Synnex reports 45 percent profit jump

Synnex has reported a 45 percent jump in net income for its fiscal second quarter of 2004.

The distributor, which went public last December, said net income for the period ended May 31 reached US$10.2 million, or US34 cents per share, compared with US$7 million, or US28 cents per share, for the same quarter last year.

Revenue increased 35 percent to US$1.27 billion compared with US$945 million for second-quarter 2003.

Synnex President and CEO Bob Huang said an overall improved distribution economic environment in the United States and growth in the company's assembly business helped fuel the uptick. He cautioned, however, that non-U.S. distribution business lagged during the quarter due to seasonal and operational issues.

Analysts had predicted Synnex would have a tough fight in expanding its international business against larger, more established rivals like Ingram Micro.

Huang, however, vowed that the company would improve its non-U.S. distribution business in coming quarters.

Synnex said it expects third-quarter revenue to be in the US$1.25 billion to US$1.3 billion range, with net income falling in the US$10.1 million to US$10.7 million range, or US33 cents to US35 cents per share.