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SNX · TD Synnex

23 filings

10-K

SNX 10-K Annual Reports

TD Synnex - 23 annual reports

Filing record · 2016–202610-K1110-Q338-K163

2025
TD Synnex Annual Report, Year Ended Nov 30, 2025
TD SYNNEX Corporation, a Fortune 100 global distributor and solutions aggregator for the IT ecosystem, reported fiscal 2025 (year ended November 30, 2025) revenue of $62.51 billion, up from $58.45 billion in fiscal 2024, with net income of $827.7 million (diluted EPS of $9.95) versus $689.1 million (diluted EPS of $7.95) a year earlier. Gross profit rose to $4.37 billion from $3.98 billion, and gross margin was 6.99% versus 6.81%. Operating income increased to $1.41 billion from $1.19 billion, and non-GAAP operating income was $1.78 billion, with non-GAAP diluted EPS of $13.19 versus $11.68. The filing attributes revenue growth to both Advanced Solutions and Endpoint Solutions, partly offset by net-basis revenue presentation from product mix, and notes higher personnel costs and lower acquisition, integration and restructuring costs. Cash generation strengthened: operating cash flow was $1.53 billion versus $1.22 billion, and cash and cash equivalents rose to $2.44 billion from $1.06 billion. Total borrowings were approximately $4.6 billion, with Senior Notes of $3.6 billion, and the company issued $1.15 billion of new long-term debt in fiscal 2025 while repaying the TD SYNNEX Term Loan in October 2025. The company stated it has $3.5 billion of revolving credit capacity, of which $3.5 billion was unused at year end, and $1.2 billion remained available under its March 2024 share repurchase program. Supplier finance program obligations included in accounts payable were $3.7 billion, up from $3.2 billion, and the cash conversion cycle improved to 16 days from 18. The filing also details the Apptium acquisition completed July 1, 2025 for approximately $105.1 million, and notes ongoing risk factors including customer and OEM concentration (Apple at 12% of revenue, HP at 10%), foreign currency exposure with about 48% of revenue generated outside the United States, and cybersecurity incidents disclosed in prior periods. The Board declared a quarterly dividend of $0.48 per share in January 2026, up from $0.44 per share in each quarter of fiscal 2025.
Jan 27, 2026
2024
TD Synnex Annual Report, Year Ended Nov 30, 2024
TD SYNNEX Corporation, a Fortune 100 global distributor and solutions aggregator for the IT ecosystem, reported fiscal 2024 (year ended November 30, 2024) revenue of $58.45 billion, up from $57.56 billion in fiscal 2023. Gross profit was $3.98 billion (GAAP gross margin 6.81%), operating income rose to $1.19 billion from $1.08 billion, and net income was $689.1 million, or $7.95 diluted EPS, versus $6.70 a year earlier. Management attributed the revenue increase primarily to growth in the Advanced Solutions portfolio, partly offset by additional net-basis revenue presentation from product mix. Non-GAAP operating income slightly decreased to $1.63 billion, which the company attributed to lower strategic technologies gross margins and higher personnel costs. Cash flow and balance sheet items were mixed. Net cash provided by operating activities was $1.22 billion, versus $1.41 billion in fiscal 2023, and the cash conversion cycle improved to 18 days from 23. Total borrowings were approximately $3.9 billion, and cash and cash equivalents totaled $1.06 billion. The company repurchased $611.9 million of common stock during fiscal 2024 and had $1.8 billion remaining available under its share repurchase program. Cash dividends declared were $1.60 per share for the year, and a quarterly dividend of $0.44 per share was announced in January 2025. The filing also highlights risk factors and legal matters, including dependence on Apple, which represented 12% of fiscal 2024 revenue, and a cybersecurity incident disclosed in November 2024 involving a partner of a wholly owned subsidiary, which the company does not believe has had a material impact to date. The company also reported a French Competition Authority matter, reduced on appeal to €24.9 million, which it continues to contest.
Jan 24, 2025
2023
TD Synnex Annual Report, Year Ended Nov 30, 2023
TD SYNNEX Corporation reported fiscal 2023 (year ended November 30, 2023) revenue of $57.56 billion, down from $62.34 billion in fiscal 2022, with the decline driven by a post-pandemic drop in demand for Endpoint Solutions (personal computing ecosystem products), partially offset by growth in Advanced Solutions. Gross margin rose to 6.87% from 6.26%, and operating income increased to $1.08 billion from $1.05 billion. Net income was $626.9 million, compared with $651.3 million in fiscal 2022, and diluted EPS was $6.70 versus $6.77. Non-GAAP net income declined to $1.05 billion from $1.15 billion, and non-GAAP diluted EPS was $11.26 versus $11.94. Cash flow and capital returns were a notable feature of the year. Net cash provided by operating activities was $1.4 billion, compared with a use of $49.6 million in fiscal 2022, mainly from favorable inventory changes. The company repurchased $620.7 million of stock, paid $130.4 million in dividends, and ended the year with $1.03 billion in cash and total borrowings of about $4.1 billion. Cash conversion cycle was 23 days, flat year over year. The company also declared a $0.40 quarterly dividend in January 2024. Risk factors highlighted in the filing include concentration of ownership (Apollo Global Management owned about 32% and executives, directors and principal stockholders about 43%), dependence on a small number of OEM suppliers (Apple about 11% of revenue in both 2023 and 2022), low gross margins, and cybersecurity incidents in July 2022 and September 2023 that the company determined were not material. The auditor, KPMG LLP, issued an unqualified opinion, identifying revenue sufficiency of audit evidence as a critical audit matter.
