Lenovo posts strong results for first fiscal quarter

The Lenovo Group has reported results of its first fiscal quarter, which ended June 30, 2013, with quarterly revenues of $8.8 billion, a 10 percent increase year-over-year (YoY).
“For the first time ever, Lenovo was named the world’s largest PC vendor, and in so doing, recorded its highest quarterly market share of 16.7 percent, up 1.7 points YoY to $215 million,” Yang Yuanqing, Lenovo chairman and CEO, said in a statement.
Lenovo’s earnings grew 23 percent YoY to $174 million, highlighting Lenovo’s continued focus on leading in the PC Plus era, while growing its business profitably across all geographies, customer segments and product lines.
Lenovo continued to accelerate its transformation to a PC Plus company and during the first fiscal quarter was the third largest supplier of smart-connected devices (including PC, smartphone and tablet products), growing shipments 41 percent YoY.
The company’s combined sales of smartphones and tablets surpassed PCs for the first time during the quarter, demonstrating momentum of these two businesses.
During the first quarter, Lenovo became the world’s fourth largest smartphone supplier and recorded the fastest growth among the top five vendors, growing 132 percent.
The company’s smartphone success was further demonstrated by its results in China, where Lenovo is now the second largest smart phone company, growing an impressive 121 percent YoY.
The company’s gross profit for the first fiscal quarter increased 14 percent YoY to $1.2 billion, with gross margin of 13.6 percent.
Operating profit for the quarter grew 11 percent YoY to $202 million. Basic earnings per share for the first fiscal quarter were 1.67 cents or 12.96 HK cents. Net cash reserves as of June 30, 2013, totaled $3.1 billion.
“Our strong performance in PC is fueled by balanced growth through our consistent execution of the right strategy,” the Lenovo CEO said.