SNX - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Rob, and I will be your conference operator today. I would like to welcome everyone to the TD Synnex Second Quarter Fiscal 2022 Earnings Call. Today's call is being recorded. [Operator Instructions] At this time, for opening remarks, I would like to pass the call over to Liz Morali, Head of Investor Relations. begin. may you Liz,

Liz Morali

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

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

Rich Hume

enhanced we tremendous evolving and making $X.XX impressive proud integration. I'm of and our you deliver and of the best-in-class and earnings framework data for to medium- the by fiscal a while of in This our center our our share, the XX,XXX more have the in Investor as joining long-term were positioned global three on well March strong years. at business. in our and these and like continue over results. morning, IT are delivering financial you generated portfolio, very technology able the technology security, From we cloud, on presented we hyperscale call. months We to Day, XXX,XXX key thank distribution focused our good financial while with unrivaled to form accomplish of ecosystem with of investing leading infrastructure footprint vantage X-pillar opportunities underpinned to objectives digitally solutions per strategic performance strengthening $XX merger hybrid and closed a successfully role in And than analytics our TD ago, coworkers point, network together, non-GAAP to billion and share X,XXX coming partners, grow high-growth our our strides expanding transforming partner strategy over vision merger efforts all XX than our In Liz. we incredibly our and solutions their landscape you, SYNNEX. our revenue is technologies great Thank quarters this aggregator. over along to first with Nearly Through the support vendor customers. more our

adoption. companies that work, individuals intensifies and products serve change of for enable as the collaboration, the and and profitability. industry-leading and market, This was adjusted fiscal to demand proposition and merger assuming an ecosystem faster enhanced productivity, in having hybrid our revenue vendors policy by X% FX year-over-year, technology enable In to time improve security the we portfolio. This strong are Our for technology their further performance and and strong alignment. agility, success multi-cloud we if our QX year by in services robust to exciting solutions continue the in security the given revenue prior QX, result grew demonstrates occurred value is products and advanced developing pace the driven

rates continued growth the growth. several increasing revenue both see with hyperscale past we've strong quarters advanced demand but the that business the prior We line expected. year-over-year. about environment healthy endpoint and year-over-year our with line experienced double-digit to solutions in moderate, basis, our pandemic on spoken and a America's grew during to In seen supply-constrained consistent a expectation. was tough The continued as for continue On infrastructure LTM From distribution declined regional given perspective, our basis with year top expectations. year-over-year our compares, an business PCs,

region. also the Our currency, constant geopolitical current measured in given year-over-year grew more in pace European conditions economic a albeit and at business the

it pass results, elaborate on update I QX our over to activities. to our further an Before to provide I wanted integration Marshall on merger

we be systems the important large TD the went progress portion track April-May we to harmonizing a an to the our our I benefits of transition Canadian as are migrated I'm business. on system. happy project our plans systems last report timeframe as extremely optimization well as ERP U.S. synergy to our We processes, programs and you on new business that migration and From perspective, well, would with across shared that continue excellent SYNNEX, quarter make with and to attainment.

performance. As we this the now further half year, momentum on will pass over to provide it we've and pleased experiencing are who extremely made market. progress back color we with will fiscal Marshall I enter the QX are Marshall? some the of our we in financial the

Marshall Witt

margin on versus thanks fiscal strong basis. Rich, X% a performance billion, for In agile of is performance result midpoint our alignment dedicated for to we our growth a from we the to versus Thanks, was business This rate strong for both by The guidance. team Euro and related global and the when high headwind healthy headwind the worldwide fiscal currency XXX per merger. was the approximately consistency is with and driven last testament of strong our our model. and at a adjusted and constant an for in core currency and year another in than prior revenue efforts prior resilient Total revenue year-over-year entrepreneurial the year-over-year revenue million portions QX, business. XX.X operations, provided up cash and call. this QX today growth Gross share, expansion, constant flow earnings us approximate growth delivered stronger for of joining accounted X% outlook performance adjusted of QX million incremental the devaluation policy the growth XXX quarter. the

