Synnex (NYSE:SNX) is a new company to the public markets, having gone public in December 2003. The company provides supply chain services for information technologies (IT) -- such as distribution, logistics, and contract assembly.
The firm's no stranger to the business, having been founded in 1980. Unlike its peers, Synnex focuses on a limited number of IT original engineered manufacturers such as HP (NYSE:HPQ), IBM (NYSE:IBM), Intel (NASDAQ:INTC), and Microsoft (NASDAQ:MSFT).
Yesterday, the company announced its quarterly results. Revenues increased by 29% to $1.34 billion compared with the same period a year ago. Net income surged 50% to $11.5 million, or $0.38 per diluted share.
While it appears the IT market is stabilizing, it is still very difficult to grind out revenue growth. And, while Synnex is finding growth, it is still obsessive about maintaining disciplined cost controls. The company tracks virtually every basis point of cost within its organization -- calling itself a "data driven" company.
No doubt, the IT distribution segment appears poised for consolidation. This week, Ingram Micro (NYSE:IM) purchased Tech Pacific for $493 million. In fact, Synnex recently purchased EMJ Data Systems Ltd., which is a leading distributor in Canada. As a result of the acquisition, revenues are expected to range from $1.4 billion to $1.45 billion in the next quarter, with net income from $11.8 million to $12.4 million.
Fool contributor Tom Taulli does not own shares of any companies mentioned in this article.
