SYNNEX Corporation Reports Fiscal 2013 First Quarter

  SYNNEX Corporation Reports Fiscal 2013 First Quarter

          Solid Performance in Core Distribution and 17% GBS Growth

Business Wire

FREMONT, Calif. -- March 27, 2013

SYNNEX Corporation (NYSE: SNX), a leading business process services company,
today announced financial results for the fiscal first quarter ended February
28, 2013.

                                             Q1 FY13  Q1 FY12  Net Change
Revenue ($M)                                  $2,461   $2,461   0.0%
Operating income ($M)                         $55.9    $64.0    -12.6%
Operating margin                              2.27%    2.60%    -33bp
Net income attributable to SYNNEX             $33.4    $38.2    -12.7%
Corporation ($M)
Diluted EPS                                   $0.88    $1.02    -13.7%

“I am pleased to report solid quarterly results even as compared to the prior
year’s exceptional profits which benefitted from the hard drive shortage and
considering the recent weakening of key foreign currencies such as the yen.
Steady operational execution within the core Distribution Segment aligned well
with our mix shift into higher margin product and service offerings, including
in our Technology Solutions Division," stated Kevin Murai, President and Chief
Executive Officer. “Our GBS Segment’s strong revenue growth continues, driven
by strategic investment and increasing momentum in our rapidly growing
Concentrix business.”

Fiscal 2013 First Quarter Highlights:

  *Distribution: Revenue was $2.42 billion, essentially flat from the prior
    fiscal year quarter. Distribution income before non-operating items,
    income taxes and noncontrolling interest was $52.1 million, or 2.15% of
    distribution revenue compared with $62.4 million, or 2.57% in the prior
    fiscal year quarter.
  *Global Business Services (GBS): Revenue was $52.5 million, an increase of
    16.5% over the prior fiscal year first quarter. GBS income before
    non-operating items, income taxes and non-controlling interest was $3.9
    million, or 7.43% of GBS revenue compared with $2.0 million, or 4.42% in
    the prior fiscal year quarter.
  *Trailing fiscal four quarters ROIC was 10.1% for the fiscal first quarter
    of 2013, compared to 11.4% in the prior year fiscal first quarter.
  *The cash conversion cycle was 43 days, down two days from the prior fiscal
    year quarter.
  *The debt to capitalization ratio was 18%.
  *Depreciation and amortization were $4.3 million and $2.0 million,
    respectively.

Fiscal 2013 Second Quarter Outlook:

The following statements are based on the Company’s current expectations for
the fiscal 2013 second quarter. These statements are forward-looking and
actual results may differ materially.

“We anticipate that IT demand will remain mixed for products we sell and
geographies we operate in. In addition, ongoing competitive pricing and a more
limited ability to earn incremental incentives will impact our gross margin
this quarter.” Mr. Murai continued, “Despite the near-term challenges,
however, we remain focused on growing our business and expect our margins to
improve in the second half of the year.”

  *Revenue is expected to be in the range of $2.425 billion to $2.525
    billion.
  *Net income is expected to be in the range of $29.8 million to $31.0
    million.
  *Diluted earnings per share are expected to be in the range of $0.78 to
    $0.82.

Conference Call and Webcast

SYNNEX will be discussing its financial results and outlook on a conference
call today at 2:00 p.m. (PT). A webcast of the call will be available at
http://ir.synnex.com. The conference call will also be available via telephone
by dialing (888) 469-3219 in North America or (630) 395-0205 outside North
America. The passcode code for the call is “SNX.” A replay of the webcast will
be available at http://ir.synnex.com approximately two hours after the
conference call has concluded.

About SYNNEX

SYNNEX Corporation (NYSE: SNX), a Fortune 500 corporation, is a leading
business process services company, servicing resellers, retailers and original
equipment manufacturers in multiple regions around the world. The Company
provides services in IT distribution, supply chain management, contract
assembly and business process outsourcing. Founded in 1980, SYNNEX employs
approximately 12,000 full-time and part-time associates worldwide. Additional
information about SYNNEX may be found online at www.synnex.com.

