Synnex reveals Q2 results

By Rob Wright, on Jun 27, 2012 8:06 AM
Filed under Hardware

Profits rise, sales fall.

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

 
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