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Global News Buzz: SYNNEX Corporation (NYSE: SNX)

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SYNNEX Corporation (NYSE: SNX), a leading business process services company, recently declared financial results for the fiscal fourth quarter and fiscal year ended November 30, 2017.

“Our record financial performance continued in the fourth quarter, driven by strong demand in both segments. The organic investments and planned acquisitions we made throughout 2017 improved our capabilities and offerings and facilitated us to raise market share,” said Kevin Murai, President, and CEO.

Fiscal 2017 fourthQuarter Highlights:

Technology Solutions: Revenue was $4.80B, up 41.00% from the prior fiscal year quarter. Adjusting for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 22.00% over the prior year.

Technology Solutions generated operating income of $112.20M, or 2.350% of segment revenue, a contrast to $92.60M, or 2.730% of segment revenue, in the fiscal fourth quarter of 2016. Non-GAAP operating income was $128.20M, or 2.680% of segment revenue, in the fiscal fourth quarter of 2017, a contrast to $93.30M, or 2.750% of segment revenue, in the fiscal fourth quarter of 2016.

Concentrix: Revenue was $534.40M, a boost of 6.80% over the fiscal fourth quarter of the prior year. Adjusting for the translation effect of foreign currencies, Concentrix revenue raised by 5.80% over the prior year.Operating income was $47.60M, or 8.910% of segment revenue, a contrast to $38.00M, or 7.60% of segment revenue in the prior fiscal year quarter.

Non-GAAP operating income was $64.70M, or 12.110% of segment revenue, in the fiscal fourth quarter of 2017, a contrast to $62.80M, or 12.550% of segment revenue, in the fiscal fourth quarter of 2016.The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 10.30% consistent with the prior fiscal year fourth quarter. The adjusted trailing fiscal four quarters ROIC was 11.30%.

The debt to capitalization ratio was 45.90%, up from 32.70% in the prior fiscal year fourth quarter, mainly as a result of the Westcon-Comstor acquisition.Depreciation and amortization were $21.60M and $29.90M, respectively.Cash generated from operations was around $250.00M for the quarter.

Fiscal 2017 Highlights:

Technology Solutions: Revenue was $15.10B, up 20.70% from the prior fiscal year. Adjusting for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 15.50% over the prior fiscal year. Technology Solutions operating income was $394.30M, or 2.620% of segment revenue contrast to $315.50M, or 2.530% of segment revenue, in fiscal 2016. Non-GAAP operating income was $413.00M, or 2.740% of segment revenue, in fiscal 2017, a contrast to $318.10M, or 2.550% of segment revenue, in fiscal 2016.

Concentrix: Revenue was $2.00B, a boost of 25.30% over the prior fiscal year. Adjusting for the translation effect of foreign currencies, Concentrix revenue grew 25.50% over the prior fiscal year. Operating income was $114.60M, or 5.760% of segment revenue, a contrast to $63.90M, or 4.020% of segment revenue in the prior fiscal year. Non-GAAP operating income was $179.90M, or 9.040% of segment revenue, in fiscal 2017, a contrast to $131.40M, or 8.270% of segment revenue, in fiscal 2016.

Depreciation and amortization were $80.70M and $79.20M, respectively.

Cash generated from operations was around $170.00M for the year.

Fiscal 2018 1st-Quarter Outlook:

The following statements are based on SYNNEX’s current expectations for the fiscal 2018 1st-quarter. Non-GAAP financial measures exclude the impact of acquisition-related and integration costs, the amortization of intangibles and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.Revenue is expected to be in the range of $4.350B to $4.550B.Net income is expected to be in the range of $64.00M to $67.80M and on a Non-GAAP basis, net income is expected to be in the range of $83.20M to $87.00M.Diluted earnings per share are expected to be in the range of $1.580 to $1.680 and on a Non-GAAP basis, diluted earnings per share are expected to be in the range of $2.060 to $2.150.After-tax amortization of intangibles is expected to be $19.20M, or $0.480 per share.The tax rate is expected to be in the range of 30.00% to 31.00%.

Dividend Declarement:

SYNNEX declared recently that its Board of Directors declared a quarterly cash dividend of $0.350 per common share. The dividend is payable on January 31, 2018, to stockholders of record as of the close of business on January 19, 2018.