SYNNEX Corporation Reports Fiscal 2017 Third Quarter Results

FREMONT, Calif., Sept. 25, 2017 /PRNewswire/ -- SYNNEX Corporation (NYSE: SNX), a leading business process services company, today announced financial results for the fiscal third quarter ended August 31, 2017.


                                Q3 FY17        Q3 FY16        Net change
                                -------        -------        ----------

                   Revenue ($M)         $4,277         $3,670            16.5%

          Operating income ($M)         $122.2          $98.0            24.7%

             Non-GAAP operating
                 income ($M)(1)         $139.9         $113.6            23.1%

               Operating margin          2.86%         2.67%    19 bps

             Non-GAAP operating
                      margin(1)          3.27%         3.10%    17 bps

        Net income attributable
          to SYNNEX Corporation
                           ($M)          $75.2          $58.7            28.0%

      Non-GAAP net income
     attributable to SYNNEX
       Corporation ($M)(1)               $86.8          $68.9            26.0%

                    Diluted EPS          $1.87          $1.47            27.2%

        Non-GAAP Diluted EPS(1)          $2.16          $1.73            24.9%


    (1)               Non-GAAP financial measures exclude
                      the impact of acquisition-related
                      and integration expenses,
                      restructuring costs, the
                      amortization of intangible assets
                      and the related tax effects
                      thereon. A reconciliation of GAAP
                      to Non-GAAP financial information
                      is presented in the supplementary
                      information section at the end of
                      this press release.

"We maintained our positive momentum, delivering record revenue and profit in the third quarter," said Kevin Murai, President and Chief Executive Officer, SYNNEX Corporation, "and I am confident that our recent acquisitions of Westcon-Comstor Americas and Tigerspike will continue to fuel our future success."

Fiscal 2017 Third Quarter Highlights:

    --  Technology Solutions: Revenue was $3.8 billion, up 15.8% from the prior
        fiscal year quarter. Adjusting for the translation effect of foreign
        currencies, the Technology Solutions business increased by 16.1%
        compared with last year. Technology Solutions generated operating income
        of $100.0 million, or 2.64% of segment revenue, compared with $79.4
        million, or 2.43% of segment revenue, in the fiscal third quarter of
        2016. Non-GAAP operating income was $101.3 million, or 2.68% of segment
        revenue, for the fiscal third quarter of 2017, compared with $80.1
        million, or 2.45% of segment revenue, in the fiscal third quarter of
        2016.
    --  Concentrix: Revenue was $496.0 million, an increase of 21.9% over the
        third quarter of last year. Adjusting for the translation effect of
        foreign currencies, Concentrix revenue increased 22.0% compared with
        last year. Operating income was $22.2 million, or 4.49% of segment
        revenue, compared with $18.6 million, or 4.56% of segment revenue in the
        prior fiscal year quarter. Non-GAAP operating income was $38.6 million,
        or 7.78% of segment revenue, for the fiscal third quarter of 2017,
        compared with $33.5 million, or 8.24% of segment revenue, in the fiscal
        third quarter of 2016.
    --  The trailing fiscal four quarters Return on Invested Capital ("ROIC")
        was 10.8% compared with 9.6% in the prior year fiscal third quarter. The
        adjusted trailing fiscal four quarters ROIC was 11.7%.
    --  The debt to capitalization ratio was 32.1%, up from 29.5% in the prior
        fiscal year third quarter.
    --  Depreciation and amortization were $20.2 million and $16.7 million,
        respectively.
    --  Cash generated from operations was approximately $65 million for the
        quarter.

Fiscal 2017 Fourth Quarter Outlook:

The following statements are based on SYNNEX's current expectations for the fiscal 2017 fourth quarter. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, the amortization of intangibles and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

    --  Revenue is expected to be in the range of $4.75 billion to $4.95
        billion.
    --  Net income is expected to be in the range of $85.2 million to $89.1
        million and on a Non-GAAP basis, net income is expected to be in the
        range of $106.1 million to $110.0 million.
    --  Diluted earnings per share is expected to be in the range of $2.11 to
        $2.21 and on a Non-GAAP basis diluted earnings per share is expected to
        be in the range of $2.63 to $2.73.
    --  After-tax amortization of intangibles is expected to be $20.5 million,
        or $0.51 per share. After tax acquisition-related and integration
        expenses are expected to be $0.4 million, or $0.01 per share.