Non-GAAP $X.XX. adjusted XXX business large of and APJ environment, had tax product dollar. was gross compared representing operating was experienced margin and experienced was compared to U.S. X.X% the favorable million three X.X% finance compared devaluation of government FX project all million, growth million X.X%, XX FX the year prior XX% impact were distribution the expense was Euro the negative XXX operating strong Total non-GAAP XX income Euro improved from XX compared was regions prior to the year. non-GAAP impact income a diluted XXX million year. negative year, prior was the interest the Our non-GAAP gross million US year, net margin the the and XX%. primarily one pricing operating of X.X% our million the Total charges and profit the in due was period. and non-GAAP million in Non-GAAP impact to line year, excluding on and approximately EPS revenue XXX across with profitability rate up devaluation reflecting prior solid prior effective had profit execution. to to primarily versus to versus in year, mix, a up relative non-GAAP prior All regions and expense due income a a Growth prior in on expectations. was X.X% SG&A for to the dollar. the

We X.X sheet. of balance the ended with and debt to turning of billion. cash cash equivalent Now the and million quarter XXX

gross was Our X.X times totaled leverage inventories Accounts X.X and X.X and net times. totaled leverage billion receivable billion. X.X ratio was

X.X a X.X capital decrease billion second of quarter of QX. was at Our billion, in from XXX net end working the the million

has from from purchases. on working the inventory Our cash of days, partially 'XX. for business net unwinding in the July cycle XX, $X.XX a QX operations July the capital shareholder expected of revenue dividend record of of From $X.XX return of for The stockholders common down dividend XXXX cash per to of of in Directors strategic approved was on days billion is paid to three was support be quarter. XXXX. growth to our quarter to was current the share. quarter, This the close approximately and XXth, XX due perspective some increase as QX conversion Cash a Board second

In continue to of our line our of approximately on quarters hundred have repurchased in and July first a also two XX million the the expires $XXX. we which repurchase at three year, a We shares stock we repurchase 'XX, price target year through million XXXX. share repurchases approximately of stock of authorization, have our weighted average XXX of with remaining fiscal million of for

our quarter, I third an our Before a for to on to I the synergies. provide update moment discuss outlook wanted take merger

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

of We achieving schedule cost remain synergies. of to merger are ahead targeted our XXX committed and million

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

our net year range approximately the weighted around approximately Interest of And a to $XXX total in XX% billion of that's Non-GAAP range of the alignment EPS $XX.X the XX%. expense which diluted outlook one million. had million. policy tax is to million merger be share, on revenue #XX.X be approximately a to for be to $XXX the expected approximately prior a be for diluted is assuming in million $XX.X and to to at of currency revenues to in Quarter over and $X.XX $XXX $XXX million year X, to expect rate we basis the outstanding impact of $X.XX per fiscal of average be approximately to year. the Now midpoint the relating merger in expected shares expect on adjusted is range the income occurred to $XX non-GAAP of moving we billion, to million based expected growth equates

$XX.XX fiscal full $XX.XX non-GAAP to continue the 'XX year diluted. For EPS expect of we diluted to per

year this $X.XX approximately We euro is the headwind prior despite reaffirming FX The 'XX an versus the the year from total now full March. $X.XX. headwind for incremental devaluation of since are outlook fiscal

your now We question. Operator? will take

Operator

Your first of from the Sheerin Matt comes Instructions] from [Operator line Stifel. question

Matt Sheerin

just from demand My regarding a continuing you're more much, see very PC everyone. fairly Thank you on that give bit the commentary you you "moderation" Are starting weaken? morning, back still your accelerating and customers? sounds question, Rich, overall open in expectation And that the there. that Yes. comments like then you relative still for environment, you your seeing? could are quarters color supply you've bullish. little projects second But previous good to sound the first made up it on coming that the about to us and to in is infrastructure also And and on-prem seeing hearing half,

Rich Hume

Yes, your you Matt, question. for thank

talk So those on first, we currency in Solutions we and when segment, both constant Endpoint look XQ a Advanced and the about we of talked back about growth basis, segments.

commercial the at we of least that I consumer story of have with it noticed is would commercial demand some the a that the we piece. PC when there, foreseeable number, have a addition And they the in and In profile. to that, category for think ball, schedule that scheme grand think, portfolio to associated the look and our and had PCs you from consistent about your to number in And our least entire say separate at we as within in point, articulated future. The it's Chromebook to think down the move the at realm good had the that a our to remains and PCs as estimated. I the from had consumer get on schedule I mid-single-digit what And as kind weight would scheme have we're overall for piece, everybody the incorporated is portfolio, weakness, well PC crystal a pretty previously, of as you segment heavier second them. fit to single-digit what in in would be how the

the sort of the of view, that's that articulated sentiment the So point would we we that I the way that think have see and reaffirm PC of providers that it. market,

