Synnex today announced its earnings results for Q1 2020, with quarterly net income up 7% YoY to reach NT$1.8bn, and earnings per share at NT$1.08. Gross, operating and net income margins all posted nine-year highs.

　　Gross margin in Q1 2020 rose to 4.92%, a significant increase of 0.4 percentage points from last year, and hit a new high since 2012. Meanwhile operating expenses fell by 18% YoY, resulting in a 6% YoY increase in operating profit, and an operating profit margin of 2.31%. Profits from joint ventures have also grown synchronously, making Q1 net income of NT$1.8bn, up 7% YoY, and the quarterly net income margin reached a nine-year high of 2.62%, and earnings per share of NT$1.08.

　　Affected by COVID-19, Synnex’s revenue fell 16% in the first quarter. However, in the past two years, Synnex has made great efforts in Agility Project, accelerate the cleaning up of unhealthy product lines to improve the revenue structure, and continue to adjust the outdated practices to strengthen the efficiency of internal operation. The Agility Project makes the company more sophisticated and more agile to respond to market changes. Therefore, although the first quarter revenue was reduced by the impact of the economic environment, the profit showed a contrasting growth and set nine-year highs.

　　Although the current global epidemic situation is still unclear, several countries have begun to restart the economy and increase their efforts to revitalize the economy. Therefore, Synnex is cautious, but not pessimistic, about the market outlook for the second quarter.