Dividend Announcement

SYNNEX announced today that its Board of Directors has declared a quarterly cash dividend of $0.30 per common share. The dividend will be payable on October 27, 2017 to stockholders of record as of the close of business on October 13, 2017.

Conference Call and Webcast

SYNNEX will be discussing its financial results and outlook on a conference call today at 2:00 p.m. (PT). A webcast of the call will be available at http://ir.synnex.com. The conference call will also be available via telephone by dialing (800) 369-1162 in North America or (415) 228-5007 outside North America. The passcode for the call is "SNX." A replay of the webcast will be available at http://ir.synnex.com approximately two hours after the conference call has concluded where it will be archived for one year.

About SYNNEX Corporation

SYNNEX Corporation (NYSE:SNX) is a Fortune 500 corporation and a leading business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer engagement strategy to a broad range of enterprises. SYNNEX distributes a broad range of information technology systems and products, and also provides systems design and integration solutions. Concentrix, a wholly-owned subsidiary of SYNNEX Corporation, offers a portfolio of strategic solutions and end-to-end business services around customer engagement strategy, process optimization, technology innovation, front and back-office automation and business transformation to clients in ten identified industry verticals. Founded in 1980, SYNNEX Corporation operates in numerous countries throughout North and South America, Asia-Pacific and Europe. Additional information about SYNNEX may be found online at www.synnex.com.

Use of Non-GAAP Financial Information

To supplement the financial results presented in accordance with GAAP, SYNNEX uses adjusted selling, general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), non-GAAP net income attributable to SYNNEX Corporation, non-GAAP diluted earnings per share and adjusted ROIC, which are non-GAAP financial measures that exclude acquisition-related and integration expenses, restructuring costs, the amortization of intangible assets and the related tax effects thereon.

Additionally, SYNNEX refers to growth rates at constant currency or adjusting for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the Company's business performance. Financial results adjusted for currency are calculated by translating current period activity in the local currency using the comparable prior year periods' currency conversion rate. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.

These non-GAAP financial measures provide investors with an additional tool to evaluate operating results. Because these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business to establish operational goals, and in some cases for measuring performance for compensation purposes. SYNNEX management believes it is useful for the Company and investors to review, as applicable, both GAAP information and non-GAAP financial measures in order to assess the performance of SYNNEX' continuing businesses and for planning and forecasting in future periods. These non-GAAP measures are intended to provide investors with an understanding of SYNNEX' operational results and trends that more readily enable investors to analyze SYNNEX' base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends. The management of SYNNEX believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A reconciliation of SYNNEX' non-GAAP financial information to GAAP is set forth in the supplemental information table at the end of this press release.

Safe Harbor Statement

Statements in this news release regarding SYNNEX Corporation, which are not historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These statements, including statements regarding SYNNEX' expectations and outlook for the fiscal 2017 fourth quarter as to revenue, net income, non-GAAP net income, diluted earnings per share, non-GAAP diluted earnings per share, after-tax amortization of intangibles and acquisition-related and integration expenses, currency impact, the frequency and occurrence of dividend declarations, the anticipated benefits of recent acquisitions, and the anticipated benefits of the non-GAAP financial measures, are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but are not limited to: general economic conditions and any weakness in information technology and consumer electronics spending; estimated financial impact of the Westcon-Comstor transaction; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; changes in foreign currency exchange rates; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our floor plan financing arrangements; credit exposure to our reseller customers and negative trends in their businesses; any future incidents of theft; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2016 and subsequent SEC filings. Statements included in this press release are based upon information known to SYNNEX Corporation as of the date of this release, and SYNNEX Corporation assumes no obligation to update information contained in this press release.

