SNX - Earnings call transcript Q1 2022

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Operator

Good morning. My name is Brent, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX First Quarter Fiscal 2022 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 Investor Liz for the to Relations. time, over call Morali, this remarks, like I pass At Head of Liz, begin. you may

Liz Morali

joining With and for Witt, Hume, CFO. you, good everyone. Marshall you Thank morning, CEO; and today's today me for call. are Rich Thank us

turn the This call TD not XX-K Investor We Reconciliations call, in filings on reference X-K and Form to Web site, the during over or earnings rebroadcast filed progress, Before let and this non-GAAP property statements statements our may predictions, including estimates, Relations everyone macro we materially or forward-looking reports intend of other recorded me Factors demand, that be Risk to backlog forward-looking and including Rich? of I are in discussion Form and supply, contains ir.synnex.com. results and today, available now economy, SYNNEX non-GAAP a section strategy, laws, we we forward-looking release, permission. release conference as press GAAP will within Also, the those related federal the flow, investments. integration leverage, securities is may future risks these and our cash any information. financial not Rich. our update continue, Actual about in in about earnings results events, certain do uncertainties statements discussed call the our Form statements. other meaning remind capital SEC. today's of differ will the today's mentioned and result the of free of included with and from the in our projections to statements distribution, X-K without

Richard Hume

and ongoing of democratic invasion you condemning for businesses, and Ukraine want our We devastation global to the morning human the acknowledge to sovereign community state take of and Russia. joined the I occurring governments, suffering unprovoked a the Ukraine. in moment upfront in Good call. by thank joining

do we not and a nor have customers on direct normal Ukraine Belarus. presence make circumstances, business limited do our we shipments in in Russia of While very into or Russia, behalf

time, Russia, individuals In the with products and transactions addition, LNR DNR of in or located to of or we any at new Belarus, entities or Ukraine. have suspended this shipment regions

we overall a difficult campaign. initiatives are From our and perspective, Protect giving look a exciting there sharing Ukraine and framework. we at our Day Eastern and UNICEF's time, Ukrainian on to to has week. have Importantly, do at through Investor work our goals in Europe ESG and TD of them continue pillar the such next efforts, social, coworkers this environmental, important humanitarian financial in SYNNEX, making and Corporate governance to forward to throughout and including U.S., supporting committed we aid an details contributions as broader is Children be lot more of happening will

and technology to our benefits a global clear, we our quarterly strong geographic on demand top provided saw start and line of regions. with like I'd types of to our expectations. Now, comment portfolio end-to-end year, broad-based strong fiscal ahead The and and enhanced bottom our results a results. across are QX

require. are services Our technology depth environment that a IP Based customers, work we of both a hybrid to creating the both need on large, deliver and customers adapting to is setups. devices, to for of and new able the work-from-home quickly our are comprehensive which small infrastructure, array and portfolio, to additional solutions return and normal office support breadth

level stronger our back regions all From responding or at three up, for we customers IT whether In perspective, on businesses to the end-user cloud, the in premises variant. need the infrastructure quarter. Omicron in With solutions, marginal improvement lockdowns or gained a selective throughout performed saw the of Despite see demand. addition, anticipated, COVID chain disruptions signs momentum ongoing in early regional The QX, indications, in better than despite backlog. to we as expectations, some so our of countries next began more supply our our with more some we continued, you to these due opening strategic as sharing at total executive will we we hear believe framework At current our the extended customer backlog and you a distribution of much continues strategic and with times. that members based on of be and comprised to orders needs presentations as look plans future it's ecosystem, leadership about on well from our both evolution From lead Tuesday. forward elevated, our executing are Investor on perspective, the Day, well IT views to many event, our team.

are integration merger-related on synergy as targets. achieve track planned, efforts our we are to Our executing and

Our SYNNEX proceeding some to according and on CIS. migrate Americas is we've new migration begun ERP which call the legacy platform, some plan, Canadian vendors our U.S. of and system to to we net vendors

seamless taking this customers project experience are for measured to and our a We a vendors. to ensure approach

