Synnex 1Q Sales, Earnings Rise

Nonetheless, Bob Huang, Synnex president and CEO, said he expetcs the company to continue grow earnings in part due to its diversified business model.

"Our outlook for the second quarter reflects our current visibility into the marketplace, our continued focus on growing operating income and the overall diversification of our business model," said Bob Huang, president and CEO, in a statement. "We reiterate our commitment to our stated goal of growing our annual earnings per share in excess of 15 percent year-over-year. We believe that we can achieve these goals in the current economic environment, through a combination of continued execution, realization of the full impact of our recent acquisitions and continued improvements in efficiency and productivity."

Synnex, of Fremont, Calif., earned $16.8 million, or 51 cents per share, on $1.75 billion in sales for the fiscal quarter ended Feb. 29. The results compare to $13.9 million in net income, or 43 cents per share, on $1.59 billion for the same period last year.

For the second quarter, Synnex expects earnings between 50 and 52 cents per share, while analysts are predicting 51 cents per share. The company also expects revenue between $1.72 billion and $1.79 billion, while analysts expected $1.81 billion, according to Thomson Financial.

The results mark the 83rd consecutive profitable quarter for Synnex. "Our first quarter results demonstrate our focused commitment and attention on increasing the profitability of our business," Huang said in the statement. "I am very pleased with our ability to grow profitably as we continue to invest in meaningful opportunities to expand our business offerings and leverage our efficient infrastructure."