SNX - Earnings call transcript Q4 2019

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Operator

Good afternoon. My name is David, and I'll be your conference operator today. I would like to welcome everyone to the SYNNEX Fourth Quarter Fiscal 2019 Earnings Call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

opening to would Ms. for the to time, over call this remarks, like I pass At Mary Head Lai, of Investor Relations. Ms, begin. you may

Mary Lai

David, everyone. afternoon, quarter call. and the you, fourth earnings fiscal Welcome SYNNEX XXXX Thank to good

a me remarks, Dennis President Chris we the are Caldwell, will Joining earlier of Concentrix. CFO; to Marshall Polk, review open announcements and our from question-and-answer to After today Witt, President CEO; session. and two the call prepared

of the of other statements and risks within and Form today's to of listening, any X-K the discussion as mentioned future and Before discussed in securities the Actual result separation results contains not statements. which the do events, section the we release, financial begin, remind laws, today those in update we transaction. the statements in other filed and federal forward-looking intend results we predictions, any Factors everyone uncertainties our forward-looking estimates, a earnings statements forward-looking Risk including meaning filings and in with Form statements differ include might reports SEC. XX-K from We expected projected our projections the company's the or about in these materially

conference under information. available call, permission. the reference this related re-broadcasted earnings Investor is without our recorded we may or reporting section property Also call during not is in a Corporation X-K and our of certain Relations A our non-GAAP will non-GAAP financial reconciliation included GAAP of the This be website. and release Form SYNNEX of and

our to call I will now, And the Dennis? over turn CEO,

Dennis Polk

to companies. the publicly QX by wanted intention acknowledge to will the release our two which you Chris results issued acknowledging into in and later, to everyone we news our and start Mary, and today. you, but Concentrix traded regarding successful detail Thank I more separate joining review today Marshall, to also I announcement, SYNNEX very thank call off us

we of mostly regularly Concentrix it us segments make we both reasons, able best decade, for we differences one under sense SYNNEX investors have past to two well. question this asked have while to asked does To-date, the Our strategic Over many not the have distinct and though to separate, separate believe businesses? the nurture entity. as ourselves, given continually these

transaction would With size a Also the stabilize path ago, acquisition. consider it before some time expect separation could on the into of given time a Convergys especially was so transaction. expected to steady again years Convergys to Convergys due year expected the business, we one revenue effort as we it the we of and successfully that be integrate Concentrix, to the take decline the significant would the at time

of the the of a CRM belief and management the would completed one in with nearly for true more year, a we technology to two leadership year, just umbrella independently far moved company entity operating the stakeholders. the $X distribution substantially a of integration the services of be that result team, Well, and of a billion excellent XXX,XXX entrepreneurial of associates, plus and as under us all capability aspect, along SYNNEX operating the segments dynamics beneficial under expectations. stabilized This Concentrix spirit and the growth ahead revenue

entity best returns, aspect, so market the go in each be nimblest having and address has to in for the Considering enable in will especially drive the address. each been have each grow individual to segment significant markets opportunity business markets this important the Equally both independent change. way in the dynamics that the to that we will through operate this that rapid decision believe is to that and fact continue business

Marshall to now I later the in but me prepared QX call my Marshall? our separation turn let to aspects related discuss remarks, to results, will a about talk over few more the

Marshall Witt

Thanks, two the tax-free in February We a half The shareholders, of traded share Dennis. proposed of the the separation to anticipate resulting companies. distribution And detailed effective expect Form the XXXX. XX. date in SYNNEX be in in Form we will publicly with XX to second expected each separation, transaction capital filing of the be regarding structure the associated segment

However, given the from cash strong financial early indications segments refer to generation. our performance partners, positions we separation investor and both published expect exit on capital flow resulting operating Please from with website. to presentation continued

results. QX discuss let's Now,

of pleased a XX% the are record in FX expectations did guided significant all previously QX $X.X have our was to of quarter for billion, not top-line impact total an same to metrics We revenue exceeded we to the on consolidated or up compared On basis, financial we've report in last bottom-line. $X.X September. all-time that a billion year.

