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SYNNEX Corporation Reports Second Quarter Fiscal 2018 Results

FREMONT, Calif., June 28, 2018 /PRNewswire/ -- SYNNEX Corporation (SNX), a leading business process services company, today announced financial results for the fiscal second quarter ended May 31, 2018.


Q2 FY18

Q2 FY17

Net change

Revenue ($M)

$4,973

$3,936

26.3%

Operating income ($M)

$123.9

$125.1

(1.0)%

Non-GAAP operating income ($M)(1)

$152.3

$141.2

7.8%

Operating margin

2.49%

3.18%

(69) bps

Non-GAAP operating margin(1)

3.06%

3.59%

(53) bps

Net income ($M)

$93.7

$73.1

28.1%

Non-GAAP net income ($M)(1)

$95.3

$83.2

14.5%

Diluted EPS

$2.34

$1.83

27.9%

Non-GAAP Diluted EPS(1)

$2.38

$2.08

14.4%


(1) Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangible assets together with the related tax effects thereon, and a tax benefit related to repatriation tax. A reconciliation of GAAP to Non-GAAP financial measures is presented in the supplementary information section at the end of this press release.

SYNNEX Corporation

"Strong results in both of our segments enabled us to deliver another record quarter for both revenue and earnings," said Dennis Polk, President and Chief Executive Officer, SYNNEX Corporation. "These results reflect our persistent focus on executing the strategies we have set out and our ability to operate effectively and with discipline."

Second Quarter Fiscal 2018 Highlights:

  • Technology Solutions: Revenue was $4.5 billion, up 30% from the prior fiscal year second quarter. Operating income was $96 million, or 2.1% of segment revenue, compared to $102 million, or 2.9% of segment revenue, in the prior fiscal year second quarter. Non-GAAP operating income was $111 million, or 2.5% of segment revenue, in the fiscal second quarter of 2018, compared to $102 million, or 3.0% of segment revenue, in the prior fiscal year second quarter.
  • Concentrix: Revenue was $491 million, up 2% from the prior fiscal year second quarter. Operating income was $28 million, or 5.6% of segment revenue, compared to $23 million, or 4.9% of segment revenue in the prior fiscal year second quarter. Non-GAAP operating income was $41 million, or 8.4% of segment revenue, in the fiscal second quarter of 2018, compared to $39 million, or 8.1% of segment revenue, in the prior fiscal year second quarter.
  • The trailing fiscal four quarters Return on Invested Capital ("ROIC") was 8.9% compared to 11.0% in the prior fiscal year second quarter. The adjusted trailing fiscal four quarters ROIC was 10.9%.
  • The debt to capitalization ratio was 43.9%, up from 33.9% in the prior fiscal year second quarter, primarily as a result of the Westcon-Comstor Americas acquisition in the fiscal fourth quarter of 2017.
  • Depreciation and amortization were $23 million and $26 million, respectively.
  • Cash generated from operations was approximately $68 million during the quarter.
  • Tax expense for the second quarter of fiscal 2018 includes a benefit of $17 million, or $0.42 per diluted share, related to repatriation tax.

Third Quarter Fiscal 2018 Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2018 third quarter. Non-GAAP financial measures exclude the amortization of intangibles and the related tax effect thereon. These statements are forward-looking and actual results may differ materially.

  • Revenue is expected to be in the range of $4.8 billion to $5.0 billion.
  • Net income is expected to be in the range of $77.9 million to $81.6 million and on a Non-GAAP basis, net income is expected to be in the range of $97.0 million to $100.7 million.
  • Diluted earnings per share is expected to be in the range of $1.95 to $2.04 and on a Non-GAAP basis, diluted earnings per share is expected to be in the range of $2.42 to $2.52.
  • After-tax amortization of intangibles is expected to be $19.1 million, or $0.48 per share.

Dividend Announcement

SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.35 per common share. The dividend is payable on July 27, 2018 to stockholders of record as of the close of business on July 13, 2018.

Conference Call and Webcast

SYNNEX will be discussing its financial results and outlook on a conference call today at 2:00 p.m. (PT). A live audio webcast of the call will be available at http://ir.synnex.com. The conference call will also be available via telephone by dialing (800) 369-1162 in North America or (415) 228-5007 for international callers. The passcode for the call is "SNX." A replay of the webcast will be available at http://ir.synnex.com approximately two hours after the conference call has concluded where it will be archived for one year.

