GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Technology

 
  Share
  • Global Technology Leader in Pc, Data Center and Mobile Grew Revenue 6.3 Percent Year-over-year to Us$12.9 Billion, Highest in 3 Years
  • Pre-tax Income Quadrupled to Us$150 Million Compared to Q2 Fy2017/18
  • Data Center Group Posts Highest Revenue in Two Years
Dubai, UAE, February 01, 2018:   Lenovo Group (HKSE: 992) (ADR: LNVGY) today announced results for its third fiscal quarter ended December 31, 2017. Revenue was US$12.9 billion, a 6.3 percent increase year-over-year, and 10 percent increase over the second fiscal quarter of FY2017/18. Lenovo continued to enjoy significant revenue gains in PCs and smart devices (PCSD) and the Data Center Group (DCG). Lenovo's Mobile Business Group (MBG) performed as expected for the quarter. Lenovo showed strong pre-tax income growth in the quarter, up sharply to US$150 million, a four-fold increase from last quarter, and nearly a 50 percent jump from the same period a year earlier.  
 
Lenovo management credited the performance to execution of its “three-wave strategy,” which emphasizes leadership in its core businesses, growth in key segments, and investment in emerging technologies. During the quarter, Lenovo drove growth in PC sales, solid data center and mobile performance, and strong momentum in the developing areas of device plus cloud and infrastructure plus cloud technologies.
 
“Lenovo is accelerating its transformation to become a world leader across every part of our business. We continue to see significant improvement and strong performance in some of the most exciting technology market sectors, smart devices and data center. We saw revenue, margins, profit, innovation, performance and customer experience all extend the momentum that developed during the prior quarter, and these results reaffirm the transformation strategy we are executing,” said Yang Yuanqing, Lenovo Chairman and CEO.
 
The company's PC and Smart Devices (PCSD) business continued to show strength in the third quarter. Lenovo tracked solid momentum in this unit and signs of the overall worldwide market trending higher. Industry numbers met expectations on the quarter, validating Lenovo's belief in taking advantage of developing high-growth opportunities in this market segment. During the quarter, the company enhanced its momentum in emerging technology areas, including Augmented Reality (AR) and Virtual Reality (VR).  The flagship Star Wars: Jedi Challenges AR device in partnership with Disney is reaffirming the company's status as an emerging leader in the VR/AR space.
 
Lenovo's Data Center Group (DCG) continues its transformation, tracking not only to its commitments for the third consecutive quarter but also delivering its highest revenue in the last two years.  This progress has been fueled by consistent momentum across all segments and all geographies. 
 
Lenovo's Mobile Business Group (MBG) met expectations for the quarter even as the industry faces enormous competitive challenges. As the company has indicated previously, it takes a long-term view of this business and believes that the right strategy is in place to deliver short-term improvements and sustainable growth in the long-term. Latin America continues to be a stronghold, outgrowing the market by almost 30 points year-on-year.  
 
The Company's gross profit increased 9.8 percent year-over-year to US$1.8 billion, which was a 8.6 percent improvement quarter-to-quarter. Gross margin was 13.5 percent, a slight increase compared to last year. Operating profit increased by US$114 million quarter-to-quarter. Basic loss per share was 2.53 US cents or 19.72 HK cents, resulting from a one-off non-cash tax charge of US$400 million. This follows the re-measurement of US deferred tax assets after the recently enacted US tax reform legislation.  In view of this, the company believes that the lower tax rate can benefit the US operations over time.
 
ADDITIONAL BUSINESS GROUP HIGHLIGHTS
 
PC and Smart Devices (PCSD) business group:
  • Shipped 15.7 million PC units, flat year-over-year. Revenue grew 7.6 percent compared to last year's Q3 to US$9.3 billion, and up 10.4 percent from the prior quarter – the 5th consecutive quarter of year-to-year revenue growth. The company maintained its industry-leading margin.
  • Momentum was particularly strong across the globe with double-digit revenue growth year-over-year in EMEA, Asia Pacific (AP) and Latin America (LA). 
  • Latin America's performance stood out with Lenovo market share now at 20% driven by strong growth in Brazil.
Data Center Group (DCG):
  • Highest quarter revenue in two years at US$1.2 billion, up 16.7 percent year over year and 25.5 percent sequentially.
  • All geographies achieved double-digit growth and margin improvement. North America and EMEA saw their third straight quarter of year-over-year revenue growth.
  • China returned to year-over-year revenue growth and margin improvement, thanks to a stabilized Hyperscale business and success with High Performance Computing and Software Defined Infrastructure.
  • Extended number one ranking in x86 customer satisfaction, according to TBR (Technology Business Research), for the 8th straight quarter. Additionally the team added 88 new world record workload benchmarks – four times more than any other industry player.
Mobile Business Group (MBG):
  • Revenue of US$2.1 billion was down 5 percent from a year earlier, but flat compared to the prior quarter. 
  • Latin America remained the strong core of the business, seeing double-digit revenue growth (+37%) and strong profitability. 
  • 5 million Moto Z handsets have now been shipped globally, with activation rates for MODS up 64% year-to-year.
  • Lenovo saw the Moto brand strengthen in Western Europe, with shipments up 23 percent compared to the same period a year ago. 



