Lenovo Reports Record-Breaking Third Fiscal Quarter Results
Subject: General Tech | February 2, 2013 - 10:28 PM | Tim Verry
Tagged: pc sales, Lenovo, desktop market share
Lenovo recently announced the results of its third fiscal quarter (fourth calendar quarter) in a press release on its website. There are several surprising numbers contained in the report, but the gist of it is that Lenovo had a great quarter -- one that lends credence to the future of the traditional PC (despite talk of the post-PC era).
In Lenovo’s third fiscal quarter, the company sold 14.1 million PCs, made $9.4 billion in sales, and grew to acquire 15.9% of global market share (with worldwide PC shipments increasing by 7.9%). It made a gross profit of $1.1 billion and had an operating profit of $243 million. Lenovo saw a 15% and 26% year-over-year growth in gross and operating profit respectively. Further, Lenovo had $205 million in Q3 earnings, which makes it the company’s best quarter ever. Earnings per share (EPS) currently sits at 1.99 cents.
According to Lenovo, the company has seen rapid growth over the past 13 quarters while simultaneously out-pacing the industry for 15 quarters. Its worldwide tablet sales and Chinese smartphone products have turned profitable, and are continuing to grow. However, desktop PC sales still account for 30% of total sales revenue. Desktop sales increased slightly by 1% year over year in the third quarter to $2.8 billion. Although growth is not as rapid as Lenovo is seeing with its newer tablet and smartphone divisions, the number of desktops sold every quarter is still increasing. And as the world’s third-largest PC OEM, it does suggest that the traditional desktop and laptop computer still has life. Tablets and smartphones will continue to grow, but will likely co-exist with the PC rather than displace it. It will be interesting to see how the other OEMs have faired through 2012 and into 2013!
You can find all of the financial details on the company's press release.
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