Lenovo Reports First Quarter 2013 Results


Lenovo reported results for its first fiscal quarter ended June 30, 2013, with quarterly revenues of $8.8 billion, a ten percent increase year-over-year. The company’s first quarter pre-tax income increased 16 percent year-over-year to $215 million, while earnings grew 23 percent year-over-year to $174 million.

Yang Yuanqing (Chairman and CEO, Lenovo): While driving profitable growth in our core PC business, we are rapidly transforming our company into a PC Plus company. The PC Plus market requires fast, efficient innovation as it moves quickly from premium products to mainstream ones and from mature market domination to emerging market hyper growth.    

Lenovo’s PC shipments for the first fiscal quarter were 12.6 million units.The company’s combined sales of smartphones and tablets surpassed PCs for the first time ever during the quarter.

Lenovo’s gross profit for the first fiscal quarter increased 14 percent year-over-year to $1.2 billion, with gross margin at 13.6 percent. Operating profit for the quarter grew 11 percent year-over year to $202 million. Basic earnings per share for the first fiscal quarter was 1.67 cents. Net cash reserves as of June 30, 2013, totaled $3.1 billion.

Lenovo – Geographic Overview

Lenovo China totaled $3.7 billion in revenue in the first fiscal quarter, an increase of 5.6 percent year-over-year, and accounting for 42 percent of the company’s worldwide revenue. Lenovo’s increased revenue growth in China was driven by smartphones and tablets, which together grew 76 percent year-over-year.

In the Asia Pacific region, Lenovo’s revenue totaled $1.3 billion for the first quarter, or 15 percent of the company’s worldwide revenue. Lenovo’s unit shipments in Asia Pacific declined 8.1 percent year-on-year.

Lenovo’s PC revenue in Europe/Middle East/Africa (EMEA) increased18 percent in the first fiscal quarter year-over-year to $1.9 billion, or 21 percent of Lenovo’s worldwide revenue.

Americas revenue was $1.9 billion year-over-year for the first fiscal quarter, an increase of 29 percent year-over-year, comprising 22 percent of the company’s worldwide revenue. During the first fiscal quarter, Lenovo’s PC shipments in the Americas increased 22 percent year-over-year in the quarter.

Lenovo – Product Overview

During the first fiscal quarter, Lenovo’s Laptop computers were the largest contributor to the company’s revenue worldwide, generating 52 percent of Lenovo’s total revenue. Consolidated sales for Lenovo’s laptop PC business worldwide in the first fiscal quarter totaled $4.5 billion, an increase of 4.7 percent year-over-year.

Lenovo’s Desktop PC shipments growth was flat worldwide year-over-year during the first fiscal quarter. Consolidated sales of Lenovo desktop PCs decreased 2.8 percent year-over-year in the first quarter to $2.5 billion, or 28 percent of the company’s total revenue.

Consolidated sales of Lenovo’s Mobile Internet Digital Home (MIDH) products, including smartphones and tablets increased 105 percent year-over-year during the first fiscal quarter to $1.2 billion, representing 14 percent of the company’s total revenue during the quarter.

[Image courtesy: Lenovo]

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