Lenovo's Revenue Grows in Q2 Fiscal Year 2017/2018

INDUSTRY.co.id - Jakarta - Lenovo Group earned second quarter revenue of $ 11.8 billion, up 5% year on year and up 18% from the first fiscal quarter.

Quarter-to-quarter earnings gains were attributed to Lenovo's three main business data centers, mobile and PC & smart devices, demonstrating that the successful adoption of Lenovo's strong 3-Wave Strategy has resulted in consistent improvements across the entire portfolio. In the second quarter, Lenovo's pre-tax revenues grew by US $ 104 million, bouncing significantly from losses in the previous quarter.

Following the launch of the most comprehensive portfolio in history, Lenovo Data Center Group (DCC), supported by a developed channel structure and recorded year-over-year earnings growth outside China, especially in Europe and North America for the second quarter in a row.

With the new Moto phone, Lenovo Mobile Business Group (BMG) also saw a year-over-year revenue increase, with strong shipments in Western Europe, North America and Latin America and generating overall revenue growth for the third quarter in a row.

Lenovo's PC / Smart Device Group (PCSD), which remains profitable in all geographic areas, recorded a market share of 21.3% with record high across Europe / Middle East and Africa launching the Star Wars edition: Jedi Challenges, a new AR product partnership with Disney as well celebrated the iconic 25th anniversary of the ThinkPad at the end of this quarter.

In addition, Lenovo has also entered into a joint venture with Fujitsu, where the two companies will combine resources and leverage Fujitsu's capabilities in global sales, customer support, R & D and manufacturing, along with global scale and lenovo presence. The Joint Venture will strengthen the leadership of Lenovo PCs worldwide, and help support profitable growth.

"In the last quarter, we continue to make progress in transforming our business by running a 3-wave strategy. We maintain industry-leading profitability in the PC business and outstrip the market from year to year." said Chairman and CEO of Lenovo, Yang Yuanqing.

He added that in the Data Center business, the transformation began to happen thanks to a stronger sales force, new channel structure and program and new product competitiveness. "Our mobile business rotation is also still in process and most of our markets are seeing strong growth," he added.

The combination of strong execution and solid foundations, according to Yang, remains a force on Lenovo. "Our business turnaround in Brazil is a good example. We will continue to invest in building the foundation and core competence for two new engines of newness, which will bring stable and sustainable benefits," he said.

The company's gross profit increased 0.3% year on year to US $ 1.6 billion, up 18.2% year-on-quarter. The gross margin increased by 13.7%, operating profit increased by US $ 94 million from quarter to quarter. Basic earnings gain is 1.26 US cents or 9.85 cents HK. Lenovo's Board of Directors announced a temporary Dividend of 6.0 cents per share.