segment. certainly, in good to Solutions, believe, segment. have you we there as the to pandemic, than Advanced for higher through the demand a and Solutions had do continue endpoint deferring. rates it moderation talked will, high the year, since segment, the with if and that the coming the of do while As within been the growth around launching good that now had And Advanced see And we Advanced of PCs pretty sort to strength, you you're I of Solutions demand, relates demand beginning the PC

we how see So it. that's

Matt Sheerin

Okay. in ramps? regarding that? where guiding inventory to the had down just August $XXX essentially, Could build related is you quarter. as about quarter, the And sequentially you of well, my that you're stage the inventory up that or And your for any products typically sequentially, you just then ahead but follow-up, any million again of business slightly Hyperscale explain

Marshall Witt

is at and that It's an we some higher Hyve. margins it's buildup returns Hyve. equal saw Marshall, solid the balance build the of distribution we end that for and between yes, Matt, some this QX you question. of demand of thanks But the for QX and same forecast up, experienced in the and of

thing that second same the expect half. We for

Rich Hume

we to quarter, quarter. We what look we continue The I to X in be quarter, supply comment quarter, volatile. that as the accomplish is chains need usually the make would at

in So tactical our financial you here to there and be And we we think, what to pretty Investor I frame. do that and stabler Day working the in are for capital, see if sort then for we'll comfortable will. grounds, see of articulated we we bit flows a environment. the capital a we're working once these move But with model unusual stable ebbs in were bumps road typically in if

Operator

line comes question from of the Bhattacharya of next from Bank Your Ruplu America.

Ruplu Bhattacharya

million like about million top to looks the an It impact is incremental on and $XXX on the EPS. FX $XXX $X.XX line negative

keep giving the for guide thoughts in what you improvement can drives the 'XX and to EPS you is on So confidence fiscal your And us fiscal operating margin unchanged? XQ? that what give

Marshall Witt

Good Marshall. question, Ruplu, this is

really we confident. feel a yes, $X.XX So Clearly, is the headwind.

thought there, that. good also we what profile good we that. our be, net margin revenues think range operating adjusted we to gave gave X.X%. As then guidance X.X% a we to feel about feel still about Investor X% would really profile We thing at X%. Day looking and of of And overall an we Same about

it execution the still The from. that second the our offset we that will benefit are going that that of synergies year that to spoke those the IT to to the good headwinds. investor also us decent So that call confidence of we'll belief business, we the presentation growth can in half FX spend we're have, give

Ruplu Bhattacharya

your And that? and inflation seeing you vendors Okay. Are also continue talk Could about margins you about to from environment? raise prices? talk the pricing you wage can impact to

Rich Hume

Sure.

to board over So that would last factors that the going to has the the on year first, price years, all changes in with, environment, there certainly, we're we're consistent X.X pricing I right? been based basically across familiar And of that the I of of speculate changes price they'll down. the inflationary continue. sort start frame, forward those until tactical But abate. will for ultimately sort as that, think see calm we impact to continue to would that the suggest And I move

passed that it make within manage how to overall compensation across first carefully part inflation into our we the maintain it sort sure entire We is gets impacts so inflation -- and the our labor of labor translated all, chain. to price that supply the I through. competitive competitiveness sure of relates As those within business, pass of At them we pricing the reasonably you our make impacts of and consider them we to quickly the we'll there market. incremental But through get end are would marginal, users. to time, they same move if to sort will, increments. overall

Marshall Witt

merit QX. And to cycle remind is into Ruplu, our just you, -- falls

on ways to over revenue. for back to of little we the do X.X% probably that. what offsetting is X% you'll in Rich us And a said, higher range So time, find relative SG&A see bit still to SG&A. range that But

Ruplu Bhattacharya

you last if higher at Rich, question. level I can a ask for Maybe one, the

that your of investors improved can it backlog, rest the year? of talk slowdown in since talk trending any about And you that Has recession if you possibility the Europe. the region? ago? Have expectations the visibility? in a or and anywhere days any a are for XX concerned So seen also U.S. is slowdown about about in you how any your can the And for

Rich Hume

Yes.

