TD SYNNEX Corporation

Q4 2021 Earnings Conference Call

1/11/2022

spk_0: today i like to welcome everyone to a td for next fourth quarter after school cheaper than twenty one attend school today school and recorded and all might have a on need to prevent any background noise after speak remarks there will be a question of opposition at the time for opening remarks like possible over to make murali having a better relations less you may begin thank you and good morning everyone thank you for joining us for today of call whitney today are rich you ceo and marshall which the fo before we can can you let me remind everyone that today's discussion contains forward looking statements within the meaning of the federal securities laws
spk_1: including predictions estimates projections or other statements about future events including statements about integration progress strategy
spk_0: free cash flow capital distribution leverage supply and investments actual results may differ materially from those mentioned in the forward looking statements as a result of risks and uncertainties discussed in today's earnings you leave in the form eight k we filed today and then the risk factors faction of our form ten k and are other reports and filings with the as easy we do not intend to update and you forward looking statements also during the call we will reference certain non gaap financial information reconciliations of gap to non gaap results are included in our earnings stress relief and the related form k available on our investor relations website i are that sinex dot com it's conference call is the property of cities and axe and may not be recorded or rebroadcast without our permission i will now during the call overture rich rich
spk_2: thank you live
spk_3: good morning everyone and happy new year it's exciting to be with you this morning reporting or first quarterly results of pt thinner today's results represent only are very first ninety days together and i'm delighted with what the team has already been able to accomplish in just that short amount of time let me share a bit more about what we've accomplished relative to our strategy and integration having made excellent progress in both areas first we define our go forward strategy with the overarching goal or keeping our customers and vendors at the centre of everything we do we're making significant investment which will solidify our position for the future and continued to accelerate our participation in the high growth next generation technology areas like plowed security analytic ios v and everything is a service then we are committed to continuing our journey to digitally transform the company allowing of to create an enhanced engagement with our customers and under partners with improved efficiency the provide further details on these topics we'll be having our first investor day at td center who the hell virtually after we report or first quarter result that that read or share with you are more that your strategy growth opportunity than financial performance from an integration perspective we are on track and the team is executing very well on our plan we rolled out or complete organizational structure ensuring that all coworkers are clear on their roles and responsibilities we've also been spending a lot of time with our customers and vendor partners who continue to be very supportive of our company and the plans that without one another critical area that we've been focused on is our i feasted them infrastructure
spk_2: we complete our assessment of our current yard of them then after that deep and thorough analysis major decision to consolidate our american business it onto the idea
spk_3: the rp system custom built for the ip distribution business the i had a great track record is highly responsive inflexible and provided with the ability to move quickly when an attractive cost basis all other geographic regions more inane on their existing earpieces them lastly we are on track with our class optimization and synergy attainment gold and though there is much work ahead we are well on schedule relative to our ambition integration plan going forward to our fiscal fourth quarter we had a good performance despite the anticipated challenging supply chain environment the chains the came with our merger and the new fiscal year and for much of the company overall our core distribution business performed in line with what we communicated lot of quarter and the supply that we wish the was consistent with our expectations strong operational execution by the team a lot of optimize our resolve to the higher end of are guided revenue range our advanced delusions products and service business saw continued improvement in the corridor and grew year over year assuming the merger had occurred in the prior year then point solution though slightly down year over year performed well and in line with our expectations despite the challenging industry breed apply conditions than a path fire your comparison all three geographic regions performs well in the americas the man with solid and the enterprise base that well as corporations prioritize infrastructure than security projects in the government's argument there was a bit of a slow down and spending which is not unusual in that first year of a new administration then the education segment was flat year over year and euro the man for next generation solution for healthy and we outgrew the market in the asia pacific region we had a very strong and to the year and made positive traction across multiple country and products