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Synnex Posts Higher Sales, Lower Net Profits

3/25/2011 01:35:50 PM Eastern

Fremont, Calif. - Synnex, the parent company of New Age
Electronics, reported higher net revenue but lower net income for its fiscal
first quarter, ended Feb. 28.

Revenue was $2.5 billion in the quarter, up 29.2 percent
from the prior year's $1.94 billion. Net income was $29.7 million in the
quarter, down from the prior year's $34.6 million.

In its distribution segment, revenue from continuing operations was
$2.47 billion, an increase of 28.9 percent over the prior fiscal year quarter.
The acquisition of Infotec in Japan added $301 million, and sales growth
remained strong in both the U.S. and Canada, the company said.

Distribution
income from continuing operations before non-operating items, income taxes and
non-controlling interest was $47.2 million, or 1.91 percent of distribution
revenue, compared with $36 million, or 1.88 percent in the prior fiscal year
quarter.

Kevin Murai, president and CEO, commented on the effects of the
Japanese earthquake and tsunami. "We are very pleased to report that all of our
employees are safe and unharmed," Murai noted. "Synnex Infotec suffered nominal
inventory and facility damage, and we expect that the demand environment in
Japan will be somewhat affected in the coming months. We believe that demand
will remain solid in our base distribution and GBS business segments, and we
will continue to outperform the market."

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