Our XX%, XX% year consolidated prior totaled improvement record a $XXX profit and a margin $XXX was an million, or XX versus gross quarter. dollars gross up ago, basis the points million year from of

expansion and period. million, operating the X.X% up the prior a or was million We record dollars, revenue, up absolute margin points compared or quarter. $XXX was million $XX operating margin down posted from income in income basis $XX million in $XXX expense was of X a but non-GAAP percentage XX% operating a year-over-year. of dollars as operating SG&A fourth of ago year Non-GAAP adjusted year X% consolidated revenue XX Total to basis Non-GAAP quarter. point

Shifting business segments. gear performance operating to by QX

$X.X Technology an of increased delivered XX a margin the Solutions. year year Technology prior million billion, its operating quarter. the operating margin quarter gross of points to First, compared year quarter. income Non-GAAP year ago. basis points compared million, increase Technology highest also ever prior from to revenue primarily X.X% Solutions prior over at XX was on XX% basis billion X.X%, up $X.X XX% up in the record a Solutions $XXX $XX or due product to favorable Non-GAAP mix. was of

the $XX of basis, a revenue quarter forma down almost acquisition the was Now to margin XXX the billion the XX% On XX.X%, an at basis of in Convergys points million, gross flat year constant $X.X margin XX% in dollars profit to revenue to due X%. currency was of dollars impact and integration in income $X October prior grew in The increase billion, due pro essentially compared Concentrix, $XXX portfolio, Concentrix Concentrix operating completed was was the acquisition, million up quarter full Convergys absolute profile the was to operating Non-GAAP of or year-over-year. XX.X%. primarily year-over-year Non-GAAP in year-over-year. the increase quarter XXXX. synergies.

million, The year tax quarter to effective results. the XX% consistent XX.X% period same $X.XX up and over the non-GAAP was non-GAAP Now or from consolidated million was $X.XX, diluted our moving for prior $XX expectations. net year up fourth back the was the rate income XX% or EPS $XXX Total ago. and from a period with

lower be XX% For reversal driven tax fiscal first quarter anticipated positions. effective by of the of we tax rate expect uncertain the XXXX, at to

be of quarter in expect to Fourth total net expense the and of this lower million $XX first interest trend ahead expectations finance XXXX. quarter came we in and charges slightly of

Our cash conversion down and cycle was for days X days, quarter year-over-year. the days XX X down fourth sequentially

debt fourth portfolio and achieved of EBITDA healthy $XXX leverage working capital adjusted assets the we remain on reducing approximately We ratio XXXX was exited of times. from comprised for million cash $XXX debt Our and goal efficiency. X.X our generated to focused million of was Preliminary by year quarter. operations with our the optimizing our

Moving positive both segments. generate we cash flow forward from in QX to of fiscal expect XXXX,

between about SYNNEX billion QX, cash the end to liquidity fund facilities, in $X.X our available of and had At growth. credit

year. dividend to dividend X% in of The the record our approved described XXXX from cash increase of which per prior of be press of release, regular a close stockholders is as XX, business on XXXX. share, Board common the Directors of on the of January XX As $X.XX quarterly an of to paid expected is January

purchase Beginning largest integrate for the XXXX, on This products second resell a to in customer make we half Before model. portion model lower of this approximately a for to and by current one a customer. a of quarter. QX and consignment our like million QX we QX revenue in versus large expected Hyve I'd outlook, our and anticipate to service shift is comment $XXX the our procure fiscal

this expect should change to model earnings at this potential consignment materially with customer However, do our we continue existing levels. not bonds

in approximately of share diluted to and fiscal to to per $X.XX in based billion the XX.X to outstanding XXXX and be or expected million Now range excludes be range net related costs to $XXX amortization per million expected is in income our $XXX outlook, million income the approximately of intangibles $X.XX EPS be $XX to integration $X.XX the of we after-tax Non-GAAP diluted $X.XX expenses. of on net and range average of acquisition-related first million. moving of billion. to EPS quarter is and the diluted guidance to shares weighted share $X.XX expect revenue non-GAAP non-GAAP Non-GAAP

quarter first expectations may of and statements Please forward-looking materially. note that results differ these XXXX are fiscal actual

over turn to like Dennis. to back now would I call the

Dennis Polk

you, Thank Marshall.

with results, all Regarding from quarter our as heard exceptional QX record you results another QX in categories. Marshall, was

