TD Synnex releases first post-merger results

TD Synnex has published its first results since the $7.2 billion mergers between Synnex and Tech Data completed last September. Yes, M&A pays dividends!

The company posted figures which were “at or better than expectations”.

Revenue for the fourth quarter of 2021 was $15.6 billion, an increase of 155.1 percent. This was directly due to the merger’s impact compared with Tech Data’s quarter at the same time the year before. Non-GAAP operating income came to $408 million compared to $221 million.

Chief financial officer Marshall Witt said revenue for the combined company was down two percent from the prior year based on a comparison that assumes the merger with Tech Data occurred on 1 September 2020.

“We are pleased with this result, given the tough comparison to the prior year, supply chain constraints, newness of operating as one company, and an approximate one per cent FX headwind due to the euro weakening against the dollar.”

CEO Rich Hume said the company’s core distribution business performed in line with expectations set in the previous quarter, as did endpoint solutions, despite being slightly down year on year.

Hume added that government spending saw a slowdown, while the education segment was flat year over year, but in Europe, demand for next-generation solutions was healthy and TD Synnex outgrew the market.

“We had a good performance despite the anticipated challenging supply chain environment, the change attained with our merger and the new fiscal year-end for much of the company”, Hume said.

Revenue for the first quarter of 2022 is expected to be in the range of $14.75 billion to $15.7 billion, TD Synnex said, with a non-GAAP net income of between $245- $275 million.