updated 10:53 am EDT, Wed May 21, 2014
Quarterly Lenovo results close to record revenues in previous quarter
Lenovo continues to enjoy strong revenues, according to the company's latest quarterly results and full year results. Though it did not quite reach the record $10.8 billion in revenue in the previous quarter, it still managed to pull in $9.4 billion, representing a 19-percent improvement year-on-year, and helped push annual revenue up 14 percent year-on-year to a record $38.7 billion.
Gross profit for the quarter had a 18-percent increase on last year, resting at $1.24 billion, with operating profit also increasing 37 percent to $231 million, and earnings growing 25 percent year-on-year to $158 million. For the full year, the record revenue represents a yearly improvement of 14 percent, with its full year pre-tax income also claimed to be a record $1.01 billion, up 27 percent, and record full-year earnings of $817 million, also up 29 percent.
According to the company, it increased its total market share by 2.1 points to 17.7 percent, despite the general decline of the PC industry. A total of 55 million PCs, 50 million smartphones, and 9.2 million tablets were shipped by Lenovo over the course of the year, with it noting a record share of 15 percent of the Asia Pacific PC market despite a growth of only 1 percent in China, This also represents the fourth quarter in a row where Lenovo sold more tablets and smartphones combined than PCs.
"The record sales and profits that we delivered last year prove that Lenovo can grow and deliver its commitments, no matter the market conditions," said Lenovo Chairman and CEO Yuanqing Yang. "Not only did we strengthen our leading position in PCs, but we gained three points in tablets by quadrupling sales volume and became the fastest growing major smartphone company in the world."
While the company hopes to continue the trend of mobile device sales, with the ongoing acquisition of Motorola assets from Google for $3 billion, Lenovo hopes to continue growing its computer business. In January, it revealed it was acquiring IBM's x86 server business for $2.3 billion, something which could help it combat the ongoing decline, if not by producing computers destined for consumer use.