Synnex Q2 2014 Earnings Follow Up
Synnex (NYSE: SNX) reported its fiscal 2014 second quarter results at the market close Wednesday.
The information supply chain company passed consensus expectations for the quarter with EPS of $1.52 compared to the estimated $1.36 and revenue of $3.45 billion versus $3.17 billion.
Total revenue increased by 33 percent from the previous quarter to $3,454 million, with technology solutions revenue growing by 24.2 percent to $3.16 billion from the previous quarters; concentrix revenue increased dramatically from the previous quarters $46.7 million to $293.5 million.
The company altered its cash conversion cycle to 46 days versus 42 days in the second quarter in the prior year, due to growth in both the technology solutions and concentrix segment.
Debt to capitalization ratio came out to 38 percent, increasing by 18 percent from the prior year second quarter, credited by the financing of the IBM CRM business acquisition. Synnex's balance sheet was updated with depreciation of $9.2 million and amortization $15.2 million for the second quarter.
Synnex President and CEO Kevin Murai stated, "Our third quarter guidance reflects continued strong performance in both our technology solutions and concentrix business segments, We are positive on the market demand and confident in our ability to execute."
Guidance Given for Q3:
- Revenue estimated in the range of $3.3 billion to $3.4 billion.
- Non-GAAP net income is predicted to be between $56.9 million to $58.9 million.
- Non-GAAP diluted earnings per share between $1.45 to $1.50.
- After-tax amortization of intangibles is expected to be $11.2 million ($0.28 per share).
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.