SYNNEX Corp. (NYSE:SNX) Q1 2019 Earnings Conference Call - Final Transcript

Mar 27, 2019 • 05:00 pm ET

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SYNNEX Corp. (NYSE:SNX) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Jessie, and I'll be your conference operator today. I would like to welcome everyone to the SYNNEX First Quarter Fiscal 2019 Earnings Call. This 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 Ms. Mary Lai, Head of Investor Relations. Miss, you may begin.

Executive
Mary Lai

Thank you. Good afternoon. Welcome to the SYNNEX Corporation Earnings Call for the First Quarter of Fiscal 2019. Joining me today to review our financial results are Dennis Polk, President and CEO; Marshall Witt, CFO; and Chris Caldwell, President of Concentrix. After their prepared remarks, we will open the call to a question-and-answer session.

Please note that some of the information you will hear today consists of forward-looking statements within the meaning of the federal securities laws. Such statements may relate to, without limitation, markets, demand, growth, revenue, non-GAAP net income and diluted EPS, shares, amortization of intangibles, acquisition-related and integration expenses, margin, adjusted operating margin, cost, tax rates, seasonality, synergies, integration, net interest expense and charges, inventory and overall performance. Actual results or trends could differ materially from our expectations.

For more information, please refer to the risk factors discussed in our Form 10-K for fiscal 2018 and the discussion of forward-looking statements in our earnings release and Form 8-K filed with the SEC today. SYNNEX assumes no obligation to update any forward-looking statements, which speak of their respective dates.

Also, during the call, we will reference certain non-GAAP financial information. Reconciliation of non-GAAP and GAAP reporting is included in our press release and the related Form 8-K. The conference call is the property of SYNNEX Corporation and may not be recorded or rebroadcasted without our permission.

And now, I will turn the call over to our CFO for the financial update, Marshall?

Executive
Marshall Witt

Thank you, Mary, and thank you all for joining us today. Before we discuss our first quarter financial performance, we would like to inform you that we have adopted a new revenue recognition standard, ASC 606, under the full retrospective approach effective as of December 1, 2018 or for our Q1 fiscal 2019. My comments today in regards to revenue trends reflect the adoption of ASC 606 and we will also discuss gross and net revenues to assist in understanding these revenue trends. Unless specified, the results referenced on the call today reflect the net revenue treatment.

As expected and previously stated in our Form 10-K, the impact from this adoption is not material. Please refer to the revenue reconciliation tables included in the earnings press release. So let's go ahead and review our first quarter results followed by second quarter guidance before turning the call over to Dennis.

Q1 revenue, non-GAAP net income and diluted EPS all set first quarter record highs. On a consolidated basis, total revenue was a first quarter record of