About SYNNEX Corporation

SYNNEX Corporation (SNX) is a Fortune 200 corporation and a leading business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement to a broad range of enterprises.  SYNNEX distributes a broad range of information technology systems and products, and also provides systems design and integration solutions. Concentrix, a wholly-owned subsidiary of SYNNEX Corporation, offers a portfolio of strategic solutions and end-to-end business services focused on customer engagement, process optimization, technology innovation, front and back-office automation and business transformation to clients in ten identified industry verticals. Founded in 1980, SYNNEX Corporation operates in numerous countries throughout North and South America, Asia-Pacific and Europe.  Additional information about SYNNEX may be found online at www.synnex.com.

Use of Non-GAAP Financial Information

In addition to the financial results presented in accordance with GAAP, SYNNEX also uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), non-GAAP net income, and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude acquisition-related and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.

In fiscal year 2018, non-GAAP net income and non-GAAP diluted earnings per share also exclude the impact of a provisional adjustment relating to the enactment of the Tax Cuts and Jobs Act of 2017. This adjustment includes an estimated transition tax on accumulated overseas profits and the estimated remeasurement of deferred tax assets and liabilities to the new U.S. tax rate. These estimates may be impacted by new guidance issued by regulators, additional information obtained related to earnings and profits in foreign jurisdictions and the impact of our financial position as of the measurement date of November 30, 2018. SYNNEX expects the accounting for the tax effects of the Tax Cuts and Jobs Act will be completed during the one-year measurement period.

Additionally, SYNNEX refers to growth rates at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the Company's business performance. Financial results adjusted for currency are calculated by translating current period activity in the transaction currency using the comparable prior year periods' currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.

Trailing fiscal four quarters ROIC is defined as the last four quarters' tax effected operating income divided by the average of the last five quarterly balances of borrowings (excluding book overdraft) and equity, net of cash and cash equivalents in the United States. Adjusted ROIC is calculated by excluding the tax effected impact of acquisition-related and integration expenses, restructuring costs and the amortization of intangibles from operating income and equity.

SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of SYNNEX' operational results and trends that more readily enable investors to analyze SYNNEX' base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. A reconciliation of SYNNEX' non-GAAP financial information to GAAP is set forth in the supplemental information section at the end of this press release.

Safe Harbor Statement

Statements in this news release regarding SYNNEX Corporation, which are not historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding SYNNEX' expectations and outlook for the fiscal 2018 third quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, tax rate, after-tax amortization of intangibles, currency impact, the frequency and occurrence of dividend declarations, the anticipated benefits of the non-GAAP financial measures, and estimates related to the Tax Cuts and Jobs Act of 2017, as well as expectations relating to the accounting thereof, are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to: general economic conditions and any weakness in information technology and consumer electronics spending; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any future incidents of theft; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2017 and subsequent SEC filings. Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.

Copyright 2018 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

SNX-F

SYNNEX Corporation

Consolidated Balance Sheets

(currency and share amounts in thousands, except for per share amounts)

(unaudited)



May 31,
2018


November 30,
2017

ASSETS




Current assets:




Cash and cash equivalents

$

354,176



$

550,688


Restricted cash

6,172



5,837


Short-term investments

3,940



5,475


Accounts receivable, net

2,712,550



2,846,371


Receivable from related parties

161



77


Inventories

2,129,779



2,162,626


Other current assets

220,573



168,704


Total current assets

5,427,351



5,739,778


Property and equipment, net

344,290



346,589


Goodwill

861,455



872,641


Intangible assets, net

525,867



583,051


Deferred tax assets

31,802



31,687


Other assets

125,043



124,780


Total assets

$

7,315,808



$

7,698,526






LIABILITIES AND EQUITY




Current liabilities:




Borrowings, current

$

705,120



$

805,471


Accounts payable

2,257,594



2,626,720


Payable to related parties

30,360



16,888


Accrued compensation and benefits

183,689



204,665


Other accrued liabilities

402,798



354,104


Income taxes payable

60,262



33,359


Total current liabilities

3,639,823



4,041,207


Long-term borrowings

1,106,622



1,136,089


Other long-term liabilities

170,283



124,008


Deferred tax liabilities

87,605



113,527


Total liabilities

5,004,333



5,414,831


Stockholders' equity:




Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding




Common stock, $0.001 par value, 100,000 shares authorized, 41,172 and 41,092 shares issued as of May 31, 2018 and November 30, 2017, respectively

41



41


Additional paid-in capital

481,561



467,948


Treasury stock, 1,883 and 1,419 shares as of May 31, 2018 and November 30, 2017, respectively

