Synnex Reports 45 Percent Jump In 2Q Profits

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Synnex on Thursday reported a 45 percent jump in net income for its fiscal second quarter of 2004. The Fremont, Calif., distributor, which went public last December, said net income for the period ended May 31 reached $10.2 million, or 34 cents per share, compared with $7 million, or 28 cents per share, for the same quarter last year.

Revenue increased 35 percent to $1.27 billion compared with $945 million for second-quarter 2003.

Synnex President and CEO Bob Huang said an overall improved distribution economic environment in the United States and growth in the company's assembly business helped fuel the uptick. He cautioned, however, that non-U.S. distribution business lagged during the quarter due to seasonal and operational issues.

Analysts had predicted Synnex would have a tough fight in expanding its international business against larger, more established rivals Ingram Micro and Tech Data.

Huang, however, vowed that the company would improve its non-U.S. distribution business in coming quarters.

Synnex said it expects third-quarter revenue to be in the $1.25 billion to $1.3 billion range, with net income falling in the $10.1 million to $10.7 million range, or 33 cents to 35 cents per share.

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