I would like to welcome everyone to the Synnex fourth quarter and year-end earnings conference call. (Operator Instructions) Ms. Laura Crowley, you may begin your conference.

Good afternoon and welcome to the Synnex Corporation’s fiscal 2008 fourth quarter earnings conference call. Joining us on today’s call are Kevin Murai, President, and Chief Executive Officer, Dennis Polk, Chief Operating Officer, and Thomas Alsborg, Chief Financial Officer. Before we begin I would like to note that the statements on today’s call, which are not historical facts, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements include, but are not limited to, statements regarding our strategy, including growth, profitability, investments, and business expansion, expectations of our operating expense, sales, revenues, net income, and earnings per share for the first quarter of fiscal 2009, our debt to capital ratio, flexibility, efficiency, and benefits of our business model, market conditions, our expectations for our operating margins, and profitability and our ROIC. These are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in these forward-looking statements. Please refer to today’s press release and documents filed with the Securities and Exchange Commission, specifically our most recent Form 10-Q for more information on some of the risk factors that could cause actual results to differ materially from those discussed in these forward-looking statements. Additionally, this conference call is the property of Synnex Corporation and may not be recorded or rebroadcast without specific written permission from the company. Now I’d would like to turn the call over to Thomas Alsborg for an update on our financial performance.

Thank you Laura, good afternoon everyone and thank you for joining our call today. I’ll begin by summarizing our results of operations for the quarter with our key financial metrics and then I will provide some further details on our results. Total revenues for the fourth quarter of 2008 were $2.1 billion, a 6.4% increase over the fourth quarter of 2007, and a 2.5% increase sequentially. Relative to the third quarter of 2008 in constant currency revenue for the fourth quarter of 2008 would have improved by $42 million. As for the bottom line fourth quarter net income was $26.4 million or $0.80 per share surpassing Wall Street consensus of the $0.71 per share. ROIC rose to 10.6% achieving our stated goal of double-digit ROIC levels in the fourth quarter. I’d like to take a moment to call out that at the beginning of the year we stated that achieving acquisition adjusted year-over-year EPS growth in excess of 20% and double-digit ROIC by the fourth quarter of 2008 were our two main financial objectives and I am very pleased to report to our investors and perspective investors that Synex achieved both of these goals in the midst of what we now know is a recession. This accomplishment is significant as it reinforces that Synex business model is very flexible and efficient and that our company of hard working and talented employees remain able to deliver our corporate objectives. Now I will go into the more specific line item details of our results. In the fourth quarter of fiscal 2008 our gross margin once again expanded significantly to reach 5.84%. This represents an increase of 49 basis points compared to the prior fourth quarter and an increase of 32 basis points sequentially. Once again our core distribution business and our other…

Thank you Thomas, good afternoon to everyone and thank you for joining our call today. Regarding our performance Synex produced solid results for the fourth quarter of 2008 providing a strong finish to an exceptional year in growth and profitability for the company from our core operations and acquisitions. As Thomas noted we achieved many significant milestones and record results for the fourth quarter. We believe this is a testament to our focused execution and the strength of our business model. All aspects of our business operations including our core US and Canadian distribution operations as well as our growing services business drove results for the quarter. We would not be achieving these results without the continued hard work, dedication, and focus of our employees and the continued business and support from our customers and suppliers. I want to take this moment to recognize these contributions and to thank them. On December 1, 2008 we announced that Bob Wong retired as President and Co-CEO of Synex and has assumed the role of Chairman of the Board. I’d like to take this opportunity to congratulate Bob on his new appointment and thank him for his many contributions to the organization over the past 28 years. Without his vision, passion, and focused determination, Synex would not be the company it is today. Now with the completion of our fourth quarter of 2008 Synex achieved our 86th consecutive quarter of profitability continuing our strong track record of achieving our core operating and financial objectives. As we begin fiscal 2009 our strategy remains to grow our market share by adding more value added services up and down the supply chain. Our Q1 guidance reflects our view of the current market conditions and as expected the market is softer then normal when factoring in normal…

(Operator Instructions) Your first question comes from the line of Brian Alexander - Raymond James

Could you talk a bit more about what drove the margin performance this quarter because we’ve seen a pretty meaningful deceleration in growth but we’re in unchartered territories from a profitability perspective, could you say what’s really driving that, is it BPO, is that the largest bucket?

