New CEO to inherit Synnex in strong financial position

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Following a year of key acquisitions, Synnex turned over $17,046m in FY17, up 21.2% on the previous year. This followed a bumper Q4, where revenues grew 36.7% year-over-year. The company’s operating result was strong, up 34.1% at $509m, meaning its operating margin was up 29 basis points to 2.99%.

Synnex’s Technology Solutions segment saw revenues grow 20.7%. Adjusted for the Westcon-Comstor acquisition and the translation effect of foreign currencies, the Technology Solutions business grew by 15.5% over the prior fiscal year. Operating income was also much stronger.

Concentrix produced strong results too, with revenues up by over a quarter in the year and operating income nearly twice as high.

The purchases do not appear to have effected Synnex’s cash position either. Synnex’s current asset ratio improved from 1.42 to 1.61 in FY17.

Kevin Murai, President and Chief Executive Officer, said, “Our record financial performance continued in the fourth quarter, driven by strong demand in both segments.  The organic investments and strategic acquisitions we made throughout 2017 enhanced our capabilities and offerings and enabled us to grow market share,”

The company also announced that President and CEO, Kevin Murai, would retired from his roles and be replaced by current Chief Operating Officer, Dennis Polk.

“We expect the transition of Dennis to President and CEO to be seamless as Kevin and the Board have been preparing for this for some time.  Dennis has been with the Company for more than 15 years, gaining greater leadership and business responsibilities, as well as successfully serving as CFO prior to his July 2006 appointment to COO.  Dennis has a deep understanding of our businesses and the Board is excited to have Dennis take the reins of our Company and continue our success moving forward,” said Mr. Steffensen.

Source: Synnex