Lenovo Reports Impressive Fiscal Q1 Financials, Increased PC Shipments
August 16, 2012 11:11 AM
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Lenovo had a great quarter, ranked as #2 PC maker
The Lenovo Group reports that its fiscal year ending June 30, 2012 brought with it a record market share for the company at 15%.
Lenovo’s net income increased by 30% year-over-year to $141 million. The company is now the world's second-largest PC maker and it’s impressive to see Lenovo grow so significantly during the quarter despite the fact that overall PC shipments are down early 2% compared to last year.
Lenovo was able to increase its computer shipments for its fiscal Q1 by 24.4% compared to the same quarter last year. This marks the 13th quarter in a row that Lenovo has been able to outpace the overall computer industry. The end of fiscal Q1 also marks the 11th quarter in a row that Lenovo has grown faster than any other computer maker in the top four.
Lenovo reports balanced growth across all countries in customer segments as well is all of its product lines. The company reports increased gross profit margin for fiscal Q1 of 30% year-over-year. Lenovo group's operating profit rose 48% compared to the same quarter of 2011. Basic earnings per share for Lenovo during the quarter were $1.37 with net cash reserves at the end of the quarter totaling $3.7 billion.
"Although the economic environment is somewhat similar to the 2008-2009 downturn, Lenovo’s results are much stronger because we have the right strategy and great execution,” said Yang Yuanqing, Lenovo Chairman and CEO.
“Our businesses in emerging markets outside of China, our consumer business and MIDH business all achieved rapid expansion, providing the balanced pillars to support our overall performance. Our business in China and our global commercial business maintained strong profitability, which allows us to secure plenty of resources to invest in growth areas and ensure the company’s overall healthy performance. Although we're in a challenging environment, we are confident that by continuing to execute our Protect and Attack strategy, Lenovo can achieve sustainable growth and healthy returns in the PC+ era."
Lenovo's CEO recently made headlines when he
shared his massive bonus
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RE: This is good to see
8/16/2012 1:33:42 PM
Yup. Funny how the two companies that are doing still well, Lenovo and Apple, aren't racing to the bottom or cutting corners on quality. Common knowledge on the internet says that low OEM prices are all that matters, no matter what corners are cut. Clearly quality matters, and clearly you get what you pay for.
If Lenovo does well in Windows 8 tablets and is actually competitive with Surface, it will be because they released good hardware.
RE: This is good to see
8/16/2012 1:45:11 PM
I think they figured that the money you save by cutting corners is doubled by the additional support cost and repair cycles it creates. Make a good quality product and spend very little on repair/reverse logistics. Sounds like a winning ticket to me.
RE: This is good to see
8/16/2012 10:58:16 PM
On top of that, happy customers turn into
happy customers, not to mention that they're also walking advertisements for their friends and family. How many people can really get excited over a POS Acer laptop? That's the kind of machine you switch away
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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