Our Technology achieved $X.X billion revenue margin and of Solutions X.X%. operating segment non-GAAP of

Our TS and better in market business slightly core to perform continues than grew all aspects. well

contribution Geographically, performed our the U.S. software, cloud product business networking our were in but solid well of growth TS rest essentially the our driver and was main from with PC, to Contributing geos the core categories. and was of line expectations. growth,

of more the mainly addition our expected what growth, project was to than ultimately not of sold our unpredictability due in a equally was business third fourth transact the mix we and quarter. positive did. and being discussed we quarter orders the the to were the as in this much In business and in business, large quarter core but that to integration positive expected This

turn also and Concentrix business delivered Our to the outlook. Chris Concentrix QX. over I discuss now like would call to in to Chris? results

Chris Caldwell

Dennis. Thanks,

world both with heard announcement result quarter exciting the change goals. more margin on size, tops we fourth Concentrix continuing of our allow clients. and foundational that that growth be benefit the reaching separate is will Concentrix currency focused in team progression like-for-like our shareholders, We and a in continue Concentrix us strong team believe to the and that today time our members trend a enhance around scale feel revenue the and businesses. This as this execute this aggressive expansion. to is with our our and for the natural a for abilities very we’ve Concentrix year-over-year We coming announcement year and cost the and SYNNEX right With at two ensuring to energized

an quarter. and adjusted headwind a quarter, a integration revenue our the basis. quarter essentially operating under like-for-like were billion, expansion revenues main fluctuations in just reported little to increase approximately up a synergies basis, under $X.XX a our X% XX% X% end pro constant By totaled this margin. XXX basis causing currency on of complete activities related point of for On were Concentrix currency with the a the Fourth contributed forma

representation across capabilities. good a verticals, We a into new geographies are that going and our a strong with pipeline year has

We have giving X% pro strategy business. also XX% forma quarter fourth executed impact growth rate our telecom but representing more well for the us portfolio rebalance now to with our revenue our balanced revenues of under on and business of healthier a an to

adjusted on plan Adjusted was into our consideration happened, operating acquisition of margins million operating on profit integration quarter fourth a Adjusted fourth year. basis our improved when income the period. on ago progress up year profit the last up year. operating in income portfolio. from XXX from for up million, to an quarter XX.X% Convergys in apples-to-apples the last was XX.X% improve execution margin $XXX understand, of margins points It's was is The $XXX quarter from strategy, taking the important margin to the XX.X%, result measurement,

more annualized million synergies year believe our ahead On $XX XXXX, million rate of million $XXX exited schedule. well and we end we approximately a the ahead the year transaction full of an target run of quarter run than the a $XXX at one rate the achieve at of synergy of will front, for fiscal

This and in expenses. accelerate able for anticipated recorded facility quarter the Our approximately integration GAAP to we than related million as quarter the results is slightly of we consolidation charges quarter. were some $XX entering higher the reflect separation and related activities

XXXX to into data fiscal estimate of anticipate million and few integration costs. be centers. integration complete. essentially primarily expenses primarily activities We related will consolidation lease to exit to these we We the will in of facilities related in the XXXX incur Convergys XXXX, continue remaining do As we enter activities approximately that is $XX a

quarter Our generation. the $XXX cash investment in strategy flow of operations margin Cash resulted strong in quarter million. expansion and another from approximately flow totaled disciplined

business Additionally, expenditures wins. we million support primarily spent new quarter on this $XX to

We continue business long-term approximately a capital to in believe revenue. that basis, of be X% this on should our spend

acquisition a integration mentioned within about in that time. year's essentially the has earlier, our Concentrix. As this transformational I This year represented was a been for space. largest completed We of Convergys the completed

our the basis X% mentioned run a As $XXX I plan constant approximately of of exceed by grew pro earlier, ahead in confident savings we million we on synergy forma and billion will rate On $X.X on are XXXX annual a end by to synergy in over business. schedule revenues we XXXX. currency

meaningful we headwinds. In doing overcame two so,

had Convergys a the the decrease a we of business. turnaround First, revenue We basis by roughly on in of XXXX. revenue currency quarter constant of saw the trajectory X% second

