SYNNEX Corporation (NYSE:SNX) reported better-than-expected Q3 results.
The Fremont, Calif.-based company revealed its Technology Solutions division showed revenue at $5 billion, up 16.5% from the prior fiscal year third quarter. Operating income was $139 million, or 2.8% of segment revenue, compared to $102 million, or 2.3% of segment revenue, in the prior fiscal year third quarter. Non-GAAP operating income was $150 million, or 3.0% of segment revenue, compared to $117 million, or 2.7% of segment revenue, in the prior fiscal year third quarter.
In the Concentrix sector, revenue was $1.2 billion, up 136.0% from the prior fiscal year third quarter as a result of the Convergys acquisition on last October. Operating income was $70 million, or 6.0% of segment revenue, compared to $12 million, or 2.5% of segment revenue in the prior fiscal year third quarter. Non-GAAP operating income was $121 million, or 10.4% of segment revenue, compared to $43 million, or 8.7% of segment revenue, in the prior fiscal year third quarter.
Said CEO Dennis Polk, "Our record performance reflects the continued success of our go-to-market strategies in each business segment, In the third quarter, our Technology Solutions revenue and earnings growth were exceptional, while Concentrix delivered another quarter of revenue expansion and superior execution."
For the fourth fiscal quarter, revenue is expected to be in the range of $5.85 billion to $6.15 billion.
Net income is expected to be in the range of $136.4 million to $146.9 million and on a non-GAAP basis, net income is expected to be in the range of $180.5 million to $191.0 million.
Shares soared $16.00, or 16.7%, mid-morning Wednesday to $111.75.
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