Stock market special report by epic research 7th august 2014
SNX_Corp_Q4_2007
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Transcript of SNX_Corp_Q4_2007
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Safe Harbor Statement
This presentation may contain forward-looking statements that involve risks and uncertainties. These forward-looking statements include, but are not limited to, our goal to reach a double digit return on invested capital, expectations of our revenues, gross margins, net income and earnings per share for the first quarter of fiscal 2008, the consolidation of our Canadian facilities and the related expenses and impact on our earnings per share, the impact of integrating RGC and the related expenses and the timing of these expenses, the expectation of our business going forward including our recent acquisitions and expected results of our business process outsourcing services and statements regarding our expected tax rate for 2008 which are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements.
Please refer to documents filed with the Securities and Exchange Commission, specifically our most recent form 10Q, for information on risk factors that could cause actual results to differ materially from those discussed in these forward looking statements.
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Non GAAP Financial Information
The “Non-GAAP” data contained in this presentation are included with the intention of providing investors a more complete understanding of our operational results and trends, but should only be used in conjunction with results reported in accordance with Generally Accepted Accounting Principles, or GAAP. The Non-GAAP financial measures enable investorsto analyze the base financial and operating performance of the Companyand facilitate period-to-period comparisons and analysis of operating trends. Non-GAAP measures presented in this presentation or other presentations, press releases and similar documents issued by the Company, exclude restructuring charges and other related non-cash compensation expense, non operating settlement gains or losses, changes in valuation allowances for deferred tax assets and other infrequent or unusual items. A detailed reconciliation of the adjustments between results calculated using GAAP and Non-GAAP in this presentation is contained in the attached financial summary.
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SYNNEX Corporation
A Leading Business Process Services Company
Full Service: Broadline/Solutions Distribution, Contract Assembly, Business Process Outsourcing (BPO)
27 Years of Operating History
FY 2007 Revenues of $7.00 Billion
Consistent Performer: 82 ConsecutiveGAAP Profitable Quarters
Distinctive, Efficient and Cost Effective Business Model
Seasoned Executive Management Team withan Average of 20 Years Direct Channel Experience
Established Long Standing Industry Relationships
Fortune 500 Company
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SYNNEX Differentiation
Growing Full Service Supply Chain Player– Channel Assembly, Integration, Distribution and
Business Process Outsourcing (BPO)Deep Vendor Knowledge Base & Relationships
– Corporate Focus on Select Vendors
Proprietary IT System– Operational Transparency to All Levels of the
Organization– Real-Time Data Access
Decentralized Warehouse Strategy– Right product, right location, closest to end
customer– Fast time to market
Global Operational Presence– 24 x 7 Operation– Leveraged use of overhead costs
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SYNNEX’ Multi National Presence
United StatesAtlanta, GeorgiaChantilly, VirginiaChicago, IllinoisDallas, TexasFremont , California
(Corporate Headquarters)(Configuration/Assembly
Site)Greenville, South Carolina
(Sales and Marketing Headquarters)Las Vegas, NevadaLos Angeles, CaliforniaLyndhurst, New JerseyMemphis, Tennessee
(Configuration/Assembly Site)Miami, Florida Portland, OregonRochester, New York
United KingdomTelford, United Kingdom
(Configuration/Assembly Site)
Asia/PacificBeijing, ChinaChengdu, China
Manila, Philippines
CanadaCalgary, ABGuelph, ONHalifax, NSMontreal, QCToronto, ONVancouver, BCWinnipeg, MB
Latin AmericaMexico City, Mexico
Financial Overview
SYNNEX’ fiscal year ends on November 30th.
Strong and Consistent Revenue Growth
$3.94
$5.15
$5.64
$6.34
$7.00
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2003 2004 2005 2006 2007
Billions
Operating Income
*Operating income from continuing operations before non-operating items, incomes taxes and minority interest.
$57.0
$77.7 $78.9
$96.2
$112.4
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
2003 2004 2005 2006 2007
Millions
SYNNEX’ fiscal year ends on November 30th.
Consistent Quarterly Revenue Growth
1.31 1.35 1.39
1.591.50 1.51
1.59
1.74
1.50 1.511.59
1.74
1.591.68
1.76
1.97
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Prior Year Current Year
Quarter Over Quarter Comparison
2006 2007
Billions
1.25%*1.37% 1.42%*
1.53%1.48% 1.48% 1.48%
1.62%
1.48% 1.48% 1.48%1.62% 1.57% 1.53%
1.39%*
1.87%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2.00%
1 2 3 4 5 6 7 8
Prior Year Current Year
101010
20072006
Solid Operating Income PercentageO
pera
ting
Inco
me
as a
% o
f Rev
enue
All numbers reflect GAAP results, SYNNEX’s fiscal year ends on November 30th.* Q1 05, Q3 05 and Q3 07 include one-time restructuring items and non-recurring items associated with the Company’s operations in Canada.
Strategies For Growth
North American IT Spending in Hardware and Packaged SoftwareEstimated at $276 Billion in 2008. Source: IDC
North American IT Channel Spending Estimatedat $51 Billion in 2008. Source: IDC, Company Estimate & NPD Data
SYNNEX IT Channel Market Share approximately 15%.Source: Estimate based on 2008 Consensus Forecast per Thomas Financial, IDC and NPD Data
BPO Market Size Estimated to be Approximately $175 Billion by 2010. Source: Gartner Group
System Components
Market Opportunity
Peripherals IT Systems
Software
Networking5-9%
8-12%
31-35%
17-21%
29-33%
SYNNEX Product CategorizationQ4 2007
Our Growth Strategy
Growth in IT Channel
Grow MarketShare
Customer Count Top 100
Vendor Additions
Enterprise/Solution DistributionIntegration/
ConfigurationAssembly
Consumer Electronics Distribution
Demand Generation Marketing
Contact Center Support
Logistics
Opportunistic Acquisitions− Synergy− Price/ROIC− Ease of Integration− Complimentary BPO
Services
O r g a n i c G r o w t h
O r g a n i c G r o w t h
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SYNNEX Investment Highlights
VALUEVALUE
Organizational Responsiveness
Outstanding Financial Performance Growth Potential
Highest Efficiency
Seasoned ManagementTeam
Customer Satisfaction
Innovation
Velocity Visibility
Thank You