Lenovo Delivers Solid Fourth Quarter and Full Year Results
Lenovo Group said on Thursday its annual net profit rose one percent to $829 million, as a result of the acquisitions of IBM's low-end server unit and Motorola earlier that year. Lenovo Group today announced results for its fourth fiscal quarter and full-year ended March 31, 2015.
In a seasonally slow fourth fiscal quarter with significant currency impacts, Lenovo's revenue was US$11.3 billion, up 21 percent year-over-year. If excluding the exchange rate impact, the growth rate would be 28 percent. Lenovo also delivered expectation-beating quarterly net income of US$100 million.
Revenue during the 2014/15 financial year rose 20 percent to $46.3 billion as Lenovo expanded its share of the shrinking PC market to one-fifth. In the fourth-quarter alone, revenue rose 21 percent to $11.3 billion.
The investments and organic growth created a more diverse business for Lenovo with smartphones, tablets, servers and other services contributing 37 percent of revenues in the quarter compared to 17 percent the year before. At the same time, Lenovo continued to deliver high performance in PCs this year with a record 60 million shipments, and strong profitability, all while maintaining its number one position in the market for the eighth consecutive quarter.
"Lenovo continues to deliver strong and balanced performance. Building on our newly acquired businesses and consistent organic growth of our core operations, three growth engines have been formed. While our Mobile Business Group and Enterprise Businesses Group grew rapidly, our PC business delivered even stronger results, with record market share and increased profitability. The integrations of Motorola Mobility and System x businesses are on track and realizing good growth momentum, although further time will be required to develop them before they become core businesses like PCs, " said Yang Yuanqing, Lenovo Chairman and CEO. "In view of the opportunities and challenges of the new Internet+ era, we are ready to transform ourselves from making mostly hardware to a combination of hardware and software services. This will spur a new wave of growth for Lenovo in the coming years."
Lenovo said PC sales rose across all geographic regions but targeted Europe in particular as an area of potential growth.