our we as telecom of process continue our profit and to sector, business. an process, continued rebalancing that the the our portfolio during margin of the of which we to a revenue percentage low year additional improve grew this overall see our having Second, In the X% of despite profile shrinking offset to replace business, business. we

a change and cost synergies, our integration profitable in Through organic steep XXXX. in a growth, we drove of combination trajectory margin discipline

full over million. basis on in an our basis flows operations and approach, income Through Capital XXXX. a the reported adjusted operating margin XXXX pro basis of totaled million and improvement forma year on XXXX expansion Our $XXX basis. XXX an for generated from $XXX was expenditures cash XX.X% year disciplined as improvement approximately we investment margin a XX point

accomplishments further position to continue to and us XXXX. margins XXXX our to grow Our expand in

Turning of first to for we our the pattern business. the see XXXX, typical to expect seasonal quarter

do see a the revenue we currency and Importantly, year-over-year first quarter expect modest basis. constant margin growth in expansion to on

achieve enter to growth, a who to needs efforts while As for their exceed Concentrix Through that working like us have Convergys. I expansion new are chapter of the XXXX and beyond and we margin would helped a this able conclude, XXXX. integrate And team I will be established successful we clients' our thank working success take to to platform have of in Concentrix. we advantage as members

throughout and only the for the Concentrix Board in possible Bob person chapter us vision starting support the step. the really Concentrix, support guidance founder the new Huang SYNNEX, Dennis growth was for and the of The of with of and the taking SYNNEX

very much. you Thank

Now, back to you, Dennis.

Dennis Polk

Thanks, Chris.

a year XXXX special for Chris indicated, was Concentrix. As

it of ended in was $XX with well, As billion nearly a year all We year for revenue. SYNNEX. special the

a increasing able our $X investments the by The in billion. to We were of approximately do third year made in preceding top-line row because years. so

prepare Going will we marketplace our we the next continue business invest forward, to our for in and as adapt opportunities. to

our I to that Marshall outlook, touch QX on item XXXX the by revenue. our on commenting Before wanted mentioned will affect

with components decision While as not to We by on a partner another area ideal versus the integration focused major to top-line us for from is consign the customer customer standpoint. revenue on a decision treat the the to implications.

As will expect we on we are on solid indicated. focused we return and this services a we integration smooth Equally as design the a ensure Marshall important, transition. to and such, provide continue earning

will from top-line in will benefit properly the this is cash decline capital While will utilized. and we lower we business used this ensure

for fiscal competitive. remain the expect our to outlook business, our In to turning Now, QX we Technology market Solutions XXXX.

maintain card line our leverage can we and our that cross-selling momentum. confident are sales We efforts to

than a to expect TS better we our grow markets. result, As business core

the level, project while last much at we more our been XXXX. quarters integration in QX line and a have Regarding essentially expected, with more two QX see than normalized business,

expect In Chris Concentrix, to ranges normal with noted, as margin positive within expansion. and QX our be revenue seasonal growth we

actions, those in at grow. remain markets to we we businesses the at the enabling our new forefront are customers solutions, As strategically we continuing invest and to technologies of partners and look serve, providing

through both the results date. As Concentrix the will we Solutions best we make spin our deliver invest way the expect to and to separation continue through process, Technology and in possible

I'm grew separation. a in past where in very My million revenue as Chris well-regarded BPO a a the Chris market nearly from best Concentrix Concentrix occurs. industry, separation leader it $X of to next the has SYNNEX that on billion. the execute independent very is the understands in even team for CEO in taken has to Concentrix XX more years well successful for happy taken culture the exciting the be the $XXX will solid following very be in Concentrix, expectation once the Regarding XX to the company annual role and forming than

of positive the investments the come exciting plentiful capital I'm the are the I the TS business as structure TS considering business. the about post momentum of business separation to equally market. energetic most in current separate opportunities TS times standalone believe well prospects and in

our and thank for to want continuous I and and our all passionate for business the associates dedicated their possible world around this support. journey thanks making to partners shareholders

call questions. like the would I that, With up for to open

[Operator Instructions].

of line with the from comes question go Colicchio Barrington first ahead. Research. Vince Your Please

Vince Colicchio

about exited talking with few actually A growth line quarter, the in quarter, were in The you the for the you growing Chris. think I when market. you,

just curious, that see will happening going was I you So you think do when forward?

