Thu, Oct 12, 2017 - Page 12 News List

Synnex snatches record Q3, Q4 promising

RECORD REVENUE:Synnex, Asia’s largest distributor of technology products and electronics components, sees a rebound in consumer and commercial laptop demand

By Lisa Wang  /  Staff reporter

Electronics distributor Synnex Technology International Corp (聯強國際) yesterday said revenue climbed to a record high last quarter, fueled by robust laptop computer replacement demand and resilient sales of electronics accessories such as Google’s smart speakers.

With more new gadgets ready to hit store shelves next quarter, including Google’s new devices and Apple Inc’s new iPhone series, Synnnex said the outlook for next quarter is positive.

“The company is not ruling out the possibility of recording record-breaking revenue again during the peak season,” Synnex said.

Synnex helps sell notebook computers, mobile phones and other electronic devices for HP Inc, Nokia Oyj, Asustek Computer Inc (華碩) and Huawei Technologies Co (華為).

Revenue increased 11 percent year-over-year to NT$100.7 billion (US$3.33 billion) from NT$91 billion, surpassing the NT$100 billion mark for the first time in the company’s history. On a quarterly basis, revenue jumped 25 percent.

“We saw an extensive rebound in demand for consumer and commercial laptops as well as for electronic components. Synnex also saw record high sales from various markets,” Synnex said in a statement released yesterday.

The strongest growth momentum came from corporations and government agencies, which resumed bidding for electronics purchasing after a delay in the first half, Synnex said.

Revenue from commercial customers last quarter jumped 16 percent annually to more than NT$20 billion, setting an all-time high, the company said.

In a separate statement yesterday, Synnex said it plans to invest NT$600 million on building a new logistics center in Indonesia to triple its processing capacity to cope with rapidly growing demand in the region’s most populous nation.

The investment also demonstrates Synnex’s determination in enhancing its presence in the Southeast Asian markets.

“We are bullish about the explosive growth potential in the Indonesian market. The latest NT$600 million investment is a prelude to Synnex’s broader plans of building more logistics centers in metropolitan cities in the country,” Synnex president Evans Tu (杜書伍) said in the second statement.

Indonesia apparently is to outpace its neighboring countries in growing its domestic consumption, benefiting from the country’s strong economic growth, the government’s push for infrastructure deployment and its demographic dividend, Synnex said.

When the new facility is completed, it plans to add 25,000m2 in processing space and to quadruple the amount of storage to 15,000 units, the company said.

Synnex also plans to deploy 9,600 automatic storage units, it said.

The company did not give a detailed schedule for construction of the logistics center.

Shares of Synnex tumbled 1.07 percent to NT$37 yesterday, underperforming the TAIEX, which rose 1.03 percent.

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