SNX - Earnings call transcript Q3 2020

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Operator

Good afternoon, my name is Chantelle and I'll be your conference operator today. I would like to welcome everyone to the SYNNEX Third Quarter Fiscal 2020 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. At this time for opening remarks, I would like to pass the call over to Marshall Witt, SYNNEX Corp's CFO. begin. may you Marshall,

Marshall Witt

and quarter everyone fiscal Chantelle, the welcome SYNNEX third XXXX good you, and afternoon to Thank earnings call.

to CEO; President today Polk, me review results financial Joining are President and Concentrix. and of Caldwell, Chris our Dennis

section and reports and non-GAAP intend Also Risk reference we our Form do filings GAAP update including Before will spin-off, with Actual projections discussion our forward-looking liquidity. during as we about or the be securities any other Factors statements SYNNEX and not today's without of and X-K, include may demand, SEC. statements non-GAAP margin risks cash, X-K and our call forward-looking in debt, information. expenses, Form the statements. is today events, Reconciliation We call, to in XX-K, in other reporting of this of contain earnings statements, growth, financial laws, meaning from statements the certain we materially forward-looking continue, which and today's related remind and This Relations mentioned under Form property our the release as the our the Investor the prior of and permission. a included results any earnings that those section expected me in not in recovery, differ conference federal of let the economic release, to rebroadcast filed uncertainties everyone the press within may of these is predictions, recorded available or future discussed website. result estimates, Corporation

do discuss expectations, resiliency QX EPS, income of our the some all of these revenue, we diluted the net so best. and do highlights continuing exceeded unprecedented cover QX, in face key And In what to our our now, and times, from ability reflecting guidance. and economic uncertainty I'll

was the On third QX adjusted the quarter of impact $X.X COVID-XX announced will revenue had results a record on the billion X% continuing prior in have total Where financial quarter reference billion, while consolidated to same COVID, year. COVID-XX for basis, appropriate, X% a basis, costs. GAAP quarter. not a by year On results. up $X.X be today, compared to up impacted currency revenue last was been compared to I Our constant

$XXX or consolidated profit a margin Consolidated of or revenue, year X% points, down year expense by X% gross to Our operating XX.X% XX% compared dollars a year or totaled ago. $XX income compared million to year period. was million down adjusted operating was year non-GAAP million, Total compared and quarter. $X versus ago. a Non-GAAP XX margin to was gross million $XXX prior to ago, the SG&A down the XX million X% ago of compared basis $XXX million, lower was X%

business performance to segment. shifting by QX Now operating gears

a $XXX was down revenue quarter, X.X%, of the $X over Non-GAAP than lower that net year Solutions million Technology and was income million Operating an doubtful basis XX basis Solutions expense the COVID-XX X% for $XXX year a prior allowance for work year accounts, down Technology up was margin due mix. in primarily million, costs. related compared on prior approximately was ago. to quarter, $XXX operating First made margin prior was was X.X%, staffing Technology quarter. increase of the million year was or million or points and home billion, than $X.X Non-GAAP $X product the income Solutions' compared quarter. lower to points million $X primarily operating from XX X% ago. year to incremental up gross

the in year due the million Concentrix the sequentially, Non-GAAP XX.X% gross XX.X% year basis XX.X%, to and Non-GAAP to XXX ago. expenses to operating points up were margin of dollars basis quarter. absolute XX the Concentrix for approximately prior a ago million, over COVID-XX Concentrix to impact compared points basis revenue down primarily X% the was $XX quarter, income up compared Concentrix; compared in billion, Now ago. was was COVID-XX. $XXX margin $X.X Net points incremental XXX down year and million fiscal operating a QX or related $X to quarter was X.X% in quarter. year

was moving to Now a a in million reduction interest driven finance borrowings, back our average a net The $XX quarter outstanding environment. consolidated year rate $XX well compared interest lower and were to million, as a results; ago to compared as quarter, prior of our total third reduction expense quarter. charges decrease the year by