Posted by : GoDubai Editorial Team
Viewed 8754 times
Posted on : Thursday, February 1, 2018  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Discover the real you with the new Samsung Galaxy A8 and A8+ at zero upfront with du postpaid plans
Next Story : Dubai Police Signs MoU with Riverbed to Drive Technological Innovation in IT Services and Infrastruc...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Robinsons Honored for Outstanding Store Design
Safilo Group Reveals Its Spring/ Summer 2018 Collection
Bridal Glow is Skin Deep: Tips for every bride-to-be in 2018
Redefining the Skin Clinic Experience. #allnewkaya opens in Muscat City Centre!
Optim-Eyes Lashes & Brows with Filorga
Mealtop, Introducing a Whole New Dessert Experience
Catch Some Zzz's in the IKEA Nap Truck
Kate Spade New York Spring 2018 Collection
NEZO launches new identity to guide consumers in selecting the best salt for the...
South African artisans of fine leather products look to make big impression at L...
Dual Investments Brand LE66 to Relocate from City Walk to New Dubai Location in 2018
Global Expansion in sight for ICONS© Coffee Couture
Raymond Weil's Freelancer Ladies
Tag Heuer Carrera Heuer 02
Do You Feel Sleep Deprived? Nearly Half of UAE Would Give Up Social Media for an...
Al Ghurair Foundation for Education Event on ‘Graduating Work Ready Youth' Unvei...
15,000 participate in the Dubai Cares' annual Walk for Education 2018 in support...
DAMAC Properties deliveries surpass 20,000 unit milestone as it reports net prof...
Al Qattara Investments reveals expansion plans for Al Ain
Dealing with Diabetes: What German Medical Center's doctors say about the incura...
Indian FMCG Conglomerate Hamdard Laboratories brings “The Drink of India” - Rooh...
Galderma's “Leave Your Mark” Mobile Clinic heightens awareness of skin diseases ...
Jaguar Land Rover Awarded as Company of the Year
Dubai Culture Launches ‘My Environment My Responsibility' Initiative in Hatta
Name of New High-sided Vehicle to Be Rolls-royce Cullinan
Pink Caravan Ride Launches Mobile Mammography Clinic to Offer Specialised On-the...
Middle East Fuji LLC exhibits the Gold medalist of Japanese branded “Kobe Beef” ...
Preparing the perfect table setting with Bits & Pieces
The Allure of Mars: Making humans an inter-planetary species
Keys Ready to Make Her Mark at Dubai Duty Free Tennis Championships
WGS 2018: Teaching altruism, empathy, self-control will drive success, say educa...
Finnair and the Finnish Paralympic Committee agree to a partnership agreement
Arianna Huffington calls for a Third Women's Revolution to redesign a world focu...
Dubai Festival City marks successful first ever Nike+ Run Club edition
WGS 2018: DEWA Is Shaping the Future of Utilities with an Innovative and Holisti...
Capillary's digital growth initiative ‘Accelerate' partners with Google
The Future of Food: What's on your dining table in 2118
Saeed & Mohammed Al Naboodah Group Celebrates 60 Years of Excellence
Feast and famine: Bridging the gap between food abundance and malnutrition
Tommy Hilfiger celebrates the essence of ‘Classic American Cool'
His Excellency Dr Thani Al Zeyoudi Chairs First Meeting of UAE Council for Clima...
WGS 2018: Graça Machel Offers a Moving Tribute to South Africa's Iconic Former P...
WGS 2018: The Future of Superintelligence Is Far from Clear, Says Futurist
Etihad Aviation Group Launches Humanitarian Aid Mission for Rohingya Refugees
Classically elegant and stylish, the titanium mechanical NJ0090-13P makes a defi...
Get Your Weekend Entertainment Fix at Boxpark
Bean Body's Quick Guide To Men's Exfoliation
Sharjah Police Workshop Emphasises Innovation Benefits for All
WGS 2018: World Trade Organization relevant even as global trade alliances give ...
Can the AI that makes ‘fake news' viral also help filter it?