SNX - Earnings call transcript Q4 2018

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Operator

Good afternoon and welcome to the SYNNEX fourth quarter fiscal 2018 earnings conference call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. At this time for opening remarks, I would like to pass the call over to Marshall Witt, CFO at SYNNEX Corporation. Mr. begin. may you Witt,

Marshall Witt

and fourth the November quarter Kelly call XX, Corporation for the fiscal welcome you SYNNEX to earnings XXXX. Thank XXXX ended

Lai, second provide begin of maternity harbor. leave, I my birth you on hear Before of the her remarks, Mary is Investor introductions the Mary Relations celebrating and son. safe typically Head

forward shoes near fill, so to So to and Mary difficult the first, in William. are are to looking congratulations future. return And second, your your we

call. Now, the on to

the is Chris our on CEO, today Polk; our Concentrix, and on of Dennis Caldwell. me Joining call President President

We results. open will remarks, review the fourth the will quarter fiscal session. XXXX we Q&A After financial call a to prepared

reminder, statements amortization recorded. or diluted today and without interest will a acquisition-related and hear income results call Actual sales, that EPS, may integration live net limitation, charges, from of revenue, materially rates, information finance webcast of non-GAAP tax will margin, expense expectations. our Please statements. forward-looking expenses, relate you trends As consist be to, differ intangibles, Such could is integration. some today's being costs, and note of and and strategy the

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

Technology Our EPS last and quarter revenue income high-end $X.X X%. quarter a solutions FX, X% the revenue, revenue was Adjusting is net and diluted versus driven a the original expected fourth non-GAAP impact year. treatment. record reduction $X.X growth that profitably $X.X a was guidance tough The consolidated year due by the compare revenue revenue year up business total and was billion, Hyve period. focus operating due to gross our X% hit On the net in over sales primarily to exceeded billion, billion prior prior our significantly to to decrease compared the same a on for highs. of both subject increased record GAAP of basis, and

million for the attributable slightly to grew X. a the $XXX quarter adjust million, you as If up Concentrix $XXX in in XX% revenue versus from was year Convergys net revenue prior of result year-over-year. October the sales on gross growth treatment, acquisition

gross Now to profit. turning

Our fourth totaled $XXX up quarter ago. versus million $XXX year million, a XX% or gross dollars profit

million adjusted Technology of the Our gross quarter. both prior the our of $XXX solutions expansions from quarter. quarter. million in points board $XX XX% year due ago. of SG&A acquisition business, quarter of SG&A quarter strength and million operating XX prior point from gross year revenue period. over the from solutions across net to $XXX the $XXX absolute solutions was Fourth an basis in was The basis to technology Technology of and X.X% gross the increase and basis XX to or prior the revenue, versus was quarter prior X.X% up was X.X% primarily in XXX year-over-year margin. positive from XXX compared points dollars of margin gross the expense non-GAAP as year a it is was consecutive of up and of up Concentrix operating year Due Concentrix XXth improvement was basis margin increase. improvement percentage adjustments a year gross income the XX.X%, growth, a impact in or year Convergys. XX.X%, an Total a margin reflected was Non-GAAP the X.X%, of million margin consolidated improvement an points prior increase

million stable the sequentially up to fourth platforms, the level, Adjusted operating $XXX X.X%, operating extremely up quarters prior pricing income up quarterly XXX us or period. was prior cost. from basis with and non-GAAP basis by incremental systems We consecutive proud from profitable are period, completed year efficient driven technology and X.X% by segment XX year solutions minimal have points of quarter and results. $X XX million, the complemented was margin allowing to points At grow

and Concentrix, quarter $XX and Fourth our press matures was primarily the due Convergys dollars prior the slightly and requirements. strong profit the Japan's interest our due XXXX, support and which December For expense issued from we revenue, Convergys XXXX. approximately working the to quarter below debt was our period, regards regarding successful to in acquisition million year solutions' our prior in up finance financing, X, of points were received refinancing support and to expectations. to XX.X% or XXX in acquisition. release $XXX up On ability XX% fund income to term net Convergys to capital or non-GAAP million, we million, the the million $XX quarter in a in to charges margin expand up The from year borrowings in technology year-over-year operating total operating increase the $XX basis

while from debt. positioned perspective, variable of well XX% liquidity are We fixing our a approximately

net $XX the interest appropriate to quarter fiscal of for total level our believe and a XXXX, we $XX range For finance quarterly million million the charges. expense of is first

