First post-merger numbers show revenue growth at TD Synnex
Distribution giant shows it has benefited from getting bigger and has plans to continue that momentum in 2022
TD Synnex has shared its first quarterly numbers since the distribution giant joined forces with the channel player, reporting a triple-digit climb in revenues for its fourth quarter.
The numbers showed that for the three months ended 30 November, revenues improved by 155.1% to $15.6bn, compared with the last Q4 numbers posted by Tech Data, and non-GAAP operating income was up by 84.9% to $407.9m.
The two firms sealed a $7.2bn merger last year that was described at the time as an opportunity for a joint entity to flex its muscles globally.
Rich Hume, CEO of TD Synnex, said the firm had plenty of potential to continue growth and it was still working through developing its position as a united force.
“Fiscal Q4 represents our first 90 days together as TD Synnex,” said Hume. “The team responded to the ongoing supply chain challenges with an unwavering focus, strong execution and collaboration, leading to results ahead of expectations.
“The potential of this company is significant, and we look forward to accelerating growth and value for our customers and partners across the ecosystem, while also making progress on our integration and strategic initiatives.”
Hume told investors and analysts in a presentation around the results that the firm was concentrating on making investments in areas that would yield the greatest returns, including next-generation technology areas such as cloud, security, analytics, IoT and XaaS.
In terms of integrating the two businesses, he said they were on track and had an organisational structure in place and had been looking at decisions around ERP systems to ensure the business ran smoothly.
Everyone in the industry has had to contend with component shortages and Hume said that had also been a feature of the company’s fourth quarter, but it had seen growth in other areas that had helped the organisation, with its advanced solutions products and services business and Europe performing well.
The firm has also expanded the number of security vendors it works with, more than doubling the relationships since the merger, and it has been extending the datacentre offerings it can put in front of Synnex customers.
Hume added: “As we begin 2022, I am encouraged by the solid demand drivers across the technology landscape and the opportunities in front of us as we bring our expanded set of products and services to the market. Our enhanced breadth and scale provide us with an even greater ability to bring value and choice to our customers.”
Tech Data and Synnex entered into a definitive $7.2bn merger agreement in March last year that created a combined operation with revenues in the region of $57bn and a headcount of about 22,000.