TD SYNNEX posts powered down Q2 results amid PC slump

However the titan distributor’s advanced solutions offering levelled up during the quarter

Distribution giant TD SYNNEX has posted deflated financial results for the fiscal second quarter ended May 31, 2023.

Revenues fell 7.9 per cent to $14.1bn, down from $15.2bn in Q2 2022.

Net income also saw a decline of 10.6 per cent totalling $133.1m for the quarter.

The distributor said the revenue change was driven primarily by a decline in its endpoint solutions portfolio as the industry continued to see post-pandemic declines in demand for PC ecosystem products.

However TD SYNNEX said this was partially offset by growth in its advanced solutions portfolio and high-growth technologies, with demand driven by cloud and datacentre-related technologies.

The shift in product mix resulted in a greater per cent of its revenues being presented on a net basis, which negatively impacted revenue compared to the prior fiscal second quarter by approximately three per cent.

"Our unparalleled, end-to-end line card of products and services allowed us to realise growth in advanced solutions and high-growth technologies, as the industry continued to be impacted by post-pandemic declines in demand for PC ecosystem products," said Rich Hume, CEO of TD SYNNEX.

"The resiliency of our business model was evident, as we expanded margins, generated significant free cash flow, and returned $93m to shareholders.

"As we enter the second half of our fiscal year, we are focused on pursuing an additional $50m in cost savings and accelerating our shareholder returns via opportunistic share repurchases."

International breakdown

Across the pond in the Americas revenue came to $8.7bn, representing a decrease of 11.0 per cent compared to the prior fiscal second quarter.

The TD SYNNEX business in the Asia-Pacific and Japan region alo saw a year on year drop of 7.3 per cent to $901m.

Meanwhile Europe saw the smallest decrease of 4.1 per cent, bring in $4.5bn for the distributor.

Fiscal Q3 outlook

Looking to the next quarter TD SYNNEX expects revenues in the range of $13.5bn to $14.5bn, compared to $15.4bn in the prior fiscal third quarter.

While net income is predicted to land somewhere between $111m to $158m.