SYNNEX good across made on progress have aligning a progress good critical, we our TD said, global variety I very is culture One there too. we our and as very And corporate made areas. Global of policies aligning Additionally, frequently have

very leaders We servant are leadership seminar We with progress bringing together we've month. see for an important of made over a so organization, across as XXX introduced forward are our and leadership the far. have and pleased model next an journey, looking the to this top in-person

fiscal As our of and informing we beyond, are variety inputs look forward views. to a there QX the

footprint GDP. XXXX, that correlated technology vendors. understand At trends believe headwinds TD the partners We continue distribution, historically and the time, to believe value capabilities choosing broad IT portfolio, the macro creates because are vendor which same beyond. offsetting and adoption the to We in we potential unique this spending fueling we more of global been that SYNNEX IT and recognize they has opportunities. economy and for cognizant both Asia, in in to recent lockdowns certain, in navigating in spending teams are our we market environment From IT enabling for success maybe our singularly extensive impacts of capabilities to the and Marshall? will in financial a who challenging provide customers our our we their COVID-related are have performance. now over supply to proven is monitoring on Ukraine years, war closely developments it the last and and unpredictable this on I chain two One from pass Marshall, and continue and to details areas. over additional will will focused remain

Marshall Witt

with had you expectations. of strong call. Thanks, to thank Rich, ahead fiscal a our and results our today us to on joining everyone for start year, the We

Total XXX a all teams Total three performance our rate were X.X%. effective $X.XX. worldwide or and net revenue at regions. $XX.X policy gross normalizing was revenue the currency alignment merger, continue merger. was given EPS our anticipated was When with million income and approximately to margin the of supply for up expected, was execution on in the expectations. Gross adjusted related focus prior than from charges representing income $XXX of was non-GAAP $XXX environment, million in our billion, and products expense in margin Total X.X% a interest constant finance we line expectations. and $XX team. expense the geographic X%. profit non-GAAP $XXX good able $XXX approximately and SG&A came across adjusted X.X%, to million to year was We ASC Non-GAAP non-GAAP non-GAAP line were our was operating reflecting for deliver tax see mix and and and as million grew when execution, by with Non-GAAP XX% and operating at was and million challenged excellent diluted better favorable X.X% revenue the revenue the

of $XXX turning Now, the $X quarter balance to and billion. and cash million debt of we ended the sheet, with equivalents cash

Our inventories $X.X X.X times totaled gross leverage net was times. leverage receivables was ratio Accounts billion, $X.X billion. and and totaled X.X

working the was first of $X.X end net capital the quarter at Our billion.

a cycle the in be return was months. to stockholders in to to QX close April support of growth, quarter fiscal and of the common in XXXX Our a XX on in was three working a as for was XXXX. share. conversion was of capital temporary revenue million due record used purchases $X.X Board higher the are days, the X shareholder next XX to per The approved cash four cash quarter. approximately for net which that and use days. paid of increase is to 'XX, dividend $X.XX inventory quarter, operations This first primarily the expected sell has strategic than From April XX cash dividend to our of expected Directors of through on perspective of business Cash

$XX million allocation and intend fiscal million to bought dividends capital As 'XX our back do returns vehicle, million expect last targets another both repurchases in $XXX and about as we share repurchase and we're earnings framework a to repurchases $XX call, mentioned of that in already QX we in shareholder QX. employing have in share

progress going As good Richard to realizing on and merger. integration we continue our mentioned, well are efforts make

and mentioned taxes the I've costs, the span optimization and related previously, opportunities As as rationalization across GBO spectrum Data efficiency including these improvements and interest. variety areas, facilities systems, via deal of Legacy corporate as a traditional well program, synergies Tech IT of

to quarterly headwind of to we revenue accounting per year, and weakening mid As Euro. contemplate alignment is update. $XX.XX our in $XX.XX an expect share, headwinds impacts of We to full be growth EPS non-GAAP approximate which which to an last includes of approaching the a $XX.XX expect $XX.XX of $X.X due the $X.X from fiscal the from FX the policies, now to we increase due single-digit, approximately billion provided billion

