Lenovo Q3 Profits Rise 29 Percent, Motorola Acquisition Could Contribute to Short-Term Slide
February 13, 2014 1:00 PM
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Lenovo's market share increased to 18.5 percent
Even as the PC market continues to shrink, Lenovo is holding its own with impressive third quarter financials thanks to its aggressive push into servers and smartphones (and even modest PC sales).
, its Q3 net income rose 29 percent from a year earlier, growing from $204.9 million to $265.3 million. This certainly beat analyst expectations of $247.2 million, as predicted by Thomson Reuters Starmine SmartEstimate.
Quarterly revenue reached $10.8 billion, which was a 15-percent jump from the same quarter in the previous year, and the first time it passed the $10 billion mark. Pre-tax income for the quarter was up 30-percent year-on-year, achieving $321 million.
When it comes to actual devices, shipments reached 32.6 million (17.3 million smartphones and tablets and 15.3 million PCs).
Lenovo managed to increase its market share by 2.4 percent compared to the same quarter the previous year, bringing it to 18.5 percent.
“Lenovo had outstanding performance last quarter, delivering both record revenue and record profit. Leveraging strong execution of our strategy, innovative products and growth in our PC Plus business, we continue delivering on our commitment to improve our profitability and we are confident we will maintain this momentum in our existing businesses,” said Yang Yuanqing, Chairman and CEO of Lenovo.
“Further, the Motorola and IBM server acquisitions that we just announced are a perfect fit with our PC Plus strategy. While our top priority now is full participation in the regulatory approvals process, I am confident that from day 1 after closing, these businesses will quickly begin contributing to our performance and develop into pillars for long-term, sustainable growth.”
On the sidelines, Yuanqing said the company's $2.9 billion acquisition of Google's Motorola Mobility could cause a short-term dip in future earnings reports.
sold Motorola to Lenovo
late last month at a $7 billion net loss.
This article is over a month old, voting and posting comments is disabled
2/14/2014 4:56:40 AM
MS is not the reason you are losing money. Selling crap is. Lenevo is doing just fine in the same market.
"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs
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