|By Business Wire||
|January 30, 2013 03:27 AM EST||
Lenovo Group today reported results for its third fiscal quarter ended December 31, 2012. In its best quarter ever, Lenovo continued to outgrow the market in all geographies with record sales, pre-tax income and earnings. Lenovo continued its push towards becoming the world’s leading PC maker and emerging global leader in PC Plus devices, with another quarterly sales record of $9.4 billion, an 12 percent year-over-year increase.
For 13 consecutive quarters, Lenovo has been the fastest growing major PC company. Lenovo was also recognized by IDC as the world’s third largest maker of “smart connected devices,” such as tablets, PCs and smartphones. At the same time, Lenovo had another quarter of record pre-tax income at US$246 million, demonstrating that such rapid growth is being achieved while profits increase.
Lenovo’s third quarter earnings were also a record at US$205 million, an increase of 34 percent over the last year, with gross margin at 11.8 percent. Gross profit for the third fiscal quarter increased 15 percent year-over-year, to US$1.1 billion, while operating profit for the third quarter was US$243 million, a 26 percent increase year-over-year. Basic earnings per share for the third fiscal quarter was 1.99 US cents, or 15.42 HK cents. Net cash reserves as of December 31, 2012, totaled US$4.2 billion.
The Company’s ‘Protect and Attack’ strategy – protecting the two profit pools of global commercial PC and the China businesses, while attacking three high growth opportunities in emerging markets, global consumer and PC Plus products, such as smartphones, tablets and smart TVs – continued to deliver results. This quarter, Attack businesses delivered 50 percent of the Company’s revenues, a significant increase from four years ago when the Company first launched the strategy and attack revenues were 32 percent. Further demonstrating the Company’s balance, its Mobile Internet and Digital Home (MIDH) revenues, which includes its smartphone, tablet and smart TV businesses, accounted for a record 11 percent of Company revenue this quarter, up 77 percent year over year. And for the first time, its smartphone business in China became profitable.
During the third fiscal quarter, Lenovo’s worldwide PC shipments grew 7.9 percent to an all time high of 15.9 percent* marketshare, in a difficult market that was down 7.8 percent year-over-year. This was the 15th quarter in a row the Company grew faster than the industry. Lenovo gained share points in every geography and every product category and in every respective customer segment.
While the Company’s organic growth continues to drive the majority of its success, shareholders should note that Lenovo has closed the joint venture and acquisitions announced in the previous two quarters, including its strategic partnership with EMC that includes a joint venture in EMC’s Iomega business; its acquisition of CCE, a leading PC+company in Brazil, and its acquisition of Stoneware, a US-based cloud computing company. Further, the Company reports that integration of all mergers and acquisitions transactions announced in the last three years are well on-track, and in many cases ahead of schedule.
Lenovo recently realigned its product development and supply chain organizations to create two new groups: the Lenovo Business Group, which will focus on mainstream PCs, mobile internet and digital home products; and the Think Business Group, which will focus on Think-branded products targeting high-end consumers and enterprises. Today, Lenovo is twice as large and much more diverse than it was when its existing structure was established over four years ago. That structure was ideal in supporting Lenovo’s business when it was mostly focused on its China PC and global commercial PC business. Today, the Company has built strong consumer, mobile and emerging markets businesses globally, so the change was proactively initiated to drive continued performance across all of these businesses, stay ahead of consumer demands, while driving speed, agility and innovation.
The recently concluded Consumer Electronics Show (CES) in Las Vegas continued to show that innovation is a significant competitive advantage and future growth driver for Lenovo. The Company was recognized with a record 50 awards at CES, including several “Best in Show” acknowledgments. A robust pipeline of innovative products including the IdeaCentre Horizon - a 27-inch table top PC; ThinkPad Helix - Lenovo’s latest convertible PC designed for business professionals; and the Intel-powered, K900 smartphone are well positioned to continue to stoke new customer demand and drive Lenovo’s performance.
"With the strong execution of our 'Protect and Attack' strategy, Lenovo has not only achieved record revenue, profit and global PC market share last quarter, but also our smartphone and tablet businesses have delivered hyper growth. Even more, our worldwide tablet and China smartphone businesses have become profitable," said Yang Yuanqing, chairman and CEO, Lenovo Group. "As we continue into the PC Plus era, Lenovo has already laid a solid foundation. Our new organization will provide the structure to elevate our diversified business and drive it to the next level. We are confident that we can win through differentiation and will be the innovation leader in the PC Plus era."
- Lenovo China achieved US$4.1 billion in consolidated sales in the third fiscal quarter, an increase of 17 percent year-over-year, accounting for 43 percent of the Company’s worldwide sales. Lenovo’s PC Plus strategy fueled outstanding performance in China with 83 percent MIDH revenue growth and a revenue contribution in China of 22 percent. The Company achieved an important milestone with China smartphone achieving profitability for the first time. Lenovo grew its number-one PC market share position in China, the world’s largest PC market, to 36.7 percent, up 1.4 points year-over-year. Lenovo’s PC shipments in China grew two percent year-over-year in the quarter, a solid result given that the overall China PC market was down two percent.
- In the Asia Pacific/Latin America region, Lenovo achieved 11.3 percent market share in the third fiscal quarter, up marginally year-over-year. In a PC market that was down nine percent year-over-year, the Company grew its PC shipments across the region by four percent. Lenovo continued its run as the leading PC vendor in Japan. Consolidated sales across the region totaled US$1.7 billion for 18 percent of Lenovo’s worldwide sales, while operating margins continued to be profitable.