$XXX,XXX in cash. fourth was to period. $X.XX. to tax tax for due compared the XXXX, tax certain FX the quarter in convertible subsequent to was primarily expense income impact discrete primarily had the By tax quarter, fourth higher reform, year impact from reform, prior December, process. which was debt excluding the to end of was and million, activity lower The convertible gains related by offset Convergys' XX.X% America effective Latin from to jurisdictions, debt acquisition of value connected in of of current of tax acquisition, than approximately were the We all lower were the XX.X% the rate rate year rate The quarter For over quarter mix to other tendering the the fair with at tax Convergys Higher tax impact settled prior normal. the FX up XX% losses lower quarter, of this due and income due losses. and more earned $X approximately associated true-ups fiscal the

with We the true-ups a recorded accumulated $X.X per tax also related adjustments diluted provisional adjustments adjustment and the $X.XX fiscal liabilities. of initially million and one-time profits overseas These first tax second the the on and of represent transition recorded to one-time in re-evaluation deferred XXXX. of or assets charge share of tax associated quarter

we the XXXX, to period. the net range million, prior tax XX%. the fiscal in effective XX% to million Non-GAAP of rate year be income or from XX% For anticipate $XXX up $XX was

diluted period $X.XX a Our EPS same quarter or ago. the over non-GAAP year up XX% $X.XX, was fourth

Turning sheet. balance to the

billion $X.X XXXX. totaled accounts $X.X XX, on Our inventories and billion November receivable totaled

increase days cycle. XX quarter cash due AR is up year up the solutions technology in compared for period. one the The conversion last higher to Convergys cycle due prior over growth. prior quarter compared day, days, The versus net to to the to impacted was fourth also and conversion year cash XX Our and increase inventory gross our

ROIC. and of priority as close of was end fund quarter in and quarter XX, authorized are share quarter. facilities, was billion metrics SYNNEX transactions, repurchase our or was Given per from in QX, of as cash growth. three-year million shares a fourth in top remains $XXX of our financial Directors as approximately stock stockholders quarterly XX, we $XX $XXX X.X% of the million expense for [ph] between At common portfolios expenditure approximately $XX continues full for or of stock paid $XXX working quarter record cash Depreciation of generated liquidity fourth under of the conversion comparable to fourth Fiscal XXX,XXX adjusted January representing and manage year million. Board approximately January was July by of million Capital cycle We $XX approximately shares ROIC $XX the recent very million note end cash Trailing the are for quarters the approximately our back capital. fourth operations we Board Amortization Other on of XXXX approximately as was buybacks. out and or XXXX. a repurchased the effectively $X.XXX for million, be cash dividend data our The million. repurchased authorization $XX total approximately healthy has and XXXX to $X.X for regular the approved was expense fiscal record program quarter, At quarter. total, over for our be XX.X% credit in $XXX million. follows. a business XXXX. metrics remaining million to Preliminary of the of the available on share our year-to-date, our XXX,XXX

first quarter fiscal to moving our outlook. Now XXXX

million. of of $X.XX in to net expect in Non-GAAP in Non-GAAP of shares $XX outstanding expected $X.XX to $XXX per to the is revenue range be be weighted We of is $X.XXX EPS to based range expected range share billion average $XXX to approximately to the be million. billion. on the income $X.XXX diluted diluted million

accounting statements forecast in non-GAAP or This XXX. cost quarter an adoption acquisition tax share forward-looking Dennis. Technology EPS sales I Solutions the the may will the turn revenue and impact net of the ASC to are after to and with of includes expenses. and now XXXX reflects related $XX.X of actual revenue Please approximately Our excludes note net first of that cloud gross and per differ. of and guidance year-over-year million to over income Non-GAAP headwind to related intangibles these associated expectations security million QX products. results million amortization fiscal call increased diluted $XXX also software, diluted integration approximate $XXX $X.XX

