TD SYNNEX Corporation has recently released its 10-Q report, providing an insight into the company's financial condition and operations. The company operates as a distributor and solutions aggregator for the information technology (IT) ecosystem, offering a wide range of products and services to its customers. TD SYNNEX serves various types of customers, including value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021.
In ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, TD SYNNEX discusses its strategic priorities, including investing in strategic technologies, strengthening its product portfolio, transforming digitally, and expanding its global footprint. The company provides a comprehensive catalog of technology products from original equipment manufacturers (“OEM”), such as personal computing devices, mobile phones and accessories, and strategic technologies such as cloud, security, data/analytics, AI, and hyperscale infrastructure. TD SYNNEX's business is characterized by low gross profit and operating income as a percentage of revenue, with the market for IT products generally characterized by declining unit prices and short product life cycles.
The report also highlights the company's acquisition of Tech Data Corporation, a Florida corporation, and its strategic focus on augmenting organic growth in its business with strategic acquisitions of businesses and assets that complement and expand its existing capabilities. Additionally, the report provides a breakdown of the company's financial results, including revenue, cost of revenue, gross profit, operating income, interest expense, and net income for the three and six months ended May 31, 2024, compared to the same periods in 2023.
TD SYNNEX also discloses certain non-GAAP financial information, including revenue in constant currency, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted earnings per common share. These non-GAAP financial measures provide additional insights into the company's performance and help facilitate period-to-period comparisons of its business performance.
The market has reacted to these announcements by moving the company's shares 1.0% to a price of $113.48. For more information, read the company's full 10-Q submission here.
