SNX - Earnings call transcript Q4 2017

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Operator

Good afternoon. My name is Cindy, and I will be your conference operator today for the SYNNEX Corporation 2017 Fourth Quarter Earnings Call. [Operator Instructions]. Today's conference is being recorded.

If you have any objections, you may disconnect. would Senior pass and Vice SYNNEX I to call Treasurer time, Corporation. Vaishnav, Mike President, this like the to over at At Corporate Finance ahead. go Please

Mike Vaishnav

Earnings welcome Thank Quarter Fourth Year XXXX. the you, afternoon, XX, Full for and November Cindy. SYNNEX Fiscal Good and Corporation Conference Ended XXXX Call the to

some savings, to, relate Witt, you profit, are margin, operating overall of Concentrix may Caldwell, Chris EVP expectations. hear President net margin, of differ budget, income today's Joining President of within CEO; performance and us call demand, diluted strategy, plan. Actual forward-looking on our from information Dennis and without could statements the the tax CFO; and Please of note investment, trends intangibles, today growth, consist meaning that shares, Corporation. Murai, non-GAAP Such results will federal seasonality, Kevin Polk, limitation, the market, materially COO; expenses, Marshall or revenue, statements laws. adjusted amortization EPS, securities costs, succession and and rate, tax of

more filed SYNNEX permission. to the any be non-GAAP rebroadcast Reconciliation www.synnex.com. earnings earnings discussed and Also, non-GAAP our is of and at XX-K recorded not certain information. forward-looking property X-K which our call and is Form financial our of will written related and in without SYNNEX SEC the and risk release today's the reference Form fiscal included obligation forward-looking release conference or Corporation specific reporting to information, XXXX this please in in call, for our X-K may we This of discussion website as speak GAAP their Form factors assumes of For no today. during with refer statements dates. statements, update respective on

the Kevin? business Now I for our Kevin would to update. to turn Murai call like

Kevin Murai

Thank all joining and today. thanks of call Mike, to for our you you,

role. of in this nothing to President years The and board am Dennis been this Together, that and team our me been confident that key fortunate leadership, spectacular, able retiring will continue be be strategy great year. with excited been announced Dennis' to last has will X individual as role SYNNEX the to am I and industry. great take in in of the of and be a in Polk our played role results, I and a to SYNNEX we as have I quarter and continue strategy work seen, best at would will our to accomplished you've things. that the effective to and And has I to leaders leadership changes addition will play March of incredible As fourth Board. company's XX CEO, an able establishing today, overall flourish. SYNNEX on and under partner I execution grow am Chairman have so business. sort and a growth Dennis the

discuss After his an will would the Now before provide Concentrix, discuss highlights thoughts the and XXXX year on Chris call full I to will then and on over Marshall. to update QX like Marshall, turning business. Dennis

billion a services. our quarter, products of driven record was revenue majority market and $X.X For the across strong fourth demand by

software we with another excluding performance, and XX% on-premise softer product client growing business By print peripherals, Westcon-Comstor. growth, strong networking in Solutions and Technology and over demand servers, segments, including software components. in Our turned when broad-based devices, experienced cloud-based

another revenue adjusted QX achieved million, record $XXX operating experienced and experienced market running public double-digit and non-GAAP of retail. growth, Concentrix segments on the for of growth revenue of sector Westcon-Comstor All of security XX.X%. our margin in the and division. $XX dollar store record GP hit team comm EBITDA SMB, The and ground including delivered million

continue cash to we preliminary flow capabilities million, and $XXX achieved operating we and digital in of from a our across On Our million. consolidated clients representing invest in the strategy non-GAAP to leverage improvement income year, off record portfolio. operations XX% basis, generated prior technologies of these a as the enabling $XXX paying a is from

and with billion, reflect XXXX, card operating put accretive gaps capability completed non-GAAP we acquisition UCC $X over them the celebrate. operating Concentrix at markets. non-GAAP million, X.X%. revenue This back of increase Solutions and income SYNNEX have distribution and of fiscal the was fills was We to exceeded security representing solidly network, I $X.X a margins our full of prior a As and about to billion which XX% with $XXX year revenue on brings the the business Concentrix in billion, spot X%, globally operating margin non-GAAP above revenue to positioning operating largest $XXX and for was lot adjusted fiscal Westcon-Comstor. was complementary Non-GAAP million, for highly growing history XXXX. #X CRM our well margins achieve EBITDA margin companies. double-digit BPO business in key on $XX Technology line

