Synnex Reports Revenue, Income Growth As CEO Kevin Murai Prepares To Leave On A High Note

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Strong business across the board and a successful acquisition of a rival distributor were among the highlights of Synnex's fiscal 2017.

The Fremont, Calif.-based distributor reported earnings on Tuesday and revealed that President and CEO Kevin Murai is retiring from the position he has held for the last decade. Murai will become the company's chairman.

Taking over for Murai will be Dennis Polk, Synnex's current chief operating officer. 

[Related: Synnex President And CEO Kevin Murai Retires; COO Dennis Polk To Assume Distributor's Top Exec Role]

"The last 10 years at Synnex have been nothing short of spectacular, and I am so fortunate to have been able to work with such an incredible team and the best individual leaders in our industry," Murai said on the earnings conference call. "Together, we accomplished great things."

Synnex's revenue growth came from the distributor's products and services across its SMB, public sector, and retail markets. The only parts of the business with soft growth were on-premises software and components, Murai said.

Synnex executed the $830-million acquisition of Westcon Americas during the quarter, adding about $10 billion to Synnex's total addressable market. Murai said that Westcon and its Comstor subsidiary has already had an impact on the Synnex business, and brings the company an annual $2.2 billion in accretive margin revenue, particularly in the network, unified communications and collaboration, and security markets.

"The Westcon-Comstor team hit the ground running, and for Q4 experienced double-digit revenue … growth in the Comstor and security division," he said.

The company's Technology Solutions division had full-year revenue of $15.1 billion, up year-over-year by 20.7 percent, Murai said.

Concentrix, Synnex's business services division, recorded fourth-quarter revenue of $534.4 million, up 6.8 percent over last year, and a full year revenue of $2.0 billion, up 25.3 percent year-over-year, Murai said. That made it a solid No. 5 business globally in the business process outsourcing (BPO) and customer relationship management (CRM) space, he said.

"I'm honored to be the next CEO of Synnex, and I accept this role with gratitude," said Dennis Polk, on the earnings call. "And my commitment to our associates, customers, partners, and shareholders will be to continue to successfully navigate Synnex through an ever-changing and complex global marketplace."

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