In its third quarter, revenues increased 14.4% to $1.59 billion. Net income surged 52.5% to $13.8 million, or $0.43 per share. Excluding non-cash items, earnings were $14.4 million, or $0.45 per share. Going into the fourth quarter, management expects revenues to fall between $1.67 billion and $1.72 billion and net income to land between $14.2 million and $14.9 million, or $0.44 to $0.46 per share.
Founded in 1980, SYNNEX is now the country's third-largest IT distributor. Its comprehensive mix of products and services includes peripherals, software, networking, system components, and IT systems. It has accounts with such big names as Microsoft
The company also has a contract assembly business, in which it assembles IT systems, such as workstations and servers, and ships the products. However, this portion of the business is relatively small; it accounted for just $134.4 million in revenues for the third quarter.
SYNNEX has a fairly steady business. In fact, this was its 77th consecutive quarter of recording positive GAAP earnings. This might be a good way for more risk-averse investors to participate in an "old-growth" tech name in a sector on the upswing. But potential investors should do a bit more digging, starting with a look at the stock's valuation earlier this year.
Fool contributor Tom Taulli does not own shares of companies mentioned in this article.
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