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.

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SYNNEX Corporation Announces Proposed Offering of $100 Million Convertible Senior Notes

FREMONT, CA — May 5, 2008 — SYNNEX Corporation (NYSE: SNX) announced today that it intends to offer, subject to market conditions and other factors, up to $100 million aggregate principal amount of convertible senior notes due 2018. SYNNEX also expects to grant the initial purchasers an option to purchase up to an additional $15 million aggregate principal amount of such notes to cover over-allotments. The notes will be offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

The offering price, interest rate, conversion rate and circumstances in which a holder may convert its notes and other terms will be determined by negotiations between the Company and the initial purchasers. When issued, the notes will be unsecured obligations of SYNNEX, subordinate to its obligations under its senior secured credit facilities, will pay interest semi-annually and will be convertible upon satisfaction of certain conditions. Upon conversion, the notes may be settled in shares of SYNNEX common stock, cash or a combination of cash and shares of SYNNEX common stock at SYNNEX’s option. Holders of the notes will have the right to require SYNNEX to repurchase all or some of their notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain events.

SYNNEX intends to use the proceeds from this offering for general corporate purposes and to reduce outstanding balances under certain credit arrangements.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The notes and the shares of common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.