The Chinese giant records excellent quarterly results in all the geographic markets where it is present. Lenovo posted positive financial results for its second quarter of 2019 as computer sales continue to generate stable revenue.
On Thursday, the Chinese electronics supplier posted group revenue of $ 13.5 billion in the second quarter, up for the ninth consecutive quarter from a year earlier. Pre-tax profit increased 45% to $ 310 million, and net income increased 20% year-over-year to $ 202 million. Lenovo beat analysts' estimate of $ 199.59 million in net income, according to Refinitiv data reported by Reuters.
The great strength of Lenovo PCsThe company says revenue remained stable across all regions - Americas, Asia-Pacific, China, and EMEA - and that they each reported revenue growth of over 20%, despite the existence of "global trade and geopolitical uncertainties".
Suppose, Lenovo is well-positioned to manage complex and dynamic market conditions while continuing to deliver long-term feasible results,” the company added.
Lenovo's Intelligent Devices Group (IDG), made up of both PC and Smart Devices Group (PCSD) and Mobile Business Group (MBG), was the source of the largest revenue.
The data center at half mastPCSD business revenue was $ 10.7 billion, an increase of 4.1% year-on-year and sales growth of 7.1% year-on-year. Lenovo now represents around 24.4% of the global PC market.
IDG's second unit, MBG (Mobile Business Group), has not been as successful. Mobile unit revenue fell 5.7% to $ 1.5 billion.
Lenovo Data Center Group (DCG) revenue declined 13.8%. The Chinese seller continues to try to reduce the costs of the loss-making unit by cutting jobs and reshaping the company.
Software and services grew 35% year over yearThe tech giant says that with the exception of Hyperscale customers (the cloud computing providers), revenue increased quarter over quarter, especially in China where revenue declined. jumped more than 47%. Software and services grew 35% year-over-year to nearly $ 900 million in revenue.
“During the quarter, we found that our growth momentum enabled us to deliver strong financial results in a complex and dynamic global business environment,” said Yang Yuanqing, CEO of Lenovo. “This success is an attestation to our commitment to innovation, our commitment to our customers in 180 markets around the world, and how the world continues to embrace our vision to deliver smarter technology for all.