(Source: 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."
Financial Highlights:
Distribution revenues were $1.98 billion, a decrease of 2.1% over the
prior year fiscal third quarter.
Global Business Services revenues were $34.51 million, an increase of
17.7% over the prior year fiscal third quarter.
Distribution income from operations was $34.8 million, or 1.76% of
distribution revenues, versus $36.9 million, or 1.83% of revenues in
the prior year fiscal third quarter.
Global Business Services income from operations was $4.5 million, or
12.91% of Global Business Services revenues, versus $2.6 million, or
8.89% of Global Business Services revenues in the prior year fiscal
third quarter.
SYNNEX' cash conversion cycle improved to 40 days.
SYNNEX' debt to capitalization ratio was 32.0%.
The Company posted ROIC of 8.9% for the period, versus 8.3% in the
prior year fiscal third quarter.
Fiscal third quarter depreciation and amortization were $3.0 million
and $2.1 million, respectively.
Fiscal third quarter capital expenditures were $14.6 million, which
includes $12.2 million for the purchase of the Company's corporate
headquarters facility in Fremont, California.
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.
Revenues are expected to be in the range of $2.025 billion to $2.125
billion.
Net income is expected to be in the range of $25.1 million to $26.1
million.
Diluted earnings per share are expected to be in the range of $0.72 to
$0.75.
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.
About SYNNEX
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
SYNNEX Corporation
Consolidated Balance Sheets
(in thousands)
(unaudited)
August 31, November 30,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 70,180 $ 61,081
Short-term investments 13,552 10,345
Accounts receivable, net 736,667 807,206
Receivable from vendors, net 90,940 96,653
Receivable from affiliates 5,916 4,659
Inventories 695,957 696,008
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
Goodwill 135,984 113,438
Intangible assets, net 23,310 26,456
Deferred income taxes 6,723 6,036
Long-term deferred assets 20,549 50,907
Other assets 30,019 26,312
Total assets $ 2,002,924 $ 2,032,880
Liabilities and stockholders' equity
Current liabilities:
Borrowings under securitization, term loans and lines of credit $ 214,283 $ 340,466
Accounts payable 574,894 571,329
Payable to affiliates 75,822 73,631
Accrued liabilities 118,121 113,593
Current deferred liabilities 29,305 30,809
Income taxes payable - 4,713
Total current liabilities 1,012,425 1,134,541
Long-term borrowings 9,215 8,537
Convertible debt 143,750 143,750
Long-term liabilities 30,184 26,591
Long-term deferred liabilities 17,606 33,567
Deferred income taxes 2,753 1,380
Total liabilities 1,215,933 1,348,366
Minority interest 5,309 4,673
Stockholders' equity:
Preferred stock - -
Common stock 33 32
Additional paid-in capital 234,421 207,558
Accumulated other comprehensive income 22,556 9,367
Retained earnings 524,672 462,884
Total stockholders' equity 781,682 679,841
Total liabilities and stockholders' equity $ 2,002,924 $ 2,032,880
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SYNNEX Corporation
Consolidated Statements of Operations
(in thousands, except for per share amounts)
(unaudited)
Three Months EndedAugust 31, 2009 Three Months EndedAugust 31, 2008 Nine Months EndedAugust 31, 2009 Nine Months EndedAugust 31, 2008
Revenue $ 2,007,163 $ 2,045,689 $ 5,548,108 $ 5,672,335
Cost of revenue 1,896,028 1,932,790 5,224,798 5,362,781
Gross profit 111,135 112,899 323,310 309,554
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 39,279 39,505 105,677 103,957
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
Minority interest 235 94 637 440
Net income $ 23,080 $ 22,060 $ 61,788 $ 57,398
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
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