Q2 Revenue Gains for SYNNEX But Low Operating Income

30 Jun 2013

The operating income for SYNNEX has fallen in its Q2, but the company's distribution revenue has increased, and there has also been growth in its main technology areas.

Q2 distribution revenues of $2.54 billion have been reported by SYNNEX, and this represents a 4.2 percent growth over the same quarter from last year. The overall revenue of the company had increase by 4.4 percent from the Q2 last year, and stands at a total of $2.59 billion. Diluted earnings per share was 81 cents, which is lower than last year's 90 cents. Income was down by 12.4 percent overall.

The CEO of SYNNEX, Kevin Murai, said: "Overall it was a good quarter. In terms of operating income, that number does include the cost of integrating our Supercom business up in Canada, so basically you'd want to add $2.1 million on a pretax basis to get a fair reading of that."

He added: "The distribution business was stronger than what we had originally anticipated, especially in the U.S. and Japan, which reported growth in the mid-to-high single digits. Canada is still little bit soft, but we expected that, because of the reductions in spending that were well published up there."

The company's technical solutions business also demonstrated some growth, and this includes areas like enterprise server and storage, integrated communications, security, voice communications, and print solutions. SMB is also seeing improvement, according to Murai.

Murai said: "So we are feeling positive. When the overall market gets a little bit stronger, behavior gets a little bit better, and people get a little happier in terms of where things are heading."

The revenues posted by SYNNEX Global Business Services (GBS) stood at $55.1 million, and this is a growth of 15.4 percent from the previous fiscal year quarter.

In the next quarter, the range of revenue is expected to go from $2.65 billion to $2.75 billion, with an overall income ranging from $34.3 million to $35.5 million. (CY) Link

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