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Synnex Posts Record Q1 Sales

Fremont, Calif. – Synnex, parent of IT and CE distributor New Age Electronics, reported double-digit sales and earnings gains during its first fiscal quarter. 4/04/2014 11:29:00 AM Eastern

Fremont, Calif. – Synnex, parent of IT and CE distributor New Age Electronics, reported double-digit sales and earnings gains during its first fiscal quarter.

Net income for the three months, ended Feb. 28, increased 15.1 percent, to $38.5 million, on record revenues of $3 billion, a 23 percent increase year over year.

President/CEO Kevin Murai said the results reflect “strong growth across all business segments,” with the technology solutions unit — which includes New Age and video gaming distributor Jack of All Games — exceeding revenue projections.

Revenue for the distribution division increased 20 percent to $2.9 billion, including the impact of unfavorable currency fluctuations. Income from operations before non-operating items, income taxes and non-controlling interest was $63.5 million, or 2.19 percent of segment revenue, compared with $53.5 million, or 2.21 percent of segment revenue, in the year-ago quarter.

At the company’s Concentrix business services unit, revenue rocketed 186 percent to $127 million, including about $74.5 million from the recently acquired IBM customer relationship management (CRM) business. The division posted a $1.8 million loss from operations before non-operating items, income taxes and non-controlling interest, representing 1.4 percent of Concentrix revenue, compared with income of $2.4 million, or 5.5 percent of Concentrix revenue, in the prior-year quarter.

Synnex noted that certain Concentrix operations that provided support and IT services to the technology solutions distributor segment have been moved to and reported in that division.

Looking ahead, Murai said “the strength we have recently experienced in IT demand will continue in our second quarter,” and that the company is on track to integrate its Concentrix and IBM businesses.

A Fortune 500 company, Synnex provides IT distribution, supply-chain management, contract assembly and business process outsourcing to resellers, retailers and OEMs worldwide.