SYNNEX Corporation
Mar 26, 2009

SYNNEX Corporation Reports Fiscal 2009 First Quarter Results

EPS of $0.59 Surpass Wall Street Estimates

FREMONT, Calif.--(BUSINESS WIRE)--Mar. 26, 2009-- SYNNEX Corporation (NYSE:SNX), a leading business process services company, today announced financial results for the fiscal first quarter ended February 28, 2009.

For the fiscal first quarter, revenues were $1.73 billion, a decrease of 1.13% compared to $1.75 billion for the fiscal quarter ended February 29, 2008. Income from operations was $34.7 million, or 2.01% of revenues, versus $32.8 million, or 1.87% of revenues in the prior year fiscal first quarter.

Net income for the fiscal first quarter was $19.5 million, or $0.59 per diluted share, exceeding Wall Street estimates of $0.52. This compares with $16.8 million, or $0.51 per diluted share in the prior year fiscal first quarter.

“I am very pleased with the SYNNEX team’s ability to produce strong bottom line results and solid returns, especially in a challenging demand environment,” stated Kevin Murai, President and Chief Executive Officer. “We increased our market share, while at the same time delivering good gross margins and effectively managing our costs.”

Financial Highlights:

Second Quarter Fiscal 2009 Outlook:

The following statements are based on the Company’s current expectations for the second quarter of fiscal 2009. These statements are forward-looking and actual results may differ materially.

The calculation of diluted earnings per share for the second quarter of fiscal 2009 is based on a diluted weighted-average common share count of approximately 33.3 million.

“Our outlook for the second quarter reflects the current demand environment in combination with our continued ability to execute and produce profitable results,” Murai continued. “We will continue to invest in key growth areas and services that will enable SYNNEX to continue to win market share and expand our profits and returns.”

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 can be accessed by dialing 866-364-4389 in North America or 706-902-0319 outside North America. The confirmation code for the call is 901404495. A replay of the conference call will be available at http://ir.synnex.com approximately two hours after the conference call has concluded and will be archived until April 9, 2009.

About SYNNEX Corporation

SYNNEX Corporation, a Fortune 500 corporation, is a leading business process services company, servicing resellers and original equipment manufacturers in multiple regions around the world. The Company provides services in IT distribution, supply chain management, contract assembly and global business services. Founded in 1980, SYNNEX employs over 7,000 associates worldwide and operates in the United States, Canada, China, Japan, Mexico, the Philippines and the United Kingdom. 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 expectations of our revenues, net income and earnings per share for the second quarter of fiscal 2009, our continued execution, expansion of our business lines and market share, and our goal to expand profitability and returns, 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 IT 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; 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 contract assembly business; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2008 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 2009 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX and the SYNNEX Logo Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

 

SYNNEX Corporation

Consolidated Balance Sheets
(in thousands)
(unaudited)
     
 
February 28, November 30,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 60,017 $ 61,081
Short-term investments 8,401 10,345
Accounts receivable, net 656,266 807,206
Receivable from vendors, net 102,396 96,653
Receivable from affiliates 6,626 4,659
Inventories 653,277 696,008
Deferred income taxes 26,001 26,089
Current deferred assets 11,744 13,322
Other current assets   11,975     9,766  
Total current assets 1,536,703 1,725,129
 
Property and equipment, net 83,116 84,602
Goodwill 116,085 113,438
Intangible assets, net 26,924 26,456
Deferred income taxes 6,656 6,036
Long-term deferred assets 35,939 50,907
Other assets   26,976     26,312  
 
Total assets $ 1,832,399   $ 2,032,880  
 
Liabilities and stockholders' equity
Current liabilities:
Borrowings under securitization, term loans and lines of credit $ 150,281 $ 340,466
Accounts payable 532,275 571,329
Payable to affiliates 100,652 73,631
Accrued liabilities 101,499 113,593

Current deferred liabilities

27,303 30,809
Income taxes payable   6,109     4,713  
Total current liabilities 918,119 1,134,541
 
Long-term borrowings 8,175 8,537
Convertible debt 143,750 143,750
Long-term liabilities 27,383 26,591
Long-term deferred liabilities 24,808 33,567
Deferred income taxes   2,057     1,380  
Total liabilities   1,124,292     1,348,366  
 
Minority interest   4,832     4,673  
 
Stockholders' equity:
Preferred stock - -
Common stock 32 32
Additional paid-in capital 216,538 207,558
Accumulated other comprehensive income 4,341 9,367
Retained earnings   482,364     462,884  
Total stockholders' equity   703,275     679,841  
 
Total liabilities and stockholders' equity $ 1,832,399   $ 2,032,880  
 
 
SYNNEX Corporation
Consolidated Statements of Operations
(in thousands, except for per share amounts)
(unaudited)
     
 

Three Months Ended
February 28,

Three Months Ended
February 29,

2009 2008
 
Revenue $ 1,728,892 $ 1,748,574
 
Cost of revenue   1,623,095     1,652,724  
 
Gross profit 105,797 95,850
 
Selling, general and administrative expenses   71,097     63,070  
 

Income from operations before non-operating items, income taxes and minority interest

34,700 32,780
 
Interest expense and finance charges, net 3,983 4,167
Other (income) expense, net   407     2,046  
 
Income from operations before income taxes and minority interest 30,310 26,567
 
Provision for income taxes 10,669 9,551
Minority interest   161     188  
Net income $ 19,480   $ 16,828  
 
Diluted earnings per share $ 0.59   $ 0.51  
 
Diluted weighted-average common shares outstanding   32,764     33,043  
 

Source: SYNNEX Corporation

SYNNEX Corporation
Laura Crowley, 510-668-3715
Director of Investor Relations and Public Relations
laurack@synnex.com