SYNNEX flexSource Combines Multiple Service Offerings Under One Cohesive Package to Support Vendors and Customers Requiring Larger Volume Logistic Service Needs

SYNNEX flexSource Combines Multiple Service Offerings Under One Cohesive Package to Support Vendors and Customers Requiring Larger Volume Logistic Service Needs

GREENVILLE, S.C.–(BUSINESS WIRE)–SYNNEX Corporation (NYSE:SNX), a leading business process services company, today announced the launch of flexSource, a newly created division to offer companies a full turn-key logistics solution to address the needs of large volume or specialty logistics services.

The flexSource offering combines logistics acumen, transportation expertise and a rich menu of value-added services, to provide a complete third party supply chain solution that creates efficiencies throughout the logistics process and eliminates pressure points along the logistics lifecycle. By leveraging its existing facilities and IT systems, flexSource can improve the profitability of companies utilizing its services.

“We will continue to invest in high value service offerings like flexSource to replicate the success we have achieved with Concentrix Corporation. Concentrix has experienced significant growth since its inception and is now ranked #43 out of the top 100 outsourcers in the world by IAOP for 2009,” stated Peter Larocque, President of U.S. Distribution at SYNNEX Corporation. “We believe flexSource is positioned well to experience similar success and growth. The evolution of flexSource builds upon the strength in distribution and the cost effective logistics that have positioned SYNNEX as a leader in the North America IT marketplace.”

The flexSource full turn-key service offering is modular in nature and covers all aspects of the logistics lifecycle. Capabilities include:

  • Transportation Management
  • Inventory Optimization
  • Complementary Product Matching
  • Reverse Logistics Asset Refurbishment and Disposal
  • Business Process Outsourcing Services
  • Strategic Procurement

The development of the flexSource division capitalizes on SYNNEX’ 25 years of industry leading experience in managing all aspects of the supply chain cycle, packaged into one cohesive offering.

During its National Sales Conference, taking place in Greenville, South Carolina during October 7-9, 2009, flexSource will host breakout sessions outlining the various service offerings.

“By touching all elements of the supply chain as SYNNEX can do, our vendors and customers can benefit from reduced logistics costs, reduced inventory and order cycles and improved service level commitments, which in turn strengthens our value proposition,” Larocque continued.

About SYNNEX Corporation

SYNNEX Corporation, a Fortune 500 corporation, is a leading business process services company, servicing resellers and original equipment manufacturers in multiple regions around the world. The Company provides services in IT distribution, supply chain management, contract assembly and global business services. Founded in 1980, SYNNEX employs over 7,000 associates worldwide and operates in the United States, Canada, China, Japan, Mexico, the Philippines and the United Kingdom. Additional information about SYNNEX may be found online at www.synnex.com.

About Concentrix Corporation

Concentrix Corporation is a global KPO company with award-winning expertise in providing our clients with services and support to enhance their customer relationships. From locations in China, Japan, the Philippines, the United States and Central America, our over 4,500 employees support clients in multiple languages and countries around the world. Concentrix Corporation is a wholly owned subsidiary of SYNNEX Corporation (NYSE: SNX), a Fortune 500 company. For more information, please visit www.concentrix.com.

Statements in this release that are forward-looking, such as flexSource capabilities, growth and success, continued investments and benefits of the foregoing, involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to be materially different from any future performance that may be suggested in this release. The Company assumes no obligation to update any forward-looking statements contained in this release.

Copyright 2009 SYNNEX Corporation. All rights reserved. SYNNEX, the SYNNEX Logo, Concentrix, the Concentric logo, flexSource and all other SYNNEX company, product and services names and slogans are trademarks or registered trademarks of SYNNEX Corporation. SYNNEX and the SYNNEX Logo Reg. U.S. Pat. & Tm. Off. Other names and marks are the property of their respective owners.

SYNNEX Corp. Reports Operating Results (10-Q)

SYNNEX Corp. Reports Operating Results (10-Q)

Synnex Corp is a global IT supply chain services company offering a comprehensive range of services to original equipment manufacturers and software publishers or (OEMs) and reseller customers worldwide. The company offers product distribution related logistics services and contract assembly. SYNNEX distributes IT systems peripherals system components software and networking equipment for OEM suppliers such as HP IBM Intel Microsoft Corporation and Seagate. Synnex Corp. has a market cap of $998.9 million; its shares were traded at around $30.12 with a P/E ratio of 11.5 and P/S ratio of 0.1.

