TD SYNNEX Corporation - SNX STOCK NEWS

TD SYNNEX (NYSE: SNX) released its third annual Direction of Technology report for Latin America and Caribbean region, based on a survey of over 1,000 technology distributors and service providers globally, with 200 responses from Latin America. The report identifies five key trends for 2024: strong revenue growth optimism, security and infrastructure as top-selling products, emerging importance of AI/GenAI, transformation of channel models, and increasing AI adoption despite current low sales. Nearly half of Latin American partners forecast double-digit growth, with security remaining the primary revenue driver. While AI/GenAI sales are currently low (56% reported no AI-related deals), partners anticipate significant growth in AI solutions over the next two years.

1Password, a leader in identity security, has announced a strategic partnership with TD SYNNEX, a global IT ecosystem distributor and solutions aggregator. This collaboration aims to expand the reach of 1Password's Extended Access Management (XAM) solution across North America, addressing the security challenges of modern workplaces.

The partnership leverages TD SYNNEX's extensive distribution network and operational capabilities to deliver 1Password's comprehensive security solution, which protects unmanaged apps and devices, filling the 'Access-Trust Gap' left by traditional IAM and MDM solutions. This alliance will involve joint go-to-market initiatives, including co-branded marketing and shared resources, enhancing market visibility for both companies.

Monica Jain, Head of Global GTM Partnerships at 1Password, emphasized the increasing demand for XAM and the strategic fit with TD SYNNEX's expertise in cloud distribution and value-added services. Jim MacBride from TD SYNNEX highlighted the partnership's potential to enrich their cybersecurity portfolio in a critical sector for their partners.

Hyve Solutions, a subsidiary of TD SYNNEX (NYSE: SNX), has unveiled its new Orion product line featuring the NVIDIA HGX™ platform at the 2024 OCP Global Summit. The line includes two key solutions: JBOG and Monolithic, designed to meet the growing demands of AI workloads with enhanced performance and scalability.

These solutions are optimized for the NVIDIA Hopper™ platform and will be compatible with the upcoming NVIDIA Blackwell platform. The Orion products offer plug-and-play, rack-ready deployment options with both air and liquid cooling capabilities. Hyve's comprehensive validation process ensures seamless integration and reduced downtime.

The Orion line is supported by Hyve's HUGS (Hyve Unified Global Support) program, providing supply chain services, RMA, on-site deployments, and global logistics support.

Hyve Solutions, a subsidiary of TD SYNNEX (NYSE: SNX), has announced the development of advanced network switches to accelerate rack-level AI deployment at scale. These switches integrate Broadcom's Tomahawk® 5 series (BCM78900) of 51.2 Tb/s devices, enabling efficient design of customer-specific requirements.

The new switches are designed to enhance data flow, performance, and scalability for AI and machine learning applications. Broadcom's Tomahawk 5 series doubles the bandwidth compared to other available silicon and includes features specifically designed to accelerate AI/ML workloads. It offers Cognitive Routing capabilities, flexible 100G PAM4 SerDes, and superior energy efficiency.

Hyve Solutions will showcase these innovations at the 2024 OCP Global Summit in San Jose, California, from October 15-17, at Booth A17.

TD SYNNEX (NYSE:SNX) has launched its Destination AI™ Practice Accelerator in North America to fast-track AI go-to-market efforts and monetization for partners. The program provides personalized support for partners delivering specialized AI solutions to customers. Key points include:

- Nearly half of all channel partners plan to offer AI-driven solutions in the next two years
- The program focuses on integrating AI across high-growth solutions and industry verticals
- Each month features a new aggregated AI solution, with partners participating in six-week courses quarterly
- The upcoming cohort will focus on leveraging Generative AI for business automation, sponsored by Intel
- The program piloted in June with 12 partners in the retail vertical, receiving Intel's Distribution Q324 Excellence Award

TD SYNNEX (NYSE: SNX) has released its Third Annual Direction of Technology Report, based on a survey of over 1,000 technology partners from 60+ countries. The report highlights five key global trends shaping the IT market in 2024:

1. Ingenuity and Flexibility: Focus on certifications and specialization, especially in cybersecurity, data privacy, and AI.
2. Innovation with Strong Foundation: 44% plan to offer AI solutions within two years.
3. Essential Solutions: Security identified as top profit generator.
4. Collaboration and Consolidation: 73.2% of IT spend driven by partners in 2024.
5. Regulation and Risk Mitigation: ESG standards recognized as a major business challenge.

The report emphasizes the balance between AI innovation and core technologies, with security remaining a top priority for partners.

SentryBay, a leader in endpoint protection, has partnered with TD SYNNEX, a global IT distributor, to offer its Armored Client solution for Microsoft AVD and W365 environments. The partnership will initially serve TD SYNNEX's channel network in the USA and Canada, with plans to expand globally.

SentryBay's Armored Client provides a defensive layer that protects DaaS sessions and applications from keyloggers, screen capture, and malicious process injection, preventing data leakage and credential theft. This solution is targeted at enterprises and SMEs using Microsoft AVD and W365, particularly those adopting BYOD business models.

The partnership aims to enhance TD SYNNEX's security product portfolio and complement existing vendors, including Microsoft. Scott Young, Senior VP of Product Management at TD SYNNEX, emphasized the importance of comprehensive solutions to address cyber threats in the evolving business landscape.

TD SYNNEX reported fiscal 2024 Q3 results with revenue of $14.7 billion, at the upper end of their outlook. Non-GAAP gross billings were $20.3 billion, exceeding expectations. The company reported a net income of $179 million and non-GAAP net income of $245 million. Diluted EPS was $2.08, and non-GAAP diluted EPS was $2.86, both above the midpoint of their outlook. Cash provided by operations was $386 million with free cash flow of $339 million. The company returned $91 million to shareholders through share repurchases and dividends. A quarterly cash dividend of $0.40 per share was announced, up 14% from the previous year.

Regionally, the Americas saw a revenue increase of 2.4% to $9.1 billion, Europe saw an 8.6% increase to $4.6 billion, and Asia-Pacific and Japan saw a 17.6% increase to $1.0 billion. However, gross profit decreased by 1.1% to $961 million, and gross margin fell from 6.96% to 6.54%. Operating income increased by 26.1% to $303 million, but non-GAAP operating income decreased by 1% to $393 million.

TD SYNNEX (NYSE: SNX) has announced an agreement to acquire IPsense Cloud Migration business in Brazil, aiming to create a new Cloud competence center for its resellers. This strategic move will enable TD SYNNEX's business partners to deliver seamless workload cloud migrations to their end-customers. The acquisition, expected to close within 30 to 90 days, will integrate IPsense's expertise in AWS solutions into TD SYNNEX's two-tier distribution model.

The new Cloud competence center will be equipped with advanced cloud services and expertise, strengthening TD SYNNEX's portfolio of services and supporting its focus on delivering higher value to resellers. This approach aims to foster partner-to-partner projects and build stronger alliances in the Latin American market, where digital transformation remains a top priority.