segment ball from the core legacy tech database that as well as from the you know that business which was acquired more than a year ago additionally or many of our vendors combining japan and asia pacific provide the opportunity for expansion and incremental value creation from and integration perspective we continue to do well in identifying and capturing caught optimization opportunity and are tracking ahead of expectation as marshall will discuss in a moment we are now attracting to thirty percent non gap dps secretion which is above the twenty five percent that we previously targeted as we begin twenty twenty two i'm encouraged by the solid the demand drivers across the technology landscape and the opportunities in front of us as we bring our band it set of products and services to the market or and ham up scale provide us with an even greater ability to bring value and choice to our customers as an example posts merger we have more than doubled the number of vendor partners in the security space available to like it he packed data customers
spk_2: similarly we have also significantly broaden the data center offerings available to like at least the a customers
spk_3: customers and vendors continue to increase their levels of involvement in digital transformation enabling any probing users everywhere to connect collaborate and work more effectively and securely specific to defeat the ecosystem we remain cautiously optimistic given the opportunity than the commercials paid with the windows eleven refresh cycle an upgrade for advanced security features that by the thumb moderation than the consumer stagnant taken together we believe this result in an opportunity to grow our top line and fiscal twenty twenty two if the considered part industry supply constraints that we're back to continue through fiscal year before handed over to marshal on the pause to express my gratitude to all td the coworkers for their hard work and contribution during the school twenty twenty one because of your effort we had an excellent year and i'm thankful for your continued dedication in and expertise as we strive to deliver to courier service to our customers and under partners i couldn't be more excited as the all that will accomplish and twenty twenty two oh now pass it over to marshal who will provide additional details on our financial performance though thanks rich and thank you to everyone joining us for today's call we performed well in our first quarter together with result as are better than our expectations across the board and of by the continue difficult supply chain environment i am proud of our team who collaborated well executed flawlessly and adjusted to many changes in our first ninety days together in particular are like to express my gratitude to the global finance organization for their dedication and hard work in reporting combined company results for the first time now turning to our results for the fiscal fourth quarter
spk_4: total worldwide revenue came in at fifteen point six billion down three percent from the per year
spk_3: this comparison assumes the merger with that data occurred on september first of twenty twenty we are pleased with the written with this result given a tough comparison to prior year the play chain constraints a new and at the bot rating of one company as well as an approximate what percent affects had when the to the euro weakening against the dollar birth profit with nine hundred and forty three million and gross margin was six percent reflecting followed execution by the team and it continued favorable mix of products and services total adjusted accion expense was five hundred and fifty nine million representing three point six percent a revenue and in line with our expectations non gap operating income was four hundred and eight million and nine gap operating margin was two point six percent
spk_4: not yet interest expense and finance charges were forty two million and the non gap effective tax rate was twenty four percent total non gap income from continuing operations was two hundred and seventy six million and non get the loot a dps from continuing operations with two dollars and eighty six cents now turning to the balance sheet we end of the korea with cash and cash equivalents of nine hundred ninety four million and debt a four point one billion or gross leverage ratio
spk_3: that was two point six time and that leverage with to time this ratio assume the merger with tech data occurred on september first twenty twenty
spk_4: pretoria told six point six billion or networking capital at the end of the fourth quarter with two point seven billion and are cash conversions back for the fourth quarter was working days which was in line with their expectations josh provided from operations was approximately five hundred sixty one nine in the quarter as we began to go twenty twenty do i like to share some poplin capital allocation even the numerous positive drivers for the company we remain on course of delivering a practically one billion a free cash flow by the end of fiscal twenty twenty three
spk_3: our long term capital allocation strategy over the next two to three years is to distribute approximately fifty percent of our free cash flow to our shareholders in the form of dividend and share repurchases remaining investment grade optimizing are caught the capital and balancing organic investments with them many opportunity