Highlight of Business Operations:
In fiscal year 2007, in connection with the acquisition of Redmond Group of Companies, or RGC, we announced a restructuring program in Canada under Emerging Issues Task Force, or EITF, No. 95-3, “Recognition of Liabilities in Connection with a Purchase Business Combination,” or EITF No. 95-3. During the three months ended August 31, 2009, we recorded an additional restructuring accrual of $0.6 million for the remaining lease obligations on the RGC facility. The balance outstanding for facility and exit costs as of August 31, 2009 and November 30, 2008 was $0.6 million and $0.3 million, respectively.

The property located in Ontario, Canada, which was held for sale, in accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” was sold during the nine months ended August 31, 2009 for $1.6 million at a loss of $0.05 million.

Selling, general and administrative expenses decreased for the three months ended August 31, 2009 both on a dollar basis as well as percentage of revenue basis from prior year quarter mainly due to a year over year decrease in personnel expense of $2.6 million, a decrease in bad debt reserves and other overhead expenses of $1.4 million, offset by an increase in deferred compensation expense of $2.2 million and an increase of $0.6 million in additional restructuring accrual for our Canadian facility. The aggregate amount of year over year selling, general and administrative expenses increase was offset in part by foreign exchange rate translation impact on expenses.

Selling, general and administrative expenses increased for the nine months ended August 31, 2009 both on a dollar basis as well as percentage of revenue basis from the prior year period mainly due to an increase in bad debt reserve of $5.4 million. The remainder of the increase was due to an increase of $4.3 million in deferred compensation expenses, an increase of $1.4 million for rent expense, an increase in personnel expenses of $1.0 million and an increase of $0.6 million in an additional restructuring accrual for the Canadian facility, offset in part by foreign exchange rate translation. The increase in the compensation and other operating costs was also partly due to the impact of our acquisitions made during the previous year, and to support the operations, offset in part by savings from reducing expenditures.

The decrease in interest expense and finance charges, net, for the nine months ended August 31, 2009 compared to the prior year period was approximately $0.5 million as a result of lower borrowings and lower interest rates which was offset by a charge of approximately $0.9 million for the partial write-off of unamortized debt costs associated with the refinancing of our working capital lines in the United States in January 2009, in Canada in May 2009 and the repayment by our subsidiary SYNNEX de Mexico, S.A.d.e C.V. of its secured term loan in August 2009.

Read the The complete Report

HP and Dell have placed orders for 3D notebooks from Wistron

Looks like we’ll be reporting on 3D notebooks a lot more in the near future, seeing that reports indicate that HP and Dell have placed orders for 3D notebooks from Wistron. This news comes after earlier reports that Acer has also placed orders for 3D notebooks from the same company. Seeing that Taiwanese company Wistron holds a bunch of patents for 3D notebooks, along with a few proprietary 3D techniques, it shouldn’t be a surprise to anyone to see such developments. Aside from said companies, whispers can be heard that Lenovo and Sony are also negotiating with Wistron. Will our next wave of laptops all be 3D laptops? If they perform as well as we hope they do, we certainly wouldn’t mind, not one bit.

CyberTAN to begin shipping GEPON home gateway products in 2Q08

CyberTAN Technology will begin shipping GEPON (gigabit Ethernet passive optical network)-enabled home gateway products in the second quarter of this year, targeting Japan and China as well as emerging markets, according to company sources.
CyberTAN’s home gateway products, which are built using GEPON chips coming from Teknovus, support VoIP, NAT (network address translation), IPTV and HD video transmission, the sources noted.
In view of the fast FTTH (fiber to the home) deployments in Japan and China, the company decided to initially focus its marketing efforts for the GEPON products in these two markets, added the sources

Arima Communications shipped one million handset in August

Arima Communications shipped one million handset in August

Arima Communications shipped one million handsets in August 2009, a decline of 7.4% from the previous month, according to a Chinese-language Commercial Times report.

