FREMONT, Calif., Sep 21, 2009 (BUSINESS WIRE) -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal third quarter ended August 31, 2009.
For the fiscal third quarter, revenues were $2.01 billion, a decrease of 1.88% compared to $2.05 billion for the prior year fiscal third quarter and an increase of 10.8%, compared to $1.81 billion for the fiscal second quarter of 2009.
Income from operations was $39.3 million, or 1.96% of revenues, compared to income from operations of $39.5 million, or 1.93% of revenues in the prior year fiscal third quarter and income from operations of $31.7 million, or 1.75% of revenues from the fiscal second quarter of 2009.
Net income for the fiscal third quarter was $23.1 million, or $0.67 per diluted share, exceeding Wall Street estimates which averaged $0.61. This compares with $22.1 million, or $0.66 per diluted share in the prior year fiscal third quarter and $19.2 million, or $0.57 on a sequential basis.
"Our results for the fiscal third quarter are industry leading. Once again the SYNNEX team produced profitable market share gains as is evidenced by our 10.8% sequential revenue improvement, while also improving net income and EPS results," stated Kevin Murai, President and Chief Executive Officer. "Our continued focus and discipline on improving our return on invested capital has once again resulted in another consecutive quarter of year-over-year ROIC improvements."
Fourth Quarter Fiscal 2009 Outlook:
The following statements are based on the Company's current expectations for the fourth quarter of fiscal 2009. These statements are forward-looking and actual results may differ materially.
The calculation of diluted earnings per share for the fourth quarter of fiscal 2009 is based on a diluted weighted-average common share count of approximately 34.9 million.
"We believe the market has stabilized since the February timeframe and we are optimistic about the future growth of our business despite being in the midst of a recession," Murai continued. "Our fourth quarter outlook reflects this view and together with our ability to out execute our competition, we believe SYNNEX is positioned well to expand our business and increase 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. (PDT). 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 28914082. 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 October 5, 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 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 fourth quarter of fiscal 2009, the growth of our business, and expansion of our 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; risks associated with our contract assembly business; and other risks and uncertainties detailed in our Form 10-Q for the fiscal quarter ended May 31, 2009 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.
SNX - F
|Consolidated Balance Sheets|
|August 31,||November 30,|
|Cash and cash equivalents||$||70,180||$||61,081|
|Accounts receivable, net||736,667||807,206|
|Receivable from vendors, net||90,940||96,653|
|Receivable from affiliates||5,916||4,659|
|Deferred income taxes||26,123||26,089|
|Current deferred assets||13,392||13,322|
|Other current assets||36,245||9,766|
|Total current assets||1,688,972||1,725,129|
|Property and equipment, net||97,367||84,602|
|Intangible assets, net||23,310||26,456|
|Deferred income taxes||6,723||6,036|
|Long-term deferred assets||20,549||50,907|
|Liabilities and stockholders' equity|
|Borrowings under securitization, term loans and lines of credit||$||214,283||$||340,466|
|Payable to affiliates||75,822||73,631|
|Current deferred liabilities||29,305||30,809|
|Income taxes payable||-||4,713|
|Total current liabilities||1,012,425||1,134,541|
|Long-term deferred liabilities||17,606||33,567|
|Deferred income taxes||2,753||1,380|
|Additional paid-in capital||234,421||207,558|
|Accumulated other comprehensive income||22,556||9,367|
|Total stockholders' equity||781,682||679,841|
|Total liabilities and stockholders' equity||$||2,002,924||$||2,032,880|
|Consolidated Statements of Operations|
|(in thousands, except for per share amounts)|
Three Months Ended
Three Months Ended
Nine Months Ended
Nine Months Ended
|Cost of revenue||1,896,028||1,932,790||5,224,798||5,362,781|
|Selling, general and administrative expenses||71,856||73,394||217,633||205,597|
Income from operations before non-operating items, income taxes and minority interest
|Interest expense and finance charges, net||3,095||3,137||10,161||10,614|
|Other (income) expense, net||(727||)||1,787||(1,750||)||3,252|
|Income from operations before income taxes and minority interest||36,911||34,581||97,266||90,091|
|Provision for income taxes||13,596||12,427||34,841||32,253|
|Diluted earnings per share||$||0.67||$||0.66||$||1.83||$||1.72|
|Diluted weighted-average common shares outstanding||34,595||33,657||33,700||33,319|
SOURCE: SYNNEX Corporation
Laura Crowley, 510-668-3715
Director of Investor Relations
and Public Relations
Copyright Business Wire 2009