spk_4: you are some of the key priority were focusing on as we enter fiscal twenty two and beyond for the current quarter or board of directors had approved a quarterly cash given and at thirty cents for comment share the dividend and expected to be paid on january twenty eight twenty twenty two two stockholders the record as a the close of business on january twenty first twenty twenty two
spk_3: let me now provide you with a modeling thoughts about fiscal twenty twenty two and que one as rigid mentioned we remain confident about the variety of growth drivers or i do spending the here given by traditional and next generation technology like most others and industry we also believe that will remain in a supply constrained environment for fiscal twenty twenty two against that backdrop respectable revenue in the mid single digits in fiscal twenty twenty two negatively impacting the both expectations are attacks which is expected to impacted by approximately one point one billion and growth vs net revenue jasmine at one point two billion which is the result of aligning policies between the two companies net of these had when revenue when is expected to grow low single digits
spk_4: mean it's very good progress in fiscal que four on productivity initiative as well as a deal related synergies given his progress and the view regarding fiscal twenty twenty two we now expect to realize a thirty percent accretion non get easier and fiscal twenty twenty two compared to fifteen or twenty one legacy cynics
spk_3: standalone results this represents an improvement from our initial target a twenty five percent accretion
spk_4: for fiscal twain to we expect nine got ptsd the between ten dollars and eighty thousand and eleven dollars and twenty cents per diluted share this also assumes a negative twenty three million headwind to non gaap net income or eighteen cents per share primarily associated with the weakening of the euro cents a day we first performed a merger krishna
spk_5: assessment
spk_4: now and to share some thoughts for fiscal que one we expect total revenue to be in the range of fourteen point seven five nine fifteen points and by building which when adjusted for fx the facts before hundred fifty million and gross vs net adjustments that are partially three hundred million represents than expected year over year growth rate in the midst
spk_3: single digits that compares than assumes the merger with tech that occurred on september first the twenty twenty
spk_4: our backlog level continues to be elevated and we estimate the impacted that cookie one in revenue could be approximately five percent
spk_0: non gaap net income is expected to be a range of two hundred and forty five ninety two hundred thirty five million and nine get diluted a dps is expected been a range of two dollars and fifty five cents to two dollars and eighty five cents per diluted share it on weighted ever shares outstanding of are practically ninety six nine interest expense is expected to be approximately thirty eight million and respect nine get tax rate to be approximately twenty four percent here of twenty twenty two are for looking and that are actual results may differ materially we will now take your questions operator great thank you so much he will now start out you and a session
spk_6: you like after question please post stock fun at the london you can thank you
spk_4: jim is the headline is open thank you so much and for the details i'm i have two questions that the first one is on the
spk_6: english is twenty five percent previously can you need me to shoppers bridge
spk_4: the difference about what was that that the major upside there
spk_3: e o p r this industry three has had some struggles land candidates have switched over to one your p to can you don't know kind that fine line and are you gonna run dual ear piece for would little bit a while and others were associated costs with that and will eventually go away a few
spk_2: oh thank you gym or this is rights i'm going to handle your second question first that then we'll go back to a large stop so
spk_3: the other way we're thinking about r e r p implementation is in all use the word rolling thunder where will i be transitioning customers and vendors over a timeline though it's certainly a way of the real thing you know what you might be characterized as a light switch flipped we've got it well planned yelled the overwhelming majority of of thought of a transition will happen over overpopulated in london time frame plus minus that we are have confidence of based on the way we built a schedule and we have confidence based on the fact that the both legacy companies have done the a large transition the in their previous history
spk_4: so we feel love really good about the where we're headed the head of the marshal on the accretion question
spk_6: a gym nice to hear from you again on the the accretion increased from twenty five percent to thirty percent it really represent an improvement from expectations from both the g b o two initiative and the deal synergy of which are both we committed to a fifty million dollar
spk_7: synergy ran right in the first year the first full of month both close in both of those areas we're running better than expected that because of that and what we captured the day is of that confident that the keeping the thirty percent increase very
spk_0: thank you so much for the details it's greatly appreciated
spk_4: they can think a gym
