TD Synnex’s first fiscal quarter 2023, which ended Feb. 28, was a mixed bag for the world’s largest IT distributor. The company, with dual headquarters in Fremont, Calif., and Clearwater, Fla., Tuesday reported revenue of $15.1 billion, which was down 2 percent year over year, although that number was up 1 percent in constant currency.
At the same time, TD Synnex, formed in September 2021 from the merger of Tech Data and Synnex, provided second fiscal quarter 2023 revenue guidance of between $14.0 billion and $15.0 billion, which is down from the actual second fiscal quarter 2022 revenue of $15.5 billion.
TD Synnex CEO Rich Hume told CRN in an exclusive meeting that while sales of the company’s Advanced Solutions business—which consists in large part of data center infrastructure technologies—rose over last year and are expected to continue to do so in the current quarter, the company’s endpoint business—which includes PCs—suffered in large part from the success the PC business had early in the COVID pandemic.
[Related: TD Synnex CEO: We’re Bringing ‘Sales Engagement Or Energy To Where There Is Demand’]
“The PC category started to see a reasonably steep decline the last half of last year, and it’s continued,” Hume said. “So the compare gets easier. Year on year, we’re still in the period of more tough comparison, that is, our Q1. And there was a point of view that the channel in totality had to work down inventory. Those higher COVID levels of inventory have been worked down across the supply chain.”
Hume, in his discussion with CRN, spent time to go behind the numbers to look at what is happening with TD Synnex and what to expect for the rest of fiscal and calendar 2023. Here is what he had to say.
SHARE THISLEARN MORE: Distribution | Mergers and Acquisitions | Desktop-Clients
Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at [email protected].
RELATED CONTENT
5 Companies That Came To Win This WeekD&H’s Hiring Of Marty Bauerlein Is A Distribution ‘Game-Changer:’ Elite SP 500 ExecsMarty Bauerlein On Leaving AMD, Earning Market Share, And Why D&H’s Cloud Marketplace Is An ‘Execution Machine’2023 Partner Program Guide: 5-Star Distributor ProgramsOffice Depot Parent ODP’s Top Compensated Executives In 2022 TO TOPADVERTISEMENT
TRENDING STORIES
- Accenture CEO Julie Sweet On Layoffs, Belt-Tightening, And Going After ‘Structural Costs’ | CRN
- Kyndryl Plans Layoffs To ‘Streamline And Simplify’ Processes, Systems | CRN
- Cisco To Scoop Up Lightspin In Second Cloud Security Purchase Of 2023 | CRN
- There Are Way Too Many Cybersecurity Startups. Some Won’t Survive A Recession. | CRN
- 3CX Supply Chain Attack: 8 Biggest Things To Know | CRN