Jan 26, 2024
2022
TD Synnex Annual Report, Year Ended Nov 30, 2022
TD SYNNEX Corporation's fiscal 2022 annual report (fiscal year ended November 30, 2022) shows revenue of $62.34 billion, up from $31.61 billion in fiscal 2021, driven primarily by the Merger with Tech Data completed on September 1, 2021. Gross profit rose to $3.90 billion (gross margin 6.26% versus 5.98%), and operating income increased to $1.05 billion (operating margin 1.69% versus 1.97%). Net income was $651.3 million, or $6.77 per diluted share, compared with $395.1 million, or $6.24 per diluted share, in fiscal 2021. Management's non-GAAP diluted EPS was $11.94 for fiscal 2022, versus $9.40 in the prior year. Acquisition, integration and restructuring costs totaled $222.3 million, and amortization of intangibles rose to $299.2 million. The balance sheet reflects a larger, more leveraged business. Total assets were $29.73 billion and total borrowings were approximately $4.1 billion, including $2.5 billion of Senior Notes and a $1.4 billion term loan. Cash and cash equivalents declined to $522.6 million from $994.0 million. Net cash used in operating activities was $49.6 million, reflecting growth in inventories and accounts receivable, and the cash conversion cycle lengthened to 23 days from 14 days. The company disclosed $3.5 billion of unused commitments under its revolving credit facility as of November 30, 2022. Internal control over financial reporting was reported as effective, with KPMG LLP as auditor. Shareholder returns continued during the year. Dividends declared totaled $1.20 per share for fiscal 2022, and the Board announced a $0.35 quarterly dividend in January 2023. Share repurchases of $125.0 million were made during fiscal 2022, and in January 2023 the Board authorized a new three-year $1.0 billion repurchase program replacing the prior $400.0 million program. Apollo Global Management owned approximately 45% of common stock and MiTAC Holdings approximately 9.7%, a concentration of ownership the filing identifies as a factor that could influence stockholder votes and delay a change in control.
Jan 24, 2023
2021
TD Synnex Annual Report, Year Ended Nov 30, 2021
TD SYNNEX Corporation's fiscal 2021 Form 10-K (fiscal year ended November 30, 2021) reports revenue of $31.61 billion, up from $19.98 billion in fiscal 2020, driven mainly by the September 1, 2021 acquisition of Tech Data, which the filing says contributed approximately $10 billion of revenue in the period. Gross profit rose to $1.89 billion with gross margin of 5.98%, while operating income increased to $623.2 million (operating margin 1.97%, down from 2.61%) as acquisition, integration and restructuring costs rose to $112.2 million and amortization of intangibles increased to $105.3 million. Net income from continuing operations was $395.1 million, or $6.24 diluted EPS, compared with $529.2 million in total net income for fiscal 2020, which included discontinued Concentrix results. Non-GAAP diluted EPS from continuing operations was $9.40. The balance sheet expanded substantially: total assets were $27.67 billion and total stockholders' equity was $7.91 billion, versus $13.47 billion and $4.34 billion a year earlier. Borrowings grew to roughly $4.1 billion, including $2.5 billion of Senior Notes issued in August 2021 to help fund the Merger, and the company reported $994.0 million of cash and cash equivalents. Cash provided by operating activities was $809.8 million, and the cash conversion cycle shortened to 14 days from 25 days. The Merger consideration totaled $7.22 billion, including 44 million newly issued shares, and Apollo Global Management owned approximately 45.0% of common stock, which the filing identifies as a significant influence over corporate matters. The filing also discloses that HP Inc. accounted for approximately 12% of fiscal 2021 revenue and one customer for 17%. The company reinstated a quarterly dividend of $0.20 per share in January 2021, which it increased to $0.30 per share in January 2022. Its $400 million share repurchase program had no repurchases under it as of November 30, 2021. The auditor, KPMG LLP, issued an unqualified opinion, and management excluded Tech Data from its internal control assessment, which covered approximately 40% of total assets and 32% of revenue.
