SYNNEX Corporation
Jan 10, 2008

SYNNEX Corporation Reports Fiscal 2007 Fourth Quarter and Year-End Results

Record Revenue and EPS Results Surpass Expectations

FREMONT, Calif.--(BUSINESS WIRE)--Jan. 10, 2008--SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal fourth quarter and year ended November 30, 2007.

For the fourth quarter, revenues were $1.97 billion, exceeding the Company's guidance range of $1.875 billion to $1.925 billion and an increase of 13.4% compared to $1.74 billion for the quarter ended November 30, 2006.

Net income for the fourth quarter was $20.2 million, or $0.61 per diluted share, compared with $15.6 million, or $0.48 per diluted share in the prior year quarter, also exceeding the Company's guidance range of $0.52 to $0.54 and representing a 27.1% improvement year-over-year.

For the fiscal year ended November 30, 2007, revenues increased by 10.4% to $7.00 billion, compared to $6.34 billion for the fiscal year ended November 30, 2006.

Net income for the year increased 22.9% to $63.1 million, or a $1.93 per diluted share, compared to $51.4 million, or $1.61 per diluted share for fiscal 2006. Fiscal 2007 net income is inclusive of the Company's third quarter restructuring charge of $2.7 million pre-tax, or $0.05 per diluted share and a favorable tax adjustment of $1.1 million, or $0.03 per diluted share.

"Our success in the fourth quarter was the result of excellent execution in our core business and from our recent strategic acquisitions," stated Robert T. Huang, President and Chief Executive Officer. "I am very pleased with our employees for their continued commitment to service our customers and vendors."

The Company reports that the restructuring and consolidation of its Canadian operations are substantially complete and expects that any residual charges associated with these activities will be diminutive.

    Fourth Quarter Financial Highlights:

    --  Income from operations, was $36.9 million, or 1.87% of
        revenues, versus $28.1 million, or 1.62% of revenues in the
        prior year fourth quarter.

    --  Depreciation and amortization were $2.2 million and $1.9
        million, respectively.

    --  Capital expenditures were $2.7 million.

    --  Borrowings under the Company's Canadian off-balance sheet
        accounts receivable securitization program totaled
        approximately $115.9 million as of November 30, 2007. This
        compares to $343.8 million for the quarter ended November 30,
        2006 when both the U.S. and Canadian securitization programs
        received off-balance sheet accounting treatment. During the
        first quarter of fiscal 2007, the Company amended the terms of
        its U.S. accounts receivable securitization program, which
        resulted in the Company accounting for this U.S. transaction
        as an on-balance sheet borrowing under GAAP, leaving only the
        SYNNEX Canada accounts receivable securitization program as
        off-balance sheet borrowing.

    First Quarter Fiscal 2008 Outlook:

The following statements are based on the Company's current expectations for the first quarter of fiscal 2008. These statements are forward-looking and actual results may differ materially.

    --  Revenues are expected to be in the range of $1.73 billion to
        $1.78 billion.

    --  Net income is expected to be in the range of $16.2 million to
        $16.9 million.

    --  Diluted earnings per share are expected to be in the range of
        $0.49 to $0.51.

The calculation of diluted earnings per share for the first quarter of fiscal 2008 is based on an approximate diluted weighted-average share count of approximately 33.1 million.



"Our first quarter outlook is reflective of our desire to grow profitably. Looking into fiscal 2008, while the current economic environment is not ideal, we anticipate growing our earnings per share in excess of 15% year-over-year through a combination of continued execution, realization of the full impact of our 2007 acquisitions and improvements in efficiency and productivity," Huang continued.

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 866-814-8485 in North America or 703-639-1375 outside North America. The confirmation code for the call is 1183158. 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 January 24, 2008.

About SYNNEX

Founded in 1980, SYNNEX Corporation, a Fortune 500 company, is a leading business process services company offering a comprehensive range of services to original equipment manufacturers, software publishers and reseller customers worldwide. SYNNEX' service offering includes product distribution, logistics services, business process outsourcing and contract assembly. SYNNEX' vendor base includes the leading industry suppliers of IT systems, peripherals, system components, software and networking equipment. 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 our strategy to develop a successful business process outsourcing services business, expectations of our revenues, net income, earnings per share and ROIC for the first quarter of fiscal 2008, the restructuring and consolidation of our Canadian operations and the related expenses, realization of the full impact of our 2007 acquisitions, and improvements in efficiency and productivity, 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; variations in our levels of excess inventory and doubtful accounts and changes in the terms of OEM 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; risks associated with the consolidation, integration and performance of our recent acquisitions and other risks and uncertainties detailed in our Form 10-Q for the fiscal quarter ended August 31, 2007 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 2008 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)