SYNNEX forward, shape. been has never better Looking in

and represents With team, exceptional bench momentum margin expansion. and continues a our a of strategy another execution unique the year to leadership talented grow that partners' and profitably enhance differentiated I business, that's and strong driving believe XXXX

and SYNNEX to consistently talented has Over above-market investors grateful built am performance. on been leaders. I it these them many the started last part been few for and individuals years. business foundation story XX able years years, hardworking, had have ask growth me SYNNEX I've last I of to tell and how and maintain is innovative partners ago, of XX and a the

President It the under of others hands that I over Marshall, great knowing in appointment thank to me CEO. Dennis number contributed a turn during in my our have at congratulate comfort also SYNNEX. is very want call to leadership. I to capable company the Before I Dennis' to time that gives success to want his on and

partners support that investment I've thank Our working shareholders their Peter, our Solutions all the want in for business the the and executive years. leaders, business also Simon, Concentrix with analysts and our and and around enjoyed Marshall, our teams I community, Technology and leadership over Chris ongoing associates world. to and

So over now to call the I'll Marshall. turn

Marshall Witt

Thanks, Kevin.

conclude then XXXX over I'll guidance before Chris. First, operations financial first results our to call and fiscal the with I'll key review the turning of metrics, for of quarter and

primarily QX income EPS, The consolidated up Our and Technology design non-GAAP, XX%, integration and performed increase Adjusting was demand our for continued year increase growth both of for prior system from total services the Solution were exceeded On and the acquisition across Tigerspike the revenues broad-based XX.X%. the compared well GAAP portfolio. This to FX, Adjusting in rest an expectations. quarter Westcon-Comstor prior customers acquisition FX, billion, prior Adjusting a compared XX%. increased revenue exceeded and to by X.X%. a existing revenue XX.X% TS due billion were expansion FX, increased up the $X.X revenue, increased to revenue acquisition. was $XXX.X impact billion, million, X.X% the $X.X representing to of quarter. basis, the $XXX.X year of million volume Concentrix for of year. solutions and revenue primarily and revenues the for expectations. of The to increase same quarter. net $X.X was increased in the the and due

to turning Now profit. gross

our the or of The primarily decrease primarily due fourth X.XX% $XXX fourth X.XX% overall dollars system expenses systems or was of design and effectively in mix from product of the prior primarily business business continue of $XXX.X the in income segments the fiscal was or was integration QX result $XXX.X customer the business total in costs by the At or TS in Adjusted acquisition income million business. $XXX.X XXXX. million prior of to continued to XXXX. non-GAAP on year, offset infrastructure or QX growing X.XX% Solutions increase partially quarter revenue. operating TS OpEx That in investments the and due level, Westcon-Comstor. legacy gross revenue. Westcon-Comstor up Westcon-Comstor. QX revenue This our XX% million X.XX% acquisition of the due $XXX.X of was of in million our of and driven X.XX% gross solutions design of prior mix year compared million margin quarter margin and our was to in revenue due X.X% to products growth or acquisition $XX.X compared revenues quarter. Westcon-Comstor while our compared SG&A the and increased systems million design operating was to customer million The Our revenue were in in QX and from support or and gross QX The of revenue resources. profit geographic non-GAAP in revenue, X.X% to integration in of segment Concentrix. solutions Consolidated due and expansion of in was adjusted X.XX% margin declined to operating slightly $XXX.X or by integration to in solutions increase Both revenues revenues profit compared to investments business. Westcon to acquisition, mix million higher year manage and $XXX.X Technology operating