Chris Caldwell

I consecutive growth that going doing. to think we Vince, continue we're Yes, are to see

I facilities bit. of to business replacing some think to continue some with XXXX. a we and were kind we based that continue our aggressive rate pipeline, underlying a a in that, QX, along confidence But to to within QX, the see of lower more closing great margin impacted that on back little the get of went that

Vince Colicchio

And performed and on RPA color versus could within non-voice how non-voice some is give voice us performing? you maybe how

Chris Caldwell

sort had of actually had and We voice both quarters, of business. with growth balanced the already saw on we’ve done. business. non-voice less an In last of of of the sort parts impact sort some a the RPA lot a integration of the

across completed. some deals already of with New tend to the come automation

So, meaningful mix. of necessarily it part a revenue the wasn't

Vince Colicchio

is churn I'm a clients? at just nice sure. job And year-end Convergys then Convergys curious, stabilizing it now, meaningful there done from looks like for you've any

Chris Caldwell

integrated. the had common two meaningful No, no the across had and XXX% whatsoever. business obviously clients we We churn

Vince Colicchio

in growth there any about the the would the Tech expect premium How should someone at in to the in be good? I growth mentioned market. a think help you market XXXX, Dennis, And think we business that Solutions

Dennis Polk

Vince. Sure,

product and we we market, my and year the the the that X% remarks, next is sets X%, in as and indicated I growing see as rates. we far goal, expect carry market that represent than grow in As faster between the to our today in and always

Mary Lai

Operator, Thank please. next question you.

Operator

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

Your open. line is

Matt Sheerin

in look Yes, segments? strategic congrats was two out the first into? by two the looked spin you've either there the guess thank question consideration companies at PE Was Board any on the or taking -- you. the there on two out. decision transaction something and I perhaps for to public Thanks out buyer a of businesses. the spin instead questions that of an spinning reason with that alternative a Was to

Dennis Polk

Matt. Hi, question. Yes. for the This Dennis. is Thanks

our So, all our at today the Concentrix. And Board as us everything process each but -- of part decision we believe announced Solutions potential company. the each make business that negatives, asked to was that we and opportunities its process today we for we analyzed option once the positives once Technology look separation for everything, the best segment. to analyzed possibility and that announced we has

Matt Sheerin

particularly there you Were any that why route? top went three reasons

Dennis Polk

first Yes, partners, posted we we the our and how will Matt, this what our folks Marshall script remind today create the all rationale, now for call aspects, shareholders. for what value in IR detail stakeholders, would associates, called including presentation the on site our customers, our do business out our his and out regarding why is I we where believe

why more the to thought So, process best a to the of the if alternative. public the deliver you'll of I market a company is at get that spin we a Concentrix detail lot you take presentation, as look think

Matt Sheerin

pass-through lower the was you change it, profit margin I operating gross your dollars understand revenue the mention margin made cost any there Hyve operating there a know Thank customer. How I you operating that profit dollars Got on was carrying and that does throughout some you impact recognition could the And but components. I of of that then on okay. you. that imagine just quantify the because recently those earlier, and revenue. on profits? impact did some or with the

Marshall Witt

Marshall. Matt, this is Hey,

overall and dollars and help capital working will that that will profit improve, lower needs expectations down, to sight debt our see anticipated lose interest are don't operating had we mentioned Our Dennis levels Operating will to go grow. which are what margin expense. you

Matt Sheerin

there's so doesn’t like it’s like it Okay, negatives, sound it for just you. any positive sounds a move

it from good. very think I Okay, me. And that's

Operator

Instructions]. [Operator

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

line Your open. is

Shannon Cross

two there’s that maybe or -- the Chris curious I of see businesses or again maybe Board is value creation Concentrix talk how bigger the been something about going Dennis, longer-term from industry. I -- you sort a been assume about clearly was that's just some might guess on think of go-forward little a how has to Concentrix consolidation a and bit you Would if about either on, back same can go this you this trying to to but want company? where basis? perspective. maybe where consolidator. of part the obviously I'm through discussion, think in track you a these TS becomes the sort you're transaction thinking be maybe just I'm you bigger

