Synnex Corp reports 30% surge in net income for second quarter
Business process services company Synnex Corp. (NYSE: SNX) said after the close today that net income surged 30% for the second quarter.
For the second quarter ended May 31, 2007, the California-based company reported a 30% increase in net income to $14.7 million, or $0.45 per share compared with $11.3 million, or $0.36 per share in the same quarter last year.
On average, seven analysts polled by Thomson Financial expected the company to report earnings of $0.44 per share.
“Our second quarter results mark a significant milestone on the road to evolving our business model from a traditional broad line distributor to a leading business process services company,” said Robert T. Huang, President and CEO.
In April, the company acquired a controlling interest in China Civilink for $30 million; and in May it completed the acquisition of substantially all of Redmond Group of Companies’ assets for approximately $40 million.
The two acquisitions generated approximately $16 million for the quarter, while income from operations was $25.8 million compared with $22.4 million in the second quarter of 2006.
“The strategic acquisitions we have made over the past year to enhance our solutions offerings and our continued relentless focus on operational efficiencies in our core distribution service should further enable, and help accelerate, our goal to reach a double digit return on invested capital,” said Huang.
Shares of Synnex traded down 0.09% or $0.02 to $21.51 in after-hours trading Monday.
