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TD Synnex CEO Rich Hume On Varnex And Tech Select Communities, Future Acquisitions And The Supply Chain

Joseph F. Kovar

‘The [supply chain] backlog represents current needs and now there’s an emerging part of that backlog, which is future orders that are also part of that overall model. Our crystal ball would say that hopefully we’ll be beyond the peak by the middle of the year, and then really start to see progress being made and working it off in the back half of the year, says TD Synnex CEO Rich Hume.

How was TD Synnex's fourth fiscal quarter and fiscal year? 

It was a good quarter overall. It‘s amazing. You know, you come together on Sept. 1, two different companies, and you have to do over $15 billion worth of business, but you make it happen.

The numbers that we saw today, those reflect the combined Tech Data and Synnex prior to the merger completion, is that correct? 

There‘s a requirement that you put out numbers that would show the base Synnex and then the new combined entity on top. There are other numbers that are out there that demonstrate the combined entity and try to provide the pro forma year to year. For [fiscal year 2021], we did $60.6 billion. And the prior year for the combined entity, pro forma, would have been $56 billion. So the year would have had about an 8.3 percent growth. Like apples to apples, if you will. And then there are requirements of the SEC where we show the base of Synnex and then the new company. So there was a really large growth rate on those compares. But overall, I think that we did a couple things. No. 1 is we delivered a really solid quarter. No. 2 is we positioned the top-line financial expectations for the coming fiscal ’22, which for us runs from December through the end of November of ‘22.

With the combination of Tech Data and Synnex into TD Synnex, did you lose anything because of overlap in terms of maybe product sales or product lines? Was there any negative impact from overlap? 

None that I‘m aware of, so therefore nothing significant. Frankly, the sentiment from vendors and customers has been really positive. In fact, a lot of the financial analysts will do their own channel checks, and they had come back and confirmed that they heard the same sentiment.

 
Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.

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