and of the million interest rates. fiscal interest certain rate the of XX.XX% the was income for was was The $XX.X $X.X year year, or working revenue. jurisdictions. tax and XX.X% rate XX.X% to finance up growth fund to due our quarter $XX.X year operating quarter Solutions expense non-GAAP the due compared Concentrix, up income XXXX. revenue, total million in fourth in tax compared prior Technology For tax of to in was of higher in from Net fiscal or in result the XXXX million, quarter capital $XX.X period. increase, prior fourth XX% benefited and and our organic our from various borrowings prior the incentives charges requirements, from quarter it quarter. were higher ongoing segment to tax million The fiscal credits QX acquisitions the tax to And XX.X% for year for mix year prior and The XX.XX%

million net per $XXX.X non-GAAP quarter fourth income was diluted Our share. $X.XX or

the Now sheet. turning balance to

XX $X.X fourth primarily due X-quarter quarter facility, due metrics days, of amortization QX billion the over days, end up and for financing Other And $XX continued to reflects was a SYNNEX days of design ratio XXXX as at was financial Concentrix a which hence, quarter XX from decrease investments; XX.X%; data our fourth systems the fourth improvements of are accounts billion primarily X quarter, days prior XXXX at with at was of $XX totaled November for ROIC expectations the integrations and QX of Westcon-Comstor result anticipated expense the conversion quarter, XX debt-to-capitalization as of $XXX From impact well prior of down to Days of of overall the end of for had receivable quarter consistent XX XX.X%. XXXX. The for Westcon-Comstor totaled year payable fourth of the acquisition. X-quarter down trailing down was in our were was of from Preliminary was expense days working capital XXXX. decrease a approximately trailing cash and was and the and approximately fund million; end and addition Inventories this quarter. and up primarily operations of prior the and up QX days for days, from QX from the year credit fourth cash million; the QX Our depreciation X cash ROIC a XX $X.X $X.X available our the from adjusted million, days note CapEx as was the X perspective, XX.X% as quarter from quarter, growth. acquisition. X year XXXX our cycle between days outstanding million our in follows, is flows the the Westcon-Comstor. $XX business the from days or to XX billion DSO and

approved into to quarterly tax the XXXX, Part our quarterly estimated of a January will of the dividend, reform common pay our benefit in our $X.XX will described As record stockholders of remaining be on an through Directors of of business the a of $X.XX share January and XXXX. be Board as to debt. be and of our savings XX, earnings down in dividend the to cash shareholders close paid release, annual increase per regular share on business anticipated reinvested returned to XX,

Now moving to our quarter XXXX expectations. first

be to range $X.XX to $X.XX billion. in billion revenue expect We of the

guidance Weighted EPS diluted $XX per $XX.X to non-GAAP and income approximately or net of EPS Non-GAAP amortization after-tax the related to million. the is $X.XX net $XX.X to forecast anticipated be of non-GAAP $X.XX average estimated For share. costs of EPS And share in million. for non-GAAP the of excludes shares range $X.XX diluted million to in is income, be million the $XX are diluted to intangibles. per expected range

Now for tax reform.

anticipate mean, fiscal tax Fourth XX% X the I in tax XX% onetime rate repatriation are to X, tax we rate or being For XXXX, we for effective These anticipate XX%. quarter XX%. for QX quarter excuse be include -- tax me, of to not of the be to to of range account. are The tax remuneration to related rate deferred impacts currently does tax reform our evaluated X and items XXXX. and the

reform tax note and of we the are impacts fiscal XXXX, will actual in that items. effective of forward-looking, other process differ for Please materially. these of and The analyzing 'XX statements QX fiscal and expectations provisions be results may these are

Now Chris. to over I'll the turn call

Christopher Caldwell

our important for In Marshall. quarter I'm milestones fourth Thanks, with we success our the how and business. pleased fiscal year and highlighting growth we really closed some achieved the Concentrix. QX, of

the in quarter. $XXX.X the quarter reflected additional client new business majority the for clients. additions The highest EBITDA as growth achieved any from existing year-over-year the $XX.X X.X% growing amount revenue for twice quarter mentioned, well from million, XX was Marshall -- line. last period was our XX.X% This to as a new over our As highest-ever the of million, recently higher top acquired increase quarter, as XX Tigerspike. accounts were quarterly this digital We same EBITDA our as which Concentrix. added the portfolio for year, of team, fast was our

and in XX-day the some client happy day. their This we've that our featured significant relationships. an base We're into our offerings. region, volume in provide smaller Asian manage our helped quarter Although in digital seeing new value how these excited past some they I'm deals November size, for as peaks of of Double are also in clients about existing entrée

