Technology distribution giant TD SYNNEX said it grew sales by US$600 million in the latest quarter.

 

The California-based company reported Q2 2022 revenue of US$15.27 billion, a net decline of 1.3 per cent compared with the combined sales of the legacy Tech Data and SYNNEX businesses in the same period in 2021. 

 

However, after factoring in a change in accounting policy and negative foreign exchange (mainly due to the weaker euro), adjusted top-line growth was around four per cent (or US$600 million) as the distributor continued to see strong demand for its products.

 

TD SYNNEX said that PC growth moderated in the first half of its financial year “in line with expectations”. However, the company has a higher concentration of business in the commercial PC market as opposed to the consumer segment – approximately a 77-23 per cent split. This means it will have limited exposure to the expected softness in consumer, while commercial demand is set to remain strong as businesses refresh their PC fleets and equip their employees with higher spec devices.

 

During the earnings conference call, TD SYNNEX CEO Rich Hume said that supply disruptions had continued “in line with our expectations”. He also suggested that the inflationary environment would continue in the short term.

 

Responding to a question about the possibility of a recession in the US and a slowdown in Europe, Hume said that North America was “more robust” than Europe where the market was currently “bumping around flat overall”.

 

Synnex Australia operates as a division of Synnex Technology International Corporation, the largest IT provider in the Asia Pacific region.

 

Synnex Technology International Corporation business network covers Taiwan, China, Hong Kong, Indonesia, Thailand, Vietnam, Australia, and New Zealand.

 

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