Our from $X.XX updated an FX. also reflect forecasts headwind expected

and we you with full-year. Historically, guidance, quarterly view Investor our next of we'll to we precedent upcoming quarter. wanted Day, historical provide return to our the provide updated Given an

rising information potential fiscal of the in currently given more the uncertainty Against at bit specifically level chain the it's to impact, backdrop, more view we Ukraine, QX with have our encompasses to for constraints. Looking supply economic and and that war due COVID the increased our estimates, forecast the given full-year. QX, a current continuing precision, macro inflation difficult

revenue to to This XXX and the expect of equates on around policy range we to for in the currency QX, fiscal million billion $XX.X $XXX approximately X% $XXX to $XX.X of alignments be which total billion, approximately growth adjusted of impacts year-on-year related a ASC basis. revenue when merger of For million.

began to we range the backlog million. X% and $X.XX based expect may be results that the expectations million, diluted stabilization be note to our in weighted rate approximately XXXX impact our on interest fiscal of actual of compared is net diluted $XX revenue Non-GAAP be to approximately $XXX be of Operator? will quarter to non-GAAP in approximately $XX and levels, XX%. to will to the and $X.XX see to expense our estimate is per we historical level X%. expect million, some fiscal average the non-GAAP questions. range in Please the we elevated differ outstanding Although share regarding are QX, We QX $XXX to be tax income to EPS expect in million is full-year to second of expected Non-GAAP now approximately statements shares to materially. forward-looking, your and these for that and take XXXX of our be continues

Operator

with comes Bhattacharya [Operator Ruplu the Instructions] Bank of Your question of America. from first line

is line Your open.

Ruplu Bhattacharya

that Hi. Tech Data side I side Thank my SYNNEX quickly X can how taking margin about comment you the some business you the on of of synergies gap do Rich, GBO close? between the talked if was of the And wondering for that the and initiative. differential questions. the this and specifically, is year you million of $XXX business, to deal you've expect and from

of margins how like sides wondering much between helping just harmonize the these the business. two So, are to the of

So, any that provide be comments would you helpful. can on

Richard Hume

Sure.

the margins when some of the differentials different, that As the regional take rather that very companies. generalization, the you'll margins between in-between the it's at legacy find differences see the a but you the businesses, not margin are drive mix of look a you two Americas

that the For Americas many lower are I'm by country the complexity within costs of is when bit Europe, driven structures in margin and due compared the to sorry, -- generally IT companies within a that regional to profiles industry profiles, region.

European financial of are the perspective, on close are differentials. just really model out, from with a So, margin that's quite European model. And that good. to of The the it way return about think capital attributes our investment happy we kind we

there And of business. is on And in so, we do the about that, what intensity endpoint that's addition significant. Europe one fairly and some would the last around lines, margin lines attributes call, And although of to part way actually lower really, in the, thought good. return business are We segments Europe is, mobility again, are the really the are those think more I it. carry they that around capital mobility attributes, invested those

summary. sort the of So, that's

of had we in a to recap from again that, deal, one, to synergy for We $XXX there. addition incremental just actually, from total. in ahead million our plan; year to bit two, million at relative the about committed $XXX that in what at of where In running we're to perspective, time year million track, execution overall feel a call good tactically, on it $XXX expectations

Marshall Witt

Marshall. this Ruplu, is

for better Just an the to million little taxes synergies and add just operating is element income of year a that reminder, the one, form of $XXX as color in a below interest. to

So, certainly do from benefit, your margins and also initiative, a from benefits they SG&A do question well. GBO below-the-line how there's to X as an but perspective

Ruplu Bhattacharya

similarly, the like I two on are Are would for line for that prune? cards to had thanks ask cards details that, to Can Okay, of you, there Rich; also all the time line appreciate you've parts or, you that want the now to the you look I parts it. there enhance at companies.