(124,801)



(77,133)


Accumulated other comprehensive income (loss)

(90,265)



(61,919)


Retained earnings

2,044,939



1,954,758


Total stockholders' equity

2,311,475



2,283,695


Total liabilities and equity

$

7,315,808



$

7,698,526


 

SYNNEX Corporation

Consolidated Statements of Operations

(currency and share amounts in thousands, except for per share amounts)

(unaudited)



Three Months Ended


Six Months Ended


May 31, 2018


May 31, 2017


May 31, 2018


May 31, 2017

Revenue:








Products

$

4,486,395



$

3,458,243



$

8,535,158



$

6,504,864


Services

486,188



478,025



989,795



952,273


Total revenue

4,972,583



3,936,268



9,524,953



7,457,137


Cost of revenue:








Products

(4,239,137)



(3,265,630)



(8,063,233)



(6,146,183)


Services

(304,352)



(298,393)



(618,675)



(596,926)


Gross profit

429,094



372,245



843,045



714,028


Selling, general and administrative expenses

(305,156)



(247,115)



(607,175)



(487,139)


Operating income

123,938



125,130



235,870



226,889


Interest expense and finance charges, net

(16,375)



(8,962)



(33,826)



(17,144)


Other expense, net

(1,446)



(206)



(2,624)



(529)


Income before income taxes

106,117



115,962



199,420



209,216


Provision for income taxes

(12,424)



(42,814)



(81,293)



(74,279)


Net income

$

93,693



$

73,148



$

118,127



$

134,937


Earnings per common share:








Basic

$

2.35



$

1.83



$

2.96



$

3.38


Diluted

$

2.34



$

1.83



$

2.94



$

3.37


Weighted-average common shares outstanding:








Basic

39,505



39,533



39,599



39,513


Diluted

39,742



39,711



39,859



39,708


Cash dividends declared per share

$

0.35



$

0.25



$

0.70



$

0.50


 

SYNNEX Corporation

Segment Information

(currency in thousands)

(unaudited)



Three Months Ended


Six Months Ended


May 31, 2018


May 31, 2017


May 31, 2018


May 31, 2017

Revenue:








Technology Solutions

$

4,486,408



$

3,458,320



$

8,535,227



$

6,505,016


Concentrix

491,246



481,679



998,983



959,843


Inter-segment elimination

(5,071)



(3,731)



(9,257)



(7,722)


Consolidated

$

4,972,583



$

3,936,268



$

9,524,953



$

7,457,137










Operating income:








Technology Solutions

$

96,254



$

101,705



$

178,523



$

182,126


Concentrix

27,684



23,425



57,347



44,741


Inter-segment elimination







22


Consolidated

$

123,938



$

125,130



$

235,870



$

226,889


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)



Three Months Ended


Six Months Ended


May 31, 2018


May 31, 2017


May 31, 2018


May 31, 2017

Revenue in Constant Currency








Consolidated








Revenue

$

4,972,583



$

3,936,268



$

9,524,953



$

7,457,137


Foreign currency translation

(35,798)





(73,895)




Revenue in constant currency

$

4,936,785



$

3,936,268



$

9,451,058



$

7,457,137










Technology Solutions








Segment revenue

$

4,486,408



$

3,458,320



$

8,535,227



$

6,505,016


Foreign currency translation

(26,828)





(51,258)




Revenue in constant currency

$

4,459,580



$

3,458,320



$

8,483,969



$

6,505,016










Concentrix








Segment revenue

$

491,246



$

481,679



$

998,983



$

959,843


Foreign currency translation

(8,970)





(22,637)




Revenue in constant currency

$

482,276



$

481,679



$

976,346



$

959,843





Three Months Ended


Six Months Ended


May 31, 2018


May 31, 2017


May 31, 2018


May 31, 2017

Selling, general and administrative expenses








Consolidated








GAAP selling, general and administrative expenses

$

305,156



$

247,115



$

607,175



$

487,139


Acquisition-related and integration expenses

2,046





3,851



611


Amortization of intangibles

25,814



15,649



52,105



31,716


Adjusted selling, general and administrative expenses

$

277,296



$

231,466



$

551,219



$

454,812










Technology Solutions








GAAP selling, general and administrative expenses

$

151,013



$

90,983



$

293,467



$

176,705


Acquisition-related and integration expenses

2,046





3,851




Amortization of intangibles

12,462



651



25,278



1,305


Adjusted selling, general and administrative expenses

$

136,505



$

90,332



$

264,338



$

175,400










Concentrix








GAAP selling, general and administrative expenses

$

155,894



$

158,034



$

317,136



$

314,404


Acquisition-related and integration expenses







611


Amortization of intangibles

13,352



14,998



26,827



30,411


Adjusted selling, general and administrative expenses

$

142,542



$

143,036



$

290,309



$

283,382


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency in thousands)

