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SYNNEX Corporation Reports Fiscal 2009 Fourth Quarter and Year-End Results

Posted by Dana in January 6th 2010

SYNNEX Corporation (NYSE: SNX), a leading business process services company, announced financial results for the fiscal fourth quarter and year ended November 30, 2009.

For the fiscal fourth quarter, revenues were $2.20 billion, exceeding the Wall Street average estimate of $2.12 billion. This compares with $2.00 billion, or a 10.0% improvement from the fiscal third quarter of 2009 and $2.09 billion, or growth of 5.3% from the fiscal quarter ended November 30, 2008.

Operating margin from continuing operations was 2.17% for the fiscal fourth quarter of 2009 and 1.94% for the fiscal year of 2009. This compares with 2.23% for the fiscal fourth quarter of 2008 and 1.89% for the fiscal year of 2008.

Net income for the fiscal fourth quarter was $30.3 million or $0.87 per diluted share, exceeding the Wall Street average estimate of $0.76. This compares with $26.4 million, or $0.80 per diluted share in the prior year fiscal fourth quarter and represents a 14.8% increase in net income year-over-year.

The Company posted ROIC of 11% for the quarter, another in a string of year-over-year improvements in ROIC.

For the fiscal year ended November 30, 2009, revenues were $7.72 billion, essentially level year-over-year compared to $7.74 billion for the fiscal year ended November 30, 2008.

For the fiscal year 2009, total net income increased 9.9% to $92.1 million, or $2.70 per diluted share, compared to $83.8 million, or $2.52 per diluted share for fiscal year 2008.

Financial Highlights:

The following are related to the Company’s continuing operations:

* SYNNEX’ cash conversion cycle improved to 36 days.
* SYNNEX’ debt to capitalization ratio was 27%.
* Fiscal fourth quarter depreciation and amortization were $2.7 million and $1.8 million, respectively.
* Fiscal fourth quarter capital expenditures were $4.6 million.
* Distribution Segment revenues were $2.18 billion, an increase of 5.2% over the prior year fiscal fourth quarter.
* Global Business Services (GBS) Segment revenues were $26.3 million, an increase of 14.8% over the prior year fiscal fourth quarter.
* Distribution Segment income from operations was $44.4 million, or 2.04% of distribution revenues, versus $44.0 million, or 2.12% of revenues in the prior year fiscal fourth quarter.
* GBS income from continuing operations was $3.3 million, or 12.67% of GBS revenues, versus $2.5 million, or 11.05% of GBS revenues in the prior year fiscal fourth quarter.