spk_3: thank you gently question and point next question comes from keep himself from the north casually such great please go ahead get more a guy then i get to talk together at shot of thanks for the results as a graduation of the rich and can feel you know what to do that you are your work which of her last two years as really the optimizing the profitability can feel like a sunday dinners your know to help you gotta operating margins he talk about you know they are you taking in their path here with the combined companies are go what's your strategy for upper emergence going forward that's a good great question eat banks are not welcome back into the coverage or really happy to have the have that a relationship with you get moving forward i will leave you with them to thought i'd eat first one is that the largely speaking the legacy like data and that he had at the complete that it were largely taking what it wanted to ah add that related to optimization in the past and then maybe a little bit unique but when you're in a supply constrained environment to give you the opportunity to decide where you're placing your offerings obviously with up making sure that you're focused on customers that as well so you know that allowed it to have of have a a natural sort of realignment them and clean up at the well i'm sort of lower margin areas as we have all come through the applied constrained evolution so the portfolios and really good faith i feel great about it and you know we're really looking forward to i'm now working with customers and vendors to or accelerate growth moving forward
spk_8: great than the effective to back all question or marshall have a high school corporate or company
spk_4: he thanks for the question to for a mighty wind guided in queue for for the lower end of about camp and we ended up exceeding those expectations though it did well in in in i did well in three areas one just the normal a manufacturing aspects of by our data and our customers the second as the assembly
spk_9: i'm part of our of them and where we really fine up his then what we call distribution like services not typically represent our strategic part airport mood for our data center customers around the world where they have a need to continue to keep their their data center that and running and are related to the had a global network that
spk_10: for fill those need is what we saw lot of demanding you for
spk_0: right thanks to the cat
spk_3: thank you thank you kate thank you keep your question and our next question calling from addington know found by james think our head
spk_6: okay thanks good morning machines one of the started by clarifying in an earlier he apparently he said fifty million on synergy that about the number was a hundred million per synergy that i was still at one hundred million extra expected surrogates for this coming fiscal year in the timing for that
spk_11: yeah think that for the clarifying question it is fifteen million for i'd feel energy than fifty nine per gb or two in the first year or a of a hundred and then and attacking your postcode is an incremental one hundred though we will act that
spk_3: me into the second question if i look at your fiscal twenty two guidance some and job to crack
spk_11: me if i'm wrong i did some quick math trying to back into operating profit dollars a year implying on a year over year basis
spk_3: or incremental operating profit dollar was implied in the for your guidance
spk_4: but if you got one hundred million on interviews coming through your why would we are they have an incremental fifty million in an operating profit of their assumptions embedded for reply or vendor changes or macro does that help me out with the thinking better
spk_12: yeah adam think they for the question when we give our overall guiding for any for a of our perspective on that not only with five and on the distribution business
spk_4: but we do expect that the only and operating income down and that like not only tail and a business for which were doing
spk_3: the incremental and issues really
spk_6: the the of energy to as well but could be just the way that your models rolling out that we can we can drop off line but that we should be a christian and growth on him operating profit dollars and in operating margin and twenty two
spk_3: god okay maybe that's one on castle on cap allocation the fifty percent return you know maybe mostly because on the decision to go to that level of at into higher berlin course and act from the past and rich if you wanted a navy dovetail on to this question because the other fifty percent as for investments and debt optimization but it pretty caused an optimal capital stratum on the first and then handed over to her
spk_4: to read so as you as he saw hundred and and are in my prepared remarks we feel that the right capita allocation strategy is to to achieve and to reach eighty it percent care ratio in the form of repurchases a share repurchases and evident we office per share and you and your like that at at about one hundred twenty million i wear off expecting to to do of
spk_13: but one hundred million or share buybacks
spk_14: if you look at where we acted fiscal twenty one at about seven hundred fifty million a free cash that around or twenty nine thirty percent the operational so we we think that the right starting point and then as we acted in go toward fearsome today would we think we're going to be a bad oh we think that the right kate yeah
spk_13: i out a of a couple of
spk_3: though or stuff johnson that the to drop i've you know we always called and ducks generation technologies in there is investment than platforms investments in the skill rune pick cetera et cetera in order to support that in addition to that we you know
spk_15: our and up a segment that acquisition is always considered up and certainly will consider acquisition moving forward