Meanwhile, the company has posted revenues of NT$1.17 billion (US$35.56 million) for August, up 4.4% sequentially but down 55.7% on year. For the first eight months of this year, revenues totaled NT$10.55 billion, declining 16.3% from a year earlier, the company said.

Related stories
Arima Communications to ship 3.5-3.9 million handsets in 3Q09 (Jul 20)
Arima Communications to ship 13 million handsets in 2009 (Jun 11)
Arima Communications see handset shipments up, but revenues down in May, says paper (Jun 8)
Arima Communications ships one million handsets in April (May 11)
Arima Communications to start shipping S312 to Sony Ericsson in 2Q09 (Apr 23)
Compal Communications and Arima Communications vying for Android handset orders from Acer (Apr 23)
Arima Communications handset shipments to grow over 43% in 2Q09, says paper (Apr 20)

Compal Communications, Arima Communication land LG’s contract orders for smartphones

Compal Communications Inc. and Arima Communication Corp., both Taiwanese ODM (original design manufacturers) of handsets, have landed LG’s contract orders for smartphones, further boosting their position in the global supply chain of high-end handsets, according to industry sources.

In the past, Korean handset brands didn’t like to place orders
for high-end handsets with Taiwanese suppliers. However, to boost itsglobal market shares, LG has decided to reinforce cooperation with Taiwanese suppliers by ordering smartphones from Compal Communications and Arima Communication for the first time.

Another reason for LG’s willingness to turn to Taiwanese suppliers is that the brand has signed a cooperation contract with Microsoft early this year, promising to launch 50 models installed Windows Mobile operating system in the next five years. Consequently, LG decides to put the two aforementioned companies, who are dedicated to development of Windows Mobile-powered smartphones, atop its smartphone supplier list.

Skott Ahn, CEO of LG’s mobile communication division, recently noted that LG is planning to rank among the world’s top-two handset brands by sales volume in 2012. Last year, the brand sold over 100 million handsets worldwide as the third-largest brand in the line.

Arima has secured orders from LG, Sony Ericsson and Acer for a total of 13 models, and projected its annual shipment to hit 13 million units this year, very likely to turn around in business operations. Of the 13 models, five low and medium-end ones are ordered by LG and will be mainly sold in India and Latin America.

In the meantime, Arima is designing a smartphone built with MediaTek Inc.’s handset IC (integrated circuit) chips and will ship the product, which will be also fine-tuned to suit either Microsoft’s Mobile Windows or Google’s Android operating system, to LG in the first quarter of next year as the earliest.

On the other hand, Compal Communications is soon to start delivery of smartphones to LG, and expects its shipment of handsets to peak in the fourth quarter of this year.

Source & Copyright: CENS

Wistron announces revenues for May

First-tier notebook maker Wistron has announced revenues of NT$28.59 billion (US$942.07 million) for May this year, an increase of 58.95% on year, while the company’s accumulated revenues for the first five months of 2008 have reached NT$141 billion, an on-year increase of 65.51%.
Wistron’s annual notebook shipment goal remains at 18-20 million units for  2008. Major partners stil include Hewlett-Packard (HP), Dell and Acer.

Due to increasing shipments to Dell in the second quarter, market watchers expect Wistron will see a sequential growth of around 5-8% in shipments for the quarter. Additionally, as PC vendors have agreed to an increase in ODM quotes to compensate for rising upstream raw material costs, component supplies should start to flow more freely resulting in a large sequential increase in Wistron’s third quarter notebook shipments.

Quanta and Compal see on-year growth in May revenues

Quanta Computer announced consolidated revenues of NT$64.52 billion (US$2.13 billion) for May, while Compal Electronics reported consolidated revenues of NT$32.49 billion in May, both an on-year increase for the companies.

Quanta reported consolidated revenues of NT$64.52 billion in May, an increase of 36.4% on year, but a decrease of 12.1% on month, with the company shipping 2.8 million notebook PCs during the month.

