Lenovo Group reported results for its first fiscal quarter ended June 30, 2013, with quarterly revenue of $8.8bn, a ten% increase year-over-year.
At the same time, Lenovo’s first quarter pre-tax income increased 16% year-over-year to $215m, while earnings grew 23% year-over-year to $174m, highlighting the Company’s continued focus on leading in the PC Plus era, while growing its business profitably across all geographies, customer segments, and product lines.
For the first time ever, Lenovo was named the world’s largest PC vendor*, and in so doing, recorded its highest-ever quarterly market share of 16.7% up 1.7 points year-over-year.
Lenovo’s PC shipments for the first fiscal quarter were 12.6m units, the 17th quarter in a row that Lenovo outperformed the industry as a whole, which was down 11% year-over-year.
Lenovo continued to accelerate its transformation to a PC Plus company and during the first fiscal quarter was the third-largest supplier of smart-connected devices (including PC, smartphone and tablet products), growing shipments 41% year-over-year.
Lenovo’s combined sales of smartphones and tablets surpassed PCs for the first time ever during the quarter, demonstrating the momentum of these two businesses.
During the first quarter, Lenovo became the world’s fourth largest smartphone supplier and recorded the fastest growth among the top five vendors, growing 132%.
The Company’s smartphone success was further demonstrated by its results in China, where Lenovo is now the second largest smartphone company, growing an impressive 121% year-over-year.
The Company’s gross profit for the first fiscal quarter increased 14% year-over-year to $1.2bn, with gross margin at 13.6%. Operating profit for the quarter grew 11% year-over year to $202m.
Basic earnings per share for the first fiscal quarter was 1.67 US cents, or 12.96 HK cents. Net cash reserves as of June 30, 2013, totaled $3.1bn.
“In a tough PC market, Lenovo became the clear #1 for the first time and continues to improve profitability. Our strong performance in PC is fueled by balanced growth, through our consistent execution of the right strategy,” 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. This kind of market plays to Lenovo’s proven strengths. Lenovo is now better positioned than our competition to take advantage of these clear trends.”
