TD Synnex Reports Fiscal 2022 Second Quarter Results
TD SYNNEX has announced financial results for the fiscal second quarter ended May 31, 2022.
“Our fiscal Q2 results demonstrate the excellent performance delivered by our team amidst another quarter of strong demand for our technology solutions,” said Rich Hume, CEO of TD SYNNEX. “We are making great strides as TD SYNNEX and seeing the fruits of our labor as we progress on our merger integration and strategic initiatives to grow across core and high-growth technologies.”
Fiscal 2022 Second Quarter Highlights
- Revenue was $15.3 billion in the fiscal second quarter of 2022, up 160.7% from the prior fiscal second quarter primarily due to the impact of the completion of the merger with Tech Data on September 1, 2021. On a sequential basis, revenue decreased 1.3% compared to the prior quarter.
- Operating income was $253 million, compared to $222 million in the prior quarter, and $148 million in the prior fiscal second quarter. Non-GAAP operating income was $398 million, compared to $432 million in the prior quarter, and $170 million in the prior fiscal second quarter. Operating margin was 1.7%, compared to 1.4% in the prior quarter, and 2.5% in the prior fiscal second quarter. Non-GAAP operating margin was 2.6%, compared to 2.8% in the prior quarter, and 2.9% in the prior fiscal second quarter.
- Cash provided by operations was approximately $1.0 billion for the quarter.
- Repurchased $29 million of our common stock in the quarter and $53 million year to date.
- The trailing fiscal four quarters Return on Invested Capital (“ROIC”) was 8.4% compared to 9.7% in the prior quarter, and 20.5% in the prior fiscal second quarter. The adjusted trailing fiscal four quarters ROIC was 12.8%, compared to 13.9% in the prior quarter and 21.3% in the prior fiscal second quarter.
The following statements are based on TD SYNNEX’ current expectations for the fiscal 2022 third quarter. Non-GAAP financial measures exclude the impact of acquisition, integration and restructuring costs, amortization of intangible assets, share-based compensation, purchase accounting adjustments, and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.
Third Quarter Fiscal 2022 Outlook
- Revenue is expected to be in the range of $14.5 billion to $15.5 billion.
- Net income is expected to be in the range of $120 million to $158 million and on a non-GAAP basis, net income is expected to be in the range of $241 million to $279 million.
- Diluted earnings per share is expected to be in the range of $1.24 to $1.64 and on a non-GAAP basis, diluted earnings per share is expected to be in the range of $2.50 to $2.90, based on estimated outstanding diluted weighted average shares of 95.5 million.
Full Year Fiscal 2022 Outlook
- Diluted earnings per share is expected to be in the range of $5.45 to $5.95, and we are reaffirming on a non-GAAP basis, diluted earnings per share is expected to be in the range of $11.15 to $11.65, based on estimated outstanding diluted weighted average shares of 95.6 million. We are reaffirming our full year fiscal 2022 non-GAAP diluted earnings per share guidance despite an unfavourable impact of $0.14 due to the further devaluation of the Euro.
Dividend
The TD SYNNEX Board of Directors has declared a quarterly cash dividend of $0.30 per common share. The dividend is payable on July 29, 2022 to stockholders of record as of the close of business on July 15, 2022.
Source: TD SYNNEX
TD Synnex Recognized as Winner of 2022 Microsoft Worldwide Partner of the Year
TD SYNNEX has won the 2022 Microsoft Worldwide Partner of the Year Award for the second consecutive year. The company was honoured among a global field of top Microsoft partners for demonstrating excellence in innovation and implementation of customer solutions based on Microsoft technology.
“Our Microsoft teams around the world are thrilled to be recognized as the Worldwide Partner of the Year for two consecutive years,” said Reza Honarmand, senior vice president of Global Cloud HyperScalers at TD SYNNEX. “This accomplishment is rare and truly special. I’m proud of the hard work and dedication of the TD SYNNEX global teams, especially during the biggest merger in our company’s history.”
The Microsoft Partner of the Year Awards recognize Microsoft partners that have developed and delivered outstanding Microsoft-based applications, services and devices during the past year. Awards were classified in various categories, with honourees chosen from a set of more than 3,900 submitted nominations from more than 100 countries worldwide. TD SYNNEX was recognized for providing outstanding solutions and services in the Indirect Provider of the Year category.
The Indirect Provider Partner of the Year Award recognizes partner excellence in transforming the traditional transactional business model into a value-based, all-inclusive, solution-provider model that reaches resellers at scale to drive usage, consumption, and customer acquisition growth throughout the partner channel.
The company was also a finalist for the Microsoft Partner of Year Award for Operational Excellence, and received accolades in the following countries:
- Colombia: Microsoft Partner of the Year
- France: Microsoft Partner of the Year
- Italy: Microsoft Partner of the Year
- Brazil: Microsoft Partner of the Year- Business Excellence Awards, Operational Excellence for the Latin America Region
Source: TD SYNNEX
Source: AP News
TD Synnex Recognized as Hewlett Packard Global Distributor of the Year
TD SYNNEX has been recognized as a Hewlett Packard Enterprise (HPE) Global Distributor of the Year for 2022 as part of HPE’s annual Global Partner Awards. With more than 80,000 partners in the HPE ecosystem, TD SYNNEX was recognized for its innovation and commitment to working with HPE to help shared customers unleash their growth potential.
“We are extremely proud of this recognition and grateful for the commitment, friendship, and support from Hewlett Packard Enterprise,” said Sergio Farache, chief strategy officer at TD SYNNEX. “Our relationship with HPE continues to evolve and grow, and we are excited for the transformative journey ahead for both organizations.”
The HPE Partner of the Year Awards recognize HPE partners from across the ecosystem for their incredible commitment to customer excellence, continued strong performance, focus on growth, and dedication to mutual achievements. Winners were selected based on financial performance, innovative solutions, and ability to drive transformative business outcomes for shared customers.
Source: TD SYNNEX