Safe Harbor Statement

Statements in this press release regarding SYNNEX Corporation, which are not
historical facts, are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements may be identified by
terms such as believe, expect, may, will, provide, could and should and the
negative of these terms or other similar expressions. These statements,
including statements regarding the demand environment, growth in profitability
and margins, expansion into higher margin product and service offerings,
investment and growth in our GBS segment, competitive pricing, vendor rebates,
and our revenue, operating margins, net income and earnings per share, are
subject to risks and uncertainties that could cause actual results to differ
materially from those discussed in the forward-looking statements. These risks
and uncertainties include, but are not limited to: our ability to successfully
integrate our recent acquisitions; diversion of management as a result of our
recent acquisitions; loss of vendors and suppliers as a result of our recent
acquisitions; market acceptance and product life of the platforms sold by
companies recently acquired; general economic conditions and any weakness in
IT and consumer electronics spending; the loss or consolidation of one or more
of our significant OEM suppliers or customers; market acceptance and product
life of the products we assemble and distribute; competitive conditions in our
industry and their impact on our margins; pricing, margin and other terms with
our OEM suppliers; our ability to gain market share; variations in
supplier-sponsored programs; changes in our costs and operating expenses;
changes in foreign currency exchange rates; changes in the tax laws; risks
associated with our international operations; uncertainties and variability in
demand by our reseller and contract assembly customers; supply shortages or
delays; any termination or reduction in our floor plan financing arrangements;
credit exposure to our reseller customers, and negative trends in their
businesses; any future incidents of theft; risks associated with our business
process outsourcing and contract assembly business; risks associated with our
anti-dilution share repurchase program; and other risks and uncertainties
detailed in our Form 10-K for the fiscal year ended November 30, 2012 and from
time to time in our SEC filings. Statements included in this press release are
based upon information known to SYNNEX Corporation as of the date of this
release, and SYNNEX Corporation assumes no obligation to update information
contained in this press release.

Copyright 2013 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX
Logo, CONCENTRIX and all other SYNNEX company, product and services names and
slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX,
the SYNNEX Logo and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks
are the property of their respective owners.

SNX-F

SYNNEX Corporation
Consolidated Balance Sheets
(currency in thousands)
(unaudited)
                                                     
                                             February 28,        November 30,
                                              2013              2012      
ASSETS
Current assets:
         Cash and cash equivalents           $ 232,074           $ 163,699
         Short-term investments                15,739              15,933
         Accounts receivable, net              1,196,077           1,401,087
         Receivable from affiliates            328                 285
         Inventories                           916,196             923,340
         Current deferred tax assets           23,400              23,390
         Other current assets                 59,585            52,727    
                     Total current assets      2,443,399           2,580,461
                                                                 
Property and equipment, net                    120,423             122,923
Goodwill                                       184,531             189,088
Intangible assets, net                         25,905              29,049
Deferred tax assets                            648                 619
Other assets                                  39,034            41,122    
                     Total assets            $ 2,813,940        $ 2,963,262 
                                                                 
LIABILITIES AND EQUITY
Current liabilities:
         Borrowings under securitization,    $ 82,283            $ 52,698
         term loans and lines of credit
         Convertible debt                      142,824             141,436
         Accounts payable                      947,011             1,111,833
         Accrued liabilities                   145,987             181,270
         Income taxes payable                 14,271            7,470     
                     Total current             1,332,376           1,494,707
                     liabilities
                                                                 
Long-term borrowings                           72,618              81,152
Long-term liabilities                          54,841              58,783
Deferred tax liabilities                      8,212             9,265     
                     Total liabilities        1,468,047         1,643,907 
                                                                 
SYNNEX Corporation stockholders' equity:
         Preferred stock                       -                   -
         Common stock                          37                  37
         Additional paid-in capital            328,365             324,292
         Treasury stock                        (21,814   )         (21,611   )
         Accumulated other comprehensive       24,690              35,405
         income
         Retained earnings                    1,014,269         980,900   
                     Total SYNNEX
                     Corporation               1,345,547           1,319,023
                     stockholders' equity
Noncontrolling interest                       346               332       
                     Total equity             1,345,893         1,319,355 
                     Total liabilities and   $ 2,813,940        $ 2,963,262 
                     equity

SYNNEX Corporation
Consolidated Statements of Operations
(currency and share amounts in thousands, except for per share amounts)
(unaudited)
                                                        
                                                             
                                     Three Months Ended
                                    February 28, 2013       February 29, 2012
                                                             
Revenue                              $  2,460,839            $  2,460,694
                                                             
Cost of revenue                        (2,304,752  )          (2,291,422  )
                                                             
Gross profit                            156,087                 169,272
                                                             
Selling, general and                   (100,147    )          (105,284    )
administrative expenses
                                                             
Income before non-operating items,
income taxes and noncontrolling         55,940                  63,988
interest
                                                             
Interest expense and finance            (5,493      )           (6,035      )
charges, net
Other income, net                      1,261                 2,099       
                                                             
Income before income taxes and          51,708                  60,052
noncontrolling interest
                                                             
Provision for income taxes             (18,317     )          (20,898     )
                                                             
Net income                              33,391                  39,154
                                                             
Net income attributable to             (22         )          (931        )
noncontrolling interest
Net income attributable to SYNNEX    $  33,369              $  38,223      
Corporation
                                                             
Net income per share attributable
to SYNNEX Corporation:
Basic                                $  0.91                $  1.05        
Diluted                              $  0.88                $  1.02        
Weighted-average common shares
outstanding:
Basic                                  36,663                36,303      
Diluted                                38,030                37,632      
                                                                            

Contact:

SYNNEX Corporation
Deirdre Skolfield, CFA, 510-668-3715
Investor Relations
deirdres@synnex.com
 
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