Lenovo Delivers Record Setting Q3 Performance With All Time Revenue And PTI Highs
Lenovo Group (HKSE: 992) (Pink Sheets: LNVGY) today announced Group revenue in the third quarter reached a record high of US$14.1 billion, and the tenth consecutive year-on-year quarter of growth. Pre-tax income grew 11% compared to the same quarter a year earlier, to US$390 million and net income also increased 11% year-on-year to US$258 million.
Basic earnings per share for the third quarter were 2.16 US cents or 16.90 HK cents.
“Last quarter, despite the geopolitical uncertainties and industry-wide supply shortages, we delivered a record-setting performance with geographical balance, operational excellence, and solid strategy execution. Both group revenue and pre-tax income reached all-time highs,” said Yang Yuanqing, Lenovo Chairman and CEO. “These core competencies not only enable us to seize the opportunities of technology transformation and drive sustainable growth, but also help us address the challenges we face today.”
Global economic factors
The last quarter has presented multiple industry-wide business challenges including ongoing geo-political uncertainties, component supply shortages and more recently the global Novel coronavirus health situation. As relates to coronavirus, the business priority continues to be ensuring the health and welfare of the Lenovo workforce, continuity of manufacturing and rebuilding capacity, and assisting those working to contain the outbreak. Like the rest of the industry, Lenovo is inevitably facing some short-term constraints and delays as the supply chain is ramped back up after the extended Chinese New Year factory closures. As a result, Lenovo will leverage its geographical balance, operational excellence and strength in managing complex supply chains across a global manufacturing footprint, and solid strategy execution in order to weather the challenges.
Business Group Overview
Lenovo’s Intelligent Devices Group (IDG) continues to lead the company’s strong performance. The PC and Smart Devices Group (PCSD), one of the two IDG business units, set all-time records for revenue at US$11.1 billion, pre-tax income of US$684 million, and a PTI margin of 6.2%. These record results demonstrated Lenovo’s world-class performance capability, especially in overcoming a significant and dynamic industry-wide CPU shortage. In PCs, Lenovo extended its clear #1 position with record high shipments, outperforming a growing market by almost 2 percentage points. Lenovo also finished #1 for the calendar year with share of 24.3%, up 1.6 points year-on-year. Volume in high-growth and premium categories such as Gaming, Thin & Light, Visuals, Workstations and Chromebooks continued to grow at high double-digits and significantly outgrew the market by double digits year-on-year. Looking to the future, while macro-challenges may continue, Lenovo is confident its proven operational excellence will enable it to drive premium-to-market growth and industry-leading profitability. In addition, Lenovo will leverage innovation to drive growth, as demonstrated by its recently announced ThinkBook Plus with top cover e-ink display, ThinkPad X1 Fold laptop with foldable screen and the world’s first 5G PC - Yoga 5G.
IDG’s second business unit, the Mobile Business Group (MBG), posted its fifth consecutive quarter of profitability. In the company’s stronghold of Latin America Lenovo’s volume outgrew the market by 19 points, while improving pre-tax income margin to 5.8%. Going forward, the mobile business will continue to strengthen profitability while driving growth in new markets. In addition, the recently launched Motorola razr signals a re-entry for the company to the premium segment – a market segment that will be an ongoing focus in the future.
The Data Center Group (DCG) saw server shipments grow by 18% year-on-year. While Data Center group revenue remained flat year-on-year due to sharp component price reductions that decreased average system prices, profitability continued to improve. Non-hyperscale had its highest revenue in four years and grew nearly 16%, with the revenue from the China market alone up 46% year-on-year. Software Defined Infrastructure (SDI) and Storage have both seen year-on-year revenue growth of more than 40%. Looking ahead, future growth is expected across all areas, in particular from servers, storage, SDI, High Performance Computing, software and services as the Group focuses on increasing customer diversity and broadening indirect channels.
Intelligent Transformation growth catalyst for the Group
Lenovo’s intelligent transformation business strategy continued to show strong momentum as a long-term growth catalyst for the Group. Software and Services revenue* surpassed the US$1 billion per quarter for the first time, growing 41% year-on-year, and now contributes 7% of overall Group revenues. In Smart IoT, revenue almost quadrupled year-on-year to US$90 million, driven by growth in AR/VR, consumer Smart Home and Smart Office. Smart Infrastructure revenue grew more than 50% year-on-year driven by Software Defined Infrastructure and Network Function Virtualization. Smart Vertical revenue doubled as a result of triple-digit growth from Data Intelligence Business Group revenue and PCSD solutions in the healthcare and education sectors.
* invoiced revenue
About Lenovo
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$50 billion Fortune Global 500 company, with 57,000 employees and operating in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com, follow us on LinkedIn, Facebook, Twitter, YouTube, Instagram, Weibo and read about the latest news via our StoryHub.