spk_3: i would say that that certainly really nothing on the radar to the extent the upbringing need to company together but the out are we we have the opportunity to look at expansion in some day or markets that namely asia pacific japan where we might have a a bit about lower market opposition and and in addition to that we're always looking to pop your strategically up build stronger capabilities moving into the future though will consider that
spk_16: you know we are really comfortable with the capital allocation model that we have articulated and as all of you know you know that that of the something that is they did on a continuum meaning that if you're doing a large acquisition at a point in time you know you might be a up to
spk_12: however the on
spk_0: investment in the company little bit lighter on the other side or the reverse is true as well but in the steady state and up you know we're really comfortable with that
spk_6: the thought of a fifty percent return to shareholders than fifty percent invested about him into the business
spk_0: the that the night
spk_6: direction thank you
spk_17: and yeah
spk_6: and i question and our next question comes from and and about some let capital please go ahead
spk_3: the you like like happy new year and i'll get a happy new year to the classic regret happy new year to grasp on the result yet to king for it i train or the first one is you live in launching in the game or like that are lucky like legislate the more care for me but looking for definitely transformed the company likely he had sort of feel it will ideal initiative allied the company i could get away with that the marketplace or with customers answer was just wondering are guilty of what are you looking at dealing with their and that advocate power yeah though they think that one of her happy new year to you and and thanks for joining know obviously digital transformation has been know something that vendors got yelled back for five plus years now die by i want the first clarify that of you'd be both companies have been sort of on that transformation and transition to better capability and if i were to buy are tied to you are folk falcon you know it it first appeared to make sure that we are making the investments are both to continual
spk_18: lee improve customer and vendor experience
spk_3: yeah this industry as you know and and under has our own particular distribution we live on under a bit of a bit more margin profile that it always requires more and more productivity which lends well or to you know automation and process redesigns though
spk_13: lot of that has been done but a lot more to come and he added all transition you know to add a a new standard of the arc the
spk_3: in we visit our entire edge tool inventory can make sure that we have dated the our capabilities and of course
spk_19: you know it makes it's way through the entire organs
spk_6: you know the an art from our logistics centers all the way through our our financial and counting processes the legal product that is that hr processes the it sort of our and it
spk_17: i want to be clear that you know the top five
spk_6: excellent experiences or our primary stakeholders
spk_17: okay that
spk_6: he grappled treaty that and ended that the copilot and just with with all the yeah
spk_17: it all the digital initiated in ventura amplified of last i would just wondering if you like think that that there is any opportunity on a high
spk_20: in their the opportunity
spk_4: for to begin invasion last year and a half structural growth rate you know could change in coming years
spk_3: what what what did with the right way to think about that potential that for a not a the good work
spk_21: bison it is marshall yeah i think that the hive you have continued to transform it into raw delivery and capability am i'm hyper scale providers and pollution
spk_4: i'm would to with customers go and i said earlier die in manufacturing a family
spk_17: horton you know nothing the a full stop won't that and pollution the hype can can fulfill for the and
spk_0: markets and our customers that is where we're progressing so i think the market itself i'm are we there yet and or jerry
spk_22: no but we do feel good about
spk_23: but where we're heading over the next two to three years like a great appreciate that one thanks for your question i will
spk_24: that question comes been replaced by the chinese from bank of america please go ahead chins
spk_23: which i was running if you can talk about your combine
spk_3: our a cloud billings trending not mistaken a couple years ago had a one billion plus club but business and that elizabeth business and can he also did as on stream one i think tech data invested a lot in that i'm very can handle the entire line card for both companies thanks for that at boston so first of all i'm
spk_25: me started the top one
spk_3: the growth rate in are substantially higher the
spk_14: then the core of the business
spk_3: and you know actually running higher than the average of the growth rates of bout of cloud over the continuum so we're really pleased with the up the the progress we're making over all that next generation category which know and include loud as well as business analytics coyote security is becoming a meaningful part of the overall portfolio now as you know there really
spk_13: in the net and adding that goes on with a lot of a new you know your was started
spk_3: but the to decide the of the port
spk_26: do our platform going forward i