Richard Hume

enhanced let line to you to card just enhance. will, move So, the new parts it to There for of of on would the emergence that the And, one has the entrants, market. do piece always with moment. you into me if usually, like are

always net very card, satisfied, the we improve our capture we're fair it. out share is carrying a generalization, to looking overall. line in sure we're to development so, way new to those as make the entrants with And But it, that best business of our but always focused

As relates Data place. portfolio to that, I in was about that we activities public a company, know talked past, when it Tech were some taking pruning the

been of completed past. the that material those As in say, a were activities, most have would I generalization, portfolio

we're right no time. current you relative at executing that So, are And speed ahead kind of there anticipated will, foresee significant our to prunings, now, full if business. we the

Ruplu Bhattacharya

or environment to you revenues. is need but XX% Marshall, future inventory for Okay, squeeze up purchases. plan thanks you squeak for more strategic one that. an about in. inventory Looks sequentially, And talked just I was can where like for, it

think talk can flow forward, and maybe how about this cash So, we you cycle you going see the year? should how just cash conversion free about

Marshall Witt

Sure.

So, Ruplu, The the did XXX about days XX to was every coming or of landed terms it cash temporary. quarter. to QX, We Think elevated. usage. see a around this, it XX. four-day cash around out day we'd in about two generation call was deterioration that conversion cash We of thought, just out for is

'XX be as second together, our and that we through we target. that's saw. of And that the still So, billion of being days about to we the cash our six and achieve year being of We $X to rest seven hit increase think 'XX that. believe expect flow of thoughts able our to on free is still

be think, programming supply management program benefits on continue customer financing. will that. and The the the other think and and still is Those we forward. our vendor us of remarks our to referenced to us, overall allocation capital deploy to from aspects in for we various synergies our brought going management and significant is, that, how are opportunities prepared as earlier We there significant plan strategy overall for that we into

Ruplu Bhattacharya

taking on and strong the quarter. congrats Thank the execution my questions, in you for

Richard Hume

Thank you.

Operator

question next line Ananda the of Loop from Capital. Your with is Baruah

Your line is open.

Ananda Baruah

the guys, for and morning, if good guess, results, could. for just the I I congrats Hey, thanks question. and a on strong couple yes, me, taking

being You guys of that talk about mentioned you the a then line. follow-up. your top And were and including saw expectations Can as SYNNEX-specific? couple had there, expectations results or what a ahead that's your above Thanks. for anything you of the I times drivers

Richard Hume

early bit as as you. an maybe would as a good moderation to Couple of little on a so, that COVID quarter, the relates quarter Solutions we we segment projects. behind the that I to thoughts, of that acceleration Advanced And lot bit beginning in had year, a Hope of of we within they're ecosystem, fact, this think Yes, the point move Solutions, you're the that call doing quarter, Ananda, root. theory through segment. last morning the well. within is PC within the it see the strength Obviously, project-based worked datacenter, we, obviously, more we we People business And prepared Endpoint provided we'd this is, a through in to people and coming And take stated the now, weren't there to way. seen Endpoint. and and comments, remote, that being into backlog Advanced which segment. call it's delayed. out in then was with be a still off those But and the moving to we view playing had deploy throughout

seen. So, that's how I what relative to would had we state

of overachievement to So, the segment. due to that bit about Solutions be primarily that Advanced was we're talking specific, a

Ananda Baruah

-- a super things, a year could seeing? just do stable great, but current I little of you you're to the today's different, going And current Hyve helpful. think guess a forward could it to business, shipment you book, the me. kind then like I -- look view, from going over That's for know would So here of follow-up, just the like it's year business, on And give more your just too. of guys. color from Thanks, go is any your are you view like from might the us PC like, things throughout baseline sort through guess on sequential I'm what I the basis, two baseline be that's bit and what year-over-year

Richard Hume

would rest PC Yes, of bit I on couch and piece. still it, being a again off so the was know, I'll I year things robust, sorry bit expectation that driving the are PC I'm way give the piece, sort it Marshall the first-half to of piece, Hyve you moderate, then moving that that to demand comments the the his are space of But little still as is come through maybe for et within the which repetitive. attributes cetera moderate maintaining in sort put But that tend operating conscientious would sort or the to there handle we the as year. apologize is and more applications, hand security, of good allow think the the to the around some through of I the very moderate And on as Marshall quarters, systems, then of moderate back a new system to have in continuous next it to would kind expectation through category the of transitions. be the some sort advanced opposed than of ever said And and pretty help Hyve half But me robust then, piece? the to every piece, of moving about that moving the And earlier company drive refresh. year. forward couple as growth attributes operating category I

