TD Synnex’s second-quarter numbers suffer from PC market decline.
The distributor reported a 7.9 per cent decrease in revenues, coming in at $14.1 billion for the three months ended 31 May. In Europe, the decline was 4.1 per cent, with revenue at $4.5 billion. In the Americas, the drop was 11 per cent, and in Asia-Pacific and Japan, there was a 7.3 per cent climb to hit $901 million.
The outfit pointed the finger at a decline in its endpoint solutions business as the PC industry continues to struggle post the highs of the pandemic period. The firm saw growth in its Advanced Solutions business, with strong demand from cloud and datacentre technologies, but this was not enough to offset what was happening in other parts of the business.
The firm highlighted that the shift in product mix had resulted in a greater percentage of its revenues being presented on a net basis, which negatively impacted the numbers year-on-year to the tune of approximately three per cent.
Operating income of $253 million was flat year-on-year for the business globally, and it was the same picture in Europe. The Americas region saw a decline to $187 million from $193 million, but the picture was better in Asia-Pacific and Japan, where it improved to $26 million from $19 million in the prior year.
TD Synnex CEO Rich Hume said: “Our unparalleled, end-to-end line card of products and services allowed us to realise growth in Advanced Solutions and high-growth technologies, as the industry continued to be impacted by post-pandemic declines in demand for PC ecosystem products.”
“As we enter the second half of our fiscal year, we are focused on pursuing an additional $50m in cost savings and accelerating our shareholder returns via opportunistic share repurchases,” he said.
