Business Wire

Lenovo Drives Strong Fourth Quarter and FY2017/2018 Results; Innovation and Efficiencies Power Continued FY2018/2019 Improvement

Jaa

Lenovo Group (HKSE: 0992) (PINK SHEETS: LNVGY) today announced results for its fourth fiscal quarter and full fiscal year ended March 31, 2018. For its fourth fiscal quarter FY2017/18, Lenovo reported US$10.6 billion in revenue, up 11% year-on-year - the first double digit increase in 10 quarters - demonstrating solid performance momentum.

In the fourth fiscal quarter Lenovo’s group pre-tax income was US$37 million, up 143% year-on-year from US$15 million. The company also improved profitability in all three key businesses for the quarter year-on-year, with group operational performance1 improving US$255 million year-on-year to US$76 million. Profit attributable to shareholders for Q4 was US$33 million, lower than the same period last year due to a larger tax credit recorded in FY2016/17.

For the full fiscal year, the company’s overall revenue was over US$45.3 billion, up 5 % year-on-year. Group operational performance reached US$193 million, improving US$96 million year-on-year. The company recorded a US$189 million net loss for the full year mainly due to a one-time non-cash write-off charge of US$400 million from deferred income tax assets in Q3 FY2017/18.

Basic earnings per share in the fourth fiscal quarter was 0.28 US cents or 2.19 HK cents, and for the full year basic loss per share was 1.67 US cents or 13.05 HK cents. Lenovo’s Board of Directors declared a dividend of 2.61 US cents, or 20.5 HK cents per share for the fiscal year ended March 31, 2018.

Business Group Overview

  • Lenovo continued to execute on its three-wave strategy, emphasizing leadership in core businesses, growth in key segments and investment in emerging technologies. All three of Lenovo’s key business groups demonstrated strength and momentum in both the fourth quarter and fiscal year
  • Personal Computers and Smart Devices (PCSD) reported US$7.7 billion in FYQ4 revenue, up 16% from the same period a year earlier and the highest growth in four years. For the year, PCSD reported US$32.4 billion, up 8% from FY2016/17
  • The Data Center Group (DCG) revenue grew 44% during the quarter compared to Q4 FY2016/17 to US$1.2 billion. For the year, DCG reported US$4.4 billion in revenue, up 8% from FY2016/17
  • The Mobile Business Group (MBG) revenue for Q4 FY2017/18 was US$1.3 billion and for the full year was US$7.2 billion. Lenovo remains optimistic that aggressive cost-cutting and exceptionally strong performances by MBG in Latin America (volume grew 40% year-on-year for the full year), or more than 20 times the industry) and North America (volume +57% year-on-year for the full year) are expected to yield substantially improved results as FY2018/19 continues

“Last quarter, we resumed double-digit revenue growth with strong profitability improvement year-on-year, closing the fiscal year with a strong momentum and proving that Lenovo has truly entered a new phase of growth,” said Yang Yuanqing, Lenovo Chairman and CEO. “Lenovo’s vision has long been to become a global leader in intelligent transformation. We will focus on building competitiveness in Smart IoT devices, data center infrastructure and vertical intelligent solution, and we are well positioned to take advantage of smart IoT and intelligence era.”

During the quarter Lenovo also announced the integration of its Personal Computer and Smart Devices Group with its Mobile Business Group, creating the Intelligent Devices Group (IDG). This new group will further fast-track the company’s innovation leadership and ambitions for growth across the full spectrum of smart devices. This new structure will create a number of efficiencies by leveraging shared global supply chain and services. IDG will also accelerate Lenovo innovation as communications and computing technologies come together under a single platform to better connect devices, users, applications and content.

ADDITIONAL BUSINESS GROUP HIGHLIGHTS

PC and Smart Devices (PCSD) business group: During the fourth quarter, PCSD posted strong revenue growth of 16% compared to the same period a year earlier. For the year, PCSD reported an 8% increase in revenue, and remained the world’s #1 PC and Tablet maker2, with market share growing 0.2 points to 15.6% globally. Additionally:

  • Returned to industry-leading PTI margin of 5% in Q4 FY2017/18. All geographies continued to be profitable with margin expansion in four out of five
  • Strong, double-digit, year-on-year revenue growth across regions in the Americas, Asia Pacific, and EMEA
  • Focused strategy in high-growth segments paying off with strong double-digit shipment growth year-on-year in both Gaming (+42%) and Workstation (+32%) in FYQ4. Both surpassed the US$1 billion-dollar scale in FY2017/18 with gaming reporting double-digit revenue growth year-on-year
  • Named Best Laptop Brand 2018 by LAPTOP Magazine for a second consecutive year

Data Center Group (DCG): The Data Center group is well positioned to provide the infrastructure for the smart IoT era and continues to be a significant growth business for Lenovo. The group’s financial performance serves as a tangible proof point that the DCG strategy is yielding significant results:

