Lenovo said revenues for its fiscal third quarter to end December reached their highest level in four quarters, boosted by a higher pre-tax profit at Mobile Business Group (MBG), its first time since the acquisition of Motorola, and a strong performance at all major business groups. Revenues for the group lifted 8 percent from the year before to USD 14.035 billion. The operating profit meanwhile leaped 112 percent to USD 434 million, while the pre-tax profit more than doubled to USD 350 million from 150 million and the net result strengthened to a gain of USD 233 million from a loss of 289 million. Diluted earnings per share went to 1.92 cents, from a loss of 2.53 cents.
IDG revenues went up 6 percent to USD 12.435 billion, with PC and Smart Devices revenues reaching a record high of USD 10.7 billion (+11.6). Revenues at Mobile, still part of IDG, fell 20 percent to USD 1.669 billion. The segment’s pre-tax profit however rose, on the back of cost cuts, and a simplification and rebalancing of the portfolio, with substantial share gains in Argentina and Mexico. Shipments in North America advanced 30 percent while at China, the business returned to breakeven. Mobile Data Center revenues advanced 31 percent to USD 1.600 billion, boosted by performance at the Hyperconverged and Software Defined Infrastructure segments. Revenues at Software and Services, and Big Data & Vertical Solutions grew at a double digit rate.
China accounted for 36 percent of the group’s total revenues, with the Americas making up 31 percent, Asia Pacific 18 percent and EMEA 25 percent.
Looking forward, Lenovo said it will continue to further invest in artificial intelligence (AI), IoT, Big Data and VR/AR. The company said it will accelerate its Intelligent Transformation and the expansion of its Smart IoT and Smart Infrastructure businesses. It will make PC smarter by introducing innovative devices, and seek to capture embedded Smart IoT business opportunities.
