SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation, is 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 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 around 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, 2015, SYNNEX had approximately 78,000 full-time and temporary employees worldwide. We reported revenues for the fiscal year of approximately $13.3 billion and net income attributable to SYNNEX Corporation of approximately $208.5 million. We distributed and marketed approximately 30,000 technology products (as measured by active SKUs) from more than 300 consumer electronic (CE) and original equipment manufacturers (OEM) suppliers to more than 20,000 resellers. The financial results for the fiscal year also included the addition of Concentrix acquired in 2006 which has grown organically and through acquisition under the current leadership.
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.
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. Revenue from Concentrix was approximately $15 million in the twelve months ended December 31, 2005. Concentrix generated revenue of approximately $1.4 billion for the fiscal year ended November 30, 2015 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.
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 approximately 9 percent for the last five years while the compound annual growth rate for operating income was slightly more than 12 percent. We are growing income at a faster rate than sales while continuing to drive shareholder value.
In 2014, the SYNNEX Board of Directors approved the initiation of a quarterly cash dividend to shareholders of its common stock. An initial quarterly cash dividend of $0.125 per common share was paid on October 31, 2014 to the shareholders of record as of the close of business on October 17, 2014. One year later, the Board of Directors increased the cash dividend per common share to $0.20 from $0.125.
|History of Cash Dividends Per Common Share|
|Record Date||Date||Per Common Share|
|Oct. 17, 2014||Oct. 31, 2014||$0.125|
|Jan. 16, 2015||Jan. 30, 2015||$0.125|
|April 17, 2015||May 1, 2015||$0.125|
|July 17, 2015||July 31, 2015||$0.125|
|Oct. 16, 2015||Oct. 30, 2015||$0.20|
|Jan. 19, 2016||Jan. 29, 2016||$0.20|
|April 15 2016||April 29, 2016||$0.20|
|July 15, 2016||July 29, 2016||$0.20|
|Oct. 14, 2016||Oct. 28, 2016||$0.25|
|Jan. 13, 2017||Jan. 27, 2017||$0.25|