A Very Good Year, With More To Come
IT distribution giant TD Synnex Tuesday reported its fourth fiscal quarter and full-year 2022 financials. The company reported revenue for the quarter of $16.25 billion, up about 4 percent year over year, GAAP net income of $221.2 million, up 85 percent, and non-GAAP net income of $329.8 million, up 20 percent.
Comparable full fiscal year 2022 figures were not announced, given that TD Synnex as a company was formed about a year ago through the merger of Tech Data and Synnex, and Tech Data at the time was not a public company. However, Hume said, full-year revenue for the combined organization grew 14 percent in fiscal 2022 over 2021 adjusted for constant currency and accounting principles.
That will change going forward. TD Synnex CEO Rich Hume told CRN in an exclusive interview that the merger closed in September 2021, making financial comparisons easier.
However, no matter how financials are reported, TD Synnex has continued to grow over the past year and is expected to do so going forward, although that growth is likely to slow as the IT business as a whole experiences slower growth in 2023, Hume said. The big drag going forward is likely to continue to be the slowdown in endpoint solutions, mainly PC sales, which he said will be more than offset by increasing sales of advanced solutions.
That advanced solutions growth plays to TD Synnex’s strengths, Hume said.
“When we get to the back half of [next] year, we think that that category of advanced solutions will return more towards historical norms from a growth pattern perspective,” he said. “And then, as we have been saying for a long time, TD Synnex talks about where the bigger growth areas are in the market. And we fundamentally believe that story remains fairly consistent: It will be cloud, security, analytics, IoT and hyperscale infrastructure. And regardless of where growth is for the total industry, that set of offerings will outpace the industry by at least two times the growth, if not more.”
2023 should be a year of continued growth for TD Synnex. Here is a closer look at how Hume sees the prospects for TD Synnex and IT distribution in general.
Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at [email protected].
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