Finally, Asia's this received in others, quarter, the we to are Best to Work as like Philippines including have proud region. new For XX Company the awards,

Our our key over are success. XXX,XXX team to members

we're to helped As XXXX, with the progress has differential the back offerings, billion us I'm our I reach revenue We've mark. on $X added pleased reflect which making.

engage decisions which XX% new short-term over offerings. this of with, and the our make clients have while on base development infrastructure to geographies We eroding grown We've intellectual done in development, that countries in property software EBITDA new benefits. longer-term making by and revenue strategic the investments year to sometimes in and for to continuing staff our support

expect have investments will benefits We these business. our long-term for

ahead, demand to see solid. Looking be I the environment

to RPA, long-term to some wage impact on margin but on historical the through also significantly are with our in However, opportunity We're clients making decisions the front help This our making norms. growth. are we'll their which clients be costs. selective increases, we've of. our could each labor short-term navigating impacts mandatory some begun growth We'll of continue the which year, reduce decisions on we workload see help revenue utilization above regional of

Philippines. continue XXXX this Canada, in to and in expect like the places We Ontario, India,

year. experienced the client turning of what to programs seasonality Now our QX due We mix slightly to anticipate will impact last than scale revenues XXXX. we some on of in base be the higher and change

impact with increase we wage mitigating our the clients. some new expect that the in processor are from of We minimum Ontario

am a has And to we're won't Dennis. expansion -- and sorry, and country all I do Kevin bringing business moment members years want very XXXX personally. the much the the our for delivering the for with his our day. them myself, now great around they going hand for in to Concentrix. team thank very new is to results accretive the I'll on to I'm for successful clients all and over globally over support in of every profitability, ahead globe also Concentrix Our be line year what thank with the been I QX. appreciated. our of although guidance pleased schedule to overall clients It our team in call staff and and want they and both for take behalf well,

Dennis Polk

Thank you, Chris.

guidance be commitment I'm a support, and each premier Kevin thank to which, honored Dwight global for transition company significantly, segments. and will our direction Bob now SYNNEX through continue our Their a First I me. years, and foremost, compass thank has to for navigate from ever-changing as business insight board role during to Chairman, accept to gratitude. their in with in the also and CEO next partners, this Huang our and to of provided SYNNEX me. leadership over associates, And SYNNEX, the to complex of successfully and Kevin steady leadership Steffensen, to I want value customers shareholders and successfully last to and of rest and confidence my an his the continued to XX be want SYNNEX the I SYNNEX shareholder for increased marketplace.

strong I in and and continue to industry I'm XXXX you. only support to a our the reiterate, one is is our stated, fortunate as as beyond. Kevin confident the with the am why team so to ability best that primary momentum you're that of contributors as I and As the leaders in continue into

Our foundation, is and built to Kevin, strong Bob and something that plan leverage. under I then

X and instilled We through will and still drive our entrepreneurialism that Bob from with exist day today. continue

shaping partner remain will shouldn't very to usual, with that that but with a be Kevin This our business. We in continue been also sense, a has the place strategy taken associate as leadership with business excellent team diversification this culture. our in business static. it's focus, our all In that important will brought goes we and along along

grow and business continue the partners. our changing to the we in will customers all of relevant ensure One our organically inorganically recognize each positions. success rapidly our are all at be continual that and markets, associates, and elements challenging stakeholders, of invest key and market SYNNEX we leadership segments our to investors, business of to is including maintain We in to

the continue. overall Technology guidance. some momentum positive for market thoughts QX of our Solutions, In the expect on we Now to

belief build few our another positive acquisition. will solid and is to that investments our first the focus continue from have on be Chris expect we on In within a headwinds we investing Westcon-Comstor where in The expect our to deliver noted, Concentrix, in continues as as business, expense our We is seasonal QX from remain to at. competitive, growth but the recent performance business given quarter market strong ranges. we normal quarter post we also

strong well growth have our headwinds, we investment We and challenges. offset XXXX. these profitable that position Overall, fundamentals but segments and us our some wage base of the expect enter also will are help to QX as we business

have Marshall noted. will act addition, new as that benefit In a U.S. SYNNEX, tax we

are also of savings turn We shareholders. to Kevin, to want thank our associates results I incredible back return Chris part the can for transition pleased behalf their the of to we to ongoing Mike, our expected I world let's and these to And our effort and On to all Marshall, want delivered partners Q&A. with business XXXX. thank and so that, for their in shareholders support. call around

