Synnex fiscal 1st-quarter profit rises

[March 26, 2010]  FREMONT, Calif. (AP) -- Synnex Corp. said Thursday that its fiscal first-quarter profit jumped, helped by a large gain from discontinued operations and revenue growth the company attributed to an accounting change.

For the quarter ended Feb. 28, the business services provider earned $34.7 million, or 98 cents per share, compared with $18.9 million, or 58 cents per share, in the same quarter a year earlier.

Profit from continuing operations totaled $23.2 million, or 66 cents per share. Analysts polled by Thomson Reuters expected a profit of 62 cents per share.

Revenue rose nearly 13 percent to $1.94 billion. Analysts expected $1.95 billion in revenue.

Synnex attributed the growth to a change in revenue accounting for some services and warranty contracts, which the company started during the quarter. The company said the accounting change didn't impact its gross profit.

The company also reported an $11.4 million gain on the sale of discontinued operations.

Synnex shares rose 70 cents, or 2.3 percent, to close at $31.75.

[Associated Press]

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