Dennis Polk

everyone Good Marshall. on the to call. you afternoon Thank

saw and successful an release quarter concluding you year, our fourth heard press As Marshall, we with results. incredibly completed from in just record

businesses, individually drove stable and for the both $X.X of from leverage consolidated Our were quarter marketplaces and significant record segment execution. and our in both investments, level with EPS. our These the performance our solid non-GAAP scale Revenue exceeded business. factors for the reflected excellent billion along recent expectations at fourth at the

From The U.S. area. in perspective, geographic led customer overall divisional quarter. product way fourth aspect, in we every growth another distribution a margin solutions the strong was profitable our the with Regarding technology operating non-GAAP it X%. on Leverage in were key quarterly success nearly business, focus segment and performance virtually again growth and our to drivers business standpoint, at performance. saw the

in Concentrix job Our well business team aspects executing did of our seasonally would to at Convergys. Chris? the balancing in and call integration also are over I to to like so. high Concentrix this quarter an Chris many performed of while exceptionally our outstanding quarter. the There initial highlight turn close to and the quarter do business and point The fourth

Chris Caldwell

operating Thanks Concentrix the Concentrix keeping year, we Concentrix wrapped discipline to business fourth value The our the We business how happy target were digit very lower our and I continuing quarter record income and Convergys achieve our of hitting legacy offerings, Dennis. in This transformational as on operating happy would the business on is team is am we very for up have replacing us with report well on integrate non-GAAP we executed margin. milestone this acquisition. the the been updated the Throughout providing focus quarter operations. believe able schedule. The this a you non-GAAP higher was fourth hitting result that goal at and margin serve refine of XX.X% double a we to solid to year. for

the of began fourth in the quarter, Convergys we closing the the acquisition integration work. immediately With

staff, been We with talent happy clients. the have of execution with of strength extremely and potential

million $XXX it the out expected is going run as the note $XXX I revenue as Convergys XX to quarter. the we business forward not we While think we million be will it to that one, the for days above in important added breaking

streams am target. are the acquisition. of Importantly, million our Convergys we for I pleased in a have organization. business also for footprint telecom work that the meet a exceed integration by the the the which are the run the based on the $XX very we rate driven thesis one $XX is our within on to marketplace. and basis, improvement am million report our revenue All quarter over quarter will capabilities achieved year-over-year, portfolio. and approximately This the or large have happy supports we was new won goal new year of track we breadth combined On flat on one confident prior and momentum year decreases I with

companies of together, the As interest. come two a notes few

We by are BPO leader space in vision player third two and as our analysts the within party the number and now CRM global execution. a being recognized

name revenue. We XX% five diverse have projected strong XXXX to top brand our portfolio a be FY of our clients with

verticals strategic our business XX% now growing. Our make and up of

We out be rolling metrics the robust of service capability the worldwide. global over Concentrix and most one we will business the footprints additional following have to brands operate XX quarters. in the from complete now integration countries We as and in sets

transaction. the million, expect from cash We when our restructuring approximately $XXX $XXX cumulative down we to indicated first announced now million we be charges

XXXX. $XX We million have incurred approximately in

progress executing QX. synergy in ramping our new our Turning further to achieving on wins to we from make and QX, target expect

of We be additional our profitability the altered through acquisition synergies and materially seasonal not as move revenue will expect activities by that other the recognition pattern forward. the Concentrix than integration typical of

industry While rates further we operating our don't XXXX by our margin. of out the than to grow while achieve feel growth non-GAAP confident quarter, ability increasing in we a to Concentrix end guide