Jan 28, 2022
2020
TD Synnex Annual Report, Year Ended Nov 30, 2020
SYNNEX Corporation reported fiscal 2020 (ended November 30, 2020) revenue of $24.68 billion, up from $23.76 billion in fiscal 2019, with net income of $529.2 million ($10.21 diluted EPS) versus $500.7 million a year earlier. The year was shaped by COVID-19, which drove higher demand for technology equipment in the Technology Solutions segment, while the company also incurred net incremental COVID-19 costs of approximately $131 million. Gross margin was 11.54% and operating margin 3.36%, and cash flow from operations was $1.834 billion, up from $549.9 million in fiscal 2019. The defining event of the period was the December 1, 2020 separation of the Concentrix customer experience services business through a distribution of 100% of Concentrix common stock to SYNNEX stockholders, after which SYNNEX no longer consolidates Concentrix. The filing states that, going forward, the company's discussion of risks and human capital focuses on the Technology Solutions segment, and that its services revenue and the higher margins of Concentrix will be discontinued. The company expects a decrease in products revenue of approximately $1.2 billion in the second half of 2021 due to a customer moving to a consignment model. Balance sheet and capital allocation changed meaningfully. Cash and cash equivalents rose to $1.56 billion at year-end, and borrowings were reduced by a partial term loan repayment funded by Concentrix borrowings, leaving the company with borrowings of about $1.6 billion after the Separation. The board reinstated a quarterly dividend of $0.20 per share on January 11, 2021, after suspending dividends in March 2020. MiTAC Holdings and affiliates held approximately 18% of common stock, a concentration the filing flags as a governance and conflict-of-interest risk.
Jan 28, 2021
2019
TD Synnex Annual Report, Year Ended Nov 30, 2019
SYNNEX Corporation reported fiscal 2019 (year ended November 30, 2019) revenue of $23.76 billion, up 20.2% from $19.77 billion in fiscal 2018, with net income of $500.7 million, or $9.74 diluted EPS, versus $299.98 million, or $7.17, a year earlier. Growth was driven by the full-year contribution of the Convergys acquisition, which was completed in October 2018 and forms the core of the Concentrix segment, which grew revenue 91.1% to $4.71 billion. The Technology Solutions segment, which distributes IT and consumer electronics products, grew revenue 10.1% to $19.07 billion but operates at a low 2.72% operating margin, compared with Concentrix's 6.25%. Consolidated gross margin rose to 12.20% from 9.75%, and operating income rose 47.9% to $813.8 million. The most significant development for investors is the January 9, 2020 announcement of a plan to separate the Concentrix segment into an independent publicly traded company, expected to be completed in the second half of 2020 and intended to qualify as tax-free. The filing states that products revenue is expected to decline by approximately $1.2 billion in the second half of 2020 due to a customer moving to a consignment model, and that Concentrix's higher margins will leave the consolidated margin profile after the separation. Cash flow from operations improved to $549.9 million from $100.7 million, while total borrowings were about $3.0 billion at year-end, of which $2.0 billion was swapped to fixed rates. The company also noted that about 34% of fiscal 2019 consolidated revenue came from international operations and that HP accounted for about 12% of revenue and one customer accounted for 19%. Risk factors center on low distribution margins, dependence on a few OEM suppliers, concentration of Concentrix delivery in the Philippines and India, currency exposure, and the execution and tax risks of the separation. MiTAC Holdings and its affiliates own approximately 18% of common stock, which the filing says gives them significant influence over matters requiring stockholder approval.
Jan 29, 2020
2018
TD Synnex Annual Report, Year Ended Nov 30, 2018
SYNNEX Corporation, now TD SYNNEX Corporation, reported fiscal 2018 (year ended November 30, 2018) revenue of $20.05 billion, up from $17.05 billion in fiscal 2017, with net income attributable to SYNNEX of $300.6 million, or $7.19 diluted EPS, compared with $301.2 million, or $7.51 diluted EPS, in fiscal 2017. Growth was driven by the Westcon-Comstor Americas acquisition in the Technology Solutions segment and the October 5, 2018 acquisition of Convergys in the Concentrix segment, which contributed approximately $439.4 million of revenue. Gross margin rose to 9.61% from 9.10%, while operating income increased to $551.0 million from $509.0 million, and selling, general and administrative expenses grew to 6.86% of revenue from 6.11%, largely from acquisition and amortization costs. Balance sheet and liquidity changed substantially. Total assets rose to $11.48 billion from $7.70 billion, and total borrowings reached $3.5 billion at November 30, 2018, excluding trade payables, with approximately $2.0 billion economically converted to fixed-rate debt through interest rate swaps. Cash from operations was $100.7 million, down from $176.8 million, mainly because of working capital investment in receivables and inventory. Interest expense and finance charges, net increased to $84.7 million from $45.4 million. The cash conversion cycle lengthened to 52 days from 40 days. Management stated that current cash and credit availability are sufficient for at least the next twelve months. For investors, the key trade-offs are scale and diversification against higher leverage and integration risk. The Convergys acquisition added a higher-margin services business, and management expects gross and operating margins to increase in fiscal 2019 as services revenue grows as a share of the total. The filing also discloses concentration risk: HP accounted for approximately 12% of consolidated revenue, one customer accounted for 17%, and MiTAC Holdings and its affiliates owned approximately 18% of common stock. The company also disclosed lawsuits related to the Convergys merger, which it believes are without merit.