global which see will, world. Read what actually find is and Americas market. what And if information, of the take been out it guide, take the we single go flat bumping European IDCs publications, information past around has here's Europe market most robust, the So and And is call the the you -- that the to more see been mid- the from a at you'll market look if context than high to channel we digit, we it those up-to-date higher digit. have overall. you is you some recent the Americas over single in

to speculate market have could mid-single-digit in Asia the you geopolitical up-to-date Europe which you're potentially. right we would sort the of guess, Pacific, impacts be think a best our of now. issues of see but information on, I So speculation some seeing Then don't

for our the quarter with that will. then you emphasis where coming each informs create my And then ball it as we say if of through forward, We move pretty in as do of that good would backlog that sort see and see good, about, about that was backlog. a we we sort in The And a bottoms-up time, sort move moving is each the is segment feel on particular we really play as sort move out. sequentially we there question, we quarter as things the forward, how perspective think crystal region But view if of that's next the So would your down from to marginally looking in. total. a commitments operate marginally of guidance, the here robust year. hopefully, feel When we backdrop demand. we And our down of our that hear our we'll the basically view from of growth forward. rates remainder

through that go the Ruplu. that's we process So

Operator

question next from from of Your Jim Citigroup. line comes the Suva

Jim Suva

ahead those you we're time You are had the approaching remind year-over-year of TD hyperscaler was Hyve starting since difficult the as lap us? comps SYNNEX, I for quarter business? the as mentioned Can are to look due next down now kind we to in and comps, period demand your of seeing Hyperscaler for difficult you with what said or think integration X, us you of that the you and for behind And expected. kind

Rich Hume

I release cycles the We and Jim, the over in the you are we we about data Hyve into might that we lumpy easier sort total then sort in confident QX we and that, firmly you recall benefit rates, QX, that. that's And would of say market QX the potentially like find sort business. would that a into release, business case bullish believe think that, then in and And I sustaining segment that ourselves would broadcast, then talk previous tell and then about stage well as double-digit segment falls time. always you of has we into and that growth of stage, being of that when compares. category some category. the going has hyperscale and state time. with The

half 'XX. So robust it XH the sort for second that then the half in slowed we pretty have of that the 'XX. entire was of And the business back FY in FY in of category

for total and And so both get yes, compares that segment. the the easier

Jim Suva

my question the then is And inventory. follow-up on

it say to think seasonal existing challenges maybe comments people the today, chain some you'd be you're August this quarter. will going it's would supply your today? for still to if weakening mentioned backlog How that Of working than of flattish versus otherwise, or demand Because course, challenges there's you be accrue of the still the chain because some to bridge exist there. do down that you quarter supply we had build inventory

Rich Hume

and Solutions issue. supply-constrained quarter. a would. then point that getting of know that of through to schedule bit long we Marshall, sort going going sort are on, hyperscale golden -- said stability flow relates normally have about core to longer it we starting, add and sure business, that it things, at deployments I inventory But segment to we're on many and of to the think we're we to want back had, have or back in discussion screw through behind of some on have to the all think of factors when view. term, as continuity comfortable ebb had comment themselves and Marshall. been with start a has we'll we until hanging by through distribution sort than you profile. I capital working everybody I especially bit have chain, these I -- get getting capital we environment, the I an then But earlier over really stability Advanced will. sort based Jim, the don't to the with that substantial But of then I our of said, get the turn work I'm on going to within if capital And have the when we taken I Investor that. to you the proverbial in good longs, we the caused a improvements It's we'll as working pandemic in on to continue scheduled from hearken and you everybody's they'll to anything of once in our model working out, had supply believe associated my focused make Yes, if I'm sort if the the seen shorts you march of as we supply Day. They

Marshall Witt

said. No, well

Operator

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

Adam Tindle

you on about synergy, synergies, you be about me, composition would is where if higher? existing On as And just you the of that for Or knew question. maybe the areas on map? asking remaining helpful. tracking second your may I'm would higher. to record have I'm you And even about could your talked that because tracking save Rich, finding of up slide. new are you synergy ahead, my number of moving synergy track but you ask that end I'll talk characterize faster total synergy if road total would number maybe if got being you I wondering overachieving that the the working capital

Marshall Witt

Adam, this is Marshall.