Copyright 2017 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, CONCENTRIX, and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX, the SYNNEX Logo, and CONCENTRIX Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

SNX-F


                                                       SYNNEX Corporation

                                                  Consolidated Balance Sheets

                                                    (currency in thousands)

                                                          (unaudited)


                                                                August 31,               November 30,

                                                                      2017                           2016
                                                                      ----                           ----

    ASSETS

    Current assets:

    Cash and cash equivalents                                                   $243,265                      $380,717

    Restricted cash                                                  3,677                            6,265

    Short-term investments                                           5,487                            5,109

    Accounts receivable, net                                     1,861,409                        1,756,494

    Receivable from related parties                                     72                              102

    Inventories                                                  2,242,083                        1,741,734

    Other current assets                                            97,940                          104,609
                                                                    ------                          -------

    Total current assets                                         4,453,933                        3,995,030

    Property and equipment, net                                    329,885                          312,716

    Goodwill                                                       536,306                          486,239

    Intangible assets, net                                         279,818                          298,550

    Deferred tax assets                                             66,215                           58,564

    Other assets                                                    73,203                           64,182
                                                                    ------                           ------

    Total assets                                                              $5,739,360                    $5,215,281
                                                                              ==========                    ==========


    LIABILITIES AND EQUITY

    Current liabilities:

    Borrowings, current                                                         $489,904                      $362,889

    Accounts payable                                             1,770,435                        1,683,155

    Payable to related parties                                      33,675                           30,679

    Accrued compensation and benefits                              173,146                          165,585

    Other accrued liabilities                                      291,599                          217,127

    Income taxes payable                                            14,603                           17,097

    Total current liabilities                                    2,773,362                        2,476,532

    Long-term borrowings                                           564,085                          601,095

    Other long-term liabilities                                    114,151                          103,217

    Deferred tax liabilities                                        70,891                           58,639
                                                                    ------                           ------

    Total liabilities                                            3,522,489                        3,239,483
                                                                 ---------                        ---------

    SYNNEX Corporation stockholders' equity:

    Preferred stock                                                      -                               -

    Common stock                                                        41                               41

    Additional paid-in capital                                     458,916                          440,713

    Treasury stock                                                (71,184)                        (67,262)

    Accumulated other comprehensive income (loss)                 (46,550)                        (93,116)

    Retained earnings                                            1,875,648                        1,695,400
                                                                 ---------                        ---------

    Total SYNNEX Corporation stockholders' equity                2,216,871                        1,975,776

    Noncontrolling interest                                              -                              22
                                                                       ---                             ---

    Total equity                                                 2,216,871                        1,975,798
                                                                 ---------                        ---------

    Total liabilities and equity                                              $5,739,360                    $5,215,281
                                                                              ==========                    ==========


                                                                                          SYNNEX Corporation

                                                                                 Consolidated Statements of Operations

                                                                (currency and share amounts in thousands, except for per share amounts)

                                                                                              (unaudited)


                                                       Three Months Ended                                             Nine Months Ended

                                       August 31, 2017                    August 31, 2016                   August 31, 2017                  August 31, 2016
                                       ---------------                    ---------------                   ---------------                  ---------------

    Revenue:

    Products                                              $3,784,599                                                $3,267,287                               $10,289,463  $9,099,762

    Services                                   492,087                                  402,527                                     1,444,360                   1,075,173
                                               -------                                  -------                                     ---------                   ---------

    Total revenue                            4,276,686                                3,669,814                                    11,733,823                  10,174,935

    Cost of revenue:

    Products                               (3,590,007)                             (3,096,529)                                   (9,736,190)                 (8,608,518)

    Services                                 (311,735)                               (247,328)                                    (908,661)                  (662,238)
                                              --------                                                                              --------                    --------

    Gross profit                               374,944                                  325,957                                     1,088,972                     904,179

    Selling, general and
     administrative
     expenses                                (252,728)                               (227,935)                                    (739,867)                  (655,225)
                                              --------                                 --------                                      --------                    --------

    Operating income                           122,216                                   98,022                                       349,105                     248,954

    Interest expense and
     finance charges,
     net                                       (9,754)                                 (7,517)                                     (26,898)                   (20,245)

    Other income
     (expense), net                              1,854                                    (378)                                        1,325                       4,605
                                                 -----                                     ----                                         -----                       -----

    Income before income
     taxes                                     114,316                                   90,127                                       323,532                     233,314

    Provision for income
     taxes                                    (39,153)                                (31,426)                                    (113,432)                   (83,619)
                                               -------                                  -------                                      --------                     -------

    Net income                                  75,163                                   58,701                                       210,100                     149,695

    Net (income) loss
     attributable to
     noncontrolling
     interest                                        -                                       3                                             -                       (67)
                                                   ---                                     ---                                           ---                        ---

    Net attributable to
     SYNNEX Corporation
     per common share                                        $75,163                                                   $58,704                                  $210,100    $149,628
                                                             =======                                                   =======                                  ========    ========

