SYNNEX Corporation
Jan 8, 2009

SYNNEX Corporation Reports Fiscal 2008 Fourth Quarter and Year-End Results

EPS of $0.80 Surpass Wall Street Consensus

Company Achieves Stated Goals of Annual EPS Growth in Excess of 20% and Double-Digit ROIC in the Fourth Quarter of Fiscal 2008

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 8, 2009--SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal fourth quarter and year ended November 30, 2008.

For the fiscal fourth quarter, revenues were $2.1 billion, in the Company's guidance range of $2.1 billion to $2.2 billion and an increase of 6.4% compared to $1.97 billion for the fiscal quarter ended November 30, 2007.

Net income for the fiscal fourth quarter was $26.4 million or $0.80 per diluted share, exceeding Wall Street consensus of $0.71. This compares with $20.2 million, or $0.61 per diluted share in the prior year fiscal fourth quarter and represents a 30.8% improvement in net income year-over-year.

For the fiscal year ended November 30, 2008, revenues increased by 10.9% to $7.77 billion, compared to $7.00 billion for the fiscal year ended November 30, 2007.

Net income for the fiscal year increased 32.7% to $83.8 million, or $2.52 per diluted share, compared to $63.1 million, or $1.93 per diluted share for fiscal 2007.

"We are pleased with SYNNEX' achievements in the fourth quarter and for all of fiscal 2008. In particular, we are very proud that we accomplished our stated goals with respect to our EPS and ROIC targets for the quarter and for the year," stated Kevin Murai, President and Chief Executive Officer. "Our financial results are due to disciplined execution in key aspects of our business from sales to service to operations and support."

Financial Highlights:

    --  The Company grew diluted EPS in fiscal 2008 more than 30%, surpassing
        its post-New Age Electronics acquisition adjusted goal of greater than
        20% EPS growth.
    --  The Company posted ROIC of 10.6% for the period and met its 2008 goal of
        achieving double-digit ROIC by the fiscal fourth quarter.
    --  Fourth quarter income from operations was $47.9 million, or 2.3% of
        revenues, versus $36.9 million, or 1.9% of revenues in the prior year
        fiscal fourth quarter.
    --  Fourth quarter depreciation and amortization were $2.9 million and $1.8
        million, respectively.
    --  Fourth quarter capital expenditures were $7.8 million. The increase in
        capital expenditures over the previous year was primarily due to the
        Company's expansion of its facilities in South Carolina and Mississippi.
    --  Borrowings under the Company's Canadian off-balance sheet accounts
        receivable securitization program totaled approximately $59.2 million as
        of November 30, 2008, versus $115.9 million as of November 30, 2007.

First Quarter Fiscal 2009 Outlook:

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

    --  Revenues are expected to be in the range of $1.74 billion to $1.84
    --  Net income is expected to be in the range of $16.6 million to $17.6
    --  Diluted earnings per share are expected to be in the range of $0.50 to

The calculation of diluted earnings per share for the first quarter of fiscal 2009 is based on an approximate diluted weighted-average common share count of approximately 33.0 million.

"Looking into fiscal 2009, we are committed to achieving above market performance through a combination of continued execution, business line expansion, and improvements in efficiency and productivity," Murai continued. "We believe our lean, flexible, low cost business model best positions SYNNEX to outperform the market in a weak economy. It remains our goal to provide investors solid profitability and returns in any economic environment."

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 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 78606533. A replay of the conference call will be available at approximately two hours after the conference call has concluded and will be archived until January 22, 2009.


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 business process outsourcing. Founded in 1980, SYNNEX employs over 6,000 associates worldwide and operates in the United States, Canada, China, Costa Rica, Japan, Mexico, Nicaragua, the Philippines and the United Kingdom. Additional information about SYNNEX may be found online at

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 first quarter of fiscal 2009, our continued execution, expansion of our business lines and improvements in efficiency and productivity, and our goal to provide solid 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-Q for the fiscal quarter ended August 31, 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)


                                                   November 30,  November 30,

                                                   2008          2007


 Current assets:

  Cash and cash equivalents                        $ 61,081      $ 42,875

  Short-term investments                             10,345        17,257

  Accounts receivable, net                           807,206       729,797

  Receivable from vendors, net                       96,653        96,035

  Receivable from affiliates                         4,659         9,790

  Inventories                                        696,008       642,524

  Deferred income taxes                              26,089        18,612

  Current deferred assets                            13,322        14,478

  Other current assets                               9,766         16,859

   Total current assets                              1,725,129     1,588,227

 Property and equipment, net                         84,602        59,440

 Goodwill                                            113,438       96,350

 Intangible assets, net                              26,456        21,590

 Deferred income taxes                               6,036         5,416

 Long-term deferred assets                           50,907        97,171

 Other assets                                        26,312        18,909

   Total assets                                    $ 2,032,880   $ 1,887,103

 Liabilities and stockholders' equity

 Current liabilities:

  Borrowings under securitization, term loans and  $ 340,466     $ 351,142
  lines of credit

  Accounts payable                                   571,329       588,801

  Payable to affiliates                              73,631        67,334

  Accrued liabilities                                113,593       120,617

  Current deferred liabilities                       30,809        35,522

  Income taxes payable                               4,713         5,103

   Total current liabilities                         1,134,541     1,168,519

 Long-term borrowings                                8,537         37,537

 Convertible debt                                    143,750       -

 Long-term liabilities                               26,591        14,533

 Long-term deferred liabilities                      33,567        60,565

 Deferred income taxes                               1,380         437

   Total liabilities                                 1,348,366     1,281,591

 Minority interest                                   4,673         958

 Stockholders' equity:

  Preferred stock                                    -             -

  Common stock                                       32            31

  Additional paid-in capital                         207,558       196,128

  Accumulated other comprehensive income             9,367         28,939

  Retained earnings                                  462,884       379,456

   Total stockholders' equity                        679,841       604,554

   Total liabilities and stockholders' equity      $ 2,032,880   $ 1,887,103

SYNNEX Corporation

Consolidated Statements of Operations

(in thousands, except for per share amounts)


                     Three                       Fiscal Year
                     Months       Three Months   Ended        Fiscal Year Ended
                     Ended        Ended          November     November 30,
                     November     November 30,   30,

                     2008         2007           2008         2007

 Revenue             $ 2,095,895  $ 1,970,676    $ 7,768,230  $ 7,004,120

 Cost of               1,973,530    1,865,189      7,336,311    6,648,738

 Gross                 122,365      105,487        431,919      355,382

 Selling, general
 and administrative    74,474       68,617         280,071      240,491

 Restructuring         -            -              -            2,744

 Income from
 operations before
 non-operating         47,891       36,870         151,848      112,147
 items, income taxes
 and minority

 Interest expense
 and finance           3,817        4,649          14,431       14,874
 charges, net

 (income)              4,579        (463      )    7,831        (1,393    )
 expense, net

 Income from
 operations before     39,495       32,684         129,586      98,666
 income taxes and
 minority interest

 Provision for         12,843       12,259         45,096       35,167
 income taxes

 Minority              253          240            693          372

 Net                 $ 26,399     $ 20,185       $ 83,797     $ 63,127

 earnings per        $ 0.80       $ 0.61         $ 2.52       $ 1.93

 weighted-average      33,095       32,892         33,263       32,674
 common shares

Laura Crowley
Director of Investor Relations and Public Relations
(510) 668-3715

Source: SYNNEX Corporation