Bolstered by its acquistion of New Age Electronics, Synnex beat analysts' earnings expectations for the second fiscal quarter ended May 31, 2008 while sales were in line with their forecasts.
The Fremont, Calif.-based distributor said it anticipates continued growth as benefits of the purchase of New Age Electronics acrcue.
Synnex earnings for the second quarter of fiscal 2008 were $18.5 million, or $0.56 per diluted share, compared with $14.7 million, or $0.45 per diluted share in the prior year quarter, representing a 26% increase in net income over the prior year quarter, the company said.
Analysts were expecting earnings of 53 cents per share. The results compare to earnings of $14.7 million, or 45 cents per share, on $1.69 million in the year-ago quarter.
It was the 84th consecutive profitable quarter for Synnex, according to the company.
"The SYNNEX team produced another very solid quarter resulting in continued growth in profitability," Robert T. Huang, President and Co-Chief Executive Officer, said in a statement.
"Our second quarter marked several important events for Synnex. We closed our New Age Electronics acquisition in April and I would like to commend our integration team on an expeditious integration with minimal disruption to our New Age Electronics customers and vendors," Huang said.
Synnex also announced that Kevin Murai had joined as co-CEO in the second quarter. "In the short period of time that Kevin has been with Synnex, I am very impressed with how quickly he has taken over the day-to-day operations of managing our core business in North America," Huang said.
For the third fiscal quarter, Synnex expects net income between $18.7 million and $19.4 million, or 56 cents to 58 cents per share. The company also projects revenue in the range of $1.92 billion and $1.99 billion. Analysts have projected earnings of 57 cents per share on $1.97 billion in sales.
"Our outlook for the third quarter reflects the benefits of the overall diversification of our business model, continued strong execution of our core business plans and our on-going focus on maintaining and delivering good profitability even during the current economic slowdown," Murai said in a statement.
"We reiterate our commitment to our stated goal of growing our annual earnings per share in excess of 20% year-over-year, which has been adjusted upward to include our New Age Electronics acquisition," Murai added. "We believe we can achieve these goals in the current economic environment, through the combination of continued superior execution, realization of the full impact of our recent acquisition of New Age Electronics and continued improvements in efficiency and productivity of our operations."
Synnex shares closed Thursday at $25.79, up 24 cents or 1 percent.
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