    Earnings per share attributable to
     SYNNEX Corporation:

    Basic                                                      $1.88                                                     $1.48                                     $5.27       $3.77
                                                               =====                                                     =====                                     =====       =====

    Diluted                                                    $1.87                                                     $1.47                                     $5.24       $3.75
                                                               =====                                                     =====                                     =====       =====

    Weighted-average common shares
     outstanding:

    Basic                                       39,563                                   39,346                                        39,530                      39,285
                                                ======                                   ======                                        ======                      ======

    Diluted                                     39,748                                   39,534                                        39,722                      39,492
                                                ======                                   ======                                        ======                      ======

    Cash dividends
     declared per share                                        $0.25                                                     $0.20                                     $0.75       $0.60


                                                                           SYNNEX Corporation

                                                                          Segment Information

                                                                        (currency in thousands)

                                                                              (unaudited)


                                    Three Months Ended                                           Nine Months Ended

                      August 31, 2017                 August 31, 2016                  August 31, 2017                August 31, 2016
                      ---------------                 ---------------                  ---------------                ---------------

    Revenue:

      Technology
       Solutions                         $3,784,678                                            $3,267,354                             $10,289,694   $9,099,969

      Concentrix              495,974                              406,715                                   1,455,817                   1,087,332

      Inter-segment
       elimination            (3,966)                             (4,255)                                    (11,688)                   (12,366)

      Consolidated                       $4,276,686                                            $3,669,814                             $11,733,823  $10,174,935
                                         ==========                                            ==========                             ===========  ===========


    Operating income:

      Technology
       Solutions                            $99,968                                               $79,410                                $282,094     $222,896

      Concentrix               22,248                               18,564                                      66,989                      25,855

      Inter-segment
       elimination                  -                                  48                                          22                         203

      Consolidated                         $122,216                                               $98,022                                $349,105     $248,954
                                           ========                                               =======                                ========     ========


                                                                           SYNNEX Corporation

                                                         Reconciliation of GAAP to Non-GAAP financial measures

                                                                        (currency in thousands)


                                            Three Months Ended                                     Nine Months Ended

                                 August 31, 2017                August 31, 2016                   August 31, 2017             August 31, 2016
                                 ---------------                ---------------               ---------------             ---------------

    Revenue in Constant Currency

    Consolidated

    Revenue                                        $4,276,686                                  $3,669,814                                     $11,733,823 $10,174,935

    Foreign currency
     translation                           9,131                                                                    9,297
                                           -----                                                                  -----

    Revenue in constant
     currency                                      $4,285,817                                  $3,669,814                                     $11,743,120 $10,174,935


    Technology Solutions

    Revenue                                        $3,784,678                                  $3,267,354                                     $10,289,694  $9,099,969

    Foreign currency
     translation                           8,827                                                                    2,305
                                           -----                                                                  -----

    Revenue in constant
     currency                                      $3,793,505                                  $3,267,354                                     $10,291,999  $9,099,969


    Concentrix

    Revenue                                          $495,974                                    $406,715                                      $1,455,817  $1,087,332

    Foreign currency
     translation                             304                                                                    6,992
                                             ---                                                                  -----

    Revenue in constant
     currency                                        $496,278                                    $406,715                                      $1,462,809  $1,087,332


                                     Three Months Ended                      Nine Months Ended

                          August 31, 2017               August 31, 2016  August 31, 2017            August 31, 2016
                          ---------------               ---------------  ---------------            ---------------

    Selling, general and
     administrative
     expenses

    Consolidated

    GAAP selling, general
     and administrative
     expenses                                $252,728                           $227,935                            $739,867  $655,225

    Acquisition-related
     and integration
     expenses                       1,026                          2,358                      1,637                     3,928

    Restructuring costs                 -                           258                          -                    4,255

    Amortization of
     intangibles                   16,268                         12,996                     47,984                    35,746
                                   ------                         ------                     ------                    ------

    Adjusted selling,
     general and
     administrative
     expenses                                $235,434                           $212,323                            $690,246  $611,296


    Technology Solutions

    GAAP selling, general
     and administrative
     expenses                                 $94,702                            $91,415                            $271,407  $268,555

    Acquisition-related
     and integration
     expenses                         705                              -                       705                         -