XX.X% Total quarter, the be million over prior effective was ago. expense we the $XXX year compared EPS a was income fourth diluted expect non-GAAP to The XX.X% to same million, ago. tax interest over non-GAAP rate up and or $X.XX year period, period the X% X% million. was For net $X approximately quarter the a or $XX third $X.XX, year up for

we of effective expect be approximately rate XXXX, fourth the fiscal the For quarter XX%. tax to

to our XXXX. $X.X August balance totaled accounts Turning receivable and billion totaled inventories the on XX, $X.X sheet, billion

for also and natural X. credit liquidity including provide an the total to cash QX, regarding a spin. December to third inventory. collaboration million. continued track Concentrix cash remain a improved I the from facilities, and faster We last operations. days and update XX available to supported was of Our flow preliminary eight cash SYNNEX end for and At and spin the our a $X.X spin, quarter the days, had wanted operations approximately of our with The in ago on for quarter XX calendar the QX year to by partners on be cycle conversion most improvement fund from led $XXX our churn from date days billion was believe lower

with is our both for start consistent good clean Concentrix As as and year-end, for a and SYNNEX. XXXX,

majority of will will be today, the receiving approximately use billion. debt with be $XXX cash approximately seasonal $X.X estimated approximately held SYNNEX. SYNNEX As the we of normal will million estimate receiving Corp cash SYNNEX at it billion The be QX we will and debt $X.X which hand, in spin, for pay down. on billion Concentrix use see gross and $X.X approximately be The by

we want we both balances positioned peers QX and have debt from estimates based These previously its a As performance. to be and leverage on amongst well are could liquidity companies standpoint. discussed, change

opportunities. with powder and well in our in down Concentrix, structure the party are of growth appropriate the confident dry will to We third and capital securing path the SYNNEX have are bankers financing both for businesses. support M&A and Concentrix

you, not remains early amortization and share, you one excludes model. diluted income Now after-tax million in to of and moving moving $X.XX $X.XX billion the range begin to valued we to expected will the to EPS to be revenue with range final of share, approximately million. Dennis. let In fluid or The the Non-GAAP expenses. will $XX.X diluted the of is costs in to intangibles weighted transition turn about income expected outlook; in be acquisition-related of XXXX. $X.XX that to expect per in of $XX.X quarter $X.XX on related our billion. be $X.XX Non-GAAP customers date and note fourth our net $XXX is diluted and be net over guidance previous $XXX EPS to of One before to million. discussions non-GAAP I know we've per integration a consignment approximately of million the shares call average range to Non-GAAP

turn proper certainly we With call have you As note to to forward-looking, fourth the more date, of know. let and visibility statements now XXXX that learn and a will may I quarter expectations will we our that, actual materially. start fiscal results Please Dennis. are these differ

Dennis Polk

start Thank by have you, partnering commitment as for faced to off and to challenges joining we all expressing everyone want economic for my multitude appreciation Marshall, jointly of our a across you globe stakeholders their call. continued with and XXXX. thank issues I the in dedication in us, to and our

Our truly associates which result phenomenal am a for QX, I in delivered grateful.

but our strong a providing and bit team to on worn F-XX made Along our on SYNNEX spirit standalone having and your ongoing to by our review. quarter, each communities our the partners customers. Concentrix for I spin progress impact is me. significant proposed the the also support positive Concentrix all teams We a The down we company. public a pandemic, available with inspire of executing are document and to other, great continues see the determination are are the

Third party remaining most stages, a the are we close believe position spend we is Thus, completion. and this of in in calendar to financing nearing QX. related final in activities solid are transaction

to state and and our third demand revenue shop e-commerce results; Now channels. and ongoing business, driven This local, moving learn from our by was education, distribution home was by TS driven needs. better-than-expected work, in quarter strong in

products. skewed distribution increase goes sequential net improvement PCs, saw mix notebooks, toward From also Consistent The the our was office higher in with products, high pleased perspective, such delivered to lower Chromebooks, printers, are America our TS in a we Overall, year-over-year. better in but TS we in expectations collaboration but strongest more a we year-over-year and grew the the overall cloud, results we customers our largest security during in year-over-year datacenter business, environment some higher we quarter. demand from programs was in all softness slight North performer, quarter We office improvement performed delivered desktop, of a second In volume, perspective, QX. or as supplies, and support sales. on-premise support Hive QX. continue and a than From SMB equipment. experienced environment, experienced QX, in the and with revenue, margin product a geographic as

performed, expectations the business Concentrix very over pleased have detail. we in Concentrix now more QX, and challenges. to with Chris, known also the how will to I exceeded discuss I'm turn Our in call our despite