Jan 28, 2019
2017
TD Synnex Annual Report, Year Ended Nov 30, 2017
SYNNEX Corporation (now TD SYNNEX Corporation) reported fiscal 2017 (year ended November 30, 2017) revenue of $17.05 billion, up from $14.06 billion in fiscal 2016, and net income of $301.2 million, or $7.51 per diluted share, compared with $235.0 million, or $5.88 per diluted share, a year earlier. The company operates two reportable segments: Technology Solutions, a distributor of IT and consumer electronics products that generated $15.07 billion of revenue with an operating margin of 2.62%, and Concentrix, a business process services provider that generated $1.99 billion of revenue with an operating margin of 5.76%. Growth was driven largely by the September 1, 2017 acquisition of Westcon-Comstor Americas for a purchase price of $633.6 million, which contributed approximately $634.8 million of revenue in fiscal 2017, and by the Minacs and Tigerspike acquisitions. Balance sheet and cash flow data show total assets of $7.70 billion and total borrowings of $1.95 billion as of November 30, 2017, up from $5.22 billion of assets and roughly $964 million of borrowings a year earlier. Net cash provided by operating activities was $176.8 million in fiscal 2017, down from $324.7 million in fiscal 2016, as increases in accounts receivable of $478.3 million and inventories of $243.3 million outpaced payables growth. The filing also discloses a 2017 share repurchase program of $300 million, under which no shares had been repurchased as of year-end, and a quarterly dividend increase to $0.35 per share announced January 9, 2018. The company stated that the Tax Cuts and Jobs Act would reduce its federal rate to 21%, that it expects an effective tax rate of 28% to 30% for fiscal 2018 excluding one-time TCJA effects, and that it was unable to estimate the one-time impact at the filing date. The filing also reports leadership transition: CEO Kevin Murai will retire effective March 1, 2018, and COO Dennis Polk will become President and CEO. Concentration risks are notable, as HP accounted for approximately 13% of consolidated revenue in fiscal 2017 (down from 17% in 2016 and 25% in 2015), and one customer accounted for 21% of consolidated revenue. MiTAC Holdings and its affiliates beneficially owned approximately 24% of outstanding common stock as of November 30, 2017.
Jan 29, 2018
2016
TD Synnex Annual Report, Year Ended Nov 30, 2016
SYNNEX Corporation, a Fortune 500 business process services company headquartered in Fremont, California, reported fiscal 2016 (year ended November 30, 2016) revenue of $14.06 billion, up from $13.34 billion in fiscal 2015, with operating income of $379.6 million and net income attributable to SYNNEX of $234.9 million, or $5.88 per diluted share. The company operates two segments: Technology Solutions, which distributes IT and consumer electronics products and generated $12.49 billion of revenue at a 5.41% gross margin, and Concentrix, its customer engagement services business, which generated $1.59 billion of revenue with a 38.76% gross margin. The Concentrix growth was aided by the August 2016 acquisition of Minacs for a preliminary purchase price of $435.6 million, which contributed approximately $157.0 million of revenue in fiscal 2016. Cash flow from operations was $327.0 million in fiscal 2016, down from $643.6 million in fiscal 2015, as accounts payable and inventory increased. Inventories rose to $1.74 billion from $1.33 billion, and total borrowings were $966.9 million at year-end. Dividends declared rose to $0.85 per share in fiscal 2016 from $0.58 in fiscal 2015, and the company announced a $0.25 quarterly dividend on January 5, 2017. Investors should note concentration risks: HP accounted for approximately 17% of consolidated revenue, one customer accounted for 12%, and MiTAC Holdings and its affiliates owned approximately 24% of common stock.
Jan 26, 2017
2015
TD Synnex Annual Report, Year Ended Nov 30, 2015
SYNNEX Corporation, a Fortune 500 business process services company headquartered in Fremont, California, reported fiscal 2015 (year ended November 30, 2015) revenue of $13.34 billion, down from $13.84 billion in fiscal 2014, with net income attributable to SYNNEX Corporation of $208.5 million, or $5.24 diluted EPS, up from $4.57. Operating income rose to $354.6 million from $308.5 million, and operating margin improved to 2.66% from 2.23%. The company operates two segments: Technology Solutions, which distributes IT and consumer electronics products and represented 89% of revenue, and Concentrix, a customer engagement services business that grew to $1.42 billion in segment revenue, largely reflecting the full-year impact of the IBM CRM acquisition completed in fiscal 2014 for $425.7 million. The Technology Solutions segment's revenue declined 6.4% to $11.94 billion, driven by the loss of a significant consumer retail vendor and currency translation effects, while its operating income was roughly flat at $302.9 million. Concentrix operating income increased to $51.1 million from $2.5 million. Balance sheet strength improved: cash and cash equivalents rose to $336.1 million, total borrowings were $730.9 million, and the company's total equity reached $1.80 billion. Operating cash flow was $643.6 million, versus a use of $234.8 million in fiscal 2014, mainly due to a $292.9 million decrease in accounts receivable. Concentration and related-party exposure remain notable. HP products accounted for approximately 25% of consolidated revenue in fiscal 2015, and MiTAC Holdings and its affiliates beneficially owned approximately 25% of common stock, with the company purchasing $87.1 million of inventory from MiTAC affiliates during the year. The board declared a quarterly dividend of $0.20 per share, raised from $0.125 earlier in the year.