As members it year I forward XXX,XXX would to Back I another the I team successful Dennis. was. to to like ahead. look you, thank XXXX made Concentrix have who conclude, over year successful the of

Dennis Polk

Chris. you Thank

but quarter as a fourth year well. great XXXX Our was was excellent,

the while and also Westcon-Comstor We America overall. North grew the year core operating our Some time. so results onto achieved completed business full a adjusted legacy Concentrix Americas We our acquisition the our revenue closed recent $XX XX% and most platform goal companies operating to margin highlights the Convergys. through these year completed represents returned including of do margin, the significant XXXX dividend and delivering growth while include. and also integrating in improving amount this and integration first repurchases. record This did business We during in the in lastly, acquired cash our importantly first investment in XXX,XXX year. two we initial accomplished And XXXX. billion business years share customer over the service. shareholders hitting with Rarely more we associates each than We and increased of excellent with organic for our merge we our while

amount will models. investments investments of changing that of as market I compete. to team our and am to take their these and significant continue and of years. an in and SYNNEX established big performance the new are SYNNEX now adapt and which markets optimistic Both compared in pride are these and continue to successfully more position we proven is We realized in strategy about to made both Despite differentiate growth have Both recent over so periods. to the have We in the in I to our top in value XXXX part presents growth headwinds, of demonstrated believe ensure have A occurs. their investments to in in solidly the businesses drive uncertainty to environments. large I three ability have to marketplaces. continued to and ability incredible we do markets currently ability our result and grow Concentrix. this respective TS execute a making the optimism in economic each

quarter first the our for to of turning Now guidance XXXX.

but SYNNEX. while acquisition when one non-Convergys the reflects We It maintaining our set also The acquisition, ago, year first once of sales exceeded goals I in We the was quarter them high became business revenue factors expected and both CEO our expect full or again. as focus. of our growth momentum midpoint XXXX of well. organic our to maintain for the profitability segments strong Convergys guidance

in environments field. in third our This change then I SYNNEX of a projected of still our our As the in of team in spirit confidence control. our This the place In XXXX. around collective our I positioned major to best thank EPS today, slightly if operate At of all the or for entrepreneurial a shareholders that's environments also $XX.XX we are their thank the our now, not stated this and of business their in end range and believe and assumed profitably $XX.XX. indicating share. for industry pleased from the teams, partners can business range distinguishes range to in we world solidly accomplishments. reflected to non-GAAP I and the and confidence to our EPS expectations deliver XXXX drive aspects for IT our and business capabilities marketplaces. associates believe culture, call, our remained This to considers about SYNNEX previously want that that challenges rest at we overall are individual no support. out markets due our our grow want higher markets, say all in the that quarter the the market by point, we and And noted this we showed to in continued our upper

Lastly, I in forward to contributions. the will SYNNEX team. Michael and join want we Michael look to welcome February to Urban his

We the our questions. that, of operator team are call to to enviable our over And adding at for in time let's to an turn strength be with in the business. position a

Operator

[Operator Instructions].

line from question Frank comes SunTrust. Please ahead. of first from the Your Atkins go

open. Your line is

Frank Atkins

drivers And go to a about well XQ where that into improving over get the talk this growth? little as I my taking questions. I margin little year you trajectory One, congrats the and going bit the appreciate for as Concentrix could the seasonality to? to about you two, of industry wanted on a and to the about business. Thank bit little the it ask a nice bit results. can