(continued)



Three Months Ended


Six Months Ended


May 31, 2018


May 31, 2017


May 31, 2018


May 31, 2017

Operating income and Operating margin








Consolidated








Revenue

$

4,972,583



$

3,936,268



$

9,524,953



$

7,457,137










GAAP operating income

$

123,938



$

125,130



$

235,870



$

226,889


Acquisition-related and integration expenses

2,046





3,851



611


Amortization of intangibles

26,276



16,069



52,986



32,556


Non-GAAP operating income

$

152,260



$

141,199



$

292,707



$

260,056


Depreciation

22,596



19,413



44,520



38,873


Adjusted EBITDA

$

174,856



$

160,612



$

337,227



$

298,929










GAAP operating margin

2.49

%


3.18

%


2.48

%


3.04

%

Non-GAAP operating margin

3.06

%


3.59

%


3.07

%


3.49

%









Technology Solutions








Segment revenue

$

4,486,408



$

3,458,320



$

8,535,227



$

6,505,016










GAAP operating income

$

96,254



$

101,705



$

178,523



$

182,126


Acquisition-related and integration expenses

2,046





3,851




Amortization of intangibles

12,462



651



25,278



1,305


Non-GAAP operating income

$

110,762



$

102,356



$

207,652



$

183,431


Depreciation

5,010



3,402



9,844



6,878


Adjusted EBITDA

$

115,772



$

105,758



$

217,496



$

190,309










GAAP operating margin

2.15

%


2.94

%


2.09

%


2.80

%

Non-GAAP operating margin

2.47

%


2.96

%


2.43

%


2.82

%









Concentrix








Segment revenue

$

491,246



$

481,679



$

998,983



$

959,843










GAAP operating income

$

27,684



$

23,425



$

57,347



$

44,741


Acquisition-related and integration expenses







611


Amortization of intangibles

13,814



15,418



27,708



31,251


Non-GAAP operating income

$

41,498



$

38,843



$

85,055



$

76,603


Depreciation

17,586



16,011



34,676



32,018


Adjusted EBITDA

$

59,084



$

54,854



$

119,731



$

108,621










GAAP operating margin

5.64

%


4.86

%


5.74

%


4.66

%

Non-GAAP operating margin

8.45

%


8.06

%


8.51

%


7.98

%

 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(currency and share amounts in thousands, except for per share amounts)

(continued)



Three Months Ended


Six Months Ended


May 31, 2018


May 31, 2017


May 31, 2018


May 31, 2017

Net income








Net income

$

93,693



$

73,148



$

118,127



$

134,937


Acquisition-related and integration expenses (benefit)

(588)





1,217



611


Amortization of intangibles

26,276



16,069



52,986



32,556


Income taxes related to the above(1)

(7,079)



(6,006)



(15,383)



(11,775)


U.S. tax reform adjustment

(17,000)





24,701




Non-GAAP net income

$

95,302



$

83,211



$

181,648



$

156,329










Diluted earnings per common share ("EPS")(2)








Net income

$

93,693



$

73,148



$

118,127



$

134,937


Less: net income allocated to participating securities

(859)



(672)



(1,078)



(1,250)


Net income attributable to common stockholders(3)

92,834



72,476



117,048



133,687


Acquisition-related and integration expenses (benefit) attributable to common stockholders

(583)





1,257



605


Amortization of intangibles attributable to common stockholders

26,036



15,921



52,503



32,254


Income taxes related to the above attributable to common stockholders(1)

(7,014)



(5,949)



(15,258)



(11,664)


U.S. tax reform adjustment attributable to common stockholders

(16,844)





24,476




Difference in the allocation of GAAP and Non-GAAP net income to participating securities

(1)





(35)




Non-GAAP net income attributable to common stockholders(3)

$

94,428



$

82,448



$

179,991



$

154,882










Weighted-average number of common shares - diluted:

39,742



39,711



39,859



39,708










Diluted EPS(2)

$

2.34



$

1.83



$

2.94



$

3.37


Acquisition-related and integration expenses (benefit)

(0.01)





