TD Synnex: Staying Focused On The Prize As Integration Continues
TD Synnex, formed last month from the merger of Tech Data and Synnex, the second-largest and third-largest IT distributors, is knee-deep in the process of integrating the people, resources, and line cards on which the planet’s largest IT distributor is built.
CRN caught up with TD Synnex CEO Rich Hume after the company on Tuesday reported its third fiscal 2021 financials to talk not only about the quarter, but about the complexities that surround the largest IT distribution merger, including the state of the integration of the two, changes in the product line cards and the resources needed to meet the changes, and the impact on channel financing.
“I would anticipate by the end of our fiscal year, which is at the end of November, that we’ll have a clear view as to what our platform tools and application suite looks like,” Hume told CRN. “We’re very, very focused on making sure that we’re optimizing around customer and vendor experience as we make these decisions.
Hume also talked about the supply constraints currently impacting the IT industry, noting that patience is needed as those constraints won’t likely be fully resolved until the second half of 2022.
“As we go through phases of COVID, I think the productivity swings are not as great as they were early on because we know how to live and adapt,” he said.. So my crystal ball would say that the anecdotal view of our vendors saying continued constraint in the first half [of next year] with relief in the second half is probably the best estimate right now.”
TD Synnex Tuesday reported its third fiscal quarter 2021 financials, which was really the last report for Synnex as a standalone company before the September 1 close of the historic merger between Tech Data and Synnex with a combined revenue of just under $60 billion. Synnex, during the quarter, reported a slight 1.9-percent drop in revenue to $5.20 billion, and 9.7-percent growth in GAAP earnings per share and a 13.8-percent rise in non-GAAP earnings per share.
For a look at what is happening at the world’s largest IT distributor, click through the slideshow.
But first, a terminology note: Hume, like most distribution executives, uses the term “customer” to mean solution providers, which are who purchase products and services from distributors. He is not referring to end-user customers.