SYNNEX Corporation
Sep 27, 2011

SYNNEX Corporation Reports Fiscal 2011 Third Quarter

Solid Revenue Growth and Record Third Quarter Profitability

FREMONT, Calif.--(BUSINESS WIRE)-- SYNNEX Corporation (NYSE:SNX), a leading business process services company, today announced financial results for the fiscal third quarter ended August 31, 2011.

    Q3 FY11   Q3 FY10  

Net Change

Revenue ($M) $2,572 $2,177 18.1%
Operating income ($M)(1) $66.5 $52.2 27.5%
Operating margin(1) 2.59% 2.40% 19 bp
Net income attributable to SYNNEX Corporation ($M)(1) $39.0 $30.9 26.3%
EPS(1) $1.07 $0.86 24.4%
1. Includes a $4.1 million credit adjustment to contingent M&A consideration in the fiscal 2011 third quarter.

"I am very pleased with our sales growth and significant margin expansion this past quarter. Our excellent results were driven by increased market share in our core commercial business, our continued focus and execution in key IT growth markets, and new client engagements in our services segment," stated Kevin Murai, President and Chief Executive Officer. "Our investments in value-added services are gaining traction and continue to further differentiate us from our competitors."

Fiscal 2011 Third Quarter Business Segment Highlights:

Fiscal 2011 Third Quarter Additional Financial Highlights:

Fiscal 2011 Fourth Quarter Outlook:

The following statements are based on the Company's current expectations for the fourth quarter of fiscal 2011. These statements are forward-looking and actual results may differ materially.

"For the fiscal fourth quarter we anticipate the demand environment in North America and Japan will remain relatively stable and in-line with normal seasonal trends," Mr. Murai continued. "We expect to continue outpacing overall IT distribution channel growth and to extract increasing benefits from our recent acquisitions in Japan and within our GBS segment."

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 95090551. A replay of the conference call will be available at http://ir.synnex.com approximately two hours after the conference call has concluded.

About SYNNEX

SYNNEX Corporation (NYSE:SNX), a Fortune 500 corporation, is a leading business process services company, servicing resellers, retailers 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 10,000 full-time and part-time associates worldwide. 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 business strategy, our competitive position, demand environment, growth in profitability, growth in various business segments, anticipated benefits of our acquisitions and our revenue, net income and earnings per share, 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: our ability to successfully integrate our recent acquisitions; diversion of management as a result of our recent acquisitions; loss of vendors and suppliers as a result of our recent acquisitions; decrease in demand as a result of the events in Japan; market acceptance and product life of the platforms sold by companies recently acquired; general economic conditions and any weakness in IT and consumer electronics 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; changes in the tax laws; 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 business process outsourcing and contract assembly business; risks associated with our anti-dilution share repurchase program; and other risks and uncertainties detailed in our Form 10-Q for the fiscal quarter ended May 31, 2011 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 2011 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

 
SYNNEX Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
                   
August 31, November 30,
2011 2010
Assets
Current assets:
Cash and cash equivalents $ 86,276 $ 88,038
Short-term investments 8,782 11,419
Accounts receivable, net 1,017,590 986,917
Receivable from vendors, net 126,720 132,409
Receivable from affiliates 855 5,080
Inventories 955,722 912,237
Current deferred tax assets 31,328 33,063
Other current assets   51,050   40,030
Total current assets 2,278,323 2,209,193
 
Property and equipment, net 116,245 91,995
Goodwill 176,467 139,580
Intangible assets, net 33,960 28,271
Deferred tax assets 2,199 605
Other assets   48,745   30,217
Total assets $ 2,655,939 $ 2,499,861
 
Liabilities and equity
Current liabilities:
Borrowings under securitization, term loans and lines of credit $ 228,626 $ 245,973
Accounts payable 843,063 896,401
Payable to affiliates - 3,195
Accrued liabilities 166,505 166,861
Income taxes payable   3,897   1,578
Total current liabilities 1,242,091 1,314,008
 
Long-term borrowings 88,142 9,044
Convertible debt 134,912 131,289
Long-term liabilities 59,112 49,431
Deferred tax liabilities   3,315   3,262
Total liabilities   1,527,572   1,507,034
 
SYNNEX Corporation's stockholders' equity:
Preferred stock - -
Common stock 36 36
Additional paid-in capital 299,096 285,406
Accumulated other comprehensive income 39,708 28,035
Retained earnings   779,351   679,193
Total SYNNEX Corporation stockholders' equity 1,118,191 992,670
Noncontrolling interest   10,176   157
Total equity   1,128,367   992,827
Total liabilities and equity $ 2,655,939 $ 2,499,861
       
SYNNEX Corporation
Consolidated Statements of Operations
(in thousands, except for per share amounts)
(unaudited)
 
 
Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
August 31, 2011 August 31, 2010 August 31, 2011 August 31, 2010
 
Revenue $ 2,572,133 $ 2,177,066 $ 7,568,869 $ 6,145,916
 
Cost of revenue   (2,418,380 )   (2,052,197 )   (7,126,212 )   (5,795,219 )
 
Gross profit 153,753 124,869 442,657 350,697
 
Selling, general and administrative expenses   (87,235 )   (72,715 )   (271,126 )   (216,156 )
 

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

66,518 52,154 171,531 134,541
 
Interest expense and finance charges, net (6,472 ) (4,585 ) (18,910 ) (12,130 )
Other income (expense), net   (1,214 )   (300 )   (69 )   770  
 
Income from continuing operations before income taxes and noncontrolling interest 58,832 47,269 152,552 123,181
 
Provision for income taxes   (19,662 )   (16,319 )   (52,200 )   (44,037 )
 
Income from continuing operations before noncontrolling interest, net of tax 39,170 30,950 100,352 79,144
 
Income from discontinued operations, net of tax - - - 75
Gain on sale of discontinued operations, net of tax   -     -     -     11,351  
Net income 39,170 30,950 100,352 90,570
 
Net income attributable to noncontrolling interest   (134 )   (36 )   (194 )   (153 )
Net income attributable to SYNNEX Corporation $ 39,036   $ 30,914   $ 100,158   $ 90,417  
 
 
Amounts attributable to SYNNEX Corporation:
Income from continuing operations, net of tax $ 39,036 $ 30,914 $ 100,158 $ 79,007
Discontinued operations:
Income from discontinued operations, net of tax - - - 59
Gain on sale of discontinued operations, net of tax - - - 11,351
       
Net income attributable to SYNNEX Corporation $ 39,036   $ 30,914   $ 100,158   $ 90,417  
 
 
Earnings per share attributable to SYNNEX Corporation:
Basic :
Income from continuing operations $ 1.09 $ 0.88 $ 2.80 $ 2.29
Discontinued operations   -     -     -     0.33  
Net income per common share - basic $ 1.09   $ 0.88   $ 2.80   $ 2.62  
 
Diluted :
Income from continuing operations $ 1.07 $ 0.86 $ 2.72 $ 2.22
Discontinued operations   -     -     -     0.32  
Net income per common share - diluted $ 1.07   $ 0.86   $ 2.72   $ 2.54  
 
Weighted-average common shares outstanding - basic   35,882     35,083     35,726     34,534  
 
Weighted-average common shares outstanding - diluted   36,594     35,910     36,886     35,628  

SYNNEX Corporation
Lori Barker, 510-668-3715
Sr. Director, Investor Relations
lorib@synnex.com

Source: SYNNEX Corporation

News Provided by Acquire Media