First thing I want to point out is that as Kevin commented, our gross margin expansion was really driven by both the BPO line of our business as well as distribution side of our business so all of our business aspects continue to perform very well we’re pleased to say. The only other thing I would comment is from the distribution side, again its really coming down to really solid execution and being able to achieve our goals in terms of vendor rebates and marketing and so forth.

From an overall operating margin standpoint as well we’ve been very disciplined and diligent in managing our cost structure and in particular in the soft environment that we’re in, we’ve been even more aggressive in looking under every corner of the rug so to speak to look for any additional cost savings and I think we’ve done a very good job in doing so.

On working capital I see the metrics moderated a little bit this quarter, can you talk about what you are doing to improve working capital internally and maybe where you see it heading in 2009.

First we have seen good improvement particularly where the areas we are most focused which is on the inventory and receivable side of our business. That really is coming by just blocking, tackling, key execution, key focus of our company on managing without taking away from the needs of our vendors and our customers. Going forward from a cash to cash cycles perspective as we’ve shared in the past this continues to be a very key focus for our company and our objective is to continue to reduce that cash to cash cycle even in a soft economy.

I would just add that we have a laser focus on ROIC in this company and managing working capital is obviously a very important function of that and its been worked throughout the company very well this focus on this ROIC aspect and its produced dividends this quarter and we expect to have it produce dividends moving forward as well.

Regarding new [age] could you break out how much it actually contributed to the quarter and maybe what’s the normal seasonality of that business heading into February.

From a revenue break out perspective we’re not going to break out the revenue from that division. Its actually becoming more difficult to define the actual revenue from the business as we’ve integrated it into our company. That being said I can tell you that the seasonality of that business is such that its highest in Q4 so the benefit that we get from the [new age] business came through in Q4 this year from a high point perspective. It’ll step down in Q1 based on pretty normal seasonality in the consumer IT business and then we’ll expect it to increase throughout the year 2009 and again peak in Q4.

On the subject of seasonality I’ll just remind our listeners that our seasonality trends from Q4 to Q1 have somewhat accelerated this year and last year as a result of our last 18 months our additional investments in the consumer electronics line of business which tends to have a higher seasonality cycle.

Your next question comes from the line of Richard Gardner - Citigroup

I was hoping maybe you could talk about the progression of demand throughout the quarter given that you hit the low end of your revenue guidance range and yet the lower half of your Q1 revenue guidance is down about twice the normal seasonal amount, did you see specifically deterioration in demand as the quarter progressed.

Yes, September and most of October I would tell you was pretty stable. November was weaker then anticipated. Part of that might have been due to a fewer number of business days in the month and where the holidays fell. What I can tell you though is December was reasonable from a sales perspective.

So you did see some rebound in December.

Yes that’s right, we did see some level of strength there.

You mentioned that your guidance allowed flexibility to walk away from aggressively priced business I was hoping you could provide some more color on where exactly you’re seeing price aggression and whether its getting materially worse during the quarter just reported.

I would tell you that that statement really is a statement of the way that we’ve been managing our business for a while now. Its not anything new specific in fourth quarter and as I’ve said in the past which is still true today, we are not as dependent as others might be on some of the larger deals that tend to transact at more aggressive margins. We always put our profitability ahead of sales growth and we just continue to do so. That’s just the way we manage our business. But the pricing environment overall in light of this soft environment I can tell you has not, we have not seen any significantly more aggressive activity out there.

Could you talk about why you lost the IBM business in the quarter and maybe talk about potential to get that business back again or what the implications there are.

