Synnex's Distribution Sales Up 15%

Sales increased 14.4 percent to $1.59 billion in the quarter ended Aug. 31, compared to $1.39 billion in the year-ago period. Net income was $13.8 million or 43 cents per share, compared to $9 million or 29 cents per share last year.

Distribution revenue was $1.46 billion, a 15.4 percent increase year over year, while Synnex's contract assembly sales accounted for $134.4 billion, a 4.9 percent increase for the same period.

Analysts had expected earnings of 37 cents per share on $1.55 billion in revenue, according to Thomson Financial/First Call.

"I am pleased by our performance in the third quarter, especially considering the fact that each of our operating regions contributed to our sales and profit growth," said Bob Huang, Synnex president and CEO, in a statement. "While we still have much work to do, I am very encouraged by our current results, which we believe are reflective of the investments we have made in our business over the past year. Our ongoing goal is to build on these achievements."

For the current quarter ending Nov. 30, Synnex expects earnings between 44 cents and 46 cents per share on sales between $1.67 billion and $1.72 billion. Analysts were forecasting earnings of 43 cents per share on sales of $1.71 billion for the same period, according to Thomson Financial.

Synnex shares closed at $22.99 Thursday, up 59 cents per share or 2.6 percent.