Christopher Caldwell

Dennis. Thanks

indicated execution very results, delivered on as revenue solid December. We digit a momentum, on business to spin, Marshall We pre-COVID both to being growth continued trajectory pleased with double and early adjusted and margin. are very operating returning ready our our

regions. across than aggressively. COVID-XX $X.XX The On higher across all addressing third quarter third been delivery for increased three a areas have sequential not year. separate quarter Concentrix totaled billion, possible, slightly our revenue revenue This basis, would challenges without same quarter last the

that both our clients' at-office demands. nimbly flexible First, workplace providing a to safe home and incorporates at meet elements,

home, this, staff been developers. at is investing has over level solutions announced an a ensure of same in our security incorporates a like and that support clients our the regardless proprietary enabling choose. in of by our of platform is This engineers will to skilled office. of just latest and security technology to innovation SecureCX integrity, that few recently channels And to up technology X,XXX we the the well they a offering. SecureCX Second, well lead technology, driving in space. available culture strong continue over innovations close advanced this for by third, as like Concentrix and backed from decade, solutions,

revenue, of representing happy continue impact to We mix. more The around giving be but a to of with execution X% vertical an rate, also growth XX% us vertical now is year-over-year our portfolio. communication our much balanced approximately

been on represent As transportation growth our an e-commerce two-thirds clients in resulting COVID-XX, our verticals, expected, X% financial with and business than was More which travel, our healthcare, growth. offsetting on and a quarter tourism these impacted strong technology, in the have headwinds combined clients additional by services of impact during about basis.

business signings and revenue. very CX contract annualized our demand strengths quarter, their encouraging at to on platform, record coming needs. based the New evolving a best-in-class in meet the in values our clients place is expected This that were in our heightened the ability of of level

our Even take with signings outsourced. win and not verticals, new remains across our that has historically to growing. signings, business continue with share our strong strong and record been strategic pipeline We

ready our We needs clients, recalibrate change. COVID the as continue are daily, to to their and developments watch with

and in for quarter reflects moving to nearly Now we the million. approximately to double-digit XX.X%, return or lower the million quarter income adjusted expenditures margin variable quarter. generated COVID-XX. our than of expenditures was positive our slightly free revenue some $XX approximately quarter impact collections reconfiguring despite million. additional despite totaled COVID-XX the Capital revenue reaching third historical profitability; $XX from trending norms see due to cost Capital growth $XX Cash third cash year-ago facilities support of totaled operations prior flow over in the to higher reductions of million operating flow, net with performance, We level. impacts. operating reduced The that $XXX spend, the

In business the increases. that than expect drive outlook sequential improvement clients, to for in and to last growth profitability. both and resulting seasonal we quarter; revenue more revenue from third the emerging quarter, remain stronger, Turning partner overdelivering so the so choice, focused signings the the their pandemic quarter, for we can year, remain from strong our that fourth in addition safe, keeping in sequential we fourth our our of staff we on new

margin constant we expect X% year-over-year above to our a result, by currency and expect revenue least be at adjusted on a operating As fourth basis, quarter we increase to XX.X%.

industry operating our continue feel time. rates, to in growth We margin increasing confident to exceed over while and ability achieve our adjusted

estimated Now early Board believe from of spin our We October. go. Registration X, Form to an we to to turning to be December ready intend SYNNEX, that announce in in are Directors on Statement updated our we XX

We very will reflect the the we in are business. have proud, diversity that Board our

have As Marshall indicated, inorganic times when organic and debt in EBITDA and less we we approximately invest growth. separate, meaningful will than a strong to giving two flexibility to liquidity

forward for would and benefits the As you the always, coming to lead our believe our we disciplined experience with industry. our event one-on-one be with A customer in approach spin held look incredible to the a result in on November, ability spin-off early clients. pre weeks updating to have both. opportunity the I and shortly members the team We analysts thereafter. for in shareholders, superior investors will meetings

conclude, hand thank we'll I I much new people, and As that to the members our diversity very advantage and able dedication I'll this we to back Concentrix. be team The would take to effort, our now Dennis. call and tribute of, as culture resourcefulness like a Thank our the are Concentrix and clients. our you of chapter enter to