Marshall Witt

to Ananda, we to Hyve speaking, end-to-end new that from Hyve quarter. we has their double-digit In our parts to lubes, in strength. basis our done Hyve had a customers. further hyperscale previously, comment. on to Broadly the also enabling spoke similar And and global spares, that. tremendous overall like provide to QX. strength players a solutions in And continues certainly represents is distribution replacement increase of great the portfolio infrastructure job customer to that as a And That's what to capability grow benefiting show business the is industry continued expand current Hyperscale saw category. quarter,

Ananda Baruah

wouldn't be a Anything that's aware this to that? of robust super why continue should if beneficiary as hyperscale be that helpful. be Hyve year buildups to Marshall, that of, we

Marshall Witt

they're as lumpy business. know, it's Certainly, you correlated, a

strong a Hyve had QX, So, prior-year lumpy speaking QX. of very in

operating Hyve tougher between revenue be that basis, it's So, infrastructure correlation the out on expect will and we'd you there an think and annual look opportunities. if a you compare growth as first-half, but about hyperscale grew a and income Hyve

Richard Hume

the a business quarter that you feeling annually. that sometimes bit But that, stated, it's relative to really that reminder Marshall that within to just are growth good expect ups of quarter compares to depending had run the think there are stronger. quarter good and on and I is as into reiterating we attributes downs segment have and I'm flow our to a that ebb requirements

So, but business. of that we like fundamentals the

Ananda Baruah

lot, a Thanks helpful. super guys. That's

Richard Hume

Appreciate Thank it. Ananda. you,

Operator

line Keith Research. the next with of is question Northcoast Housum from Your

Your line is open.

Keith Housum

to talk Good morning, you guys. to again. Good

about seems setback the Hyve at quarter. Just operating in by but answered second perhaps looking have back. there's this least guidance, anything a from question second step terms like part your we first the you the of the in terms quarter margins quarter think it in And of operating may response, margin

Marshall Witt

terms is meaning and similarly I this doing is Keith, of provide hope collective Keith I'll behaviors commentary. behaving revenue seasonal together QX and the are profiles, organizations it that come what profiles Rich morning, are QX take you're then can any Keith, seeing we're Hi, well. consistent. first Good in other margin of very fairly the Marshall. just

one. points, been plus such historically Tech changes numbers between we're and In can typically just than in XX starting You just is We're come we're what a traditionally higher posted for see that structural gross organization we coming but quarter stronger terms nothing balanced seeing terms margin In we're seeing between business of has terms some has most AF or of seasonal changes seeing profile. quarter also margin, combined that relationships profit structural see Data a of higher margin. two in seasonal is in nothing profile demand three. a that and quarter to we're or AS that more in QX, basis in relationships, minus, is the operating in quarter as that what what Legacy together, EF, and gross margins a down or the seeing of QX,

Keith Housum

And in of the to year? increases pricing the how seeing versus a bit interesting terms in balance you the right, deflationary and you pressure lot wage it. guys the from a guys terms the some wage of inflation about then, have we've appreciate think you had the can over I pressures. helpful. for But the talk vendors little that about are remainder year. that's right, I environment, And All price inflationary mean, past of of

Richard Hume

so to at it so a to let's Yes, let a start let take time. me it piece can me -- off I Keith, it hand Marshall, then handle and

as away that. it changes in move are all and upward you to expensive talk freight, prices And all it on situations as are an there more we expensive all labor, that from And so relates more that has pricing, you the things about know price First, time, moving, obviously abated. the direction components, more not expensive through it's continuous in you vendors under we our is prices. and, to contributing we inventory system up. increased depending take basically as within prices I you We you our those their circumstance benefit believe the where as can have know, know, they take up, from know,

So, bps we kind get a happening to us, anticipate to margin like of happening are well. type advantage Then that that's occurs. X that the us impacts XX when closer obviously, the for sort through of world home of are as activity inflationary to that to

we that going worth pricing see we're addition top the a that unfold, as we are than to up and freight increasing that as aligned we try way on of more make our that's stay execute changes we been, Then with cost we're that to historically. and we business. it has sure see that the So, bit we well. And sure of sort in and sure labor that staying has in to it make determined pretty of those make

Marshall Witt

to able cost pressures pass-throughs erode I'd little it margins. period have may doesn't only enhancement, that of where effectively more the from or ebbs thing And a those may over have cover typically with add that's year our the higher to of whether that such bit a see productivity quarter-to-quarter Keith, any been and or inflationary is that the flows we we associated we

Keith Housum

I guys. appreciate thanks, Great, it.

