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Synnex posts 69% plunge in quarterly profit last quarter

Synnex posts 69% plunge in quarterly profit last quarter

TAIPEI: Synnex Technology International Corp, Asia’s largest distributor of information technology products and electronic components, yesterday reported a 69 percent decline in quarterly net profit for last quarter due to a large foreign exchange loss.

Net profit plunged to NT$430 million (US$13.08 million) in the quarter ending Dec. 31 last year, compared with NT$1.39 billion during the same period of 2014, the company said in a financial statement released yesterday.

Last year as a whole, net profit tumbled 37 percent to NT$3.19 billion, compared with NT$5.02 billion in 2014, the statement showed. That translated into earnings per share of NT$2.01 last year, down from NT$3.16 in the previous year.

Gross margin improved slightly to 3.6 percent last year from 3.5 percent in 2014.

However, an increase “in problematic assets drove up operating expenses to NT$7.08 billion last year from NT$7.64 billion,” Synnex said in the statement.

Synnex booked an NT$2.4 billion foreign exchange loss for last year due to a weak yuan. Foreign exchange loss eroded about NT$1.5 off earnings per share last year, the company said.

The company expects profits this year to bounce back as it has lowered its yuan-asset exposure for the current quarter.

Revenue last year contracted 3 percent to NT$322.1 billion from NT$331.5 billion in 2014.

The company also said that the board has approved a cash dividend distribution of NT$1.5 per common share.

That represented a 4.44 percent dividend yield based on Synnex’s closing price of NT$33.75 yesterday. The company also plans to distribute a stock dividend of 5 percent for each common share.