

341,783

 

Selling, general and administrative expenses

(302,019)

   

(240,024)

 

Operating income

111,932

   

101,759

 

Interest expense and finance charges, net

(17,451)

   

(8,182)

 

Other expense, net

(1,178)

   

(323)

 

Income before income taxes

93,303

   

93,254

 

Provision for income taxes

(68,869)

   

(31,465)

 

Net income

$

24,434

   

$

61,789

 

Earnings per common share:

     

Basic

$

0.61

   

$

1.55

 

Diluted

$

0.61

   

$

1.54

 

Weighted-average common shares outstanding:

     

Basic

39,695

   

39,494

 

Diluted

39,978

   

39,705

 

Cash dividends declared per share

$

0.35

   

$

0.25

 

 

SYNNEX Corporation

Segment Information

(currency in thousands)

(unaudited)

 
 

Three Months Ended

 

February 28, 2018

 

February 28, 2017

Revenue:

     

  Technology Solutions

$

4,048,819

   

$

3,046,696

 

  Concentrix

507,737

   

478,164

 

  Inter-segment elimination

(4,186)

   

(3,991)

 

  Consolidated

$

4,552,370

   

$

3,520,869

 
       

Operating income:

     

  Technology Solutions

$

82,269

   

$

80,421

 

  Concentrix

29,663

   

21,316

 

  Inter-segment elimination

   

22

 

  Consolidated

$

111,932

   

$

101,759

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

 
 

Three Months Ended

 

February 28, 2018

 

February 28, 2017

Revenue in Constant Currency

     

Consolidated

     

Revenue

$

4,552,370

   

$

3,520,869

 

Foreign currency translation

(38,097)

     

Revenue in constant currency

$

4,514,273

   

$

3,520,869

 
       

Technology Solutions

     

Segment revenue

$

4,048,819

   

$

3,046,696

 

Foreign currency translation

(24,430)

     

Revenue in constant currency

$

4,024,389

   

$

3,046,696

 
       

Concentrix

     

Segment revenue

$

507,737

   

$

478,164

 

Foreign currency translation

(13,667)

     

Revenue in constant currency

$

494,070

   

$

478,164

 
               
               
 

Three Months Ended

 

February 28, 2018

 

February 28, 2017

Selling, general and administrative expenses

     

Consolidated

     

GAAP selling, general and administrative expenses

$

302,019

   

$

240,024

 

Acquisition-related and integration expenses

1,805

   

611

 

Amortization of intangibles

26,291

   

16,067

 

Adjusted selling, general and administrative expenses

$

273,923

   

$

223,346

 
       

Technology Solutions

     

GAAP selling, general and administrative expenses

$

142,454

   

$

85,722

 

Acquisition-related and integration expenses

1,805

   

 

Amortization of intangibles

12,816

   

654

 

Adjusted selling, general and administrative expenses

$

127,833

   

$

85,068

 
       

Concentrix

     

GAAP selling, general and administrative expenses

$

161,242

   

$

156,369

 

Acquisition-related and integration expenses

   

611

 

Amortization of intangibles

13,475

   

15,413

 

Adjusted selling, general and administrative expenses

$

147,767

   

$

140,345

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

(continued)

 
 

Three Months Ended

 

February 28, 2018

 

February 28, 2017

Operating income and Operating margin

     

Consolidated

     

Revenue

$

4,552,370

   

$

3,520,869

 
       

GAAP operating income

$

111,932

   

$

101,759

 

Acquisition-related and integration expenses

1,805

   

611

 

Amortization of intangibles

26,710

   

16,487

 

Non-GAAP operating income

$

140,447

   

$

118,857

 

Depreciation

21,924

   

19,460

 

Adjusted EBITDA

$

162,371

   

$

138,317

 
       

GAAP operating margin

2.46

%

 

2.89

%

Non-GAAP operating margin

3.09

%

 

3.38

%

       

Technology Solutions

     

Segment revenue

$

4,048,819

   

$

3,046,696

 
       

GAAP operating income

$

82,269

   

$

80,421

 

Acquisition-related and integration expenses

1,805

   

 

Amortization of intangibles

12,816

   

654

 

Non-GAAP operating income

$

96,890

   

$

81,075

 

Depreciation

4,834

   

3,476

 

Adjusted EBITDA

$

101,724

   

$

84,551

 
       

GAAP operating margin

2.03

%

 

2.64

%

Non-GAAP operating margin

2.39

%

 

2.66

%

       

Concentrix

     

Segment revenue

$

507,737

   

$

478,164

 
       

GAAP operating income

$

29,663

   

$

21,316

 

Acquisition-related and integration expenses

   

611

 

Amortization of intangibles

13,894

   

15,833

 

Non-GAAP operating income

$

43,557

   

$

37,760

 

Depreciation

17,090

   

16,007

 

Adjusted EBITDA

$

60,647

   

$

53,767

 
       

GAAP operating margin

5.84

%

 

4.46

%

Non-GAAP operating margin

8.58

%

 

7.90

%

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency and share amounts in thousands, except for per share amounts)

(continued)

 
 

Three Months Ended

 

February 28, 2018

 

February 28, 2017

Net income

     

Net income

$

24,434

   

$

61,789

 

Acquisition-related and integration expenses

1,805

   

611

 

Amortization of intangibles

26,710

   

16,487

 

Income taxes related to the above(1)

(8,303)

   

(5,769)

 

U.S. tax reform adjustment

41,701

   

 

Non-GAAP net income

$

86,347

   

