From a customer perspective, declines are primarily in the largest customer segment while SMB and MSP customer segments have grown. From a regional perspective, the Americas experienced the largest impact from the post-pandemic decline in demand with year-over-year declines for PC ecosystem products.Īmerica's Advanced Solutions saw continued growth, driven by demand for cloud and data center-related technologies. Working capital improved with lower revenues, which is a reflection of the counter cyclicality of our business model. The resilience of our business model, along with strategic investments that we have made, augment our capability in the fastest-growing areas of the market, and helped us to expand margins in the quarter. Our teams delivered solid execution, shifting to pockets of growth and on a year-to-year basis, we believe we maintained our overall market share position in the Americas while growing market share in Europe. The breadth of our technology offerings, again, proved to be a differentiator for us, as we were able to offset deeper-than-anticipated declines in Endpoint Solutions technology demand with growth in advanced solutions and high-growth technologies. We expect this PC demand decline to abate over time as customers upgrade an aging installed base of devices allowing them to run the latest operating environments and leverage key security features, and we're encouraged by the improving macroeconomic sentiment and stable supply chain conditions that are mostly back to historical profile levels.Īlthough the pace of the recovery remains uncertain, we believe that gross billings and net revenue in fiscal Q2 and the outlook for Q3 represent the trough levels for Endpoint Solutions. Our unparalleled line card and diversified portfolio allowed us to realize growth in Advanced Solutions and high-growth technologies, while year-over-year growth rates for endpoint solutions were impacted by short-term weakness in the demand for PC products post pandemic. The second quarter proved out the resilient business model we've been highlighting over the last several quarters as we saw a continuation of many of the trends from the February quarter. Good morning, everyone, and thank you for joining us today. This conference call is the property of TD SYNNEX and may not be recorded or rebroadcast without our permission. Reconciliations of GAAP to non-GAAP results are included in our earnings press release and the related Form 8-K available on our Investor Relations website, ir. We do not intend to update any forward-looking statements.Īlso, during this call, we will reference certain non-GAAP financial information. With me today are Rich Hume, CEO and Marshall Witt, CFO.īefore we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections or other statements about future events, including statements about strategy, demand, plans and positioning as well as our expectations for future fiscal periods.Īctual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release in the Form 8-K we filed today and in the Risk Factors section of our Form 10-K and our other reports and filings with the SEC. Good morning, everyone, and thank you for joining us for today's call. (Operator Instructions)Īfter the speakers' remarks, there will be a question-and-answer session.Īt this time, for opening remarks, I'd like to pass the call over to Liz Morali, Head of Investor Relations. At this time, I'd like to welcome everyone to the TDS SYNNEX Second Quarter Fiscal 2023 Earnings Call. My name is Chris, and I'll be your conference operator today. Shannon Siemsen Cross Research Analyst Crédit Suisse AG, Research Division Presentation Ruplu Bhattacharya Director & Research Analyst BofA Securities, Research Division Patrick Emil Jackson Associate RBC Capital Markets, Research Division Michael Ng Research Analyst Goldman Sachs Group, Inc., Research Division Matthew John Sheerin MD & Senior Equity Research Analyst Stifel, Nicolaus & Company, Incorporated, Research Division Keith Michael Housum MD & Equity Research Analyst Northcoast Research Partners, LLC Joseph Lima Cardoso Analyst JPMorgan Chase & Co, Research Division Hume CEO, President & Director TD SYNNEX CorporationĪdam Tyler Tindle Senior Research Associate Raymond James & Associates, Inc., Research Division Liz Morali Senior Manager of IR TD SYNNEX Corporation
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