Synnex reports first profit in New Zealand

Financial reports for the year ending December 31st, 2009, show Synnex New Zealand’s revenue increased from NZ$28 to NZ$34 million.

Synnex New Zealand is a subsidiary of Synnex Technology International, which claims to be the second largest IT distributor in Australia, the largest in Asia Pacific and the third largest in the world.

Gross margin for the local subsidiary improved slightly from 4% to 5% and the firm swung from a $345k loss in 2008 to $61k profit in 2009.

The company hasn't had to inject anymore cash into the local subsidiary beyond its original $1.5 million investment and an ongoing $5.2 million loan from its global parent.

The local subsidiary had accumulated $759k of losses between its launch in 2005 and end of 2008, before turning a profit last year. Bad debts are under control and almost identical to 2008 figures at just $28k.

Synnex New Zealand ended the 2009 year with just over $1 million in the bank and $220k on term deposit.

All prices are in NZ dollars and Swedish rounding has been used when appropriate.