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Synnex Reports Double-Digit Profit Increases


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,

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.