Fremont, Calif. - Synnex, a leading IT distributor and business services provider for retailers, resellers and manufacturers, reported double-digit sales and earnings gains for its fiscal second quarter.
Revenue from continuing operations rose 12.8 percent to $2 billion for the three months ended May 31, while net income rose 32 percent to nearly $25 million.
Revenue was derived almost entirely from Synnex's distribution operations, which include New Age Electronics. The company attributed the gains to the change - from a gross to a net basis - in the way certain service and extended warranty contracts are accounted for.
Distribution income from continuing operations before non-operating items, income taxes and non-controlling interest rose 48 percent to $40.5 million.
On the business services side, revenue rose 10.5 percent to $27.6 million and income from continuing operations before non-operating items, income taxes and non-controlling interest rose 15 percent to $3 million.
In a statement, president/CEO Kevin Murai said, "Our team delivered excellent results for the second quarter of 2010. Our revenue, income and EPS [earnings per share] were all in line with our increased quarterly guidance from May 4, 2010. Once again, Synnex has gained market share while expanding margins, growing EPS and ROIC [return on invested capital]."
In other company news, Synnex founder Robert Huang retired as chairman June 21, and lead board director Dwight Steffensen was appointed non-executive chairman.