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Thursday, November 07, 2013
Lenovo Posts Second Quarter Profit And Revenue
Today Lenovo revealed its financials for its fiscal Q2 in 2013. The Chinese PC maker posted a 36 percent year-over-year growth in its net profit in the third quarter, with demand for the company's smartphones and tablets continuing to outpace shipments for its PC products.
The firm also brought in $9.8 billion in revenue, marking a 13 percent annual increase.
Lenovo posted a record 29 million devices sold in the quarter. The company's PC shipments for the second fiscal quarter were 14.1 million units, making it the fastest growing of the top five PC vendors.
The company continues to diversify its business. Lenovo's second quarter mix of sales from Mobile Internet and Digital Home (MIDH) products, which includes smartphones, smart TV and much its tablet business, was 15 percent of total revenues, up from eight percent one year ago and four percent two years ago, with steadily improving profitability.
In fact, Lenovo ranked second in combined PC and Tablet shipments, and was the third-largest supplier of Smart Connected Devices, which includes PC, smartphone and tablet products, growing shipments 36 percent year-over-year. Lenovo's combined shipments of smartphones and tablets surpassed those of PCs for the second quarter in a row. The company's China smartphone shipments continued with strong 64 percent year-over-year growth. Finally, Lenovo had a record high of 2.3 million global tablet shipments, up 4.2 times year-over-year, driven by sales outside China.
"We are optimistic about the industry's outlook. Benefiting from corporate refresh and China market improvement, the PC market is recovering, and tablet growth continues shifting to mainstream and entry-level segments, as well as emerging markets. These are Lenovo's strength areas. We are confident that we will capture these opportunities and continue our strong growth," said Yang Yuanqing, Chairman and CEO of Lenovo.
The company's gross profit for the second fiscal quarter increased 11 percent year-over-year to US$1.27 billion, with gross margin at 12.9 percent. Operating profit for the quarter grew 38 percent year-over year to US$283 million.
During the second fiscal quarter, Lenovo?s Laptop computers were the largest contributor to the Company?s revenue worldwide, generating 51 percent of Lenovo's total revenue.
Lenovo's Desktop PC shipments grew 1 percent worldwide year-over-year during the second fiscal quarter, compared to an overall industry decrease of 6 percent.
Consolidated sales of Lenovo?s Mobile Internet Digital Home (MIDH) products, including smartphones and tablets increased 106 percent year-over-year during the second fiscal quarter to US$1.5 billion, representing 15 percent of the Company?s total revenue during the quarter. In China, Lenovo's smartphone shipments increased by 64 percent year-over-year, helping the company maintain its strong position as the second largest smartphone supplier in that market.