    Amortization of
     intangibles                      656                            674                      1,961                     1,987
                                      ---                            ---                      -----                     -----

    Adjusted selling,
     general and
     administrative
     expenses                                 $93,341                            $90,741                            $268,741  $266,568


    Concentrix

    GAAP selling, general
     and administrative
     expenses                                $159,728                           $138,604                            $474,132  $392,563

    Acquisition-related
     and integration
     expenses                         321                          2,358                        932                     3,928

    Restructuring costs                 -                           258                          -                    4,255

    Amortization of
     intangibles                   15,612                         12,322                     46,023                    33,759
                                   ------                         ------                     ------                    ------

    Adjusted selling,
     general and
     administrative
     expenses                                $143,795                           $123,666                            $427,177  $350,621


                                                                                        SYNNEX Corporation

                                                                       Reconciliation of GAAP to Non-GAAP financial measures

                                                                                      (currency in thousands)

                                                                                            (continued)


                                                       Three Months Ended                                         Nine Months Ended

                                          August 31, 2017                August 31, 2016                 August 31, 2017                August 31, 2016
                                          ---------------                ---------------                 ---------------                ---------------

    Operating income and Operating margin

    Consolidated

    Revenue                                                 $4,276,686                                           $3,669,814                             $11,733,823  $10,174,935


    GAAP operating income                                     $122,216                                              $98,022                                $349,105     $248,954

    Acquisition-related
     and integration
     expenses                                       1,026                               2,358                                       1,637                      3,928

    Restructuring costs                                 -                                258                                           -                     4,255

    Amortization of
     intangibles                                   16,688                              13,011                                      49,244                     36,509
                                                   ------                              ------                                      ------                     ------

    Non-GAAP operating
     income                                                   $139,930                                             $113,649                                $399,986     $293,646

    Depreciation                                   20,185                              15,375                                      59,058                     46,549
                                                   ------                              ------                                      ------                     ------

    Adjusted EBITDA                                           $160,115                                             $129,024                                $459,044     $340,195


    GAAP operating margin                           2.86%                              2.67%                                      2.98%                     2.45%

    Non-GAAP operating
     margin                                         3.27%                              3.10%                                      3.41%                     2.89%


    Technology Solutions

    Revenue                                                 $3,784,678                                           $3,267,354                             $10,289,694   $9,099,969


    GAAP operating income                                      $99,968                                              $79,410                                $282,094     $222,896

    Acquisition-related
     and integration
     expenses                                         705                                   -                                        705                          -

    Amortization of
     intangibles                                      656                                 674                                       1,961                      1,987
                                                      ---                                 ---                                       -----                      -----

    Non-GAAP operating
     income                                                   $101,329                                              $80,084                                $284,760     $224,883

    Depreciation                                    3,530                               3,558                                      10,408                     10,446
                                                    -----                               -----                                      ------                     ------

    Adjusted EBITDA                                           $104,859                                              $83,642                                $295,168     $235,329


    GAAP operating margin                           2.64%                              2.43%                                      2.74%                     2.45%

    Non-GAAP operating
     margin                                         2.68%                              2.45%                                      2.77%                     2.47%


    Concentrix

    Revenue                                                   $495,974                                             $406,715                              $1,455,817   $1,087,332


    GAAP operating income                                      $22,248                                              $18,564                                 $66,989      $25,855

    Acquisition-related
     and integration
     expenses                                         321                               2,358                                         932                      3,928

    Restructuring costs                                 -                                258                                           -                     4,255

    Amortization of
     intangibles                                   16,032                              12,337                                      47,283                     34,522
                                                   ------                              ------                                      ------                     ------

    Non-GAAP operating
     income                                                    $38,601                                              $33,517                                $115,204      $68,560

    Depreciation                                   16,655                              11,866                                      48,673                     36,306
                                                   ------                              ------                                      ------                     ------

    Adjusted EBITDA                                            $55,256                                              $45,383                                $163,877     $104,866


    GAAP operating margin                           4.49%                              4.56%                                      4.60%                     2.38%

    Non-GAAP operating
     margin                                         7.78%                              8.24%                                      7.91%                     6.31%


                                                                                     SYNNEX Corporation

                                                                   Reconciliation of GAAP to Non-GAAP financial measures

                                                          (currency and share amounts in thousands, except for per share amounts)

                                                                                        (continued)


