Synnex Technology International Corp (聯強), which distributes computers and handsets, yesterday said net profit grew 4.49 percent annually last quarter, as foreign-exchange losses improved significantly.
The company’s net profit expanded to NT$1.21 billion (US$37 million) in the quarter ending March 31, compared with NT$1.16 billion in the same period last year, according to a company statement. Earnings per share rose from NT$0.73 to NT$0.76.
On a sequential basis, last quarter’s figure represented about two-fold growth, from a net profit of NT$430 million during the final quarter of last year.
The company “has contained its foreign-exchange losses in the first quarter,” it said in the statement.
Foreign-exchange losses fell to NT$56 million last quarter, Synnex said.
Synnex booked NT$2.42 billion in foreign-exchange losses for the past year, as the yuan depreciated drastically against the US dollar, the company said.
The firm did not provide details about foreign exchange loss on a quarterly basis.
Operating income climbed 12 percent from NT$990 million a year earlier to NT$1.1 billion, the statement said.
Gross profit rose 6.5 percent from NT$2.71 billion last year to about NT$2.89 billion. However, gross margin fell from 3.86 percent a year ago to 3.73 percent of last quarter.
Revenues grew 10 percent to NT$77.5 billion last quarter, compared with NT$70.2 billion in the first quarter last year.
“Synnex’s revenues expanded in the first quarter, going against the information and consumer sector’s downward trend,” Synnex said in the statement.
The company attributed the growth to its share gains in the household and commercial segments, which have helped boosted revenue growth in all its addressable markets.
Synnex last month inked a memorandum of understanding with China’s Huawei Technologies Co (華為) to distribute Huawei’s products in the global market. Synnex said the deal would help it expand its presence in the commercial segment.
Synnex operates an unspecified number of distribution centers in 38 nations.
Synnex shares dropped 0.82 percent to NT$30.1 yesterday, under-performing the TAIEX, which gained 0.17 percent.
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