Jan 28, 2016
2014
TD Synnex Annual Report, Year Ended Nov 30, 2014
SYNNEX Corporation reported fiscal 2014 (year ended November 30, 2014) revenue of $13.84 billion, up from $10.85 billion in fiscal 2013, driven largely by the acquisition of the customer relationship management (CRM) business of International Business Machines Corporation (IBM), which contributed approximately $900 million of revenue. Net income attributable to SYNNEX Corporation was $180.0 million, or $4.57 per diluted share, compared with $152.2 million, or $3.02 per diluted share, in fiscal 2013. Gross margin improved to 7.94% from 6.04%, while selling, general and administrative expenses rose to $790.5 million from $414.1 million, including $43.2 million of acquisition and integration expenses and higher intangible asset amortization. The company operates two segments: Technology Solutions, the IT and consumer electronics distribution business, which generated $12.76 billion of revenue, and Concentrix, the business process services unit, which was expanded by the IBM CRM acquisition and generated $1.10 billion of revenue. The IBM CRM acquisition had a preliminary purchase price of $418.3 million, funded by cash and 1,266,357 shares of common stock. Operating cash flow was negative $234.8 million, primarily reflecting increases in accounts receivable and inventory, while borrowings rose to $980.5 million. Management stated it believes current cash balances and credit availability are sufficient to support operations for at least the next twelve months. The filing also highlights concentration and risk factors, including HP products representing approximately 25% of fiscal 2014 revenue, MiTAC Holdings Corporation owning approximately 25% of common stock, and the company's initiation of a quarterly cash dividend of $0.125 per share in fiscal 2014.
Jan 29, 2015
2013
TD Synnex Annual Report, Year Ended Nov 30, 2013
SYNNEX Corporation reported fiscal 2013 (ended November 30, 2013) revenue of $10.85 billion, up from $10.29 billion in fiscal 2012, with net income attributable to SYNNEX Corporation of $152.2 million and diluted EPS of $3.06, down from $3.99 a year earlier. The company operates two segments: distribution services, which generated $10.66 billion of revenue, and Global Business Services (GBS), a business process outsourcing unit that generated $223.6 million. Income before non-operating items fell to $240.8 million from $255.0 million, with gross margin lower year over year, and the company attributed the decline to changes in product and business mix and to $8.4 million of GBS acquisition and integration expenses. Diluted EPS was reduced by $0.97 from an adjustment tied to the conversion premium on its convertible notes, which were settled in cash during fiscal 2013 for $218.9 million. The pending acquisition of IBM's customer care business for an aggregate purchase price of $505.0 million is the central strategic event in the filing. The initial closing is expected in the first calendar quarter of 2014, subject to regulatory approvals, and the company intends to offer employment to approximately 35,000 employees. The filing notes that the acquisition is funded partly with common stock (up to the lesser of $75.0 million or 5% of outstanding shares) and partly with cash. Investors should weigh that integration risk against the company's dependence on HP, which represented approximately 31% of fiscal 2013 revenue, and on MiTAC Holdings, which owned approximately 26% of common stock. Liquidity was supported by a new $275.0 million revolving credit facility and a term loan of up to $225.0 million under a U.S. Credit Agreement entered into in November 2013, with no borrowings outstanding at fiscal year end. Total borrowings were $317.9 million, and cash flow from operations was $35.7 million, reduced by $187.5 million of higher accounts receivable and $155.2 million of higher inventory. Total stockholders' equity was $1.41 billion.
Jan 27, 2014
2012
TD Synnex Annual Report, Year Ended Nov 30, 2012
SYNNEX Corporation, now TD SYNNEX Corporation, reported fiscal 2012 (year ended November 30, 2012) revenue of $10.29 billion, down from $10.41 billion in fiscal 2011, while net income attributable to SYNNEX rose to $151.4 million from $150.3 million. Gross profit increased 4.2% to $656.7 million, with gross margin rising to 6.39% of revenue from 6.06%, helped by the fee-for-service transition of a customer contract, favorable hard disk drive supply-demand conditions and vendor rebates. Diluted EPS was $3.99, compared with $4.08 in fiscal 2011. The company operates two segments: distribution services, which generated $10.12 billion of revenue, and global business services (GBS), which generated $197.4 million and a lower $13.5 million of operating income as margins compressed. Balance sheet liquidity improved. Cash and cash equivalents rose to $163.7 million from $67.6 million, and operating cash flow was $242.8 million. Total borrowings fell to $275.3 million, and total equity grew to $1.32 billion. The $143.75 million 4.0% Convertible Senior Notes due 2018 are classified as current because holders may require repurchase on May 15, 2013. The company intends to settle them in cash, using its U.S. receivables securitization and revolver, which were amended in October 2012 to extend maturities to 2015 and 2017, respectively. The filing also highlights concentration and governance factors. HP products accounted for about 36% of fiscal 2012 revenue. MiTAC International and its affiliates owned about 27% of common stock, and Synnex Technology International is a potential competitor. The CFO, Thomas Alsborg, is expected to retire by May 31, 2013 or upon appointment of a successor. The company repurchased 244 thousand shares in the fourth quarter under a $65 million anti-dilution program, and it has never paid cash dividends.
