SYNNEX Corporation (NYSE: SNX) stock lost over 3.9% in the afterhours session on Jan 9th, 2017 given their lower than expected outlook.
For the first quarter of 2018, the group expects the seasonality impact on revenues to be slightly higher on the back of the change in the mix of their client base and scale of some programs as compared to the last year. The group also forecasts some impact from the new Ontario minimum wage increase which is in the processor of mitigating with their clients.
For the first quarter of 2018, they expect revenue to be in the range of $4.35 billion to $4.55 billion while non-GAAP net income, is expected to be in the range of $83.2 million to $87 million. Non-GAAP diluted EPS is forecasted to be in the range of $2.06 to $2.15 per share. Technology Solutions, positive momentum would continue. The group forecasts another solid quarter from their Westcon-Comstor business as we build on the positive first quarter post-acquisition.
On the other hand, the group delivered a decent fourth quarter of 2018 performance, with revenues reaching $5.3 billion driven by solid performance across the majority of products and services. Total revenue rose 36.7% yoy to $5.3 billion while adjusting for FX, revenue increased 36.3%. Technology Solutions business rose over 20% when excluding Westcon-Comstor. They reported a solid Concentrix revenue $2 billion, placing them at the number five spot globally for CRM BPO companies. The group added 22 new accounts to their portfolio with 10 being from acquired digital team, Tigerspike.
Non-GAAP operating margin was above 9%, while adjusted EBITDA reached $246 million, placing Concentrix on track to achieve the double-digit non-GAAP operating margins for fiscal 2018. Fourth quarter’s Technology Solutions non-GAAP operating income reached $128.2 million or 2.68% of the overall revenue, which is a rise of 37% against pcp. Adjusted operating margin slightly declined on the back of products and customer mix in their systems design and integration solutions business and investments in infrastructure and resources. Concentrix, non-GAAP operating income reached $64.7 million or 12.11% of revenue.