spk_3: had commented earlier that we've started be the at the e r p and you know we have a few very good platforms right now in market would stream one as well as dollar an hour yeah we're we're
spk_27: cows are in bit odd kind of
spk_23: think about that heard about the ball a the the the approach that we're taking a both have a really strong capabilities that are to the it it for different means actually fell out of the elite we have once again the opportunity to add if take advantage of of both of those capabilities moving forward and i think that when we when we get for the end up it'll be something of a mix of both would be my my judgment but there will be updating you probably and are no a call or relative to the whole at has a shaken up
spk_3: i'd had nothing you have mentioned in you're prepared remarks out with respect and point solutions i think he said that the are expecting of continued strong that it's wanted ask a conceptual question and the now and are employing solution than pcs had been a strong plane for take data but as you look at the combine a company the how dependent do you think kiddies he still think that you can make the you know the revenue numbers so i mean would you say that the combined company is less dependent on the pc cycle or is it still you know as a dependent on the pc cycle as it was as standalone that again get like to share a couple of bought with you on a budget they've done my pictures of experience and known we have the benefit of having a very wide and broad portfolio of the eyes as as that tt spinach and what my experiences been the jacobi being a good example as you know we have had up we have a pretty big advantage solution that this overall the organization an end the people within the organization
spk_23: theme to move the word where the demand is within the i'd spend and so you know if there are spike all that have to be overcome invaded had their or and beat the ecosystem you know the the agility of the model and the organization of a very well tuned the moving to where the demand is in the market answer your specific question in
spk_4: you know depending on which side you're coming from i yeah either like legged be an actor like have bpd are they the the pennant he has not grown i would say that it is fairly consistent with them
spk_3: you know that that are our path profile and yeah we do feel pretty good about some of that thing going on there in the commercial space i had also commented that we believed that they'll be a moderation and in the consumer space looking forward and other plenty of a backlog that need to of the work down his as removed due at minimum the first half of the year so you know those those are generally my last one if i can just speak
spk_23: one more in marshall for for the hive business you still expect a large customer to transition to
spk_0: a consignment model
spk_17: at some point this year and if so when and let would be the impact on a quarterly basis yeah thanks to the question with
spk_3: on the the dollars impacted right now we don't have any reason that the to believe that are going to change the historically at bad and and then arcanum in is as we learn more will share mortar right now nothing and turned them when that will barking in fiscal twenty two get battle okay thanks while the details and congrats on the strong indication thank you
spk_13: thank you very playful your question and our next question come from southern parts from cost me research please go ahead
spk_3: and thank you very much i will connect you to give us some insight into what your customers are spain with regard to command how they're thinking about allow demand for ip just how how they're looking at life and l and them theoretically post pandemic world that were kind of moving and kill or what areas are you seeing them as demands on such a given by he said the supply chain it would be helpful thank you yeah send an hour out there my my personal blog and nothing nothing more than now but it is that informed by reading about our or industry right so the a couple of lads if i were to represent the customers right now they would say we need more product yeah clearly the backlog continue to grow i make that statement but i also want to provide an insight with that statement you know years ago and i started at i b m i was in the procurement punched and then you know year the procurement sit them to catch up to start placing orders the the lead time then we clearly are now in that or in that sorta range where you know the backlog represent certainly current nathan current demand but it also represent thing you know now customers putting up orders based on lead time so they're clearly his future orders i wouldn't allege and anyway
spk_28: one backlog as they talk about that right now so they get that's an important point customers would fade we need more now my view is that
spk_17: the free dot number one is the next generation technology areas will have strong growth and you know that is kind of where the future is cloud analytic coyote security yeah we know them well it in addition to that you can out and everything is the third you know new and
spk_4: a spins around the edge that go into the beat the eagles that the much better the second thing that i would tell you my hypothesis is that you know we clearly have two years of pent up the man with then when i would call the infrastructure additional infrastructure state