Dennis Polk

Thank Chris. you,

quarter Turning outlook. to our fourth

on continues our and priority of associates. health Our be to safety the

open recovery, in further. we signs For positive as our general, of business, see economies continued

geo within geos. to are However, from many geo still differences cautious, as and we there are

digital strength Solutions, projects, enablement, Technology continued the up be will a an improvement on-premise TS We in continued overall overall buying be distribution expect seasonal in for improvement and will sequentially, federal decline Hive. in partially anticipate QX. offset in we For delayed by TS season, investment TS driven remote distribution transformation. by

to be last expect TS comparing will Hive, quarter a exceptional for an solid We though QX year. we

to As internal low well, guidance of the calculations. given use of unpredictability the we our this tend in end business, expectations

As COVID expenses Marshall decline expected in in declined related to indicated, and QX QX. are

last a time, going these while find in to offset amounts, call, costs portion TS ways As of effective we our most forward. part to rate efficient normal Over be in of we stated our business and these expect run running possible. the will

For Chris as have strong indicated, a expect Concentrix, we to seasonally QX.

independent have aspects and also for exist toward opportunities core business, to place moves that improve a our operation, our am Our solid pipeline, return in independent the among the as services many to to grow give to opportunities business. that our as flow, the cash pleased ongoing business, I'm and are excited pleased well, provide TS for investments, growth, about, and we positive I Concentrix we many in confidence partners. our the investments and becoming an inorganic organically me our

faster higher than well, increasing As growing of at goal the a our profit and will market our continue. rate

We behalf on prepared business SYNNEX team, our partners. done during As everything this thank appreciate of management again my and the to associates, I have want period. for challenging I remarks, conclude entire you

those to affected who be healthy. please and with have COVID-XX, stay been thoughts by safe Our continue

those well, I positive call the for to I we As for team who with are, are in issues. of questions. appreciate change who these and important members, service SYNNEX all the like open on other been up areas. have With would that, working social

Marshall Witt

Operator, you. we're hearing having trouble

Operator

hear to me? able you Are

Marshall Witt

Chantelle. Yes, can hear you, we

Operator

open. is Ruplu line Bhattacharya, your

Ruplu Bhattacharya

on the guide Congrats the Ruplu. It's on Hi. as quarter strong well. and

to see services I the your you wanted And when voice ask versus environment, growing do get demand and to of you would long faster? for the the look my voice what first or at mix For in current you growing Chris, non-voice question demand term, to? is non-voice what revenues, you, mix in like

Christopher Caldwell

Ruplu. Hi

getting XX our the to prior is So close to and get Convergys to XX goal we're XX-XX to relatively split. acquisition, about voice, non-voice

both overall, Convergys of seeing between growth certainly get and XX-XX With But split our sort now, in areas. frankly back acquisition, good the goal And to to we're increased we business. voice voice that voice. is our right

business. a little both longer margin where and like to but it, we'd we're good it's good of that on get growth the So split taking sides seeing rates to performance

Ruplu Bhattacharya

on you and revenues? was chain, is getting record the for that of thanks last you in impacting just my I follow-up, backlog Chris, any the and TS still having any product Okay, side, had wondering, for backlog. are with supply issues quarter has Dennis normalized terms that the

Dennis Polk

Dennis. normal up we shipped what is at to regards SLAs. all Overall, and chain and of level has this it We elevated better back about actually at Thank but lot level. the we incrementally, Yes. certainly Hi, I'd to the we're actually fairly we QX, backlog, of at congrats say, at QX.Okay. the supply our high end no in QX. is of was details the QX are or versus QX, end it filled better at you the a by same remained With means, was of end throughout quarter, again. for the the a existing were But

Operator

Your Instructions] James. question next Tindle Raymond comes with Adam from [Operator

is open. line Your

Adam Tindle

thanks, afternoon. and post Okay, congrats wanted to results; structure. -- just spin the on on I start the good capital

I of TS. cash have to just TS into would liquidity. from as an go basis healthy think XXXX, the so would I most you think very tailwind a aside, consignment on the shift that will some forward cash mentioned And that

prudent options touch for for Dennis, for how maybe capital two this about entities? structure thought just on you question the and the So the rationale most being