Jan 28, 2013
2011
TD Synnex Annual Report, Year Ended Nov 30, 2011
SYNNEX Corporation, now TD SYNNEX Corporation, reported fiscal 2011 (year ended November 30, 2011) revenue of $10.41 billion, up from $8.61 billion in fiscal 2010, with net income attributable to SYNNEX Corporation of $150.3 million, or $4.08 diluted EPS from continuing operations, compared with $127.9 million in fiscal 2010. Gross profit rose to $630.5 million (6.06% of revenue, versus 5.71% in 2010), and income from continuing operations before non-operating items was $256.2 million. The company operates two segments: distribution services, which generated $10.28 billion of revenue, and global business services (GBS), a business process outsourcing unit with $163.4 million of revenue. Growth in fiscal 2011 was aided by the acquisition of Marubeni Infotec Corporation (now SYNNEX Infotec Corporation) in Japan, which contributed approximately $1.22 billion of revenue, and by several GBS acquisitions. The balance sheet showed total assets of $2.83 billion and total equity of $1.17 billion as of November 30, 2011. Cash and cash equivalents were $67.6 million, and total borrowings were $383.0 million, including $143.75 million principal of 4.0% Convertible Senior Notes due 2018. Net cash provided by operating activities was $219.2 million, while net cash used in investing activities was $126.4 million, including $40.2 million of capital expenditures. The company has not paid cash dividends since its IPO, and its anti-dilution repurchase program authorizes up to $65 million of share repurchases over three years. MiTAC International and its affiliates owned approximately 29% of common stock, and Hewlett-Packard products represented approximately 35% of fiscal 2011 revenue, which the filing identifies as the main concentration risk.
Jan 27, 2012
2010
TD Synnex Annual Report, Year Ended Nov 30, 2010
SYNNEX Corporation, a Fortune 500 business process services company headquartered in Fremont, California, reported fiscal 2010 (year ended November 30, 2010) revenue of $8.61 billion, up from $7.72 billion in fiscal 2009, with net income attributable to SYNNEX of $127.9 million, or $3.58 per diluted share, compared with $89.7 million, or $2.64 per diluted share, the prior year. Gross profit rose to $491.6 million (5.71% of revenue), and income from continuing operations before non-operating items, income taxes and noncontrolling interest increased to $199.2 million (2.31% of revenue). The company operates two segments: distribution services, which generated $8.53 billion of revenue, and global business services (GBS), which generated $112.4 million. North America accounted for about 98% of revenue, and HP products represented approximately 38% of total revenue. Cash flow from operations was negative $65.9 million in fiscal 2010, driven mainly by a $240.1 million increase in inventory and a $156.8 million increase in accounts receivable, partly offset by a $220.2 million increase in accounts payable. Total borrowings were $386.3 million at year-end, of which $245.3 million was variable-rate. Cash and cash equivalents rose to $88.0 million, and total equity was $992.8 million. The company also reported acquisitions of Jack of All Games, Aspire Technology Limited and Encover, Inc. during fiscal 2010, and disclosed subsequent events including the December 1, 2010 acquisition of 70% of Marubeni Infotec Corporation (now SYNNEX Infotec Corporation) and the first-quarter fiscal 2011 acquisition of e4e, Inc. for $23.0 million. MiTAC International and its affiliates beneficially owned approximately 29% of common stock, giving them significant influence over stockholder votes, and the company's HP U.S. Business Development Partner Agreement is set to expire on May 31, 2011. The company has not paid cash dividends since inception.
Feb 14, 2011
2009
TD Synnex Annual Report, Year Ended Nov 30, 2009
SYNNEX Corporation, a Fremont, California business process services company, reported fiscal 2009 (year ended November 30, 2009) revenue of $7.72 billion, down slightly from $7.74 billion in fiscal 2008, while net income rose to $92.1 million from $83.8 million. The company operates two segments: distribution services, which generated $7.64 billion of revenue, and global business services (GBS), which generated $101.1 million. Gross margin improved to 5.48% from 5.35%, and income from continuing operations before non-operating items rose to $149.6 million. Diluted EPS was $2.70 versus $2.52 in fiscal 2008. The filing attributes the distribution revenue decline to a slow economic environment and foreign exchange translation of Canadian operations, offset by market share gains and the full-year effect of the New Age acquisition. Balance sheet and cash flow data show operating cash flow of $262.0 million in fiscal 2009, compared with $52.6 million in fiscal 2008. Total stockholders' equity increased to $818.4 million, and cash and cash equivalents were $37.8 million. Borrowings under securitization, term loans and lines of credit fell to $150.7 million from $340.5 million, and the $143.75 million 4.0% convertible senior notes due 2018 remain outstanding. Management states it believes its resources are sufficient for the next twelve months. Concentration and related-party exposure remain significant. HP products accounted for approximately 36% of fiscal 2009 revenue, and MiTAC International and its affiliates beneficially owned approximately 34% of common stock. The company also disclosed a definitive agreement to acquire Jack of All Games for $43.25 million and the sale of its HiChina Web Solutions interest for approximately $60 million, subject to a 10% holdback.
