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SYNNEX posts 43% rise in annual profit

Staff Report
Published January 12, 2011

SYNNEX Corp. reported Wednesday that its net income for the fiscal year ended Nov. 30 rose 43% to $127.9 million from $89.7 million a year earlier.

In the fiscal fourth quarter that ended Nov. 30, net income rose to $37.5 million from $29.7 million a year earlier.

Based in Fremont, Calif., SYNNEX has major operations in Greenville, S.C.

A Fortune 500 company, SYNNEX is a leading business process services company, servicing resellers, retailers and original equipment manufacturers worldwide. The company provides services in IT distribution, supply chain management, contract assembly and business process outsourcing. Founded in 1980, SYNNEX employs more than 8,000 full-time and part-time employees worldwide.

For the fiscal fourth quarter, revenue from continuing operations was $2.47 billion, an increase of 12.3% compared with $2.2 billion a year earlier.

Revenue for the fiscal year of $8.61 billion increased 11.6% from $7.72 billion in the previous year.

SYNNEX said revenue in the fiscal fourth quarter and the full fiscal year reflects the impact of the previously announced presentation of certain types of services and extended warranty contracts beginning in fiscal 2010. These contracts would have contributed approximately $129.7 million to revenue in the fiscal fourth quarter and $395.1 million for the full fiscal year 2010.

"We are pleased with our strong operating performance for the fiscal fourth quarter and full year 2010. Both our distribution and GBS business segments contributed to our achievements," said Kevin Murai, president and CEO. "In 2011, we believe IT spending will be steady and SYNNEX will again outperform the market. We are excited about our profitable growth opportunities with our recent acquisitions in Japan and in our GBS business. The SYNNEX team remains committed to  long-term growth in revenue, margins and earnings."