                                            November 30,  November 30,
                                                2007          2006
                                            ------------  ------------
Assets
Current assets:
     Cash and cash equivalents              $     42,875  $     27,881
     Short-term investments                       17,257        13,271
     Accounts receivable, net                    729,797       363,437
     Receivable from vendors, net                 96,035        95,080
     Receivable from affiliates                    9,790         1,855
     Inventories                                 642,524       594,642
     Deferred income taxes                        18,612        17,994
     Current deferred assets                      14,478        13,990
     Other current assets                         16,859         9,887
                                            ------------  ------------
           Total current assets                1,588,227     1,138,037

Property and equipment, net                       59,440        36,698
Goodwill                                          96,350        30,144
Intangible assets, net                            21,590        18,444
Deferred income taxes                              5,416         6,716
Long-term deferred assets                         97,171       139,111
Other assets                                      18,909        13,584
                                            ------------  ------------

           Total assets                     $  1,887,103  $  1,382,734
                                            ============  ============

Liabilities and Stockholders' Equity
Current liabilities:
     Borrowings under securitization, term
      loans and lines of credit             $    351,142  $     50,834
     Accounts payable                            588,801       462,480
     Payable to affiliates                        67,334        89,831
     Accrued liabilities                         120,617        81,818
     Current deferred liabilities                 35,522        29,516
     Income taxes payable                          5,103         6,693
                                            ------------  ------------
           Total current liabilities           1,168,519       721,172

Long-term borrowings                              37,537        47,967
Long-term liabilities                             14,533        10,131
Long-term deferred liabilities                    60,565        90,686
Deferred income taxes                                437         1,232
                                            ------------  ------------
           Total liabilities                   1,281,591       871,188
                                            ------------  ------------

Minority interest in subsidiary                      958             -
                                            ------------  ------------

Stockholders' equity:
     Preferred stock                                   -             -
     Common stock                                     31            30
     Additional paid-in-capital                  196,128       181,188
     Accumulated other comprehensive income       28,939        13,999
     Retained earnings                           379,456       316,329
                                            ------------  ------------
           Total stockholders' equity            604,554       511,546
                                            ------------  ------------

           Total liabilities and
            stockholders' equity            $  1,887,103  $  1,382,734
                                            ============  ============
                          SYNNEX Corporation
                Consolidated Statements of Operations
             (in thousands, except for per share amounts)
                             (unaudited)

                Three Months  Three Months  Fiscal Year  Fiscal Year
                    Ended         Ended         Ended        Ended
                November 30,  November 30,  November 30, November 30,
                    2007          2006          2007         2006
                ------------------------------------------------------

Revenue         $  1,970,676  $  1,737,874  $ 7,004,120  $  6,343,514

Cost of revenue    1,865,189     1,658,591    6,648,738     6,058,155
                ------------------------------------------------------

Gross profit         105,487        79,283      355,382       285,359

Selling,
 general
 and
 administrative
 expenses             68,617        51,197      240,491       189,117
Restructuring
 charges                   -             -        2,744             -
                ------------------------------------------------------

Income from
 operations
 before non-
 operating
 items and
 income taxes         36,870        28,086      112,147        96,242

Interest
 expense and
 finance
 charges, net          4,649         3,723       14,874        16,659
Other income,
 net                    (463)         (514)      (1,393)         (570)
                ------------------------------------------------------

Income before
 income taxes
 and minority
 interest             32,684        24,877       98,666        80,153

Provision for
 income taxes         12,259         9,064       35,167        28,320
Minority
 interest in
 subsidiary              240           207          372           448
                ------------------------------------------------------

Net income      $     20,185  $     15,606  $    63,127  $     51,385
                ------------------------------------------------------

Diluted
 earnings per
 share          $       0.61  $       0.48  $      1.93  $       1.61
                ------------------------------------------------------
Diluted
 weighted-
 average common
 shares
 outstanding          32,892        32,565       32,674        32,014
                ------------------------------------------------------
    CONTACT: SYNNEX Corporation
             Laura Crowley, 510-668-3715
             Director of Investor Relations and Public Relations
             laurack@synnex.com

SOURCE: SYNNEX Corporation