Lenovo is already the 3rd consecutive quarter achieves double digit revenue growth

Lenovo announced the results of its the II quarter of 2018 financial year (ended 30 September). The company has been able to please the shareholders double-digit revenue growth of $13.4 billion, which is 14% more than similar indicators of last year (18 %, given the fluctuations). As a result, revenue was a record for the last 4 years. In addition, the company for the second consecutive quarter of steady growth of profit, which (excluding tax) was $213 million versus $35 million in the second quarter of 2017 financial year.

The net profit for the period rose to $168 million ($29 million compared to the same period last year). CEO of Lenovo Yang Wantin (Yang Yuanqing) believes that all these achievements indicate correct strategy for intelligent digital transformation of the company and mark only the beginning of a period of strong and sustainable growth. As part of the restructuring of the business to Lenovo continues the improvement of financial discipline, quality of management, and the introduction of technological innovations in all fields of activity.

It should be noted that in General the success of the company in the second fiscal quarter contributed to all key areas of its business. For example, a division of Intelligent Devices Group (IDG) received a boost due to the synergy of the combined platforms and resources: in comparison with last year sales rose 10% to $of 11.84 billion.

If to speak separately about business PCs and smart devices, is part of IDG, sales for the year increased even more — by 18% to a record in the history of the company’s $10.2 billion Lenovo has maintained its undisputed leadership in the global PC market with a share of 23.7 %. The company is also the leader in profitability in the industry, which amounted to 5 %. A special growth in the PC sector has shown such segments, the Legion, workstations ThinkStation, and thin and light devices Yoga, ThinkPad and IdeaPad. The company believes that the growth in sales, revenue and profitability will continue. Progress in this direction is also achieved by new solutions Lenovo Smart Home Essentialsдля of Internet of things market and previous voice assistant Lenovo Smart Display.

Part of IDG’s mobile business also achieved success. First of all, in the reporting quarter, Lenovo has finally entered the global profitability of the products sold under the brand name of Motorola — it was achieved by reducing operating costs by $175 million compared to the same period last year. While 53.4 % increase for the year of delivery of Motorola in North America and at the same time increased profitability. Active development of sales of Lenovo smartphones is observed in Latin America, where the company takes the second place in the market. In the home China also managed to increase revenue, sales and profit (respectively to 84.6 %, 279,4 % and 25.2 %). The company promises to continue to focus on cost reduction, reducing the variety of produced smartphones at the same time giving priority to the most profitable markets.

Finally, the server division of the company DCG (Data Center Group Lenovo) feels good and remains the fastest growing vendor of x86 servers from the three leaders. For the fifth consecutive quarter of growth in profits (in the reporting quarter by 9.5 % as against a year ago). Revenue for the year increased by 58% and reached $1.5 billion with Particularly strong sales growth exhibit proposals in the field of software-defined infrastructure (Software Defined Infrastructure, SDI) and ultra-scalable systems (Hyperscale). A number of strategic partnerships, including NetApp, have broadened the market coverage of storage and data management. Hyperscale sales show triple-digit growth 3-consecutive quarter, while revenues SDI has increased by 150 % (for the 7 th consecutive quarter experiencing growth of over 100 %). The profitability of DCG increased in all regions.