Synnex Shares Surge Before, After Q4 Earnings

Synnex shares closed at $19.26, up $1.35 or 7.5 percent on Thursday. In after-hours trading, shares increased another 7.5 percent to $20.70.

Synnex beat Wall Street estimates for the fourth fiscal quarter ended Nov. 30, 2007, earning $20.2 million or 61 cents per share, on $1.97 billion in revenue.

Analysts had expected earnings of 53 cents per share and the company had previously provided guidance of $1.88 to $1.93 billion in sales. In the year-ago quarter, the Fremont, Calif.-based distributor earned $15.6 million in net income on $1.74 billion in sales.

For the fiscal year, Synnex earned $63.1 million on $7 billion in sales, compared to earnings of $51.4 million on $6.34 billion a year ago, increases of 23 percent and 10 percent, respectively.

"Our success in the fourth quarter was the result of excellent execution in our core business and from our recent strategic acquisitions," president and CEO Bob Huang said in a statement. "I am very pleased with our employees for their continued commitment to service our customers and vendors."

For the first fiscal quarter of 2008, the company expects earnings in the range of $16.2 million and $16.9 million, or 49 cents to 51 cents per sahre, and sales between $1.73 billion and $1.78 billion. Analysts had been predicting earnings of 46 cents on $1.78 billion in revenue for the first quarter, according to Thomson Financial First Call.

Huang said the current economic environment "is not ideal" but the company would seek more profitable business.

The company also announced that David Rynne would retire from the board of directors effective March 18. Rynne has been a board member since 2003.