SYNNEX Corporation (SNX) has reported a 37.26 percent jump in profit for the quarter ended Nov. 30, 2016. The company has earned $85.32 million, or $2.13 a share in the quarter, compared with $62.16 million, or $1.56 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $102.94 million, or $2.57 a share compared with $71.63 million or $1.80 a share, a year ago.
Revenue during the quarter grew 9.50 percent to $3,886.90 million from $3,549.62 million in the previous year period. Gross margin for the quarter expanded 93 basis points over the previous year period to 9.75 percent. Total expenses were 96.64 percent of quarterly revenues, down from 97.04 percent for the same period last year. This has led to an improvement of 40 basis points in operating margin to 3.36 percent.
Operating income for the quarter was $130.64 million, compared with $104.96 million in the previous year period.
However, the adjusted operating income for the quarter stood at $156.09 million compared to $119.99 million in the prior year period. At the same time, adjusted operating margin improved 64 basis points in the quarter to 4.02 percent from 3.38 percent in the last year period.
"Our financial results for our fourth quarter and fiscal 2016 are a reflection of strong execution and the progress we have made in our strategy," said Kevin Murai, president and chief executive officer, SYNNEX Corporation. "and I believe our strategic investments will continue to position us well for the future."
For the first-quarter, SYNNEX Corporation expects revenue to be in the range of $3,400 million to $3,600 million. It forecasts net income to be in the range of $52.60 million to $55.80 million. It projects adjusted net income to be in the range of $64.70 million to $67.90 million. It projects diluted earnings per share to be in the range of $1.31 to $1.39. It projects diluted earnings per share to be in the range of $1.61 to $1.69 on an adjusted basis for the same period.
Working capital declines
SYNNEX Corporation has witnessed a decline in the working capital over the last year. It stood at $1,567.28 million as at Nov. 30, 2016, down 9.49 percent or $164.34 million from $1,731.62 million on Nov. 30, 2015. Current ratio was at 1.63 as on Nov. 30, 2016, down from 1.90 on Nov. 30, 2015.
Debt increases substantially
SYNNEX Corporation has witnessed an increase in total debt over the last one year. It stood at $966.97 million as on Nov. 30, 2016, up 32.30 percent or $236.08 million from $730.89 million on Nov. 30, 2015. Total debt was 18.51 percent of total assets as on Nov. 30, 2016, compared with 16.45 percent on Nov. 30, 2015. Debt to equity ratio was at 0.49 as on Nov. 30, 2016, up from 0.41 as on Nov. 30, 2015.
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