Synnex Meets 1Q Expectations

The Fremont, Calif., distributor’s results compare to $8.3 million or 26 cents per share in the year-ago quarter. Synnex reported $1.50 billion in sales, up from $1.31 billion in the same period last year. The results include a $500,000 stock-based compensation expense that cost the company earnings of 2 cents per share.

“Our 15 percent year-over-year- growth is evidence that we continue to execute. This marks our 75th consecutive profitable quarter,” said Bob Huang, president and CEO, in a conference call with analysts. “Our efforts to focus on more profitable growth have paid off [ and] the Market appears to remain stable with normal seasonable patterns.”

Distribution revenue in the quarter was $1.39 billion an 18-percent increase from last year. Huang said market share increase with retail customers accounted for a significant portion of the growth.

Contract assembly sales were $110.9 million, a 14 percent decrease. Synnex shipped more units for its top assembly customer, Sun Microsystems, than a year ago, but revenue was affected by significant decline in the average selling price, Huang said.

“Despite top-line challenges with Sun, our relationship is still very solid. We continue to focus on growing our non-Sun business,” Huang said.

In the current quarter ending in May, Synnex expects earnings between $10.9 million and $11.6 million, or 35 cents to 37 cents per share, on revenue of $1.45 billion to $1.50 billion. In addition, the company expects another charge of 2 cents to 3 cents per share, which is not included in its outlook.

Synnex shares closed at $18.48, down 26 cents or 1 percent Thursday.