Dennis Polk

some start add I'll as well. Sure, can comments and Marshall

a considerations much part is that net came and the that cash think want the fell excuse and conclusion up the one the basis. side to the of versus you currently, we tax why me, Adam, just XX-XX on if that Concentrix comes we with we math, on do First well. cash about to is dividing where Concentrix capitalized of -- a That's more it both cash make another, all, the very some were companies debt, side? it goal. regards to got and When it's the ultimately good sure other on the to well, TS and on as cash segment to how When

Marshall Witt

Marshall. this And then Adam, is

to before, As we've good set, in in can position we regards clearly setting, better a that. get we said the both want at peer to businesses and

Adam Tindle

thanks. and expecting into a you to think this margin for operating down year-over-year. be Concentrix, follow-up just I And Chris were quarter, maybe Understood, as coming

labor. stranded had You

expecting kind I be XX% You you were talked down last would meaningful XX ultimately, points can only And the basis but that of the think year-over-year. expenses. toughest, we about productivity, were XX%

could So normalized in biggest about the the you're upside forward? buckets and maybe on of touch business quarter for you. how you moving Thank the thinking the margins

Christopher Caldwell

Adam, able and within to a called and we that new an and So costs from we over had COVID a variable at couple a making quarter very financial of around that we business And of business. few then little ramp out of Clearly, within services things expense and QX of QX. we are we're early e-commerce saw we achievement, [ph] impact we happened. wanted net and perspective, verticals, controlled technology but our healthcare, million faster $XX the other had aggressive sure end

So helped. that certainly

what to ramping perspective, And year, of revenue as grow to a belief and last our is last point, we even able our highs to I integration think basis, at be we last year. margin that, we were want perspective, our -- finished will the Convergys op bit. clearly over effectively all a start income a this from were that's quarterly continue to to a get that basis done revenue historical where see finished on return exceed year, adjusted more to back this we normalized

Operator

from comes question with Colicchio Barrington Vincent Research. next Our

is Your open. line

Vincent Colicchio

gain virtual players Concentrix played continuing with that struggling is share are of delivery, Yes. or out? Chris, from is to sort that

Christopher Caldwell

they we -- models, are gained as are they performed share question. also model. Hi not-home share Vince, both where was then going for where unable as to happen. saw office work where actually are that who at-home who able from make competitors a -- a the needed gained that good clients that sorry virtual looking from from to execute on it's in weren't of in who clients And to we be We higher well work we models, security, level just from work saw

were is what a integrity invested we benefit operations. of years And so very show now in terms over we them them many done able to for proving of many, where have just we've and large

their the that we sort And see so the areas. right to of set. at of reliable people are moment, will We be business and a as two look moving business within own those really that lot seems for think around, continue, execution

hope that advantage certainly, So of take as go forward. we to

Vincent Colicchio

areas, And shift be is the is the Where I'm some are comfortable, sustainable data be more mindset delivery? you that in sensitive previously virtual thought? confidence going of getting mix getting to be -- more clients regarding with at virtual going may the is, giving more than is

Christopher Caldwell

push think of little of bricks there work, is looking a will post we're What which being for much the to significant to are which digital delivery more expect expense. business, some get I sure, into assets will at differentiated sort taken higher given. work sort that's clients solution, we we and some a solutions work amount work which the at our then what mortar we're -- have that within rid finding, we're bricks completely other And is at-like that Tigerspike a our of very of executing return longer point. of technology it like which might COVID, a marketplace with are offering. and think also the But gives that's and our with security more back to is COVID our we're executing of at for within transformation, SecureCX higher home kind business, for what without that with We be a home do seeing level get done, that there mortar from sensitive of

level those after come security, quite of give to do this So COVID, will expect us both mortar. help some of we and into again of a back continue but to bricks

Operator

Matt Stifel. from comes with Our next Sheerin question

Your line is open.