$

73,118

 
       

Diluted earnings per common share ("EPS")(2)

     

Net income

$

24,434

   

$

61,789

 

Less: net income allocated to participating securities

(222)

   

(578)

 

Net income attributable to common stockholders

24,212

   

61,211

 

Acquisition-related and integration expenses attributable to common stockholders

1,789

   

608

 

Amortization of intangibles attributable to common stockholders

26,467

   

16,334

 

Income taxes related to the above attributable to common stockholders(1)

(8,228)

   

(5,721)

 

U.S. tax reform adjustment attributable to common stockholders

41,322

   

 

Non-GAAP net income attributable to common stockholders

$

85,562

   

$

72,432

 
       

Weighted-average number of common shares - diluted:

39,978

   

39,705

 
       

Diluted EPS(2)

$

0.61

   

$

1.54

 

Acquisition-related and integration expenses

0.04

   

0.02

 

Amortization of intangibles

0.66

   

0.41

 

Income taxes related to the above(1)

(0.21)

   

(0.14)

 

U.S. tax reform adjustment

1.03

   

 

Non-GAAP Diluted EPS(3)

$

2.14

   

$

1.82

 

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(amounts in millions, except for per share amounts)

(continued)

 
 

Forecast

 

Three Months Ending May 31, 2018

 

Low

 

High

Net income

     

Net income

$

71.9

   

$

75.7

 

Amortization of intangibles

26.6

   

26.6

 

Income taxes related to the above(1)

(7.4)

   

(7.4)

 

Non-GAAP net income

$

91.1

   

$

94.9

 
       

Diluted EPS(2)

$

1.77

   

$

1.87

 

Amortization of intangibles

0.66

   

0.66

 

Income taxes related to the above(1)

(0.18)

   

(0.18)

 

Non-GAAP Diluted EPS(3)

$

2.25

   

$

2.35

 
 

(1) The tax effect of the non-GAAP adjustments was calculated using the effective year-to-date tax rate during the respective periods.  The effective tax rate for fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.

 

(2) Diluted EPS for all periods presented is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities.  For purposes of calculating Diluted EPS, Net income allocated to participating securities was approximately 0.9% of Net income for both the three months ended February 28, 2018 and February 28, 2017. Net income allocable to participating securities is estimated to be approximately 0.9% of the forecast Net income for the three months ending May 31, 2018.

 

(3) The sum of the components of Non-GAAP Diluted EPS may not agree to totals, as presented, due to rounding.

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

 

ROIC

 
 

February 28, 2018

 

February 28, 2017

ROIC

     

Operating income (trailing fiscal four quarters)

$

519,138

   

$

405,728

 

Income taxes on operating income(1)

(227,392)

   

(135,770)

 

Operating income after taxes

291,746

   

269,958

 
       

Total borrowings, excluding book overdraft (last five quarters average)

$

1,376,742

   

$

836,091

 

Total equity (last five quarters average)

2,194,088

   

1,927,441

 

Less: U.S. cash and cash equivalents (last five quarters average)

(122,885)

   

(200,433)

 

Total invested capital

3,447,945

   

2,563,099

 
       

ROIC

8.5

%

 

10.5

%

       

Adjusted ROIC

     

Non-GAAP operating income (trailing fiscal four quarters)

$

614,517

   

$

480,257

 

Income taxes on Non-GAAP operating income(1)

(209,446)

   

(160,704)

 

Non-GAAP operating income after taxes

405,071

   

319,553

 
       

Total invested capital

$

3,447,945

   

$

2,563,099

 

Tax effected impact of cumulative non-GAAP adjustments (last five quarters average)

231,881

   

170,083

 

Total Non-GAAP invested capital

3,679,826

   

2,733,182

 
       

Adjusted ROIC

11.0

%

 

11.7

%

 

(1) Income taxes on GAAP and non-GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. The effective tax rate for non-GAAP operating income in fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.

 

Debt to Capitalization

 
   

February 28, 2018

 

February 28, 2017

Total borrowings, excluding book overdraft

(a)

1,802,666

   

$

1,006,485

 

Total equity

(b)

2,315,439

   

2,038,219

 

Debt to capitalization

(a)/((a)+(b))

43.8

%

 

33.1

%

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

(continued)

 

Cash Conversion Cycle

 
   

Three Months Ended

   

February 28, 2018

 

February 28, 2017

Days sales outstanding

       

Revenue (products and services)

(a)

$

4,552,370

   

$

3,520,869

 

Accounts receivable, including receivable from related parties

(b)

2,621,544

   

1,724,942

 

Days sales outstanding

(c) = (b)/((a)/the number of days during the period)

52

   

44

 
         

Days inventory outstanding

       

Cost of revenue (products and services)

(d)

$

4,138,419

   

$

3,179,086

 

Inventories

(e)

2,323,259

   

1,853,901

 

Days inventory outstanding

(f) = (e)/((d)/the number of days during the period)

51

   

52

 
         

Days payable outstanding

       

Cost of revenue (products and services)

(g)

$

4,138,419

   

$

3,179,086

 

Accounts payable, including payable to related parties

(h)

2,448,478

   

1,502,142

 

Days payable outstanding

(i) = (h)/((g)/the number of days during the period)

53

   

43

 
         

Cash conversion cycle

(j) = (c)+(f)-(i)

50

   

53

 

 

 

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SOURCE SYNNEX Corporation

Mary Lai, Senior Director, Investor Relations, SYNNEX Corporation, Telephone: (510) 668-8436

SYNNEX Corporation