Mike Vaishnav

Thank Dennis. you,

I question. over over that, operator with call for Before Cindy? over And the the this let's turn our to Instructions]. [Operator operator the the turn for to question. call

Operator

question Raymond Instructions]. our Adam from first is from And James. [Operator Tindle

Adam Tindle

of in run stellar the to congrats CEO Dennis new a and seat, all, role. congrats First on Kevin, the on

first we have this that of but even Just this? margin about about have tailwind talking margin a know more typically is looks sense environment. year, wanted difficult I start thought a would can to basis. adding down Westcon And normal maybe and think margin? sequentially, Could you to a QX would gross slightly gross just results. us it I like contributing Others was gross on a up been what's a actually of give are on how sequential competitive

Kevin Murai

see do a we relatively for our Within break was all, held down, overall I accretive believe, it performance there. we that QX, your you break of you higher-than-forecasted much of due business. of were design when market, first shipments down and is TS. congratulations lower reason grew part to steady our different at actually that, where Adam, was mix one -- some business in overall had systems that and do we our distribution really with that part in Technology you incremental end hand, thank business. somewhat separately, faster as really, had our acceleration if than QX And and really where business, was out Yes. that Westcon-Comstor report was the but that, clip, the so revenue Solutions, But was to and operating our margins than a systems that do gross unanticipated into the design the revenue, the the big Concentrix, of businesses, on were products lower it that business of customers margins of supply that of the for on what that our we in really QX. margins well.

Adam Tindle

expansion, mix? you And leverage? when And Concentrix, goal? et Okay. in one about recent just the XXX of margin arrived it above operating growth How you 'XX through nearly the think in you for just Operating points cetera? at basis key for us much margin years. Chris, double-digit Ramp drivers? how implies is Attenuating, walk that is fiscal Can which costs?

Christopher Caldwell

a It's things. of couple

of as made remarks, those the in our operating revenue technology new are driving types we're a First of clients, the standard higher erode clients of us. we the as to which bringing but for into some tends selective being margin as prepared drives we well all, on very

tackling we in the drive our in of those returns our verticals, which we've and in, last and and on as sort of opened up so areas effectively talked of to been jurisdictions some see is business. being some of And effort, stickier operating to couple insurance into that going. the higher-margin, seen and we've kind leverage more our in better focused continuing clearly, of we're the of businesses blocking the we manage just we're of as just care in years, about very those operating we results see baked and starting day-to-day get then where the of Also, operating performance the in into planned health some And the costs scale of as our business on because by well. of focusing growth that's banking and

Adam Tindle

Okay.

the like in could grow clear, and you've grow a margin XX% sounds but Concentrix, like know to in the So to actually goal even in I be past, through XXXX. X% revenue revenue it decline if achieved just to doesn't be had potentially

Christopher Caldwell

always to And really plans that's is in we're focused been leverage and operating this we've margin grow, Our year. to drive goal that that but talked on expansion about. continue to the more getting through

Operator

question Matt next from our Sheerin from Stifel. is And

Matthew Sheerin

some on up in question Adam's following you business. regarding of margin TS that the the Just pressures saw to Hyve relative

You about haven't big issues in that the talked mix in really a business past.