Matt Sheerin

good afternoon. thanks, Yes,

in roughly Technology you Solutions. particularly million our estimate my in TS Hive you you in the by regarding revenue the By beat sort tell of some saw also us a split $XXX about between upside of strength Just the you products Could core that Hive. math, and in and the verticals, quarter, then talked terms question and customers, the was then business? of what

Dennis Polk

is this Matt, Dennis. Hi

your was, the notch were during associated the to beta with Just marketplace, fact to conservative quarter a in we take would guide part was due to QX. that were a start, bit going say what our with the and everything concerned COVID, on question I up in our back We of about fairly that.

So participate we ago. did give better a fairly the generally TS we're we we three conservative guide markets in side, than hindsight. that thought the on Overall, in, months

So reasons that's we the why of better. one did

second was during share -- took The to due as market quarter. think we well the I some

share the now new we taken Now tactical in we're benefiting also current quarters it playing new in through expect quarter, wasn't business from and forward. past, the from go the customers just think wins to quarter, are of that I during than

our into from So as going contribution, into fairly to benefit much believe. had we quarter, factor did distribution to we equally versus the but with your last QX, Hive us, that a split. TS In general expectations. comment that didn't benefit to our guide, initial Then specific in was both we regards

Matt Sheerin

time. the very about first then, that's one the aren't turning Chris, outsourcing Concentrix wins new for And business, program your helpful. customers with commentary to that Okay, talked

attribute you that and continuing? do what So trend do accelerating you or see that,

Christopher Caldwell

Hi, Matt.

things two we're that seeing. So

we're able seeing to we're in they of clients primarily not is new the working, with then that never we've never of And model, And that variable initial they own reasons. that only model. second been cost have because kind of at transformation also their through we own things clients, we're what not clients our them. are is two that their the of challenges historically for business more are looking for thing winning where to First our And for forward, is, of lot that growth, perform, outsourcing. who of a therefore are now outsourcing technology that outsourced, driving are outsourced, lot delivery for a as and all, think I point have they just but we're your where and their we looking really work that couple of seeing go systems, where clients have we COVID that offer around seeing

only not frankly efficiently more look, techniques. technology allowing and much we outsourced, but we we scalability better to and we securely have cost are that's support you, support historically and variable can with business. business our their a our more transformation model, So that can it down haven't and And saying, more up our within

So with it's impacted primarily faster to very people now, being decisions very, need because by well, businesses resonating the COVID. make those

very thanks much. Okay,

Operator

next Capital. Loop Baruah with question comes from Our Ananda

line Your is open.

Ananda Baruah

you past Congratulations do that a I just back chance get and on could completion feel to quick have us now some those going can Good around ago you led you moment -- what I afternoon, any performance about split. in forward? quarters if paying guys. wins, and those and share those and the outlook And off, context structural, you -- be just a past are like can Two comments wins could the to as the Dennis, to you wins upcoming can see being me that follow-up. that for the then, of taking well, give continue your going lift in cycles for or do

Dennis Polk

the business Sure Ananda. development SYNNEX through our business, the our and in to about as and I'd years can has management extent, of bringing that started full of investing hit say things question. new that new so, doing win And have to for more in well. we suite we've been couple see we and deliver really by and our We're services wins a we relationships, set company. investing benefiting stride Westcon-Comstor sales, in combining the from six that, product business, prior we've months, three our our vendor past allowed and us customer but and One, resources. those business and well, business as acquisition, think to fullest last by with the to in continue that's business seen some that some

Ananda Baruah

Dennis, follow-up. this actually, Okay, that's I just February. the maybe And of here the as it great. was was it for I'll recall, year, beginning maybe stick

prior You so not had February, the -- and was out it it called was quarter.

You and something Westcon-Comstor nicely it guys some early, had similar also results. cross-sell led It had called out call maybe to upside. some to

So that is sort hitting dynamic stride, you sort sort really in that this this of now of -- of even expectations, sort are are -- is or outperforming regard? your you original of

Dennis Polk

we just when think But date. while from is, say farther comes really And sales. the company, transaction again selling these and we've little harder I'd enjoyed the and it I more, about We're still What benefits and as resources you business, we track get I think it's matured internally, we've about sell brought support the it. really don't all Westcon-Comstor people from to as away business. in a cross I think Yeah. a more as together. selling services do cross invested to a products as

Ananda Baruah

a Okay, Thanks that's lot. hear. great to

Operator

comes next Cross from Our with Research. Cross Shannon question

Your line is open.

