Channel programs News
Joseph F. Kovar
‘Our investment in high-growth technologies—cloud, analytics, IoT, security, hyperscale technology, all of these categories—remains really strong, much stronger than the average growth rates in IT. And we’re continuing to invest in those areas and really benefit from accelerated growth in those areas,’ says TD Synnex CEO Rich Hume.
Strong Quarter For TD Synnex
TD Synnex, formed last fall through the merger of Tech Data and Synnex to become the IT world’s largest distributor, Tuesday reported $15.3 billion in revenue for the second fiscal quarter, up 161 percent over the same quarter last year if one excludes the revenue of Synnex, or up 4 percent if the two companies’ combined revenue was included. That was $20 million more than analysts expected, according to Seeking Alpha.
The company also reported GAAP net income of $148.9 million, or $1.55 per share, and non-GAAP net income of $262.3 million, or $2.72 per share, which was 7 cents per-share higher than analysts expected, according to Seeking Alpha
For Rich Hume, CEO of Fremont, Calif.-based TD Synnex, the quarter shows the strength of the company in challenging times. TD Synnex, like the rest of the IT industry, is being buffeted by supply chain issues, inflation, and the shift from the work-from-home days during the pandemic when PC and personal device sales soared and data center sales stagnated to the post-pandemic environment where the opposite is true.
“During the pandemic, the advanced solutions were typically project deployments,” Hume told CRN. “And since people were not physically in [the office], a lot of that got deferred. So there’s been a pretty good level of pent-up demand that I think will be fulfilled throughout this year and the beginning of next year.”
Despite all the changes in the IT environment, TD Synnex’s investment in high-growth technologies such as the cloud, analytics, IoT and security will continue to grow faster than that of the industry as a whole, Hume said.
“The reason is, these are the foundational technologies for digital transformation,” he said. “And that is in demand within the end-user customer set all the way back through the business partner ecosystem. So we will stay steadfastly focused on not only building out those businesses, but the capabilities and the platforms required to make sure that we continually provide better support for the channel.”
Here is what Hume had to say on a range of issues, including how the macroeconomic and geopolitical environments are impacting the IT industry and TD Synnex in particular.