Synnex celebrated its 100th quarter of consecutive profitability by posting a 9.5 percent earnings increase for its fiscal second quarter.
The distributor kept its streak of profitable quarters alive with a $US59.3 million profit, thanks to strong SMB sales, but the company's sales dipped 0.5 percent to $US2.48 billion.
Synnex CEO Kevin Murai emphasised the company's 25 years of profitability and said the streak was "a key differentiator" between Synnex and other IT distributors.
"We continued to grow at an above-market rate," Murai said.
Synnex saw strong SMB sales for the second quarter, but retail and consumer market were softer, Murai said. "Organic growth" in the second quarter was offset by Synnex's continued transition of certain revenue to a fee-for-service logistics relationship.
While Synnex's distribution revenue fell 0.8 percent year-over-year to $US2.44 billion, the company's Global Business Services revenue jumped more than 23 percent to $47.7 million.
GBS is a small part of Synnex's overall business, but Murai said the company has big plans for its services business and expects it to grow significantly going forward.
"We're serious about services," Murai said.
Murai said he expects Windows 8 and ultra-thin notebooks will help produce a good third quarter and back-to-school buying season. For its fiscal third quarter, Synnex forecast net income between $US34.4 million and $US35.7 million.
This article originally appeared at crn.com
Issue: 326 | April 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.