So elaborate your is on that also could you issues and that? because competitive portfolio some broadening customer your you're product in And that? set? Or there are with line

Dennis Polk

Matt, just it's mix, customers And comes concentration It in our by down to quarter. we a We really larger mix mix like of few we mean the the in of about had what a before. Dennis. talked is customers.

you expect, that more And customers larger down. typically what pricing margins occurred will in power, As the bring a have fourth and quarter. would that's little

Matthew Sheerin

to said you seasonal you're was to QX, TS trends. -- that like there And it it overall sounds guiding like some but looks pull-in on

in core continued sounded optimistic Kevin or to relatively the in positive opportunities of be fact, business. In terms growth

are expecting down have bit to as in you could the be strength? to past? Or maybe and continue a sequentially So lumpy a it good you've that seen Hyve business

Dennis Polk

Yes, understand. Matt,

predict. very if But QX. I we're more little a we Given talked cautious past, in about business the will, occurred, that what that's is hard to this the a on pull-in, think you

So first right now, business an ready the on quarter staying for as but also increase we're conservative well. in

Matthew Sheerin

giving back look that? you you of mentioned lower could might benefit that mean that rate to you follow-up, the at increase Or that due Does to shareholders, a be quickly, more that tax would be Okay. specific And as buyback? dividends? some about just you quick

Kevin Murai

release, to cash increase quarterly Yes, our an also Matt, per our as part share. $X.XX announced press of dividend we in earnings

component, with the in the the do paying one key business Obviously, of coming growth areas of our So that are other well we what of rates. is down tax investment continued as debt. as will benefit lower from course, two

Operator

Atkins from from SunTrust. And next our question is Frank

Francis Atkins

as from industry, Wanted ask geography? by sector little Concentrix. of me weakness or a about strength Congratulations Any bit or areas well. to

Christopher Caldwell

health primarily strength by also in And Asia, driven a So within Frank, then more in saw strength Double of care That's XX-day we we comment. quarter. seeing American of some space. the the North sort are

Francis Atkins

about then helpful. if tax ask that that That's kind forecasted through more us the baked into the If corporate that you include issue. And some some of numbers reduction provisions? bit preliminary gave? of in and Is on Okay. that tax could little the you I rate. territorial-oriented What thinking rate? just walk of rate a is tax those could the Does

Marshall Witt

this is XX% XX%, forecast reflects that is in Frank, Marshall. reduction The QX the corporate rate. and tax the to

I've taxes, we repatriation and As it ensure the prepared make onetime. fully considered in with That we an with associated anticipate will adjustment in mentioned remarks, there. still before QX we we to adjustments understand deferred be but my at are looking that to make

Operator

next our from from is And question Cross Shannon Cross Research.

Shannon Cross

that people are as in understand XXXX. running of about pickup of you're a to in RFPs geographic And be? from the you And to the some and then think -- wage Concentrix, a are there and Concentrix of afterwards? you Thank increased Kevin, Was I'm at implications that position the you minimum just could then my on more tax business about also follow-up. guess, changes very question have how is, of things congratulations how have perspective, what too. I I'm talked trying both Dennis first any terms headcount? you to in much. congratulations thinking impacted in sort about December it of and your maybe a trying the of maybe these slowdown about during retirement how I side thinking

Christopher Caldwell

a Shannon, change just strategy. from really So doesn't standpoint, that our Concentrix

any from it change of clients where clients is they're anything impact focus Some putting our have is, else. on Really, buying looked their the from of don't doesn't habits. more whole, changing impact technology, material that but and at see to change RPA as expect other a and necessarily clients staff the of to overall what more our their it see or business will adapting focusing things most kind we our

Shannon Cross

instance, you on a Or wage? you mean, to you minimum do customers on offset Ontario, more to anticipate order from feel the are shift headcount pricing, back, to And having might pressure again about willing for Okay. higher talked around? I give in

Christopher Caldwell

in that Ontario, for we're market benefit of being seeing combination a in a Yes. their local seeing clients models We're And that. specifically some cost and, to of who bit at understand both. adjustments making looking the of therefore,

clients We months more tend marketplace. headcount. to our does be of they to Overall, over it's labor substantive out will in the costs migrate but have other be are that some an next the markets done. the for number not that to cost-effective are seeing that portfolio, a need higher that within work that impact, It's that just

Shannon Cross

market should much? great. of the And some Or some that comments, mean, TS and think in issue there just I'm think regard center I'm a I question. services seems on it positive hit, it quick stretching just and incremental could I a and quite that Is are I Okay, data I then capacity sure, quite any too just server for would it there maybe maybe Intel is in to sure revenue. for not thoughts time. of and know, I'm sort have it it something capacity? overall, there concerns be don't of with some that maybe, the out some Meltdown not we rush the about that of where a could Hyve, curious over is the Hyve, servers, if drive terms to of positive be about? could that an mean,

Kevin Murai

to understand all We a we positive the I early little lot really seen a or market. there have. same bit certainly, we'll to certainly ready is certainly to as be there's heard a that reap Frankly, we've Shannon, going benefit, do, from be on the that. any. negative the if implication it's if haven't But things think you yet Yes.

