MORRISVILLE – Lenovo is celebrating its return to the rank as world’s top PC sales leader with quarterly financial results that drove investors to ignite a 5 percent jump in its shares.
“Today’s results show that Lenovo’s focus on ‘Intelligent Transformation’ continues to successfully underpin our growth in both revenue and profitability,” declared Lenovo Chair and CEO Yang Yuanqing.
Revenues climbed for the third consecutive quarter as Lenovo posted a profit for the second straight quarter.
“But our numbers only tell part of our story. I’m proud of how we are delivering on both our transformation strategy and our turnaround promise. There is no doubt that Lenovo is in a period of strong, sustainable growth and I am confident that our clear mission, strategy and execution capabilities will continue to drive even stronger results in coming quarters.”
Lenovo topped analysts’ expectations with a 21 percent jump in profit for a quarter during which research firms Gartner and IDC reported that Lenovo had regained the No. 1 spot in PC sales from HP. Profits climbed year-over-year to $168 million from $139 million.
Reuters noted that analysts had expected a $118 million profit.
Overall revenues soared 14 percent, which Lenovo noted was its highest quarterly total in nearly four years.
Yang’s term “Intelligent Transformation” refers in part to expanded emphasis on smart devices, from PCs to smart screens to Internet of Things, as the global tech giant continues to update its product mix.
The PC business remains Lenovo’s core, producing more than $10 billion in year for the first time with revenue climbing 18 percent year-over-year.
“Lenovo is now not only the world’s undisputed leader in PC sales with record market share of 23.7 percent, but the Company also continues to lead industry profitability at 5 percent,” the company noted.
Lenovo’s Data Center Group, which is based in Research Triangle Park, meanwhile, also had a strong quarter with revenues climbing 58 percent year-over-year to $1.5 billion.
Its Mobile Business Group led by smartphone business Motorola, achieved “break-even,” the company added.
Lenovo operates dual headquarters in Morrisville and in Beijing.