ChrisCaldwell

Chris. Hi Frank, it's

expectation down. in you our have a that seasonality are see seen talked last business, if rough flattish you prior have then as the call, very, to in a QX for see our we kind kind difference dip quarter. question, expect with the year for anemic growth dip a QX the there's business still improvement. same outside Convergys down we is have is obviously, looked see, at our the middle going a prepared you and last of of adding very you is saw margin about where remarks, in to to two and ramp then From of that quarters, historically, first as thesis And QX, rates exiting the don't business obviously, to sort frankly, business had indicated us this very a And So that see the of Concentrix sort same years where growth QX of strong and tackle your perspective, that organic of year. that germinating are we it start we as to growth to industry that up growth we’ve new the the to will the well drive wins business we as in seasonality

you driving So year. the course synergies expansion, that in through our the business. will of is And terms see the through the right margin focus progression now then of

our lot richer But sort RPA, that operating we margin XX% operating business And those our digital have of are a that. clearly more which income level, to to little the industry, but to continue to through that. will more margin. continue more to have existing profile, then of longer of to AI, the the are We on get margin the business the the the raise instilled drive to obviously increase a benefits focused drive the within done levers see to tends takes in Concentrix we a and synergies so

Frank Atkins

up, around about little wanted to public XQ business? on. solutions going the Is what's tech And Great. impact in bit for any I helpful. there follow the concern to the given Okay. a for exposure ask sector, my That's

Dennis Polk

amount we we we we now, the point and in is Hi space, do with have of that factored at guidance given. have have more concern you this guide exposure haven't are material that change will. out if reasonable going seen Dennis. to shutdown would or Frank, extends broadens, today. any the if spending this to activity. time, patterns, a our in the about that Fed buying we Yes, in spending provided we Obviously, we But Right stay

Frank Atkins

you Thank Great. much. Okay. very

Dennis Polk

Frank. Thanks

Operator

of Your next Please go question comes Adam from ahead. line the from Tindle Raymond James.

Your open. line is

Adam Tindle

on to congrats a I great Okay. Chris. start XXXX. for Thanks wanted clarification just and a with

Convergys. I think for reflect results the reported Concentrix

I XXXX. just double achieved I that Convergys, that you wanted have would think first. to Excluding digit said margin fiscal Concentrix confirm operating for

Chris Caldwell

correct. XX% in very, for coming is hit income that digit the strong XX.X% within Adam, did double quarter the a and Concentrix for fourth business. clearly Yes, quarter, existing operating fourth legacy entire the the had at We year, we very

Adam Tindle

Okay. Convergys? about the And how those for just in quickly talk maybe performance drove to Concentrix then can what fiscal carry XXXX? And learnings you

Chris Caldwell

have primarily performance point some year. progression driven replacing over and the year-over-year, that's if a of business looked quarters, Adam, margin seen was been you did last the year our basis of low So task four sort you at that this which at of that by, and one, significant we beginning the improvement out called

put have into in business more our a as just to just our lot efficiencies. refine tends operations new operational continuing to then more that processes that automation also we have work our margin subsequently, profile. And generally and improved put We within digital higher new practices and a tools business our

business those quickly as possible. the Our goal into put is new as to

the layered you the the that, as year. improvements course next and have started We last over us make seen have will those over into business the see Concentrix of year you being that over business already the

Adam Tindle

fiscal Okay. And XXXX. for million just maybe synergy just $XX the clarification target one on more

a would you changed? fiscal all some we correct? that rate the timing $XX have bit were I QX. It has XXXX. run already take a little think I But think Is weighted. in million might said amount more the thinking on in would that it have be you back-half achieved time or

Chris Caldwell

quick to the have advantage we some savings where of see some business putting take we of faster we opportunities those together to able Adam, forward synergy saw pulled Yes. were wins. where

the confident where that's are And came schedule not first $XX million year. that so overachieving we the are the our very a we hitting sort comment of and within very, at. if of Clearly, little ahead

Adam Tindle

QX much remaining Okay. how it guidance? is in being can we QX? Can reflected think much about in – us any color achieved how then give of gets you on And just the

Chris Caldwell

be a look will run at have then would with tailwind, slowly, improving just rate marginally There guidance. finished, exact at you to we the Adam, look quarter that I over give the but that hate then next we longer I the and quarter. within

Adam Tindle

Thanks Okay. congrats. and

Chris Caldwell

Thank you.