0.03



0.02


Amortization of intangibles

0.66



0.40



1.32



0.81


Income taxes related to the above(1)

(0.18)



(0.15)



(0.38)



(0.29)


U.S. tax reform adjustment

(0.42)





0.61




Non-GAAP Diluted EPS(3)

$

2.38



$

2.08



$

4.52



$

3.90


 

SYNNEX Corporation

Reconciliation of GAAP to Non-GAAP financial measures

(amounts in millions, except for per share amounts)

(continued)



Forecast


Three Months Ending August 31, 2018


Low


High

Net income




Net income

$

77.9



$

81.6


Amortization of intangibles

26.2



26.2


Income taxes related to the above(1)

(7.1)



(7.1)


Non-GAAP net income

$

97.0



$

100.7






Diluted EPS(2)

$

1.95



$

2.04


Amortization of intangibles

0.65



0.65


Income taxes related to the above(1)

(0.18)



(0.18)


Non-GAAP Diluted EPS(3)

$

2.42



$

2.52



(1) The tax effect of the non-GAAP adjustments was calculated using the effective year-to-date tax rate during the respective periods. The effective tax rate for fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.


(2) Diluted EPS for all periods presented is calculated using the two-class method. Unvested restricted stock awards granted to employees are considered participating securities.  For purposes of calculating Diluted EPS, Net income allocated to participating securities was approximately 0.9% of Net income for the three and six months ended May 31, 2018 and 2017. Net income allocable to participating securities is estimated to be approximately 0.9% of the forecast Net income for the three months ending August 31, 2018.


(3) Amounts may not add due to rounding.

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)


ROIC



May 31, 2018


May 31, 2017

ROIC




Operating income (trailing fiscal four quarters)

$

517,946



$

455,553


Income taxes on operating income(1)

(194,700)



(154,573)


Operating income after taxes

323,246



300,980






Total borrowings, excluding book overdraft (last five quarters average)

$

1,537,631



$

913,007


Total equity (last five quarters average)

2,248,738



1,986,402


Less: U.S. cash and cash equivalents (last five quarters average)

(132,465)



(161,559)


Total invested capital

3,653,904



2,737,850






ROIC

8.9

%


11.0

%





Adjusted ROIC




Non-GAAP operating income (trailing fiscal four quarters)

$

625,578



$

529,790


Income taxes on Non-GAAP operating income(1)

(199,401)



(179,555)


Non-GAAP operating income after taxes

426,177



350,235






Total invested capital

$

3,653,904



$

2,737,850


Tax effected impact of cumulative non-GAAP adjustments (last five quarters average)

253,203



182,015


Total Non-GAAP invested capital

3,907,107



2,919,865






Adjusted ROIC

10.9

%


12.0

%


(1) Income taxes on GAAP and non-GAAP operating income was calculated using the effective year-to-date tax rates during the respective periods. The effective tax rate for non-GAAP operating income in fiscal year 2018 excludes the impact of the transition tax on accumulated overseas profits and the remeasurement of deferred tax assets and liabilities to the new U.S. tax rate related to the enactment of the Tax Cuts and Jobs Act of 2017.

 

Debt to Capitalization




May 31, 2018


May 31, 2017

Total borrowings, excluding book overdraft

(a)

$

1,810,926



$

1,087,703


Total equity

(b)

2,311,475



2,116,210


Debt to capitalization

(a)/((a)+(b))

43.9

%


33.9

%

 

SYNNEX Corporation

Calculation of Financial Metrics

(currency in thousands)

(continued)


Cash Conversion Cycle




Three Months Ended



May 31, 2018


May 31, 2017

Days sales outstanding





Revenue (products and services)

(a)

$

4,972,583



$

3,936,268


Accounts receivable, including receivable from related parties

(b)

2,712,711



1,787,437


Days sales outstanding

(c) = (b)/((a)/the number
of days during the period)

50



42







Days inventory outstanding





Cost of revenue (products and services)

(d)

$

4,543,489



$

3,564,023


Inventories

(e)

2,129,779



2,112,590


Days inventory outstanding

(f) = (e)/((d)/the number
of days during the period)

43



55







Days payable outstanding





Cost of revenue (products and services)

(g)

$

4,543,489



$

3,564,023


Accounts payable, including payable to related parties

(h)

2,287,954



1,706,408


Days payable outstanding

(i) = (h)/((g)/the number
of days during the period)

46



44







Cash conversion cycle

(j) = (c)+(f)-(i)

47



53


 

Cision

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