So to year. fiscal enter forecasted new No for the we're in into as $XXX to quicker moving it. say, would think way and just rest taxes that, about synergy below XX% XXX we the that, And is SG&A still elements just interest. it's I remarks, if And we're the had at and than as the our you in that million breaks of first the down, committed prepared we throughout expected line 'XX. XXX roughly

Rich Hume

sure And put then on that additional typically, -- as plan to and go to accomplished. as of make to myopically And view it relates get get what might to themselves. don't have We other synergies, quantitative you of sure our to opportunities you together, we project I'm point down kind better that, just then a that executing subsequent a We're project present you keeping focused head plan. will be. that

Adam Tindle

but just up your And of drivers there the just to instead. the do pro get The should can all way XX%. and helpful. reported capital would XXs? timing get think ROIC you talk forma XX% to was Maybe X-quarter about year follow-up, where period over back working it's could that into you've realize ultimately if as a you I'll ago Marshall, you key be ROIC go, to a view I under metric, question the the take maybe just trailing and

Marshall Witt

would basis pro somewhere XX%. Adam, an land premerger our on thought in that around forma we adjusted expectation, ROIC

other average acquisitions full of to And front we in weighted XX%. And have goal that and of a things forecast business through capital XXX always and see do reinvesting all and continues from say in you've of around that cost get of XX.X% basis be the continue companies for to see the to a we to that's and you'll equity, above and point the the debt we That full there, achieved we XXX this up. integrate back that we digestion have lands Adam, in us. heard opportunities, again, back ROIC march allocation given Adam, capital. believe, step terms in we then year. past, the As the should the and that us our somewhere

Operator

line next Your Barrington the from Vincent Colicchio from comes Research. question of

Vincent Colicchio

in general Rich, guys. or quarter, seeing like stabilization? turnover does look a you executives? top XXX your Nice increase turnover I'm And Are for what leadership curious.

Rich Hume

it successful Yes, about as clearly elevated. so really surprised I'm we've if talk with turnover, efforts recruiting how you, been well. be I in relative is To candid to our

higher I say little we're but bit So manageable. normal, that very than a would

As it incremental XXX, been managed There team that of. top phase. have sort that and no we've have close very relates mean an to through I of And quite we our them, I'm the been there's stable. stayed merger the surprises especially aware to closely workload is substantial.

our So if got asking in XXX. But good the people really more top to do norm. a than as stability lot we're I feel we've

Vincent Colicchio

your client And into meaningful X quarters it with in line the diversification. integration, losses number? a tied expectations? to Is Is that sort of

Marshall Witt

is This than expected. It's Marshall. Vince. Good better question,

a card little with had integrations we the has CIS same with If Rich customer gone we've we done very so about you Canadian base. know, complementary think smoothly commentary disruption. have line the the highly and far As vendor very the it's migration, and about

be thing to U.S. for same the the migration. expect the We case

upside, mentioned pleased conversations around So the overall we've cross-sell once and we with very onto get significant as result previous X in platform.

Operator

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

Keith Housum

Rich, quarter. you Day, your that migrating about for this quite the you about in netted and more and progress talk for over Perhaps a Synnex the that, solutions revenue. you demand towards were quarter made saw customers talked the TD bit when Investor down

Rich Hume

Yes.

space, cloud had there high-growth to Investor the that elevated Hyve so that category. of rate, you about growth track on for within elevated talked a of could, analytics to -- will, about AR/VR give has we that The Day, we will, endpoint having deliver, during you And about talking sort We rate I we're piece being if bit well. Even security, we and of sort an and talk a as rate. everybody expectation growth an if annualized. lumpy, IoT, clearly core of just think if So elevated distribution hyperscale the little growth Hyve that technologies. there, hybrid We have been about an is infrastructure. within insight

technologies to feeling that you sure about will, really good, to we're So high-growth make incremental investment, where with to we're those customer come value that bring of at Keith, and -- more set. to continue bringing kind if we're

to relates category high-growth Marshall, as a of those which that that larger maybe, technologies in becomes cloud it a the netting And an one using pie, the comment. -- as particular, get example. netting netted. into is As There bigger that gets to is piece there's you you want

Marshall Witt

right. you're Yes,

billings we try always relative to think we going what quarters gross we'll on, and thought, in But to Day in, high-growth reference about very technology we line that. Investor our with sections, when So early and X we're that profiles forward. do the much

Keith Housum

swing take guidance? will the for in your the your to of of I of and terms to and of what So the item come top it at for, higher guess, your your some puts your be on lower take end what actually big kind to the revenue take end at would terms guidance guidance? to of takes And In what minds? guidance in of would

Rich Hume

the But downturn of us of But see our that end and comes adding So And discuss mind, find take to release would low it just to incremental through of to high significant X be is of in -- the guidance, if, a backlog, bigger thing can helpful is to portion the I'll obviously, to get end pressures maybe demand put. constrained but we demand I probably it ourselves think supply would fact, at on think to constrained us be would to the able right, recessionary bigger a of a sell I is demand you have guidance, a that then what higher Marshall start, the the the adding tougher supply a it demand, of by based end. be would to that get if statement think obvious. sudden about release the then backlog. maybe the by to is of