- Lenovo in Europe Middle East & Africa grew PC shipments by 25.5 percent and became the second largest PC seller in this region, with 11 percent market share, an increase of 3.2 share points year-over-year. This was the Company’s first ever quarter to reach the number two position in the region. These achievements were made despite the headwind of overall industry decline in shipments of 11 percent across the region. The Company had consolidated sales in the third quarter of US$2.3 billion, a year-over-year improvement of 17 percent, good for 25 percent of Lenovo’s total worldwide sales.
- Lenovo’s PC shipments in North America in the third fiscal quarter increased 11 percent year-over-year, in a market that fell by about seven percent. In this environment, the Company gained 1.5 share points to a record high market share of nine percent. Consolidated sales grew eight percent year-over-year to US$1.3 billion in the third quarter, or 14 percent of Lenovo’s total worldwide sales. Also, for the first time in North America, Lenovo made significant inroads into the high-end consumer space, taking a large slice of sales of Windows 8 powered convertible devices – including 30 percent share of the US$700-and-above market and 45 percent share of the US$900-and-above market.
- In Laptop PCs, the Company’s worldwide shipments during the third fiscal quarter were up 9.5 percent year-over-year, helping Lenovo gain 2.6 share points and achieve market share of 15.8 percent. Across the industry, laptop shipments were down 8.6 percent year-over-year. Lenovo’s laptop computers continued to be the largest contributor to the Company’s sales worldwide, generating 52 percent of Lenovo’s total sales revenue. Consolidated sales for Lenovo’s laptop PC business worldwide in the third fiscal quarter totaled US$4.8 billion, an increase of eight percent year-over-year. During the third quarter, Lenovo took the industry by storm, announcing a new family of convertible devices, touch optimized for Windows 8: the 11” and 13” Yogas, IdeaPad Lynx and ThinkPad Twist. Lenovo also announced ThinkPad X1 Carbon Touch, adding touch experience to the industry’s leading business-class Ultrabook, and ThinkPad Twist, a business-ready device that puts a new spin on the traditional convertible tablet.
- Lenovo’s consolidated sales of Desktop PCs worldwide increased one percent year-over-year in the third fiscal quarter to US$2.8 billion, or 30 percent of Lenovo’s total sales revenue. The Company’s desktop PC shipments worldwide in the third quarter increased 5.8 percent year-over-year worldwide, compared to an overall industry decrease of 6.8 percent. As a result, Lenovo gained 1.9 share points year-over-year and achieved a record-high market share of 16.1 percent. During the third quarter, Lenovo announced its new IdeaCentre Q190, the world’s smallest full-function desktop PC – measuring just 22mm (0.86 inches) wide – and the latest additions to the C-series all-in-one (AIO) family, featuring affordable, but powerful performance, and multimedia capabilities designed for immersive entertainment.
- As China’s second-largest provider of smartphones and tablets, Lenovo’s MIDH group continues to rapidly build its business. With consolidated sales of US$998 million, a 77 percent year-over-year increase in the third fiscal quarter, MIDH contributed 11 percent to the Company’s overall sales. Year over year, Lenovo gained 4.7 share points in the China smartphone market in the third quarter for an overall market share of 12.3 percent in China. This business achieved profitability as well. During the third quarter, Lenovo announced that it would begin selling smartphones in Russia, in addition to previously announced India, Indonesia, Philippines and Vietnam. These five countries plus China, represent 44 percent of the world’s population, and give Lenovo a strong sales presence in these important emerging economies.
Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$30 billion personal technology company – one of the top two PC makers in the world and an emerging PC Plus leader – serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the Company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information see www.lenovo.com.
*See IDC data, 4Q 2012
For the third quarter ended December 31, 2012
(in US$ millions, except per share data)
|Gross Profit Margin||11.8||%||11.4||%||
|Other Non-Operating Expenses||3||(1||)||NA|
|Profit for the period||200||154||30||%|
|Profit attributable to equity holders||205||153||34||%|
|EPS (US cents)|
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sep. 26, 2016 10:45 PM EDT Reads: 395
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Sep. 26, 2016 09:45 PM EDT Reads: 2,990
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Sep. 26, 2016 08:45 PM EDT Reads: 2,157
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Sep. 26, 2016 08:45 PM EDT Reads: 3,385
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 26, 2016 08:30 PM EDT Reads: 1,591
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Sep. 26, 2016 08:00 PM EDT Reads: 2,898
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
Sep. 26, 2016 05:15 PM EDT Reads: 2,614
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 26, 2016 05:00 PM EDT Reads: 2,729
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 26, 2016 04:30 PM EDT Reads: 1,621
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 26, 2016 04:15 PM EDT Reads: 1,038
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 26, 2016 03:30 PM EDT Reads: 1,567
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Sep. 26, 2016 03:00 PM EDT Reads: 1,561
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 26, 2016 02:45 PM EDT Reads: 2,639
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 26, 2016 02:00 PM EDT Reads: 1,721
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Sep. 26, 2016 01:45 PM EDT Reads: 2,595
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 26, 2016 01:30 PM EDT Reads: 1,188
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 26, 2016 01:00 PM EDT Reads: 1,644
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Sep. 26, 2016 12:45 PM EDT Reads: 1,753
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 26, 2016 12:45 PM EDT Reads: 3,436
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 26, 2016 12:15 PM EDT Reads: 1,683