                                                             Three Months Ended                                         Nine Months Ended

                                                 August 31,              August 31,             August 31,                 August 31,

                                                       2017                     2016                    2017                            2016
                                                       ----                     ----                    ----                            ----

    Net income

    Net income attributable to SYNNEX
     Corporation                                               $75,163                                         $58,704                        $210,100  $149,628

    Acquisition-related and integration
     expenses                                         1,026                              2,358                                1,637               3,928

    Restructuring costs                                   -                               258                                    -              4,255

    Amortization of intangibles                      16,688                             13,011                               49,244              36,509

    Income taxes related to the above(1)            (6,064)                           (5,423)                             (17,839)           (16,017)
                                                     ------                             ------                              -------             -------

    Non-GAAP net income attributable to
     SYNNEX Corporation                                        $86,813                                         $68,908                        $243,142  $178,303


    Diluted earnings per common share ("EPS")(2)

    Net income attributable to SYNNEX
     Corporation                                               $75,163                                         $58,704                        $210,100  $149,628

    Less: net income allocated to
     participating securities                         (686)                             (589)                             (1,943)            (1,559)
                                                       ----                               ----                               ------              ------

    Net income attributable to SYNNEX
     Corporation common stockholders                 74,477                             58,115                              208,157             148,069

    Acquisition-related and integration
     expenses attributable to SYNNEX
     Corporation common stockholders                  1,017                              2,337                                1,622               3,893

    Restructuring costs attributable to
     SYNNEX Corporation common stockholders               -                               258                                    -              4,217

    Amortization of intangibles attributable
     to SYNNEX Corporation common
     stockholders                                    16,535                             12,871                               48,787              36,108

    Income taxes related to the above
     attributable to SYNNEX Corporation
     common stockholders(1)                         (6,009)                           (5,366)                             (17,673)           (15,843)
                                                     ------                             ------                              -------             -------

    Non-GAAP net income attributable to
     SYNNEX Corporation common stockholders                    $86,020                                         $68,215                        $240,893  $176,444


    Weighted-average number of common
     shares - diluted:                               39,748                             39,534                               39,722              39,492


    Diluted EPS(2)                                               $1.87                                           $1.47                           $5.24     $3.75

    Acquisition-related and integration
     expenses                                          0.03                               0.06                                 0.04                0.10

    Restructuring costs                                   -                              0.01                                    -               0.11

    Amortization of intangibles                        0.42                               0.33                                 1.23                0.91

    Income taxes related to the above(1)             (0.15)                            (0.14)                              (0.44)             (0.40)
                                                      -----                              -----                                -----               -----

    Non-GAAP Diluted EPS(3)                                      $2.16                                           $1.73                           $6.06     $4.47
                                                                 =====                                           =====                           =====     =====


                                    SYNNEX Corporation

                  Reconciliation of GAAP to Non-GAAP financial measures

                   (currency in millions, except for per share amounts)

                                       (continued)


                                              Forecast

                                Three Months Ending November 30, 2017

                                    Low                     High

    Net income

    Net income
     attributable
     to SYNNEX
     Corporation                                 $85.2                           $89.1

     Acquisition-
     related
     and
     integration
     expenses                           0.6                                 0.6

     Amortization
     of
     intangibles                       31.8                                31.8

    Income
     taxes
     related to
     the
     above(1)                        (11.5)                             (11.5)
                                      -----                               -----

    Non-GAAP
     net income
     attributable
     to SYNNEX
     Corporation                                $106.1                          $110.0


    Diluted
     EPS(2)                                      $2.11                           $2.21

     Acquisition-
     related
     and
     integration
     expenses                          0.01                                0.01

     Amortization
     of
     intangibles                       0.79                                0.79

    Income
     taxes
     related to
     the
     above(1)                        (0.28)                             (0.28)
                                      -----                               -----

    Non-GAAP
     Diluted
     EPS(3)                                      $2.63                           $2.73
                                                 =====                           =====


    (1)               The tax effect of the non-GAAP adjustments
                      was calculated using the effective year-
                      to-date tax rate during the respective
                      periods.