  • In Q4 FY2017/18 delivered second consecutive quarter of double-digit year-on-year growth and achieved highest revenue growth (+44%) since the IBM System x acquisition in 2014 – with all geographies showing positive year-on-year revenue growth
  • North America and EMEA posted their fourth consecutive quarter of strong year-on-year revenue growth
  • Software Defined Infrastructure (SDI) continued strong revenue growth - 130% year-on-year
  • HPC solidified the number two position globally in the top 500 Supercomputing list, fast closing the gap to number one player

Mobile Business Group (MBG): During the quarter MBG moved with urgency to reshape the business for future growth and to accelerate progress toward profitability. This included the appointment of Sergio Buniac to lead the business outside of China; a realignment of the product portfolio ahead of forthcoming launches; overall channel inventory reduction, and a strategic market review to identify the opportunities for most profitable growth.

  • In Q4 FY2017/18 Latin America remained the strong core for MBG, recording double-digit (13%) year-on-year revenue growth
  • In North America, shipments continued to show strong, year-on-year growth as Lenovo strengthened presence with mainstream models and carrier expansion. North America shipments grew 54% year-on-year for Q4 and gained 1.1pts of market share to 3.8% in Q4 FY2017/18
  • Expense reduction for the new fiscal year as part of a strategy to reduce loss and focus on strengthening MBG’s leading position and profitability in Latin America, North America and Western Europe by simplifying the portfolio, optimizing the cost structure and leveraging shared platforms

Lenovo Capital and Incubator Group: Lenovo continues to be a beneficiary and driver of some of the most robust trends in global technology innovation, notably artificial intelligence. Lenovo’s investment arm, Lenovo Capital and Incubator Group (LCIG), funded 85 companies during the past years, and oversaw eight independent spin-offs.

About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$45 billion Fortune 500 company with a vision to become the global leader in Intelligent Transformation through smart devices and infrastructure that create the best user experience. Lenovo manufactures one of the world’s widest portfolio of connected products, including smartphones (Motorola), tablets, PCs (Thinkpad, Yoga, Lenovo Legion) and workstations as well as AR/VR devices and smart home/office solutions. Lenovo’s next generation data center solutions (ThinkSystem, ThinkAgile) are creating the capacity and computing power for the connections that are changing business and society. Lenovo works to inspire the different in everyone and build a smarter future where everyone thrives. Follow us on LinkedInFacebookTwitterInstagramWeibo, or visit us at http://www.lenovo.com/

         

LENOVO GROUP

FINANCIAL SUMMARY

For the fiscal quarter and full year ended March 31, 2018

(in US$ millions, except per share data)

 
 
Q4 17/18

Q4

16/17


Y/Y CHG

FY17/18

Y/Y CHG
Revenue 10,638 9,579 11% 45,350 5%
Gross profit 1,544 1,368 13% 6,272 3%
Gross profit margin 14.5% 14.3% 0.2pts 13.8% -0.4pts
Operating expenses (1,443) (1,294) 11% (5,885) 8%
Expenses-to-revenue ratio 13.6% 13.5% 0.1pts 13.0% 0.4pts
Operating profit 101 74 36% 387 -42%
Other non-operating expenses- net (64) (59) 9% (234) 28%
Pre-tax income 37 15 143% 153 -69%
Taxation 12 89 -87% (280) N/A
Profit/(loss) for the period/year 49 104 -53% (127) N/A
Non-controlling interests (16) 3 N/A (62) N/A
Profit/(loss) attributable to equity holders 33 107 -69% (189) N/A

Earnings/(loss) per share (US cents)

 

Basic 0.28 0.97 (0.69) (1.67)

N/A

Diluted 0.28 0.97 (0.69) (1.67)

N/A

1 Operational performance is measured as profit before taxation, but excluding restructuring charges and disposal gains on properties

2 Source: IDC Quarterly Personal Computing Device Tracker, 2018Q1 Final Historical

Contact information

Lenovo Group
Hong Kong –
Angela Lee, +852 2516 4810
angelalee@lenovo.com
or
London
Charlotte West, +44 7825 605720
cwest@lenovo.com
or
Zeno Group
LenovoWWcorp@zenogroup.com

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

Smithers Viscient announces the appointment of Ian Siragher to the position of Managing Director24.1.2019 13:30Tiedote

Smithers Viscient, a global contract research organization (CRO), today announced the appointment of Ian Siragher to the position of Managing Director. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190124005031/en/ Ian Siragher, Managing Director, Smithers Viscient Europe (Photo: Business Wire) Siragher will assume operational responsibility for the Smithers Viscient European site in Harrogate, UK. His experience includes high technology start-ups, running SME business, sales, marketing and regulated industry programs within the analytical, pharmaceutical and drug delivery industries. He brings a wealth of entrepreneurial experience with proven strengths in scientific knowledge, operational and strategic planning, coupled with a strong client focus. “We are delighted to welcome Ian to our business,” said Susan Shepherd, President, Smithers Viscient. “Ian is an excellent appointment for us; he is a proven operational leader

