Synnex Quarterly Revenues Climb, Forecasts DownBy Kathleen A. Martin | Posted 2009-01-08 Email Print
The third-largest technology distributor beat Wall Street expectations with fourth quarter revenue increasing 6.4 percent. However, CEO Kevin Mauri wants of a bumpy road ahead.
Synnex (NYSE: SNX), the value-added technology distributor, reported fourth quarter net income of $26.4 million or $0.80 per share, compared to $20.2 million or $0.61 per share in the prior year quarter. Revenues increased 6.4 percent to $2.1 billion from $1.97 billion in the previous year quarter.
"We are pleased with Synnex’s achievements in the fourth quarter and for all of fiscal 2008. In particular, we are very proud that we accomplished our stated goals with respect to our EPS and ROIC targets for the quarter and for the year," said CEO Kevin Murai, in a statement. "Our financial results are due to disciplined execution in key aspects of our business from sales to service to operations and support."
For the first quarter of 2009, the third-largest distributor expects revenues to be in the range of $1.74 billion to $1.84 billion, which is below analyst expectations, Murai said.
"Looking into fiscal 2009, we are committed to achieving above market performance through a combination of continued execution, business line expansion, and improvements in efficiency and productivity," Murai continued. "We believe our lean, flexible, low-cost business model best positions Synnex to outperform the market in a weak economy."
Synnex closed at $12.35, down 18 percent.