spk_3: i think that that plays out as more and more and more of a people get back to work more and more product get deployed like i would say that there are have a good growth attribute there and then you know we did talk about the backlog and repeat the question earlier i believe that know the growth within fifty over time will moderate and again it'll be a more profound in that consumers died at birth to the commercial side commercial by does have some transition going on where it'll give it some growth but not not the level of wrote that we had seen ball in the last two years though he'll next generation technologies high growth good growth within the infrastructure spade moderate growth within the the ecosystem spaces the way i will summarize it for you
spk_2: thank you
spk_3: and then i'm wondering you know given that dead billion dollar as range that you provided for revenue for next for the current quarter of what would you say are the biggest fling factors arm as he looked at it and mean historically companies than pretty conservative but i'm i'm just wondering what what puts take flynn and sure about i can good question is marsha of garden and risk and can chime in a while i'm thoroughly that the assumption of of five percent constrain ip constraint and from but by chain of been is a back into that the at be the overall assessment of what each region will do relative to those constraints
spk_17: we build up our forecast a sound bite each one of the operators than and leaders of the diversity within their own niche where the that product fighter or still died
spk_29: on outside of that it also could just be a matter of on the anthem flow the what's happening in regards to help out markets open up which opened and close that and get now the new normal but we still have the probably have that a bit of both the the as well as lot it is a of opportunity that ridge mention continued the opportunity fucking those be third is
spk_17: other potential upside to that mythical single digit growth rate target we need disgusting you want it's an alleged like the provider a thought in emphasize that i think the biggest difference to how much supply will get we had done in are prepared comments talked about the fact that the plot
spk_3: i was relatively consistent with our expectation and a fatal the life of our business leaders have changed a little bit you know we were to go to hire coven yeah we were almost like i'd say there's always some constraints but we're almost done a uncle strange supply of our environment and now we have to spend as much time as leaders who vita estimate our best judgment on what's the bligh we're going to get in the corridor and you know that become this big a factor as anything else in in terms of trying to provide you know a view of about the business perform
spk_14: so
spk_17: yeah i i think that by to answer your question more single threaded did they know if you can tell me what supply we're going to get i can tell you where we'd be out within that range
spk_30: okay thank you that's how far and it's my last question i apologize if you're interested but i'm wondering as as con has spread
spk_31: if you'd seen any changes in behavior or availability just in a year in your kind of the first tech company we can talk in as
spk_11: reared it's ugly head son just wondering and else you can point anything thank you
spk_6: yeah i'm so for me i would say that there hasn't been anything profoundly different
spk_11: i think it is fair to stay in fact i know that the you don't read time we speak with you the the backlog is bigger and that's the case now bomb but then i'll go up
spk_6: as i stated earlier get we kept the begin the recognize that you know future orders are absolutely entering that that backlog now be done you know a better understanding of the lead time but the oh i don't think there's anything that you're ugly different the you know that that that has come to our attention with buddy omer brunch drain
spk_3: okay great lol thank you so much for taking the question i think you can a kitten he had
spk_14: i get plankton and good morning everyone
spk_3: and just wanted to one the ask about a your guidance say which you've been talking about about some of the supply demand is issue and sounds like backlog of very strong get you did beat your your revenue guide and significantly
spk_2: i'm so and are you seeing and any signs of and sort of with pick up in terms of supplier we just able to the out execute competitors and in terms of being yelled at me on the higher end of of your forecasts and as you guided and i think your guide you down to roughly
spk_3: present sequentially out for the february quarter could we get a sense of and kind of a pro former features that typical seasonality for the for the combined business and and are you dying more conservatively then they new seasonal because of the country but you're seeing and just a little bit more cowardly there would be great maybe i'll start and then and it over to marshal i think it's gonna be important for marshall do up talk about two things relative to the top line the first one is we clearly have a year old had when
spk_32: and the second one is there are some thick those pics adjustments are you know for are not accounting that help know all though that describe to you and can give you view the what that means for the quarter though you know at a war when you take those getting into account at a constant currency and then not to judge the first episode that
spk_3: there's there's more you know revenue if the will then the than before as a generalization and we kind of talk about this mad yeah you're asking about that sequential that as a generalization you might recall that
