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Synnex Reports Double-Digit Profit Increases

4/09/2012 12:01:00 AM Eastern
FREMONT, CALIF. – Synnex, parent company of distributors New Age Electronics and Jack of All Games, reported double-digit profit gains, but lower sales for its fiscal first quarter, ended Feb. 29, 2012.

Net income was $38.2 million, up 28.6 percent from $29.7 million in the prior year’s first quarter. Operating income was $64 million, up 25.8 percent from last year’s $50.9 million.

Revenue was $2.46 billion in the quarter, down 1.5 percent from the prior year’s first-quarter revenue of $2.5 billion.

“We are pleased with our strong profitability in the fiscal first quarter and the overall stability in our core commercial IT distribution business,” stated Kevin Murai, president/CEO. “Our distribution business mix continued to shift towards higher margin value added products and services. We also had a solid quarter for signing new contracts in our global business services division. We expect these new business wins will ramp up in the coming quarters and are then expected to contribute to margin expansion in the GBS division.”

Specifically in distribution revenue was $2.42 billion, a decrease of 1.8 percent over the prior fiscal year quarter. Distribution income before non-operating items, income taxes and non-controlling interest grew to $62.4 million compared with $47.2 million, or 1.91 percent in the prior fiscal year quarter.
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