I think we had talked about this in prior discussions as well, it was IBM’s decision to streamline the number of partners that, the number of distribution partners they deal with, and although we were their biggest broad line distribution partner, they believed that they needed to gain more relevance. So that being said the level of business as well as the profitability from that business was not material to our overall numbers and in fact we’ve been working on moving that business over to other competitive lines.

Your next question comes from the line of Matt Sheerin - Thomas Weisel

I’d like to get back to the issue of gross margin which was obviously very strong in the quarter, is there some seasonality there because for instance its year end so you have more incentives or rebates, is it more a mix issue that’s more seasonal or is that that 5.75, 5.85 is that a range that’s sustainable going forward. Should we expect, if you just sort of back into your guidance you take the revenue, you assume that there’s some lower expenses just because of the lower revenue run rate just to get to that $0.50, $0.51 range it assumes that gross margin is down a bit but not significantly.

Let me first start by, and I should have called this out. Of course the seasonality is a factor in this and so our fourth quarter tends to have higher gross margin higher profitability anyway just from the utilization perspective and that certainly was part of the benefit that we normally see in the fourth quarter. I would tell you that you’re always going to have, from quarter to quarter you’re going to have puts and takes but as we look out into 2009 and you compare margins in 2009 relative to 2008 I think it’s a fair thing to expect continued good margins that we have been putting forth in the last four quarters. If you look at the operating margin, it was above 2%, that was one of the things that we had been looking forward to achieving and I hope that you’ll continue to see more of that in 2009. Other then the seasonality and the general trend that you’re going to see in 2009 relative to 2008 I think that is the main thing I’d point to.

Its really consistent though. I think our performance is consistent with getting traction along our strategies so first of all I think we need to ensure that we get appropriate credit for the good management of the pricing that we’ve done in our core distribution businesses because we have been able to improve our overall profitability in core distribution. Expanding into product categories that do have higher gross margin profile as well as, as we continue to grow our services business faster then the overall business that also enhances our overall gross margin for the business as well so as we continue along the path of doing all three, which we certainly expect to do, over the long-term we can certainly expect to see more gross margin expansion.

Could you talk about the BPO business and the sensitivity of that business to downward economic cycle, are your customers, would they be looking to scale back that or in fact would you see more outsourcing and more opportunities as the economy continues to worsen.

I would tell you that you really do see both and I would tell you that in balance, I think we’ve benefited overall from the current environment so on the one hand where we do have existing partners that are looking to cut costs, when you take for example call center work, perhaps looking at reductions in service level and trying to drive down costs that way, yet at the same time we have such a robust pipeline of new opportunities because we have a pretty cost effective solution for those that are looking for cost reductions overall in their business and outsourcing is part of that answer that net, net we’re able to grow in this kind of environment.

And I believe that you said that you’re going to break that out or at least some of the numbers from that division out at your Analyst Day, is that right?

Yes, some of the numbers.

Could you give us an idea though of the growth, year-over-year growth rate in that business that you’re seeing now?

We’re going to cover this extensively in our Investor Day. I will tell you that the growth that we’re seeing on that side of the business as we’ve said on the distribution side have both been healthy.

On the guidance, so you have seen some weakness doesn’t sound like things are falling off a cliff but is that pretty much across your various customer segments, the distribution business, is that pretty much across the board or are there any specific pockets of weakness that are worse then others.

There are always going to be outliers both on the positive and on the negative side. As a general comment softness is across the board, just kind of highlight from fourth quarter I would tell you that federal government space was strong on a relative basis. We had relative strength in our own [e-tell] space or at least [e-tell] business with the customers that we deal with but overall softness I would think is a fair comment.

There are no additional questions at this time; I would like to turn it back over to management for any additional or closing comments.

This concludes our fourth quarter earnings conference call. Thank you for joining us today. We will have a replay of this call available for two weeks beginning today at approximately 5:00 pm Pacific time through January 22, 2009. As always should you have any follow-up questions both Thomas and I are available to take your calls. Thank you again for your participation.