Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Kugele - Needham & Company.
Richard Kugele - Needham & Company
First, just to make sure I understand the math right, we had included New Age, but if you back that out, can you give us a sense on how much New Age contributed at the gross margin level in the quarter.
Thomas Alsborg
We are not breaking out New Age. New Age has been integrated into our business and certainly won’t be run as a separate division, but having said that, some of the comments that we shared upon acquisition is that the overall margin profile of New Age is similar to that of our US operations and when I say that I particular focus on the operating margin. The revenue profile of New Age last year was about $900 million or a little over that and we have two months of those operations in our results this quarter, but we should not be expecting all of that revenue from 2007 necessarily carried forward into the post acquisition year.
Richard Kugele - Needham & Company
Kevin, to follow up on some of your comments there on the market. Have you seen the aggressive pricing or at least at certain customers the pricing pressures there, has that also materially continued in August or are you assuming that it will and you’re trying to guide for that?
Kevin Murai
Through the quarter, I would tell you that the overall pricing environment has remained competitive, which we do operate in a competitive environment, I would tell you that we have very good pricing discipline and as a result we’re able to continue to maintain our gross margins and over time improve our gross margins and we’re also willing to walk away from unprofitable business. In the market, we did see some competitive pressures but primarily on some of the larger deals. When you look at the makeup of our business, the SMB market is a larger component of SYNNEX’s business than you might see with some others. So as a result, we’re a little bit less dependant on some of the larger deals than others would be. So we view those are opportunities that we would selectively either move on our back away from.
Richard Kugele - Needham & Company
I know that you don’t like to get into specifics on this, but judging by my conversations with investors, I think some color would be helpful. You’ve made so many acquisitions over the years recently and have really moved away from competing against the other broad line distributors on a straight distribution model, but it gets difficult for investors to go I understand the various segments of the business between the BPO side and the enterprise part and the EMS side and now the consumer element, can you give us a sense what you see 12 – 18 months out on what the business mix should be so people could actually try and at least directionally come up with what a model would look like and what matters to you and what should not affect the model as much.
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