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 >>

 
  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 10236 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 : Top 5 Features to be Considered Before Buying your Next Premium TV
Next Story : How Samsung's Flagship Galaxy A8 Blends Design with Experience
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
100% Vegan New… Body Yogurts 15 Seconds to Glowing Healthy-looking Skin Spoon It on
Therése Neaimé- Sold to perfection
Leaves of Joy
Marni Eyewear Collection, Exclusively Available at Grand Optics
Linda Paradis brings non-invasive ink removal to Dubai
ba&sh The Modest Collection
Sandro's SS18 Top Picks - It all begins with color!
IKEA announces latest INDUSTRIELL and HJÄRTELIG Collections
Sony's PXW-Z280, World's first 4K 3-chip Camcorder with new 1/2-type Exmor R CMO...
Martin Hoping for Amstel Gold as Irishman Leads Team to Ardennes Classics
Timeless Ties
Scuderia Ferrari Abetone Collection
HP's New High-Performance Workstations Push Creative and Technical Workflows to ...
Tommy Hilfiger's SS2018 men's and women's watch collection
Boss watches presents the Ocean Edition
Sophie's Café Introduces Ve-Gang Tuesdays for ladies starting from 17th April
The Chronofighter Grand Vintage by Graham is exactly as big as it appears in the...
Al-futtaim Names Its New Dubai Lifestyle Mall – ‘Festival Plaza'
Nikon D850 and D7500 presented with Red Dot Award: Product Design 2018
Japan's Masazo Nonaka Is Awarded Guinness World Records Title for Oldest Living ...
Skyline Mega Fitness Challenge Sparked Positivity and Happiness
MG Motor and Al Yousuf Motors Open New Dubai Showroom
Trend Alert from kate spade to help you pull off the cool girl look when you're ...
Accessories Collection 2018 Gentleman Attitude
Latifa bint Mohammed visits PCFC's stand at DIGAE, hails state-of-art initiatives
Sony unleashes refined creativity with the new FS5 II
Summertime Beauty Picks at Glambeaute.com
COLAB - Dry Shampoo
Get the best bargains at Dragon Mart's End of Season Clearance Market
ICBA, Dubai Carbon team up for sustainability projects
ORANGE & BERGAMOT Awaken the Cult Icon New Additions
Indie Film ‘Selfie' Premieres in Dubai
PCFC's stand at DIGAE sees heavy diplomatic footfall
ETIHAD AIRWAYS BOOSTS SERVICES TO MOROCCO
FOREO delivers the ultimate festival survival kit for a glow-on-the-go.
Dubai-based Al Kasir Group launches three Crypto assets backed by diamonds
Samsung launches Exciting Smartphone Trade-In Program with Galaxy S9 or S9+
Finnair to offer a hand baggage only ticket type on selected North Atlantic routes
GMIS Signs Memorandum of Understanding With Italian Pharmaceutical Leader Farmin...
Airbus and Zodiac Aerospace enter into a partnership for a new lower-deck passen...
International Property Show and Dubai Property Festival drive exclusive banks offers
HONEYWELL TO INSPIRE NEXT GENERATION OF PROGRAMMERS AND SCIENTISTS AT THINK SCIE...
Airbus launches new Cabin-Flex option for A380 with Qantas
New Blow Out Bar and Make-Up Studio SWISH by Immaclife Opens in Abu Dhabi in Apr...
A Royal Ramadan Experience by Master Chef Mama in Pullman Dubai Creek City Centre
Dubai Property Show and International Property Show kicks off 14th edition with ...
50-YEAR ANNIVERSARY OF A MATERNAL HEALTH BREAKTHROUGH
Ferrari World Abu Dhabi Takes Home MENALAC 2018 Best Theme Park Award
Final Dome Structure Completed at Barakah Nuclear Energy Plant
IIA conference a catalyst for UAE economy: Al Mansoori