SYNNEX Corp. (NYSE:SNX) Q3 2016 Earnings Conference Call - Final Transcript

Sep 26, 2016 • 05:00 pm ET


SYNNEX Corp. (NYSE:SNX) Q3 2016 Earnings Conference Call - Final Transcript


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Kevin Murai

expect strong performance and above market growth in both business segments. Within the Technology Solutions segment, we expect a flat but stable demand environment, with cloud and cloud-enabling technologies to grow faster than the overall market.

We also expect healthy US federal demand, as well as continued strong execution in our Hyve business. We expect our Concentrix segment to continue to execute well and improve its profitability. And as Chris stated in his remarks, the Minacs acquisition is expected to be completed by the end of Q4.

With our recent performance, and the confidence we have in our growth and cash flow, today we also announced that we'll be increasing our quarterly dividend to $0.25 per share, representing a 25% increase from a year ago. And with 2017 just on the horizon, we are more convinced than ever before, that the investments we have made over the past few quarters will provide new business models and capabilities that differentiate SYNNEX by targeting high growth areas in the markets in which we operate.

Beyond these investments, we continue to find opportunities in our business where we can better optimize our growth and profitability, such as efficiency improvements in Concentrix, and profitability improvement in Japan. The performance goals that we outlined at our Analyst Day in 2015 are clearly in our view, and we expect to achieve our operating margin goals as we exit our FY17.

I am very happy about our third quarter results and fourth quarter outlook. Our teams have become even more effective through our growth and evolution. And without their hard work and dedication, we could not have achieved our goal. I would like to thank all of our associates around the world for their contributions in our success, and also would like to thank our business partners and shareholders for their continued support and trust in SYNNEX.

So with that, let's turn the call over to the operator for questions.