Feb 5, 2010
2008
TD Synnex Annual Report, Year Ended Nov 30, 2008
SYNNEX Corporation, now TD SYNNEX Corporation, reported fiscal 2008 (year ended November 30, 2008) revenue of $7.77 billion, up from $7.00 billion in fiscal 2007, with net income of $83.8 million compared with $63.1 million a year earlier. Diluted EPS rose to $2.52 from $1.93. The company operates two segments: distribution services, which distributes IT products from more than 100 OEM suppliers to more than 15,000 resellers, and global business services (GBS), which provides contact center, web hosting, and domain registration services. Gross margin improved to 5.56% of revenue from 5.07%, and HP accounted for approximately 32% of total revenue. Growth was supported by the April 2008 New Age Electronics acquisition and full-year effects of 2007 acquisitions. The balance sheet carries meaningful leverage: borrowings under securitization, term loans and lines of credit were $340.5 million, and the company issued $143.8 million of 4.0% convertible senior notes due 2018 in May 2008. Operating cash flow was $52.6 million, versus cash used in operations of $152.5 million in fiscal 2007, largely reflecting the change in the U.S. securitization arrangement. Stockholders' equity increased to $679.8 million. MiTAC International and its affiliates beneficially owned approximately 40% of common stock, giving them significant influence over the company. Key risks highlighted in the filing include low gross margins, dependence on a small number of OEM suppliers (particularly HP, whose agreement expires May 31, 2009), reliance on floor plan and securitization financing, exposure to China and other international operations, and related-party dependence on MiTAC International for contract assembly services to Sun Microsystems. Subsequent to year end, the company amended its U.S. receivables securitization program and senior secured revolver, reducing the revolver's maximum commitment to $80.0 million.
Jan 27, 2009
2007
TD Synnex Annual Report, Year Ended Nov 30, 2007
SYNNEX Corporation, a Fortune 500 business process services company, reported fiscal 2007 (year ended November 30, 2007) revenue of $7.00 billion, up from $6.34 billion in fiscal 2006, with the filing stating a 10.4% increase. Gross profit rose to $355.4 million (5.07% of revenue, versus 4.50% in fiscal 2006), and net income increased to $63.1 million, or $1.93 diluted EPS, from $51.4 million, or $1.61 diluted EPS. The company attributed growth to U.S. and Canadian business, increased demand, sales efforts and contributions from acquisitions including Link2Support, PC Wholesale, HiChina Web Solutions and the Redmond Group of Companies. The balance sheet expanded considerably over the year. Total assets rose to $1.89 billion from $1.38 billion, and borrowings under securitization, term loans and lines of credit reached $351.1 million current plus $37.5 million long-term. Net cash used in operating activities was $152.7 million, driven mainly by a $321.9 million increase in accounts receivable, which the filing ties to a change in the terms of the U.S. securitization arrangement that moved those receivables on-balance sheet. Cash from financing activities was $309.3 million. Investors should weigh the company's concentration and dependencies: HP accounted for approximately 28% of fiscal 2007 revenue, about 97% of revenue came from North America, and MiTAC International and affiliates owned approximately 44% of common stock. The filing also discloses low gross and operating margins, reliance on securitization and revolving credit facilities, and a HP agreement expiring May 31, 2009.
Feb 13, 2008
2006
TD Synnex Annual Report, Year Ended Nov 30, 2006
SYNNEX Corporation, a global information technology supply chain services company headquartered in Fremont, California, reported fiscal 2006 (year ended November 30, 2006) revenue of $6.34 billion, up 12.5% from $5.64 billion in fiscal 2005. Growth was driven by distribution revenue of $5.80 billion (up 13.3%), while contract assembly revenue rose 4.5% to $543.2 million. Gross profit increased 19.6% to $285.4 million, with gross margin expanding to 4.50% of revenue from 4.23%, and net income was $51.4 million, or $1.61 per diluted share, compared with $52.8 million in fiscal 2005, which included a $12.7 million gain on the sale of the Japan subsidiary. The filing highlights significant customer and supplier concentration. HP products accounted for approximately 25% of fiscal 2006 revenue, and the HP U.S. Business Development Partner Agreement expires May 31, 2007. Sun Microsystems represented approximately 91% of contract assembly revenue, and the company relies on MiTAC International, its largest indirect stockholder, for certain manufacturing services under an informal arrangement. Executive officers, directors and principal stockholders owned approximately 48% of common stock, with MiTAC International and affiliates owning about 47%. The balance sheet expanded, with total assets rising to $1.38 billion from $1.08 billion and stockholders' equity reaching $511.5 million. Operating cash flow was negative $18.9 million in fiscal 2006, primarily due to working capital needs and new long-term deferred assets from a Mexico government-related contract. The company disclosed subsequent February 2007 amendments that increased its U.S. receivables securitization program to $350.0 million and its senior secured revolver to $100.0 million.