Marshall Witt

thank Well, you.

Operator

of The Stifel. Matt next Sheerin with the comes question from line

Your line is open.

Matt Sheerin

that were between thanks. to we're the parse very So Do because of you segments? Good could backlog long for concern you into the and that infrastructure one differentiate morning, those networking and stabilized. rich, is lead follow-ups Yes, products? the being two the that everyone. that side have sort questions just things storage like I some side commentary client versus times device still hearing asked

Richard Hume

marginal you improvements Tale seeing backlog we're is know so the Two Cities, that segment. Matt. coming clearly question, in Great endpoint the from It of the are the

an have the advanced piece. However, we still and in growing a backlog solutions elevating

particular the technology, Just backlog, see for are longest, there, so the issues about is board, across the it with two the cities lead but newest we of the times sure. tale in within the

Matt Sheerin

then, also looks previous And down. into a just the a question nice backing mix margins, function helped you QX. sort of like helpful. had that looks to be question, really that's the upside and margin gross margin, on that's going of Okay, drive in mix into regarding like Is that it we that

Richard Hume

Now, spoke to website, it we and said we about investor pre-merger know helps with a affect to I do and QX as see reminder, a We that, margin the earlier also comparison. just year-over-year. have margins gross as QX TD apples-to-apples just consolidated that as this want and Keith, the let the does comes for or down an investor and have SYNNEX show earlier, I I Xst, of assuming gross having profits great margin deck improve but we as Keith that's should together hot and that December for question, it, year-over-year helps to results sequentially, you comment were

expected to We improve. also

Matt Sheerin

a guess be sequential, but on like it My sequential basis, gross a down. year-a-year, was margin will looks I question

my issue? And seasonal that a so, question is, mix is

Richard Hume

that's with right. play It's ES exactly that's versus overall is see I and back the to It what AS QX, and or we Keith commentary experiencing. between QX, in had we're just QX that do an

Matt Sheerin

right, thank All Okay. you.

Richard Hume

You're welcome.

Operator

is with Suva Your of next from question Citigroup. Jim line

Your line is open.

Jim Suva

it off, materially, I It to if you, my you outlook. think you're was XXXX one looks XXXX. full-year morning. it XXXX talk Thank memory like very had and taking about your like And on question is good right, I that before is and to XX.

if months three really know good materially. that elevated you mixed, drivers was, me let are So, taken be that giving seems of to Can lengthened margins the the ago, right because and main backlog looks and it like better it's even it's is off like math my it is behind one visibility.

like So, here. seems it something materially really has improved

just so, Thank a is you. which about curious I'm And that of improvement, kind positive.

Marshall Witt

adjusted to the pleased around a rate let I'll Marshall. the digit the is overall this growth to that's for better able the is within very guidance that XXX two combined at and to the experiencing of with we and it we're the full-year think be to realize ASC Rich start affirmation synergies I'll Again, entity. and mid-single I that finish and our backdrop is commentary. competence earlier, performance in than we're year. start to raise Yes, for second categories. regards the ability goodness for in is FX, the the spoke One

a working touched this our together So, on little bit earlier. team's and I

finding tracked after synergies, and our discovering goodness are in two everything is seeing enterprises regards we being expected our but through better coming than even see hard We a that aren't ROI ways together. that more rate efficient we're to continued that to to at be beneficial, go

Richard Hume

it's Keith, on comments provide that. Yes I wanted just to some Rich.

