April 3 Hardware distributor Synnex Corp reported better-than-expected quarterly results as it benefited from higher spending on information technology and the acquisition of International Business Machines Corp's customer-care business process outsourcing operations.
Synnex's shares rose nearly 15 percent in extended trading after the company also forecast current-quarter results above Street estimates.
"We believe the strength we have recently experienced in IT demand will continue in our second quarter," Chief Executive Kevin Murai said in a statement.
The devices market, which includes personal computers, ultramobiles, mobile phones and tablets, was forecast to return to growth in 2014 after declining 1.4 percent in 2013, technology researcher Gartner Inc said on Wednesday.
Synnex, which distributes data center servers, networking equipment and storage products and services, said revenue in its technology business unit rose 20 percent.
The company acquired IBM's customer-care business in September last year and merged it with Concentrix, its global business services division.
Revenue in the division nearly tripled to $127 million.
Synnex forecast current-quarter adjusted profit of $1.34-$1.38 per share on revenue of $3.1 billion to $3.2 billion.
Analysts were expecting a profit of $1.14 per share on revenue of $3.01 billion, according to Thomson Reuters I/B/E/S.
Synnex's net income rose to $38.5 million, or $1.01 per share, in the quarter ended Feb. 28, from $33.4 million, or 88 cents per share, a year earlier.
Excluding items, profit was $1.25 per share.
Revenue jumped 23 percent to $3.03 billion.
Analysts on average had expected a profit of 94 cents per share on revenue of $2.77 billion.
"We saw good demand in personal computers and notebooks which we attribute in part to the refresh driven by support of Windows XP going away this month," Murai said on a post-earnings conference call with analysts.
The company's shares closed at $62.42 on the New York Exchange on Thursday. (Reporting By Lehar Maan in Bangalore; Editing by Sriraj Kalluvila)