SYNNEX Corporation
Jan 10, 2013

SYNNEX Corporation Reports Fiscal 2012 Fourth Quarter and Year-End Results

Strong Earnings, Exceptional Distribution Execution and 21% GBS Organic Growth

FREMONT, Calif.--(BUSINESS WIRE)-- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal fourth quarter and year ended November 30, 2012.

        Q4 FY12       Q4 FY11      

Net Change

Revenue ($M)       $2,765       $2,841       -2.7%
Operating income ($M)       $74.7       $84.7       -11.9%
Operating margin       2.70%       2.98%       -28bp
Net income attributable to SYNNEX Corporation ($M)       $43.6       $50.2       -13.0%
Diluted EPS       $1.16       $1.37       -15.3%

"I am pleased to report solid quarterly earnings even as compared to the prior year's exceptional profits from the hard disk drive shortage. Strong operational execution within the core Distribution Segment aligned well with rapid expansion into adjacent, higher margin service and solution businesses," stated Kevin Murai, President and Chief Executive Officer, "Also our GBS Segment's organic revenue growth continues to accelerate driven by continued investment and increasing momentum in our rapidly growing Concentrix business."

Fiscal 2012 Fourth Quarter Highlights:

Fiscal Year 2012 Highlights:




Net Change

Revenue ($M)       $10,286       $10,410       -1.2%
Operating income ($M)       $255.0       $256.2       -0.5%
Operating margin      


      2.46%       2 bp
Net income attributable to SYNNEX Corporation ($M)       $151.4       $150.3       0.7%
Diluted EPS       $3.99       $4.08       -2.2%

(1) FY 2012 includes a $0.7 million credit adjustment to SG&A for contingent M&A consideration.

(2) FY 2011 includes a $5.4 million credit adjustment to SG&A for contingent M&A consideration.

Fiscal 2013 First Quarter Outlook:

The following statements are based on the Company's current expectations for the fiscal 2013 first quarter. These statements are forward-looking and actual results may differ materially.

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 The conference call will also be available via telephone by dialing (888) 469-3219 in North America or (630) 395-0205 outside North America. The passcode code for the call is "SNX." A replay of the webcast will be available at approximately two hours after the conference call has concluded.


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 approximately 11,000 full-time and part-time associates worldwide. Additional information about SYNNEX may be found online at

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 the demand environment, growth in profitability, expansion into higher margin service and solution businesses, extent of investment in our GBS segment, transition of customers from gross revenue to net fee for service, and our revenue, operating margins, 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; 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 August 31, 2012 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 2013 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.


SYNNEX Corporation
Consolidated Balance Sheets
(currency in thousands)
November 30, November 30,
  2012     2011  
Current assets:
Cash and cash equivalents $ 163,699 $ 67,571
Short-term investments 15,933 16,017
Accounts receivable, net 1,401,087 1,293,027
Receivable from affiliates 285 1,344
Inventories 923,340 975,047
Current deferred tax assets 23,390 28,241
Other current assets   52,727     57,168  
Total current assets 2,580,461 2,438,415
Property and equipment, net 122,923 125,157
Goodwill 189,088 185,312
Intangible assets, net 29,049 37,539
Deferred tax assets 619 590
Other assets   41,122     46,282  
Total assets $ 2,963,262   $ 2,833,295  
Current liabilities:
Borrowings under securitization, term loans and lines of credit $ 52,698 $ 159,200
Convertible debt 141,436 -
Accounts payable 1,111,833 1,035,691
Accrued liabilities 181,270 172,226
Income taxes payable   7,470     5,136  
Total current liabilities 1,494,707 1,372,253
Long-term borrowings 81,152 87,659
Convertible debt - 136,163
Long-term liabilities 58,783 60,676
Deferred tax liabilities   9,265     8,086  
Total liabilities   1,643,907     1,664,837  
SYNNEX Corporation stockholders' equity:
Preferred stock - -
Common stock 37 37
Additional paid-in capital 324,292 310,316
Treasury stock (21,611 ) (11,524 )
Accumulated other comprehensive income 35,405 30,026
Retained earnings   980,900     829,524  
Total SYNNEX Corporation stockholders' equity 1,319,023 1,158,379
Noncontrolling interest   332     10,079  
Total equity   1,319,355     1,168,458  
Total liabilities and equity $ 2,963,262   $ 2,833,295  
SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except for per share amounts)
Three Months Ended Fiscal Year Ended
November 30, 2012 November 30, 2011 November 30, 2012 November 30, 2011
Revenue $ 2,765,066 $ 2,840,971 $ 10,285,507 $ 10,409,840
Cost of revenue   (2,585,966 )   (2,653,130 )   (9,628,770 )   (9,779,342 )
Gross profit 179,100 187,841 656,737 630,498
Selling, general and administrative expenses   (104,448 )   (103,144 )   (401,725 )   (374,270 )

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

74,652 84,697 255,012 256,228
Interest expense and finance charges, net (5,567 ) (6,595 ) (22,930 ) (25,505 )
Other income (expense), net   1,864     (936 )   4,471     (1,005 )
Income before income taxes and noncontrolling interest 70,949 77,166 236,553


Provision for income taxes   (27,256 )   (26,964 )   (84,050 )   (79,165 )
Net income 43,693 50,202 152,503 150,553
Net income attributable to noncontrolling interest   (53 )   (29 )   (1,127 )   (222 )
Net income attributable to SYNNEX Corporation $ 43,640   $ 50,173   $ 151,376   $ 150,331  
Net income per share attributable to SYNNEX Corporation:
Basic $ 1.19   $ 1.39   $ 4.14   $ 4.20  
Diluted $ 1.16   $ 1.37   $ 3.99   $ 4.08  
Weighted-average common shares outstanding:
Basic   36,726     36,142     36,584     35,830  
Diluted   37,733     36,675     37,908     36,833  

SYNNEX Corporation
Deirdre Skolfield, CFA, 510-668-3715
Investor Relations

Source: SYNNEX Corporation

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