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Hume talks of ‘recovering market’ as TD Synnex shares Q2 numbers
Distributor’s numbers fall within guidance in second quarter as it looks towards stronger second half
TD Synnex has shared its Q2 numbers, just a few days after indicating its current CEO, Rich Hume, is heading into retirement in the autumn.
The distributor produced a set of results that were within forecasts, with revenues flat at $13.9bn, net income of $144m and non-GAAP net income of $237m for the three months ended 31 May.
Hume was able to use what are likely to be some of his last comments on a quarter performance as CEO to talk of continued expectations of a solid year.
“We continued to see an improving IT spending environment, with a return to year-over-year gross billings growth driven by strength in our core business across both Endpoint and Advanced Solutions, and mid-teens growth in Strategic Technologies,” he said. “We have returned over $500m to shareholders this fiscal year, and remain confident in our growth prospects for the second half amidst a recovering market backdrop.”
In terms of the European performance, the distie saw revenues dip slightly to $4.4bn from $4.5bn a year earlier. The firm stated that the move to represent more of its revenues on a net basis negatively impacted the yearly comparison by 2%.
Operating income was $34m, compared with $40m in the prior fiscal second quarter, and non-GAAP operating income was $81m, down from $87m.
The firm’s core market of the Americas also saw the same issues, with measuring revenues taking 5% off the comparisons with ’23, with Q2 delivering $8.6bn compared with $8.7bn. Operating income came in at $209m, compared with $187m a year earlier, and non-GAAP operating income was up at $285m from $262m.
Asia-Pacific and Japan
Asia-Pacific and Japan (APJ) was the bright spot, with revenues increasing by 6.9% to $964m from $901m.
TD Synnex revealed last week that Hume was retiring, with the firm’s chief operating officer (COO), Patrick Zammit, to take on the CEO position.
Hume, who will remain on the board, shares a similar career path to Zammit, also moving from COO to become CEO. He joined TD Synnex in 2016, before getting the top job in 2018.
Zammit is already familiar with the business, and has been involved with shaping the firm’s growth strategy over the past couple of years.
His career with the distie stretches back a fair few years. He led the European region from 2017 after the acquisition of Avnet. In 2021, that role expanded to include responsibilities for the APJ region.
His knowledge of distribution goes back even further, starting with Avnet at 1993, where he rose up to become global president of the technology solutions division.