Shannon Cross

were a Thank in to think a the how you the sustainability? that perspective a some much. about think quarter, very TS. we're driver just which little talk enterprise When for demands. important wanted bit of call, about weakness PCs trying you to also talking including revenue supply about chain, the and I some about of from And

people like PC Then if curious what is pursuing home think from some a bit more I a you have Or be thank and back you're recovery? are just or talk this seeing, recovery you follow-up, you. sort led I'm deals? do So coming can a work about larger of may

Dennis Polk

is This Shannon. Dennis. Hi

quarter. you of were the high Chromebooks and the will, notebooks if highest runners the So during

had collaboration also cloud, other products. benefit from We with in

That bit through in on a quarter it year-over-year way seeing drove When today. those PCs, better are the QX the improvements, quarter. were it versus being continual comes basis, was our but still So what challenged. current QX, said, to all we a incrementally

that's So that's one thing I'd emphasize, back. coming

bit that occurring seeing little projects which implementations but second of confidence, current in and script QX, I bit into business. that all through seeing called still the our move QX QX, also and a challenged year-over-year, The that, also as a versus incrementally thing, out the us gives well. date, my purchases, you regarding part will, datacenter way of office as as we're we completions and better comeback in if far Again, a datacenter as

Shannon Cross

of clarification assume -- great. then think within the quarter, starts just next. I a guidance, this consignment not I but just, I couple And Okay, more, Hive, a on one, had that

sales? this last you So, is Hive conservative, then terms talked my the the of in are since that about quite your second to of in question, and this fact positioning you went think frankly into typical you how that do lumpiness being before outlook, referring quarter. sort you you. Thank quarter just and And quarter,

Marshall Witt

come we Hey comments, model everyone that, Hive, did the just referenced get the we that's timing very of the -- The start initially in of answer Marshall. back let back Shannon, and customer now, out. wise, been will and will my it I'll thought But we early going when bit. more end XXXX, it's to consignment structure definitive that's when first. pushed pushed I happen, know. right have large At for a we now mentioned little

Dennis Polk

question. month visibility business. your and is better our this this since would into I visibility we've pandemic, quarter year, Dennis, on say passing that Shannon, the each had then obviously And

we give have think following you happen the we infer that quarter. of quarter guidance, is we passing that each what can a in better to going with So understanding

Operator

Yang with comes question Tim from next Citi. Our

line Your open. is

Zhen Yang

topline and Hi, expected Question X% flat roughly for quarter. up year-over-year next thanks question. year-over-year this taking for was roughly Chris, the be is Concentrix quarter, to

that growth achieve target? think with you still If growth can are uncertainties so, next and also virus there Concentrix? X% is that Given for to year, target you when still your X% the sales do

Christopher Caldwell

Hey Tim.

yes, than we through. going think impact we're that's So a grow attuned of sort once And is market, rebalancing. we faster I that, can without that to COVID do finish now I with or our mean expectation our little

reality been giving While and transportation by impacted us about, travel we to reiterate talked confidence to the industries, are is have more the continue we business that that. is is, in other segments, we that that winning

take that won't, time. But period from quarter out looking feel you confident can a that comments, a can We forward. haven't of from it perspective, we guidance at we're and quite only our we reasonable called in there I get from because think one

Zhen Yang

is My question any That's reinstate you timeline very Marshall; helpful. or dividend? to next for for the threshold

Marshall Witt

the would to separate spin. is, we're where those have the performance by here, are which spinning we boards as -- to be two to be for forward And going be, we're we think QX. going then recorded, course going what question. be part too we'll separate predictable good we be after make call to want we will that to return that because strong -- suspended other to wanted going and Boards, and we is decision we made the now certainly where thought and Yeah, it, and we had We of it, sure we

Operator

no this Polk At Dennis to will questions. back the more over are remarks. I time closing call for turn there

Dennis Polk

and well entities. teams Thank I closing, want evening. and In so, the our to I stay and and in confidence business, segments SYNNEX you thank you Concentrix well. executing continuing all spin post in I our ongoing each QX, do good independent have their to forward look efforts. to of as hope for

Operator

This call. concludes conference today's

may disconnect. You now

TD SYNNEX (SNX) 29 Sep 202020 Q3 Earnings call transcript