Lenovo’s Three-Wave Strategy Delivers Strong Revenue and Earnings in Third Quarter FY2017/18
Lenovo Group (HKSE: 0992) (PINK SHEETS: 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.
Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$43 billion global Fortune 500 company and a leader in providing innovative consumer, commercial, and data center technology. Our portfolio of high-quality, secure products and services covers PCs (including the legendary Think and multimode Yoga brands), workstations, servers, storage, networking, software (including ThinkSystem and ThinkAgile solutions), smart TVs and a family of mobile products like smartphones (including the Motorola brand), tablets and apps. Join us on LinkedIn, follow us on Facebook or Twitter (@Lenovo) or visit us at http://www.lenovo.com/.
|Gross profit margin||13.5||%||13.1||%||0.4pts|
|Other non-operating expenses||(54||)||(37||)||48||%|
|(Loss)/Profit for the period||(275||)||107||N/A|
|(Loss)/Profit attributable to equity holders||(289||)||98||N/A|
|EPS (US cents)|
|* In accordance with accounting policies, a one-off non-cash tax charge of US$400 million has been included in Q317/18 which reflects the re-measurement of US deferred tax assets after the recently enacted US tax reform legislation.|
Angela Lee, +852 2516 4810
Charlotte West, +44 7825 605720
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
Warm welcome for ABB Formula E in Davos19.1.2019 12:00 | Tiedote
Just a few days before the start of the World Economic Forum 2019, Davos is celebrating a world premiere: The latest ABB FIA Formula E racing car - dubbed Gen2 – was transported on a train from the iconic Swiss Rhaetian Railway to Europe’s highest city, where it will be an exciting eyecatcher during the coming week at the Davos Platz railway station. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190119005003/en/ ABB FIA Formula E racing car in Davos (Photo: Business Wire) From this Saturday until next Sunday, January 27, the Gen2 will be on display in a special glass case. Interested passersby can learn about the ABB FIA Formula E racing series as well as about the activities of ABB in e-mobility via an information system. With over 8,500 fast charging stations installed in 70 countries around the world, ABB is the global market leader for charging infrastructures. To watch the video, click here ABB (ABBN: SIX Swiss Ex) is
PMI’s Mission Winnow Goes Full Throttle with Ducati Corse for 2019 MotoGP™18.1.2019 20:00 | Tiedote
Philip Morris International Inc. (PMI) (NYSE: PM) is pleased to announce that its Mission Winnow initiative is expanding in 2019 to include the Ducati Corse racing team. Mission Winnow is a PMI-led campaign to raise global awareness of our passion and determination to constantly improve and evolve, as well as highlight the power of science, technology and innovation to build a better future. PMI has partnered with Ducati Corse since 2002 and has extended the relationship for another three years until the end of 2021. As of the start of this year’s MotoGP season, the team will be officially known as Mission Winnow Ducati. Mission Winnow was first launched in October 2018 with Scuderia Ferrari Mission Winnow, which – like Ducati Corse – has a passion for innovation and a relentless drive to improve in the team’s pursuit of victory. Ducati Corse is one of the most inspiring and resilient teams in MotoGP, with a 70-year history in racing. Ducati fans form a passionate community who appreci
IFF’s Frutarom Division Completes Acquisition of 60% of Thailand-based Mighty18.1.2019 15:50 | Tiedote
Regulatory News: International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:IFF) (TASE:IFF), announced that its Frutarom Division has completed the acquisition of 60% of the share capital of The Mighty CO. LTD. (“Mighty”), a leading savory solutions provider in Thailand, thus continuing its growth strategy in Southeast Asia. Amos Anatot, President of IFF's Frutarom Division, said, “The completion of this deal with Mighty underscores that the Frutarom division will continue on its growth strategy and pursue attractive companies that create new opportunities or build on current capabilities.” Mr. Anatot continued, “And in this case, we are helping to grow our capabilities in savory solutions – already an area of strength for legacy Frutarom, now IFF." Mighty, founded in 1989, develops, produces and markets reaction flavors, with particular expertise in savory solutions. The company’s portfolio includes flavors, seasoning blends, marinades, and specialty functional raw materials f
LTI Q3 FY19: Constant currency revenue growth up 6.1% QoQ and 20.6% YoY; Net Profit jumps 32.8% YoY18.1.2019 15:02 | Tiedote
Larsen & Toubro Infotech (BSE code: 540005, NSE: LTI), a global technology consulting and digital solutions company, announced its Q3 FY19 results today. In US Dollars: Revenue at USD 346.9 million; growth of 5.6% QoQ and 18.2% YoY Constant Currency Revenue growth of 6.1% QoQ and 20.6% YoY In Indian Rupees: Revenue at Rs 24,729 million; growth of 6.1% QoQ and 31.3% YoY Net Income at Rs 3,755 million; growth of (6.2%) QoQ and 32.8% YoY “We are pleased to deliver another strong quarter with 5.6% QoQ growth in USD revenues. Our broad-based revenue growth, superior margin delivery and steady cash generation in Q3 is a testimony of our focused execution and client centricity. We are also thrilled to welcome Ruletronics to LTI family. Ruletronics enables businesses to transform and evolve digitally by providing innovative BPM and CRM solutions leveraging Pega Platform.” - Sanjay Jalona, Chief Executive Officer & Managing Director, LTI Recent Deal Wins Nets, the leading payments company in th
Schlumberger Announces Full-Year and Fourth-Quarter 2018 Results18.1.2019 15:00 | Tiedote
Schlumberger Limited (NYSE: SLB) today reported results for full-year 2018 and the fourth quarter of 2018. (Stated in millions, except per share amounts) Full-Year Results Twelve Months Ended Change Dec. 31, 2018 Dec. 31, 2017 Year-on-year Revenue $32,815 $30,440 8% Pretax operating income $4,187 $3,921 7% Pretax operating margin 12.8% 12.9% -12 bps Net income (loss) - GAAP basis $2,138 $(1,505) n/m Net income, excluding charges & credits* $2,261 $2,085 8% Diluted EPS (loss per share) - GAAP basis $1.53 $(1.08) n/m Diluted EPS, excluding charges and credits* $1.62 $1.50 8% Full-Year Consolidated Revenue by Area North America $11,984 $9,487 26% Latin America 3,745 3,976 -6% Europe/CIS/Africa 7,158 7,072 1% Middle East & Asia 9,543 9,394 2% Other 385 511 n/m $32,815 $30,440 8% North America revenue $11,984 $9,487 26% International revenue $20,446 $20,442 - North America revenue, excluding Cameron $9,668 $7,518 29% International revenue, excluding Cameron $17,675 $17,423 1% *These are non
FLIR Systems Awarded $89 Million Contract from French Armed Forces to Deliver Black Hornet Personal Reconnaissance System18.1.2019 14:00 | Tiedote
FLIR Systems, Inc. (NASDAQ: FLIR) announced today it has been awarded a contract from the French Defense Procurement Agency (DGA) in support of the French Operational Pocket Drone (DrOP) program. The contract has a ceiling value of $89 million to provide the FLIR Black Hornet® 3 nano-unmanned aerial vehicle (UAV) and Personal Reconnaissance System (PRS) to support French Armed Forces operations. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190118005085/en/ The French Armed Forces awarded FLIR Systems a contract to deliver the Black Hornet Personal Reconnaissance System for military operations. (Photo: Business Wire) The Black Hornet PRS is the world’s smallest combat-proven nano-Unmanned Aerial System (UAS) and is currently deployed in more than 30 countries. The Black Hornet enables the warfighter to maintain situational awareness, threat detection, and surveillance no matter where the mission takes them. Equipped with el
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