Dennis Polk

you. Thank

Operator

Your go next question comes Sheerin Stifel. from the from Please Matt line ahead. of

Your line open. is

Matt Sheerin

Yes. Thanks and afternoon. good

been On are a how the the tech been I rate solutions growth topline color are? to us seeing bit I you business which give headwind. margins within business, And and that's Hyve, you you in little with just strength a an the could give been that's of know non-Hyve is selective in more on It the also like you growth have Could the there on that one helping business diversify going? you customer. that know sounds drivers and us is have large what what's and then more update trying the

Dennis Polk

is Hi Dennis. Matt, this

prepared that growth rate participate my the far overall indicated in positive remarks, we as tech As was growth in. of across solutions, the markets that all rate board really as I in the

integrated Canada, we strength business And strength So U.S., that's to been to had of have one Latin had Westcon-Comstor system. in ascribe we obviously the that America a had things. Japan. we in and strength and we One, the had in in couple we

synergies are business. the So we of benefits that getting and

Japan an our positive also contribute on better especially we couple U.S. have overall that's over years then worked just well. have also past of in and well and through just business as economy, as as We to legacy starting And grown our the business the investments

segments, it So positive. was really across every

bottom Hyve. to the Specifically for came in quarter just and to Hyve top about line. expectations

from this goal that has been As bit, standpoint especially have changed. and concentration quite working on not indicated, we business you a a

We also are on return are perspective. improving of but especially from the asset business, we this an business, the to working profitability diversify really working

we both goal in in XXXX. is incremental those continue areas of and QX think to made the I progress that in XXXX

Matt Sheerin

of Okay. to Great. end your are a up, up the follow as upper then moving range. guidance you that And

working Is are of that the seeing to this closer by there business? expectations primarily you $XX. Concentrix, in the solutions from profitability faster Or also are integration You driven with tech contribution getting the well?

Dennis Polk

Dennis is Matt, Yes this again.

So or having the confidence end of in the little or even perspective. a kind balanced XX-XX of a top is increase really higher in from more guidance the and each bit segment a range our

both contributing our improved guidance. to are So

Matt Sheerin

Okay. All right. Thanks very much.

Dennis Polk

Thanks Matt.

Operator

Instructions]. [Operator

Please comes Cross question of ahead. next line Cross from go Your the Research. Shannon from

line open. Your is

Shannon Cross

question, Thank very okay, questions. much taking for you actually my

coming got everybody trying about we year as face comps you first going of seems I obviously where areas in figure CES. board Nobody across The going But weakness, are is, think in the of be to are and given that of some just there are on, wall positive. or sort kind am curious, in knows And this I that. might out all and There's tough what's the from tariffs seeing the you still just back where pretty that. investors demand because happen the of really what's of of shutdown or hesitancy. terms to you thinking some

customers, the really be more and what and what's saying have helpful. really can would deeply into you decisions them little you the from a spend, they focusing dig make trigger pull that to data center about what bit If they And hearing are are making then where I buy, a are follow-up.

Dennis Polk

Hi hear of understand headwinds maybe at But don't federal of concerns don't the this our our lot Shannon, point a question. processor perspective, shutdown see in day-to-day really and customers that. a concerns like and is perspective and lot about than the from Yes. your your like other or this from We shortage Dennis. things from I challenges, time.

in concerned seeing we So there. be But a us are to it's not about really that lot the macro of that are overall, causing XXXX. are out issues our uncertainties growth

Shannon Cross

then the and I Okay. very very you like That's would me, between talk it helpful. conversations on are concerned what's companies investors and about seems were going talk again, sounded to you Because, the who are like, to different believe when things okay.