spk_6: you know or year ends were different and so if we came together as a combined company what's interesting is that you know once you start to look a lot like for que now from a financial profile perspective because we were heavier up in the december january time and they were have her heavier up in
spk_4: in their legacy as the october november time so i'm it i will tell you that that profile has shifted a little bit based on on now you know what that i just describe how turn it over to marshal bernie other clarity
spk_3: yeah the mavericks brief the good point of to clarify that the growth panetta judgment it it that it they apple vs annoying orange the party the alignment that take by one and at one point he doing a revenue out of the four point of view and about three hundred ah million out of que one and and we can't go back and i just five years though just stand on it's own at the had went back to reach comment the and now it either different i'm if you looked at leg or people like seasonality come an attic euphoric you won a typical your down and that and fifty percent range you look at the late
spk_6: the pack it could be a five percent only blended together it does create kind of a new the than on relationship and then the final thing which is important but we'll work through this year is
spk_33: in distribution quarter and and matter and so there's a lot of random around that corner and and spout aligning the be difficult to so one common quarter the comparisons could be a little bit out of north as we work our way through twenty two but going to twenty three we're going to have a a decent regimen pattern a because because
spk_3: okay in march of the mean out the quarter and also for some of your beagle we i'm i'm suppliers as well yeah a lot of that is dependent upon just the timing of when they fall curtains when we bought and on any given year it felt that probably nothing but within the quarter they can behave a little bit different each quarter in and i think the other guy with the did i did their legacy tech data about the and the up my primarily in the sales organization are also adjusting to the new a quarter of the name yeah obviously have done from our point of view quite well in the you for of but a very quickly have the opportunity again yelling and than of realign for the right a quarter and the catterick better as though no we weren't did i'm an added art of our integration okay thanks for that and then i wanted as
spk_0: just around the painting an environment where hearing from a number of aliens about passing on their own right and costs along our or at least pricing less aggressively i'm i'm a big deals are you seeing that is that blowing through your ah your income sailing and a that in packing i and
spk_6: and hand at all
spk_34: fl all comment and then ask marshal to so you know as a generalization over the continuum now i think right thing
spk_14: for most of the content is probably somewhere between five and ten percent overall and as you know that we talked about that many times in the past the it a price changes with the a vendor we pretty quickly apply it so
spk_3: yeah we just generally speaking it it it's unusual for us to get hurt from in incremental pricing changes but that doesn't occur
spk_13: very much if at all then when i would tell us that certainly with the are are are shipping costs going up and as with be shipping costs going up they get generally passed through to customers but you know that overwhelming part of our hospital told his product and the dynamic that i first described
spk_3: is kind of the way it works though you know we we are from our model perspective really have not historically had a lot of exposure to incremental or prices yeah not have know it play out well in you one and and a pulmonary password for fifth of twenty to lock them up with some thanks matthew question and our find a question come from a for leaky of fun and can be set in our a hat yeah richer i was curious am i have experience staff ah woody woody are updated thoughts on financial loss of revenue from my clitoris vacation yeah so am i i i would tell you first that and i'm from where i said i have not been aware of any a negative revenue synergy to use that term in fact the yeah i'll knock on wood
spk_35: he another the the customer experience feedback back that i have read the note and they wanted than really excellent and very very supportive
spk_6: my my speculation is that will have been more opportunity
spk_36: it from revenue the energy as opposed to arm
spk_3: you know impact and getaway to think about of if if you go back to discredit for one moment you look at bill security portfolio you know if you're sort of undetected failed died you now have greater than fifty percent more security vendor than the portfolio that you can take the market to your customers and and
spk_4: and if they're on the legacy clinic they all died you have a much larger and robust infrastructures portfolio to take the your customer said and right now candidly what the systems are still being separated we make that happen through some
spk_6: i'll call it a collaborative manual intervention as we move in time and then you know line customers on a calm and e r p and vendors not a common e r p the rolling thunder approached i talked about earlier
spk_0: and then that becomes very highly automated and we should be able to off you know actually get a better advance i'm moving into the future
spk_2: and i was curious about dad
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