Chris Caldwell

and Yes. the consolidator to the we participating be to a as Shannon perspective, consolidate, see continue from markets marketplace. continue in the Concentrix will opportunities to we in

Dennis Polk

can efficient optimize follow the offer really want very it's improve number but to deck a We always we know business. Shannon, we that have -- is a drive it we had to that expansion. does we Concentrix our changed, us line three-pronged. From TS significant from if On But XX, we to-date. a you investing think a the you deck one. Number strategy more will think Being allow and card a being a few the we opportunities back one but areas can Number business see business. not can company, has company, Slide of the strategy I'll today. our we perspective, that core change company the posted for We in returns separate in and business. have, by that not can playbook again, to standalone think is a that's run the haven't continue growth TS two, we we strategic organic refer our more we as this Dennis. investor result. We you few

card, for to we there. year in going to think team. folks actually of we'll and add And our grow relationship, will then a organic to significantly while round vendor business somewhat line well. invest We have expands healthy market business. of going ability to to go past as area very sales, absorb a all and do the the additional it's those radar, continue not solutions, we forward, over headcount, the easiest invest so then We've have a so do We're an around we offerings and thing will hired expect do two and to we as offers a growth under and growth the cloud continue continue that and and in the to our we’re opportunity our opportunities, development the lot service product, for but that's anything in we and additional helped investing that as that as us do business drive

this least, not in have a M&A industry and strategic but last investments. been through then And other consolidator we

the couple that in much since it. years capital contributed very acquisition, Convergys of result we the fact as a lot and transaction done haven't of focused on -- came as last of a primarily are was with We to the that our Westcon-Comstor

that's what TS do. So if solely separate and to the the ability plan business, you on of while a will, to the M&A as we company focus needs,

Shannon Cross

on going partners manifest side assume amount very clearly not challenges access that's to itself obviously one this which just helpful. did channel into CPUs, there question, we've your then the at and the been was with PC met quarter, of still with there fair a Okay, quarter. CES are would I And out and

being is there to hit at PC Intel with we worry or this trend? you So reason think doing should and of a what about all kind time I'm you. point, you just is curious, PC that will numbers actually this typical where through Thank there do need partners a we is get your why can anticipate

Dennis Polk

is Sure. Shannon, Dennis. this

I the couple -- with for year expect So essentially we least. reality think what for on probably which is situation is continue more last what the I and quarters we been see the market But product that and we've sees, fairly the continue it able at to situation a the our dealing soon this will of off next the and plays can of is that delivered out. well, to for been with we've work to plan as to couple navigate it ensure think do as partners quarters is as it

Operator

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

Your line open. is

Madison Suhr

afternoon, taking and spin? is this my us better thanks the debt but Adam. Madison related could two can some it's for allocation help the Good Marshall, cash cycle I businesses hoping between to businesses, I you think between the for sheet And the know conversion of on questions. anything maybe of was dynamics balance early, understand post how we about

Marshall Witt

Yes.

improvement and cash strong We comment. that only that be both what XX-XX, remarks in of about and performance in flow in terms additional expect balance will we sheets for prepared I’d bolster our it entities, to given operating then said, absolutely believe that, where we're projecting

Madison Suhr

differences the any cash businesses? And between around Okay. conversion cycles

Marshall Witt

AR APU. it's with AR said conversion differences cycle. And past is of in spectrum from clearly it's There for DSO the full the predominantly to cash to unique a TS, Concentrix as inventory we

Dennis Polk

then it’s Dennis. Madison, And

capital on up follow side. Just the

F structure part As more and transaction be a information we're as there'll Marshall form in indicated the XX following this go-forward about of that capital document.

Madison Suhr

And know into but a for would as a follow potential to then buyer I just quick qualify implications will the spin tax be here? any here. play there up tax-free, come

Marshall Witt

Yes.

we dividend said, will be shareholders. a SYNNEX through allocation a and rata as this spin our we to pro to So tax-free be expect

Operator

Instructions]. [Operator

Please of the Yang from Tim Citi. ahead. comes question with next Your line go

is open. line Your

Tim Yang

single-digit for XXXX. On I target percentage at the and Concentrix, top-line growing think growth is in mid you're low single-digit

mentioned you that have some think you I optimization. portfolio

and current your timeline is, comfortable with you should targeted achieving think how right about think the I are question the end exposure growth? now the for we

Chris Caldwell

Yes.

with more that market expectations achieve and rich across right comfortable actually a very So of the very our to rebalancing a margin sort portfolio pipeline X% and XXXX. profile we're make is a profile that now, our at bit quarter growing last we more will and portfolio between have see aggressive over verticals. we've with comfortable the diverse and in that been sure we our more X% now of our our We're right and sort we

where So, we're happy quite at.