Concentrix So Convergys made it's I terms in are we then had you the that good Marshall, a or in little agree. bit, that conversation is on talk can was seasonality. And think of you basically

seasonality, think there. mind as if understand especially the in we and keep to side what's on remind of the there's between puts then TS make year can in takes that given try adding you I we the saw us we the in can demand anything the obviously terms to out on synergies tougher comps side? what figure TS happen and and last But going Convergys might then

Marshall Witt

Yes.

obviously referenced you my right gross In which for growth net. that QX strong single-digit to I will norms. on for consistent is at, are it, said, we prepared some that, Shannon, with we mid basis. adjust really When our within QX. had rate remarks, So the a is year-over-year I headwind But guide call seasonal on

said about market Dennis and have trends our follow-up, as still within kind as and his the So feel seasonal typically ability seen we we good past. to the in outperform comments in of really

Shannon Cross

question are I just drive more. about, And you dig benefit? comment one Okay. synergies? then And maybe final and little specifically still hitting good where a faster you. the to what guess on million, $XX seeing into integration you would at you more upside are bit at synergies. least There's a the can Thank

Chris Caldwell

this Hi Chris. Shannon, is

platforms. to we that tool sets integration of use use faster seeing the some across and and overlapping we able in technology get sets quicker tool some being on the are we that So, of

So that's departments faster. drivers. of, we certainly and so able are one similar both of we Also together big to put terms the systems in use

that faster the within HR and will some of will back on have on year. that clearly to, some to we are systems so definitely course through of maturity us to year. the get the business. seeing of driving The we need half the accounting better system And of synergies be get we as allow the of on the kind And through more drive happening synergies system, those done we can that's that

Shannon Cross

you. Thank

Dennis Polk

Thank you.

Operator

Your next Citi. Suva the question of Please comes your line from open. Jim is from go line ahead.

Jim Suva

you Thank very much.

the Or of the some of business from focused were going little just it that? because like and and with prior suppliers couple companies, how remarks, For or the clarify and we deemphasizing lot on media a it a broadening really pre main the more both more maybe cloud social or is from I hyperscalers like purchasing answer of you some Hyve lines your shortages. was prepared to product on providers big about or there the customer? and think confused is should to seems answers are CPU it, a

going out for to figure forward. that am your just I business strategy So trying

Dennis Polk

Sure. make Jim, are want Dennis. that on clear is of we business What all not operate, very all. as we very or to be business is, profitable. a we be deemphasizing that's at To our operating no, clear, the this businesses sure in I we are wanted to customers just

been very So profitability, for from quarters, several on the have the especially return asset focused we high perspective. an last

diversifying about well, so on as as As talked from working quite top bit, fairly well. a have customer are we two that perspective and we Hyve is concentrated a

So all year. not have really the of our component changed goals over and TS at objectives the for past Hyve

Jim Suva

thing? Or or Was think. you. I integration positive, few I some negative? Thank kind about it it think, things, is Was quite other and America on profitability? that an missed the made was a I that America He it about, And my Latin prepared comments, Marshall. I grasp a have a last comment of it. line demand question may been didn't Latin and

Marshall Witt

some associated FX Yes. offset or but balanced Jim, some they were the that made gains payments line that convert post-close. we was with by our losses below

Jim Suva

was Am it stuff. like So, wasn't correct? FX operational. I It

Marshall Witt

Correct.

Jim Suva

much And Great. the last for question. Okay. details. Thank you so

with tax rate line integration, that is mentioned the comp On faster with the for were forward going is your what expecting integration you outlook? Or tax tax rate from rate? in kind we expected acquisition. Anything than going your with of

Marshall Witt

it Yes, XX%, the same. In for to XXXX. XX% Jim, was my prepared,

Jim Suva

the much Thank so and details clarifications. the you for

Marshall Witt

welcome. are You

Operator

call remarks. are closing there will time. to for turn over Dennis questions I back this the further And at now no

Dennis Polk

over everyone joining We look our you to today. to talking you forward Have next for good call quarter. day. the Thank coming a

Operator

This concludes today's call. conference

You may now disconnect.

TD SYNNEX (SNX) 10 Jan 192018 Q4 Earnings call transcript