Marshall Witt

quarter, And don't we do we? see this likely anything

Rich Hume

predict. It's hard to

demand. stuff the solutions the I think end at being the of and higher about of I advanced stuff the was talking the pandemic wise evolution PC front then demand earlier being

I more earlier, feels insight stuff is it a of his It stable. like commented is. had ask our in Matt think, that the think PC kind bit becoming I

our never we're So that our cross surprises sure would would track of we we in that supported. suppliers. our make that -- be from you are regard actually, relationship our just tight the with supply vendors hear never, there And be we the have they pleasant would pleasant to surprises. say be would fact, with regions, if once pretty that a best call. if And to range but really will, But come, most they currently

Operator

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

Ananda Baruah

you I guess could. of I is. in if have exposure I X, Rich, think any I answers what don't heard I consumer give your your

for if questions. the did, I'd So that. repeat I love apologize And you

Rich Hume

Yes.

So at we the special a you pack, take special a included that will. had had look if emphasis in or you charts the we if insight,

portfolio. if about stand-alone, think think could it you percentage total piece, a our of So about being as you the of overall of sort mid-single-digit consumer sort

Ananda Baruah

really small this at point. So it's

Rich Hume

digits. mid-single it's mean I yes, Well,

the calibrated the that well think pie, category, calibrates if I whole reality. So it the to it's pretty PC

you that XX consumer being think And PC of of percent-ish. X% gets then piece a of which being percent category So the growth. us the can whole to

Ananda Baruah

some exposure Tech about some primarily what legacy stuff meaningful Europe Data North for exposure handset had had And and legacy Yes, SYNNEX consumer some exposure, in legacy de retail in the at PC consumer the really minimis each this point? are at sorry, company? -- the those And of the both -- America. so – exposure is that side point? the this really on PC so Is retail

Marshall Witt

Yes, Marshall. we've we well. Age it, side, Europe. SYNNEX, got, still in performing you the New legacy call on great Tech Data consumer-related mobility is this legacy Electronics, And Ananda, have business

Rich Hume

as consistent well. that's expectation performing with And

Ananda Baruah

stack see, the as to Rich, land we of where like a sense, if sort Marshall, be consumer, that would for we if what those any kind would revenue? PC consumer or of exposure overall company, percentage And the of

Rich Hume

me, PC again asking have material. if so comment. front mobility but you're to you would within included it I be? But I of wouldn't number So super what be wouldn't the even -- would don't have think were right the that category, in I

Ananda Baruah

guess sort the guess of watching sort of of the things some interpretation, your indicators. about same comments love see overall kind who's of time been given macro guys of macro macro everybody's seems see? very theme is Rich, Marshall, now, one second I these at customer get indicators. intact, has do spending like watching like 'XX, same indicators, actually behavior right the It the What IT like maybe context, you're is kind spending what well I And commercial -- people half and and kind of see you what your to what of -- then you I'd do environment. guys good

the SYNNEX. as of So CFO

guys what your experiencing, theme And you is -- you what the so customers. I think do from guess, overarching are

situation time, macro second And X the year. of your this clearly is well solid the same the commercial of demand At spending is very conclusion indicators they intact. are have are. IT half what in You where kind the

So interpret just experiencing there think to it. would to you of is what customers a sense are any your try I love you as get guys it context

Rich Hume

playing to, we that repetitive infrastructure. Solutions maybe I'll hate to and continues here, it and supply as area be backlog go to challenged a most so the first. I see with The in a a around solid then bit. would back begin have And the out. more think PCs AS accelerate that's that will, what thing our basket. you high-growth security is And and the of that we business more half, as segment see and see a and I I part demands and of strong thought and moderating we'd the Yes, when meaningful IoT, think, but if category, good relates see hyperscale emphasis Advanced -- I rates articulated And PCs a bit we'd little would PCs be weaker. of AS that half, Those there said moderation to, the the the sort sort time. We that started be offer growth segment the of we consumer category. we We technologies cloud, they're first more only demand particular the theme and that being through are strong, would other we we year. around are becoming of move analytics as really in

user perspective, business Advanced PC demand end an then from moderation. Solutions high-growth technologies, certainly the project-based the So and

Operator

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

TD SYNNEX (SNX) 28 Jun 222022 Q2 Earnings call transcript