well, it's the if the give had if could, believe that the them midpoint confidence portion QX right? we the midpoint XXXX I baseline before full-year, go of we to material that we and arranged to we eleven like of As you to in some have you delivered So that in if we'd XXX. go give to margin I currently. It's the delivered relative back that just in a box

that have I to sure perspective. you just So, want make

Jim Suva

than a a lot a milestones talked synergies, And lot slightly side, you and and great. good revenue as better, revenue is we'll better on or wondering something that that be not get better approved something a your at vendors, synergies. some to talked buying or or purchasing cost rebates next then costs, is Again, of discovery being about some or focus revenue synergies more just power. That's follow-up, that thinking bit on Day. whole process week the about the Investor you've still about hear. synergies was just hearing side potentially, there is little about track a about a lot On per things you've your your is I'm little which a there I'm

Richard Hume

had recap So, data category one there just Legacy SYNNEX, check are a revenue we stronger a Legacy of TD opportunities to business, center revenue, believe broader security and that the a synergy practice. a had is, base business quick

with right. both So, in directions we go that

our you what are remember Now, to have yet is not ERPs consolidated.

the will, you a a of to to legacy there's show etc. of loaded other opportunities manual these get reps one side the if into it of having one whenever engage system, bit the engagement, So,

and that So, able when in comes naturally sales engage. within a their to they get the common system that work person the we they And revenue the to really then, for that system all it's in that to. our be ERPs, synergy speculation aligned visibility unlocked the then have will life

about So, to will take we we platform. consolidated get long hear we short, we a we can, them, be but unlock story as them, the once see advantage

Jim Suva

you going to it that I consolidated slow. you're very And ERP, mentioned, platform know do

North American of timeline that So, hiccups. no what's that's It's persons, on there's the again? kind

Richard Hume

call consistent, Rolling we'll over time year, everything getting Thunder, to now end said business be months the year in to feeds mismatches The portion some moved in close but in And and board the expect the if the a the migrate if will, also the line Yes, then we're the are entirety goes have started over. already a within rest in Canada, be planned, out then have April, business nine of it said U.S. be the customers to will of cards expect underway, already and of get so of as we what of we'll year-end, underway we've it we've the I and you the total vendors we'd that in 'XX. pretty the two integration horizon, this the U.S., the we material and to to we'll by segment CIF significant first Canada, of through last to moved of system we get began during getting, as sort get big May, a by in Canada, then

Jim Suva

you, time. job. and a and such challenging to your Good in team congratulations Thank you

Richard Hume

hope Thanks and very morning. great much you. a you're having thank Hey,

Operator

Vincent The comes the Colicchio Barrington line final of with from question Research.

Your line is open.

Vincent Colicchio

I Rich, wondering you was share are talk gains? Hey, where seeing of business most the about could wallet if the what you areas

Richard Hume

questions of move them, vendors, an as they quarter, of in the with we say to those action new lot of overall because taking concern the you we enthusiastic will, have all larger had if close shares if had relative headroom transitions away, past perspective, some would with market follow indications, have we none they that But perhaps and had from So, be I IoT. engagement to our whether to cloud, and a security, that, technologies, been of there's all insights, wallet vendors, would the of the those you feel with had of analytics, if we the obviously will.

and building we're another so, is example AR/VR And Edge a lot solutions. of

And So, of we we kind out as move expect And I will to engage how of forward. growth plans we're building that the it. about consistent, grow think market with ahead areas. not in them that's would those if high

Vincent Colicchio

in integration disruption market tight sounds but Data? pickup like has is ask been labor the there well, given at and integration, it need any going big to from And the Tech turnover

Richard Hume

Well, turnovers relative of been. historical world, have the I norms like the have think elevated to the been what the rest

teams However, great that opportunities fair of make say understand current concerning, unprecedented competitive the your there's say question, And benefits. where career is us focus anything direct opportunities, of and wouldn't out set for our keep a up currently. norm sure environment, really we're within is our there's of to and or to like close sort providing I with seriously we're the be but and nothing to financial at, we that answer that that's

Vincent Colicchio

Okay, quarter, Nice answering questions. thanks guys. my for

Richard Hume

appreciate joining. Thank very We much. you you

Operator

are there no more This questions. today's nice At concludes Have day. this call. a time,

Richard Hume

day. Good everyone. Thanks,

TD SYNNEX (SNX) 24 Mar 222022 Q1 Earnings call transcript