Mon, Mar 10, 2014 - Page 13 News List

Synnex Technology’s sales increase 4% year-on-year

ROBBING PETER:Synnex said its telecom products revenue has been falling, bit it was offset by strong growth in IC components and consumer electronics

By Kevin Chen  /  Staff reporter

Stronger growth in consumer electronics revenue and integrated circuit (IC) components sales have boosted Synnex Technology International Corp’s (聯強) sales during the first two months of the year to increase 4 percent from the same period last year, the company said on Friday.

To avoid the Lunar New Year distortion, the combined sales of January and last month could better the company’s performance as the week-long holiday takes place at a different time each year.

TOTAL SALES

Cumulative sales totaled NT$48.1 billion (US$1.59 billion) during the January-to-February period, compared with NT$46.4 billion the year before, according to Synnex, Asia’s leading distributor of information technology products and electronics components.

Since last year, growth from IC components, which accounted for 22 percent of the firm’s overall sales, and from consumer electronics, 17 percent of the total, have been taking up the slack in telecom products sales, 6 percent, as demand for smartphones slowed.

OFFSET

In a statement issued on Friday, Synnex said consumer electronics revenue increased 35 percent year-on-year to NT$7.9 billion in the first two months and sales of IC components rose 46 percent to NT$12.3 billion over the same period. That helped the company offset its 39 percent annual decline in telecom products revenue, which was only NT$2.6 billion during the first two months.

Sales of information technology products, which accounted for 55 percent of its total revenue last year and are the company’s main driver, decreased 9 percent to NT$25.3 billion during the two-month period, company data showed.

Synnex shares closed at NT$51.6 on Friday, up 9.09 percent since the beginning of the year, data from the Taiwan Stock Exchange showed.

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