Feb 13, 2007
2005
TD Synnex Annual Report, Year Ended Nov 30, 2005
SYNNEX Corporation, now TD SYNNEX Corporation, is a global information technology supply chain services company offering product distribution, logistics, contract assembly and demand generation marketing to IT OEMs and reseller customers. For fiscal 2005 (ended November 30, 2005), revenue rose to $5.64 billion, up 9.5% from $5.15 billion, driven by distribution revenue growth of 12.0%, while contract assembly revenue fell 9.9% on lower demand from Sun Microsystems. Gross profit was $238.6 million (4.23% of revenue), SG&A was $159.6 million, and net income increased to $52.8 million, or $1.70 per diluted share, which includes a $12.7 million after-tax gain on the sale of SYNNEX K.K. in Japan. The filing highlights concentration and control risks. HP accounted for approximately 28% of revenue, and the HP U.S. agreement expires May 31, 2006. MiTAC International and affiliates owned approximately 57% of common stock, and MiTAC supplies subassemblies for Sun Microsystems, the primary contract assembly customer, under informal arrangements. Operating cash flow was only $7.3 million, as working capital needs rose, and the company relies on a $275.0 million U.S. receivables securitization program and other credit facilities, with $29.7 million in borrowings outstanding at year-end. Investors should weigh the solid revenue growth and improved gross margin against thin operating margins of roughly 1.4%, heavy dependence on a few OEMs and customers, the controlling shareholder's influence, and the reliance on receivables financing. Pending litigation, including the Seanix trademark suit and an appeal of a $4.2 million judgment against a former EMJ subsidiary, is not expected by management to have a material adverse effect.
Feb 13, 2006
2004
TD Synnex Annual Report, Year Ended Nov 30, 2004
SYNNEX Corporation, an information technology supply chain services company, reported fiscal 2004 (year ended November 30, 2004) revenue of $5.31 billion, up 28.8% from $4.13 billion in fiscal 2003. Growth came mainly from distribution revenue, which rose 21.6% to $4.74 billion on market share gains, stronger North American demand and the EMJ Data Systems acquisition, while contract assembly revenue rose 150.3% to $577.0 million, driven largely by Sun Microsystems. Gross margin declined to 4.23% from 4.55%, but income from operations rose 36.5% to $78.98 million, and net income reached $46.6 million, or $1.55 per diluted share, versus $30.0 million in fiscal 2003. The company completed its initial public offering in December 2003, and cash and cash equivalents rose to $28.7 million at November 30, 2004. Operating cash flow was only $0.2 million in fiscal 2004 because working capital consumed $58.1 million. Investors should note the heavy concentration in the business. HP accounted for 27.4% of fiscal 2004 revenue, Sun Microsystems for roughly 10%, and the contract assembly business depends on Sun for 92.9% of its revenue. The company also relies on MiTAC International, which owned approximately 71% of common stock at year-end, and its arrangements with MiTAC are informal and not governed by long-term commitments. Key risks include thin margins, the HP agreement's short term (through May 31, 2005 unless terminated earlier), reliance on the accounts receivable securitization program with General Electric Capital Corporation, and the pending legal actions, including a trademark suit and bankruptcy preference claims. The filing also reports $88.1 million in borrowings at November 30, 2004, compared with $77.6 million a year earlier, and an increase in the securitization program's capacity to $275.0 million in December 2004. Management expects selling, general and administrative expenses to rise as public company compliance costs grow, and it has begun restructuring at EMJ, with total costs expected to be at least $2.2 million before tax.
Feb 14, 2005
2003
TD Synnex Annual Report, Year Ended Nov 30, 2003
SYNNEX Corporation, a global information technology supply chain services company headquartered in Fremont, California, reported fiscal 2003 (year ended November 30, 2003) revenue of $4.13 billion, up 9.5% from $3.77 billion in fiscal 2002, and net income of $29,996 thousand, or $1.22 per diluted share. Distribution revenue rose 14.8% to $3.90 billion, driven by market share gains, the Gates/Arrow acquisition and the start of Mexico operations, while contract assembly revenue fell 38.2% to $230.5 million as demand from Sun Microsystems declined. Gross margin was 4.6% and operating margin 1.4%, with management expecting gross margins may decrease further in future periods. The company completed its initial public offering on December 1, 2003, selling 3,577,500 shares by the company and receiving net proceeds of approximately $48.8 million including the over-allotment option. MiTAC International and its affiliates held about 77% of the company after the offering, and executive officers, directors and principal stockholders together owned about 78%, giving them control over matters requiring stockholder approval. HP was the largest OEM supplier at 30.7% of fiscal 2003 revenue. Investors should note the company's heavy reliance on working capital financing: operating cash flow was negative $12.7 million in fiscal 2003, and short- and long-term borrowings reached $77.6 million, while $210.0 million of receivables were sold under a securitization program with General Electric Capital Corporation. The company also disclosed $9.4 million of inventory stolen in warehouse break-ins, substantially recovered from insurance in January 2004, and $4.3 million of fourth-quarter foreign currency losses tied to forward contracts not executed under company policy.
Feb 19, 2004