    (2)               Diluted EPS for all periods presented is
                      calculated using the two-class method.
                      Unvested restricted stock awards granted
                      to employees and non-employee directors
                      are considered participating securities.
                      For purposes of calculating Diluted EPS,
                      Net income allocated to participating
                      securities was approximately 0.9% of the
                      Net income attributable to SYNNEX
                      Corporation for both the three and nine
                      months ended August 31, 2017, and 1.0% for
                      both the three and nine months ended
                      August 31, 2016. Net income allocated to
                      participating securities is approximately
                      0.9% of the Net income attributable to
                      SYNNEX Corporation for the three months
                      ending November 30, 2017.


    (3)               The sum of the components of Non-GAAP
                      Diluted EPS may not agree to totals, as
                      presented, due to rounding.


                          SYNNEX Corporation

                   Calculation of Financial Metrics

                        (currency in thousands)


                  Return on Invested Capital ("ROIC")


                  August 31, 2017                    August 31, 2016
                  ---------------                    ---------------

    ROIC

     Operating
     income
     (Trailing
     fiscal
     four
     quarters)                         $479,745                             $353,918

     Income
     taxes
     on
     operating
     income(1)          (162,241)                              (127,744)
                         --------                                --------

     Operating
     income
     after
     taxes                             $317,504                             $226,174


     Total
     borrowings,
     excluding
     book
     overdraft
     (last
     five
     quarters
     average)                          $982,084                             $736,354

     Total
     equity
     (last
     five
     quarters
     average)           2,054,776                               1,834,574

     Less:
     U.S.
     cash
     and
     cash
     equivalents
     (last
     five
     quarters
     average)            (85,189)                              (223,772)
                          -------                                --------

     Total
     invested
     capital                         $2,951,671                           $2,347,156


    ROIC                    10.8%                                   9.6%


    Adjusted ROIC

     Non-
     GAAP
     operating
     income
     (Trailing
     fiscal
     four
     quarters)                         $556,071                             $413,634

     Income
     taxes
     on
     Non-
     GAAP
     operating
     income(1)          (187,841)                              (149,334)
                         --------                                --------

     Non-
     GAAP
     operating
     income
     after
     taxes                             $368,230                             $264,300


     Total
     invested
     capital                         $2,951,671                           $2,347,156

     Tax
     effected      average)
     impact
     of
     cumulative
     non-
     GAAP
     adjustments
     (last
     five
     quarters             194,195                                 147,387
                          -------                                 -------

     Total
     Non-
     GAAP
     invested
     capital                         $3,145,866                           $2,494,543


     Adjusted
     ROIC                   11.7%                                  10.6%


    (1)               Income taxes on operating
                      income was calculated
                      using the effective year-
                      to-date tax rates during
                      the respective periods.


                                     Debt to Capitalization


                                           August 31, 2017             August 31, 2016
                                           ---------------             ---------------

    Total borrowings,
     excluding book
     overdraft                       (a)                    $1,049,605                            $806,025

    Total equity                     (b)         2,216,871                              1,926,783
                                                                                       ---------

    Debt to capitalization (a)/((a)+(b))             32.1%                                 29.5%
                                                      ====                                   ====


                                      SYNNEX Corporation

                               Calculation of Financial Metrics

                                   (currency in thousands)

                                         (continued)


                                    Cash Conversion Cycle


                                                                              Three Months Ended

                                                                 August 31, 2017                August 31, 2016

    Days sales outstanding

    Revenue (products
     and services)                                           (a)                     $4,276,686                       $3,669,814

    Accounts
     receivable,
     including
     receivable from
     related parties                                         (b)         1,861,481                          1,651,173
                                                                             ---

    Days sales
     outstanding                     (b)/((a)/the number of days                40                                 41
                                              during the period)


    Days inventory outstanding

    Cost of revenue
     (products and
     services)                                               (c)                     $3,901,742                       $3,343,857

    Inventories                                              (d)         2,242,083                          1,568,697
                                                                             ---

    Days inventory
     outstanding                     (d)/((c)/the number of days                53                                 43
                                              during the period)


    Days payable outstanding

    Cost of revenue
     (products and
     services)                                               (c)                     $3,901,742                       $3,343,857

    Accounts payable,
     including
     payable to
     related parties                                         (e)         1,804,110                          1,531,664
                                                                             ---

    Days payable
     outstanding                     (e)/((c)/the number of days                43                                 42
                                              during the period)


    Cash conversion cycle                                                     50                                 42
                                                                             ===                                ===

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SOURCE SYNNEX Corporation