LENOVO GROUP
FINANCIAL SUMMARY For the third quarter ended December 31, 2019 (in US$ millions, except per share data) | ||||
| Q3 18/19 |
| ||
Revenue | 14,103 | 14,035 | 0.5% | |
Gross profit | 2,265 | 2,050 | 10.5% | |
Gross profit margin | 16.1% | 14.6% | 1.5 pts | |
Operating expenses | (1,777) | (1,616) | 10.0% | |
Expenses-to-revenue ratio | 12.6% | 11.5% | 1.1 pts | |
Operating profit | 488 | 434 | 12.4% | |
Other non-operating expenses - net | (98) | (84) | 16.4% | |
Pre-tax income | 390 | 350 | 11.4% | |
Taxation | (85) | (85) | (0.9%) | |
Profit for the period | 305 | 265 | 15.4% | |
Non-controlling interests | (47) | (32) | 47.8% | |
Profit attributable to equity holders | 258 | 233 | 10.9% | |
EPS (US cents) | ||||
Basic | 2.16 | 1.96 | 0.20 | |
Diluted | 2.07 | 1.92 | 0.15 | |
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200219006081/en/
Contact information
Hong Kong – Angela Lee,angelalee@lenovo.com, +852 2516 4810
London – Charlotte West, cwest@lenovo.com, +44 7825 605720
Zeno Group - LenovoWWcorp@zenogroup.com
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Pimicotinib Approved as Systemic Treatment in China for Tenosynovial Giant Cell Tumor22.12.2025 09:00:00 CET | Press Release
Merck, a leading science and technology company, announced today that following Priority Review, the China National Medical Products Administration (NMPA) has approved pimicotinib for the treatment of adult patients with symptomatic tenosynovial giant cell tumor (TGCT) for which surgical resection will potentially cause functional limitation or relatively severe morbidity. Pimicotinib, a colony stimulating factor-1 receptor (CSF-1R) inhibitor developed by Abbisko Therapeutics Co., Ltd., Shanghai, China, is the first Chemical Drug Class 1 approved in China for the treatment of TGCT. “We are continuing to deliver on our commitment to improving the lives of patients with rare tumors with this first-in-the-world regulatory approval of pimicotinib,” said Danny Bar-Zohar, CEO Healthcare and Member of the Executive Board of Merck. “This approval is a significant step forward in further strengthening our leadership in rare tumors, while offering patients the opportunity to change the course of
Incyte Japan Announces Approval of Minjuvi ® (tafasitamab) in Combination with Rituximab and Lenalidomide for the Treatment of Relapsed or Refractory Follicular Lymphoma22.12.2025 08:44:00 CET | Press Release
Incyte Biosciences Japan G.K. today announced approval from Japan's Ministry of Health, Labour and Welfare (MHLW) for Minjuvi® (tafasitamab) in combination with rituximab and lenalidomide for adult patients with relapsed or refractory follicular lymphoma (2L+ FL). “Today's approval of Minjuvi in combination with rituximab and lenalidomide marks a significant milestone as the first dual-targeted CD19 and CD20 immunotherapy combination for relapsed or refractory FL in Japan,” said Yasuyuki Ishida, General Manager, Incyte Biosciences Japan. “By improving progression-free survival, Minjuvi offers a chemotherapy-free option for eligible patients with relapsed or refractory disease. This approval underscores our commitment to bridging critical treatment gaps to patients and families affected by this challenging disease in Japan.” The approval is based on the pivotal Phase 3 inMIND trial, which enrolled 654 adult patients, including patients based in Japan. The study demonstrated that Minjuvi
Incyte Japan Announces Approval of Zynyz ® (retifanlimab) for the First-Line Treatment of Advanced Anal Cancer22.12.2025 08:42:00 CET | Press Release
Incyte Biosciences Japan G.K. today announced the Japan Ministry of Health, Labour and Welfare (MHLW) approval of Zynyz® (retifanlimab) in combination with carboplatin and paclitaxel (platinum-based chemotherapy) for the first-line treatment of advanced squamous cell carcinoma of the anal canal (SCAC). "Today's approval marks a significant milestone for patients with advanced anal cancer in Japan – the MHLW’s approval of Zynyz as the first and only first-line treatment for SCAC," said Yasuyuki Ishida, General Manager, Incyte Biosciences Japan G.K. "By offering combination therapy with chemotherapy, Zynyz provides a vital new path forward for patients facing this challenging disease, addressing a significant unmet need in cancer care for patients with SCAC and their families." The approval was based on data from the Phase 3 POD1UM-303/InterAACT2 trial evaluating Zynyz in combination with platinum-based chemotherapy (carboplatin-paclitaxel) in adult patients with metastatic or inoperable
GBC AG Analyst Coverage Report on Mexedia S.p.A. Società Benefit Completed and Published22.12.2025 08:30:00 CET | Press Release
Regulatory News: Mexedia S.p.A. Società Benefit (Euronext Growth Paris: ALMEX, ISIN IT0005450819) (“Mexedia” or the “Company”) informs that the analyst coverage report prepared by GBC AG – one of the leading independent financial research firms in Germany –, developed within an issuer-sponsored research framework, has been completed and is now publicly available. The report follows the re-initiation of analyst coverage by GBC AG previously communicated by the Company and is based exclusively on publicly available information. The content, assumptions and conclusions of the report are solely attributable to the analyst. The GBC AG analyst coverage report is available on the Company’s official website at the following address: https://mexedia.com/en/financial-statements-and-reports/ and on the analyst’s website. Daniel Gilcher, Chief Financial Officer of Mexedia S.p.A. Società Benefit, stated: “The completion and publication of the analyst coverage report by GBC AG represents the conclus
Hisense Joins HEVC Advance Patent Pool22.12.2025 03:06:00 CET | Press Release
Access Advance LLC, the global leader in video codec patent pool licensing, today announced that Hisense Group Holdings Co., Ltd. has joined the HEVC Advance Patent Pool as a Licensee. Hisense joins the recent additions to the Access Advance patent pools, including Xiaomi, MSI, Transsion, and expanded relationships with Huawei, HP and Sharp. Hisense, headquartered in Qingdao, China, is one of the world's largest television manufacturers, with a global presence spanning Asia, Europe, the Americas, and beyond. The company's products reach consumers in more than 160 countries and regions worldwide. "We are pleased to welcome Hisense to the HEVC Advance Patent Pool," said Peter Moller, CEO of Access Advance. "This agreement is the result of extensive engagement between our teams over a considerable period of time. Hisense's decision to join the pool reflects a recognition that transparent, efficient licensing solutions benefit both innovators and implementers across the video technology ec
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom