SYNNEX Corp. (NYSE:SNX) Q4 2019 Earnings Conference Call - Final Transcript

Jan 09, 2020 • 05:00 pm ET


SYNNEX Corp. (NYSE:SNX) Q4 2019 Earnings Conference Call - Final Transcript


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Good afternoon, my name is David and I will be your conference operator today. I would like to welcome everyone to the SYNNEX Fourth Quarter Fiscal 2019 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 Ms. Mary Lai, Head of Investor Relations, Ms, you may begin.

Mary Lai

Thank you, David and good afternoon everyone, welcome to the SYNNEX fourth quarter fiscal 2019 earnings call. Joining me to review our two announcements from earlier today are Dennis Polk, President and CEO; Marshall Witt, CFO; and Chris Caldwell, President of Concentrix. After the prepared remarks, we will open the call to a question and answer session. Before we begin, we remind everyone that today's discussion contains forward-looking statements within the meaning of the federal securities laws, which statements include any predictions, estimates, projections or other statements about future events including the company's projected financial results and the expected separation transaction.

Actual results may differ materially from those mentioned in these forward-looking statements as a result of the risks and uncertainties discussed in today's earnings release in the Form 8-K we filed today and in the Risk Factors section of our Form 10-K and our other reports and filings with the SEC. We do not intend to update any forward-looking statements. Also during this call, we will reference certain non-GAAP financial information. Reconciliation of non-GAAP and GAAP reporting is included in our earnings release and the related Form 8-K available under the Investor Relations section of our website. This conference call is a property of SYNNEX Corporation and may not be recorded or re-broadcasted without our permission. And now, I will turn the call over to our CEO, Dennis.

Dennis Polk

Thank you, Mary and thank you to everyone joining us today. I wanted to start off the call by acknowledging our very successful Q4 results announcement, which Marshall, Chris and I will review in more detail later, but to also acknowledge the news release we issued today regarding our intention to separate SYNNEX and Concentrix into two publicly traded companies. Over the past decade, we have regularly asked ourselves, does it make strategic sense to separate SYNNEX and Concentrix given the distinct differences of the two businesses. Our investors have continually asked us this question as well. To date, while able to separate, we have not for many reasons mostly though we believed best to nurture both these segments under one entity.

With the Convergys transaction one year ago, we expected it would be some time before we could consider a separation again due to the years and effort expected to successfully integrate Convergys into Concentrix especially so given the size of the transaction. Also, we expected it would take significant time to stabilize the business, as Convergys was on a steady revenue decline path at the time of