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

Jan 09, 2020 • 05:00 pm ET

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

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Q & A
Operator
Operator

[Operator Instructions] Your first question comes from the line of Vince Colicchio with Barrington Research. Please go ahead.

Analyst
Vincent Colicchio

Yeah, thanks for taking my questions. A few for you, Chris. The growth in the, the quarter actually when you exited the quarter, I think you were talking about growing in line with the market. So I was just curious, when do you think you will see that happening going forward?

Executive
Christopher Caldwell

Yeah, Vince I think we're going to continue to see consecutive growth that we are doing, I think we were a little more aggressive in kind of Q3, Q4 replacing some of the lower margin business and closing some of the facilities that went along with that, that impacted a bit, but underlying based on our pipeline, we continue to see great confidence to continue to get back to that rate within 2020.

Analyst
Vincent Colicchio

And could you give us some color on how voice perform versus non-voice and maybe within non-voice, how RK is performing?

Executive
Christopher Caldwell

We saw sort of balanced growth actually on both the voice and non-voice parts of the business. RK had sort of a less of an impact with the business. In the last quarters, we've had a lot of sort of integration already done. New deals tend to come across with some of the automation already completed. So it wasn't necessarily a meaningful part of the revenue mix.

Analyst
Vincent Colicchio

And then it looks like you've done a nice job stabilizing at Convergys for sure, so I'm just curious, you know, a year in [Phonetic] now, is there any meaningful churn from Convergys clients?

Executive
Christopher Caldwell

No, we had the business 100% integrated. We had obviously common clients across the two and no meaningful churn whatsoever.

Analyst
Vincent Colicchio

And Dennis, I think someone mentioned that you expect growth in the Tech Solutions business as a premium to the market. How should we think about the growth in the market in 2020. Any help there would be good?

Executive
Dennis Polk

Sure, Vince. As far as the product sets that we carry today and represent in the market, we see that in the next year growing between 2% and 4% and as I indicated in my remarks, and is always our goal, we expect to grow faster than the market rates.

Executive
Mary Lai

Thank you. Operator, next question please.

Operator
Operator

Your next question comes from the line of Matt Sheerin with Stifel. Please go ahead, your line is open.

Analyst
Matt Sheerin

Yes, thank you. Thanks for taking the questions and congrats on the decision to spin out the two businesses. Just first question on the spin out. Was there any consideration by the Board to instead of spinning out two public companies to look at an alternative transaction perhaps with PE or a strategic buyer in either of the two segments. Was there a reason? Was that something that you've looked into?

Executive
Dennis Polk

Hi, Matt. This is Dennis. Thanks for the question. Yes, so our Board as part of the process to make the decision that we announced today asked us to look at all