Operator

question Ananda Capital. our And from from Loop Baruah is next

Ananda Baruah

you. miss what to going we're know say. Kev, I don't to

Kevin Murai

Thank you, Ananda.

Ananda Baruah

Westcon? I'm that that's happy Or It's great release TS guess, to could. XX% but the if a hopefully down, were you. that press year in is I'm Westcon Clarification, And if for is adjusted and you growth as a working job, Westcon, a apples-to-apples you. Look pleasure ago? forward with I with I [indiscernible]. obviously. couple, adjusted been without for just the

Kevin Murai

completely. excluded It's without. that's Ananda,

Ananda Baruah

it. going And you then itself, Westcon double said -- believe. got double Okay, I digits was grew

Kevin Murai

the security comm and Yes, store specifically divisions. in

Ananda Baruah

as guess, I you tend sticky Obviously, guys ongoing you for are marketplace in has demand what general Okay, to? been you great. guys. seeing? you to the specific the attribute dynamics What demand What drivers? strength are And would seeing pretty dynamics

Kevin Murai

Yes.

very an of I level, more it economy macro unemployment, see to the low business. be other areas, from think levels in back you has continued the overall strong. in so And reinvestment many

shifted Broadline that's investments part increased. More categories watermark, portfolio. overall XXXX the IoT-type like we a and strength fourth water and the for look particular, quarter. through to of I'm towards and to continuing certainly same. I so overall In very see in of our at when see solution, cloud-based sign more what some Strategically print, continue those our an demand more layer is adding shift We're example, and level continues of as that and you growing there, part be we've or a our and investment seen good overall to more be that demand another And healthy, the in growth think of drivers product and is the continued has of when market overall that better towards technology growth solutions, compute. trends to end-to-end more sorry,

Ananda. overall right -- technology really and message right in on growth I that market where it now. growth we're business the So on come it's seeing strong, is that's think from now, And remains been strong the

Ananda Baruah

project then CSP XXXX expectations of relative guess, the XXXX cloud, with right, two And and to industry perspective? from an public What's I kind questions. just to and cloud, your Kevin, regards for build-out calendar calendar All appreciate in contact. Hyve, general

Kevin Murai

our scale more hyper the market, to is continue to From continue the expect where market market. focused we that see grow overall business an on to technology especially faster industry perspective, grow overall and than

Ananda Baruah

Got it.

Okay.

going So it's customers kind dynamic, won the dynamics to is regard the with have just you a of could that tell think QX -- as Or Hyve the of deal while the And for do mix contextual inside that those best can within of did here? temporary? then tail you that the little do a there some inside product you you on -- a portfolio business more view mix something you follow-through. specific, to being

Dennis Polk

is this Dennis. Ananda, Yes,

a as it we customers exist But growing few for right while, slowly. are pipeline in, a pipeline good think ramp more as concentrated those then it So a on have I this we dynamic, where customers bring will now. as And quickly. we're that quite does

customer So of larger the again, dynamic the for time. will survive some that

So for the similar I think next couple quarters, circumstances. of we'll see

Operator

is question from Suva next Citi. our And from Jim

Jim Suva

seen are of around mean, security just to follow-up the outside know or of a whatsoever? talking back are like vulnerabilities it's alleviate of Spectre, and quo down the just As a a all? XX%, But relatively I uptake pause Any paths have I'm kind maybe to Or status few demand. change which type or or industries you days. to we're slowdown I at continuing? the be but in of big Meltdown then wondering, server like a new, others some that even slowing saying enterprises about your the well, behavior and and will chip XX% none, quick demand just a could

Kevin Murai

too tell. is still it Jim, early Yes. to

Our -- is notable we that the any seen the view pipeline on and so haven't short, relatively have we change.