HCL Technologies Honors Humanitarian Leaders at the 2019 World Economic Forum in Davos24.1.2019 13:22Tiedote

HCL Technologies, a global technology company, today announced its Goodwill Champions Awards Night to honor humanitarian leaders from around the world. The event will take place on January 24th, 2019, at the HCL Pavilion in Davos and will celebrate these heroic organizations committed to pursuing distinct noble causes, primarily focused on global education, youth development, and women empowerment. This is the first year the awards have been presented, and HCL Technologies plans to issue them each year in a global forum. The award recipients are Katja Iversen, CEO of Women Deliver, which advocates for global investments in gender equality and health; Olajumoke Adekege, Founder of Young Business Agency, which provides employability skills training and recruitment services to young job seekers globally; Chiara Tiles, Founder of We Do it Together – which produces films, documentaries, TV, and other forms of media, uniquely dedicated to the empowerment of women; Baillie Aaron, Founder and

P&G Joins TerraCycle’s Loop – an Environmentally Friendly and Convenient E-Shopping Platform – With 11 Household Brands24.1.2019 13:00Tiedote

The Procter & Gamble Company (NYSE:PG) today announced the introduction of reusable, refillable packaging on some of its most popular products as part of a new effort that aims to change the world’s reliance on single use packaging and disposable waste. Additionally, new “collect and recycle” circular solutions that help eliminate waste were also introduced as part of a partnership with LoopTM, a circular e-commerce platform developed by international recycling leader TerraCycle. Many of P&G’s largest global brands, including PanteneTM, TideTM, CascadeTM and Oral-BTM will participate in this innovative platform later this year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190124005087/en/ Pantene is introducing a unique bottle made with lightweight, durable aluminum for its shampoo and conditioner. (Photo: Business Wire) Loop is a first of its kind global packaging and shopping circular solution which aims to improve the e

RSM and DSI Agree to Cross-Border Insolvency Strategic Alliance24.1.2019 13:00Tiedote

Two well-known and respected firms in the global restructuring industry have formed a strategic alliance and international collaboration to further support their respective clients amid a growing wave of cross-border insolvency and international restructuring projects. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190123005735/en/ U.K.-based restructuring practice RSM Restructuring Advisory LLP ("RSM"), part of audit, tax and consulting firm RSM UK, and U.S.-based restructuring firm Development Specialists, Inc. (DSI), have announced an agreement to collaborate and augment each respective firm's services in dealing with transnational cases. "We're delighted to announce that we'll be collaborating with DSI on cross-border projects,” said Graham Bushby, a Partner and Head of Restructuring Advisory at RSM. “DSI is working on some significant transnational cases and brings a wealth of experience to the arena, which RSM can capa

Total Eren and NBT Secure the Financing for the First Phase of The 250 MW Syvash Wind Project in Ukraine from a Consortium Led by EBRD24.1.2019 11:00Tiedote

NBT AS (“NBT”), a utility-scale wind power developer based in Oslo, and Total Eren SA (“Total Eren”), a leading renewable energy Independent Power Producer (“IPP”) based in Paris, have signed definitive financing agreements for the first phase of a 250 MW wind project located in the Kherson region of Ukraine. The €155M financing agreement was signed at a special meeting of Ukraine’s National Investment Council in Davos. The project’s start of construction is imminent. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190124005105/en/ The onshore wind project, called Syvash wind farm (“Syvash”) has been developed by Norway-based NBT together with France-based Total Eren. At its full capacity, Syvash represents a €380 million total investment. Syvash will consist of 64 wind turbines and will be located on 1,300 hectares of land in the southern Kherson region of Ukraine. Once completed, it is expected to become the country’s large

STARMUS V, Host of The Stephen Hawking Medal, Hosts a Special Evening in Davos at WEF with Jean-Michel Jarre, Brian May and Luminary Scientific Panel24.1.2019 11:00Tiedote

This year, WEF was treated to a rare panel discussion bridging the fields of astronomy and music. Global CEOs and international media had the opportunity to hear from Dr. Brian May, Jean-Michel Jarre and Dr. Garik Israelian discuss STARMUS and the special connection between science and music. Flanked by a panel of renowned scientists, astronauts, and Nobel laureates, Jean-Michel Jarre introduced his groundbreaking tribute to the Apollo Missions for their 50th Anniversary. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190124005171/en/ WEF panel for STARMUS, Michel Mayor, Jean-Michel Jarre, Garik Israelian, and moderator Marco Larsen engage with the Davos audience. Photo by: Andres Eggenberger The esteemed panel included Swiss Astronaut Claude Nicollier, Garik Israelian, Brian May, and Michel Mayor. (Special thanks to the support from Kaspersky Labs and to the Stephen Hawking Medal for Science Communication sponsor, Omega.) T

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme