TD SYNNEX Corporation (NYSE:SNX) Q1 2023 Earnings Call Transcript

Shannon Cross: Okay. Thank you. And then I’m just curious in terms of inventory, can you be a little more specific in terms of what drove the decline in inventory? And where you think maybe normalized inventory levels for you are? I know you’re getting close, I think, but was it more PCs or was it because you had strength in Hyve? Just kind of wondering about the composition of what you have there? And I guess also, did you see any opportunities for maybe some strategic inventory purchases, given where component costs are maybe on the Hyve side? Thank you.

Rich Hume: Yes, I’ll start with the last question first on inventory, scrap purchases on all sides of the business. So clearly that’s an aspect and element primarily in North America around scrap are a little bit larger, those haven’t stopped. We continue to have the same kind of discipline around the requirements of what that is needed for us to purchase and how fast that fell through. Shannon to your question about scrap purchases within Hyve, that continues to play out. They’re still flowing and producing quite well. So I think that will continue for the rest of this year. If I think about overall inventory demand, it was somewhat elevated. As we came into quarter one, I think that will start to work itself down the answer to were there any pockets that saw elevation for improvements?

I think it was a fairly consistent improvement across the board. And that’s in Americas, Europe and Asia comment. And then what we had said last quarter, and it’s still true in our expectations in regards to Hyve is that we do expect that the Hyve inventory will continue to unwind as we made some larger investment decisions last year that are starting to be billed and collected in Q2 and Q3 and Q4.

Shannon Cross: Thank you.

Rich Hume: Thanks, Shannon.

Operator: And there are no further questions at this time. I will turn the call back to Mr. Rich Hume for closing remarks.

Rich Hume: Well, thank you very much. I’d like to thank our 23,500 coworkers around the globe for their focus and dedication in helping our customers and vendors and partners proceed each and every day. And I’d like to thank you. We appreciate your interest in TD SYNNEX. And thanks for joining us today.

Operator: That concludes today’s conference call. You may now disconnect. Have a nice day.