Compal Electronics announced consolidated revenues of NT$32.49 billion in May, increasing 6% on month and 3% on year, while the company’s accumulated revenues for the first five months of the year reached NT$170.19 billion, an increase of 5% on year. The company shipped around two million notebooks in May.

Both Quanta and Compal expect their notebook shipments in the second half of this year will account for 60% of their annual shipments in 2008 and are optimistic about the upcoming market demand and their supply ability.

Financial performance of first-tier notebook makers, May 2008

Company

May revenues

M/M

Y/Y

YTD

Notebook shipments

Quanta

64.52 (consolidated)

(12.1%)

36.4%

N/A

2.8 million

Compal

32.49 (consolidated)

6%

3%

170.19

2 million

Wistron

28.59 (non-consolidated)

5.6%

58.95%

141

N/A

Inventec

24.1 (non-consolidated)

(2.2%)

51.24%

114.79

1.1 million (estimated)

Source: Companies

First-tier notebook makers: May 2007 – May 2008 revenues (NT$m)

Month

Compal

Inventec

Quanta Computer

Wistron

Sales

Y/Y

Sales

Y/Y

Sales

Y/Y

Sales

Y/Y

May-08

30,735

(0.5%)

24,104

51.2%

63,654

38.6%

28,588

59%

Apr-08

28,323

(10.6%)

24,657

55.9%

71,375

62.3%

27,074

73.5%

Mar-08

35,785

2.1%

21,824

3.1%

73,829

44.3%

34,269

63.5%

Feb-08

31,012

13.7%

20,749

16.9%

57,531

37.6%

24,202

65.5%

Jan-08

34,844

0.6%

23,451

21.8%

66,382

32.1%

26,869

67.8%

Dec-07

31,866

(11.3%)

27,309

49.9%

70,377

78.3%

30,049

45.9%

Nov-07

39,051

10.8%

24,349

(7.5%)

82,269

53.6%

33,254

52.1%

Oct-07

45,310

40.9%

25,499

(10.8%)

72,671

37.2%

29,849

55.6%

Sep-07

40,215

52.4%

23,051

(0.7%)

78,018

76.5%

29,780

42.1%

Aug-07

37,131

46%

18,307

(0.7%)

73,044

121.4%

26,052

32%

Jul-07

38,029

37.5%

15,570

(15%)

59,198

82.6%

21,042

20%

Jun-07

36,285

60.5%

15,165

(19%)

63,966

65.4%

21,555

23.2%

May-07

30,901

86.1%

15,938

8.2%

45,924

75.1%

17,985

28.4%

Kontron-Quanta joint venture Quanmax acquires two PC distributors in Europe

Quanmax, a joint venture between Germany-based industrial PC maker Kontron AG and Taiwan-based notebook PC maker Quanta Computer, has acquired a 100% stake in Chiligreen, an Austria-based PC distributor, and is negotiating acquisition of a majority stake in Gericom AG, an Austria-based distributor of notebook PCs, in an attempt to establish marketing networks in Germany and other countries in Europe, according to Chiligreen and Gericom.

While Chiligreen and Gericom will market Quanmax’s products under the brand Quanmax, they will maintain their existing product lines and brand names, Quanmax pointed out. Their existing product lines and Quanmax’s will be complementary, Quanmax emphasized.

According to industry sources in Taiwan, Quanmax is also setting up marketing networks in North America, China, Japan and Malaysia.

Quanta shipping Portege G810 smartphones to Toshiba

Quanta Computer recently began shipping Portege G810 Windows Mobile-based smartphones to Toshiba, helping Quanta regain its footing as it looks to compete in the global smartphone market with the likes of High Tech Computer (HTC) and Asustek Computer, according to market sources.

The ODM production of the 3.5G-enabled Portege G810 could top tens of thousand units per month, with the prospects that Toshiba may increase the outsourcing of handsets later, the sources indicated.

Quanta has lost a number of handset clients in recent years, including Siemens, Panasonic and Hewlett-Parker (HP), and the smartphone orders from Toshiba came in time to shore up the company’s capabilities, the sources contended.

Toshiba will team up with Chunghwa Telecom (CHT) to market the Portege G810 in the Taiwan market with a suggested retail price of NT$15,990 (US$526), according to sources at CHT.

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