I what so know be. will And implication don't the

Jim Suva

versus Okay, this you maybe, can puts for quarter, for or takes quarter comment ago? flow a cash any this that year say, great. on about And normal on

Marshall Witt

knew $XXX the would it positive, exceeded with Jim, quarter. expectations. our but the for be million We happy

Operator

is question next our Group. Pivotal And Research Miscioscia from from Lou

Louis Miscioscia

too. Kevin, again, end, my from congratulations

as on, you're spend other Just moving curious things? time, your to how why now to you guess, and I plan

Kevin Murai

I to that of that start I've I'd Well, need tell to do the this been so I done been such a I of up things that and my I've SYNNEX, to got for built at got years I've last am you, grateful XX tell the Lou of the , Yes. tackling at you, career. get point. honey list here have my really list kind But highlight time

people, this the my years. XX have have the So leaders would many I confidence golf, be with that past things and would that But to every -- we it over and that task continue Dennis great other retirement, it on the team but company list. and to forward way I and take work be will great am looking forward

Louis Miscioscia

look one why help not can lower? And of when so tax would companies Okay, great. you XX%? obviously, Marshall, rate, understand And it calendar to as you thought the analysts. guess, help we had at report Enjoy in the put 'XX, here year if you to I that. be us in or you're could context, first us helpful any insights

Marshall Witt

so just the rate so blended for Lou, X, as XXXX, effective Yes, January QX. reminder, a it's

look further conversation, XX%, year, than why for the corporate as is XX% the XX%. will, you range that now is the right on the full again, if that we're I when has at deferreds. to end, So And the doing a and it's lower XX% as QX, analysis earlier repatriation which the that's reflected in you rate said to

Louis Miscioscia

over pretty clients you Okay. implemented as product it revenue. And a it you that's by applications XX%, could a robotic tell RPA. project, Chris, playing automation are you? process? a is the the you are us But drop mention process how drops then for if sense to guess, mentioned you XX%, that, in once out in harder once Could creating And getting get push maybe material? then typical you to I XX%, unfortunately, some And lot starting it the all you're revenue

Christopher Caldwell

Yes.

generally, of be Lou, do accounts. business there very it work. our letting can it tends using into how take taking it savings. our from or staff off drive It it of gets XX% competitor XX of pretty by to accounts allow higher-value processes, months, it where We're been margin showing And to there we've doing tend a the Generally, projects, make as it So winning have most we're seeing is for and involved. we material. to can new are a monotonous savings. versus higher almost and can to for it into be because smaller it of savings tend in The a benefit it we're accounts, some but accounts XX, the we're anywhere sort XX% of to traction. because we see rid of technology And

So result it. much but it client and little us for both on painful produces a of better it's the exit going a through, frankly, for the

Louis Miscioscia

the different high let's say, all and that, stream, good number the been? XXX% just tied to when the is Chris, RPA-ed question, it luck, on new revenue guys, be Last And over a look in work time? year, at comparison very And much can much how you're of Okay. has doing? your, how you to

Christopher Caldwell

RPA-ed, can business. the that, work work us into as new obviously, getting material a in we're be It's number but for of terms our doing we're

new You share deals by haven't decline we're filling to with up clients. because other continue our seen our it XX% and within revenue

in will overall to this of think, RPA year. course continue grow I the market, through the

to after continue to will XX XXXX will to industry more big lot lot grow projects they year, XX is market analysts, you probably next and think as this much to that it transformable year a of meaningful happen, I like of be Clearly, more next months. but be if talk quite see And paybacks. a change that impact a X-month sort over feel that I the a comment. payback, industry are because more a it the will of then in the that have goes, the tend much robustly

Operator

over now time. it Kevin. show queue on no questions And at further back we hand to I'll this

Kevin Murai

you, Have And thank Cindy. everybody, evening. joining good today. a our much, very you Thank call for

Operator

Thank you you. conference. for joining. today's That Thank concludes all

You may now disconnect.

TD SYNNEX (SNX) 9 Jan 182017 Q4 Earnings call transcript