Tim Yang

growth? for timeline achieving And the target

Chris Caldwell

Within of our we comfortable achieving XXXX the said that market within we are XXXX growth timeline rates. between

Tim Yang

up. One quick follow

disconnect for You result of TS Can vendors very you. understand enterprise in is there versus a pressured. between spending had why your Thank you us have mentioned, remains -- your you your help vendors? performance a business some strong

Dennis Polk

that go well said I will is of we've think I very back I One, a in couple to this of what that. for the Hi, business. before, been in executing Yes, been -- Dennis. the reasons part we've investing overall, marketplace

that additional folks Additional and take share. us headcount, sales really helped BD product

So to we the mentioned our overall as that's integration customer design as systems in the Also, results which like and grow in we've I today, supply chain faster our and benefited more able allowed and us market. the about business, to in QX than additional script as again well cross-sell that services like, services we quarter. by been more to that set, are distribution talked

Operator

of question Please Loop comes Ananda Your Baruah Capital. the ahead. with next from go line

is line open. Your

Ananda Baruah

maybe to be, whether what Marshall -- you follow-up. some earlier then weren’t about might have of related? I those about things just might know material companies be. able We'd couple And and to quick more well. do as from revenue related, talk -- optimization both and things strategic to now Hey, a Can a having those Dennis, having what love related, they’re opportunity previously. Chris me. separately some that things Dennis talked they you

Dennis Polk

is Hi, this Dennis. Ananda,

immediately separation change clear, regard to So segment. be with anything to the doesn't either

a one having been doing They're has place been separate now up aren't does situation their able SYNNEX at just and by two they under long-term place, the improved of their quite decision umbrella between Concentrix along on come have strategies. key, companies the of for because a some happen than have prospects better to management thing in forward. as won't Directors, the individual time their are focus of Board that when we've to will own specifically once where today. that, occurs. them. emphasize the separation. have executing two. occur then in strategies structure, capital on going result. and teams you be make entity a But But for That's think be they'll And own first each the will business That the the I again of strategies the separation changed Our with companies independent to the But

Ananda Baruah

level, And understood. much like you comments of you’ve of regards made be sort from open think kind help you been there, just a is consolidations? lot higher much. us helpful. Can CTA the other it. Are haven’t kind the done Just hasn't to that where level, to There's at -- been like TS would still the just level of benefit consolidation stuff any guys you'd term, M&A there think areas? could on about kind of you pause, industry Appreciate wise then doing that again. my VAR you understood, this the there as Yes, with side, been on how of be

Dennis Polk

to of, think you customer. again. call number the community. say help would market Dennis the areas other can resources end or industry. And and distribution the I one. invest benefit I two That's it’s benefit our our think offering number their efficient channel our be services to as by further offerings partners will, a power it, to further out, it two, and a set VAR to we Ananda, would if in that larger be a Sure, services do services more extend streamlined will I'd OEM OEM consolidation. distributors, the can use One to

Ananda Baruah

that types, out? of Any types services pop particular

Dennis Polk

about we strategies of that and investor Yes, the in anything deck, a I service. the as go around services cloud-related back investing to in anything we're one talked

there possibilities do that areas beyond in organic investments so be to ones about might I those the talked And

Operator

the Lai no turn questions remarks. closing back will for to I at There time. Instructions]. call Mary this further are [Operator

Mary Lai

and appreciate for our joining speaking you. today you concludes Thank time This to time. We call. interest. your us you Thank next with conference and forward your look

Operator

Thank this Ladies and for participating. you conference concludes today's gentlemen, call.

may now You disconnect.

TD SYNNEX (SNX) 9 Jan 202019 Q4 Earnings call transcript