Lenovo sales increase outpaces PC industry
Lenovo Group reports quarterly sales of US$8bn for its fiscal quarter, marking a rise of 35% year-over-year.
The report shows a first quarter net-income increase of 30% to $141m for the PC vendor, who were recently confirmed as a manufacturer for Microsoft’s new Windows RT PCs.
The software maker revealed Samsung, Dell, ASUS and Lenovo will all pioneer the hardware, accompanying the in-house designed Microsoft Surface for Windows RT.
Fresh from the news Lenovo says growth was balanced across all geographies, customers segments and products lines, with the company well-positioned to cope as the industry shifts to include more tablets, Smart TVs and smartphones in the product mix.
While the overall PC shipments industry was down almost 2%, Lenovo’s increased 24.4% compared to last year, representing the 13th quarter in a row that the company has outpaced the industry as a whole.
Operating profit for the quarter grew 48% to $182 million with basic earnings per share standing at 1.37 US cents, giving the company net cash reserves totalling $3.7bn as of June 30.
Lenovo also announced a global partnership with EMC two weeks ago, forming a server technology development program that will help drive innovation and extend Lenovo's capabilities in x86 industry-standard servers.
The vendor says it bring these servers to market on its own as part of the agreement, with a view to embedding them in selected EMC storage systems over time.
Below is a breakdown of Lenovo’s first quarter 2012/13 results:
- Record market share of 15%
- Quarterly sales of $8bn
- Net income of $141m
- Basic EPS of 1.37 US cents
- Net cash reserves of $3.7bn as of June 30