Lenovo reports strong fourth quarter including record PC shipments
Posted by: Tim Tibbetts on 05/23/2013 09:02 AM
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I have continued to maintain that PC sales have taken such large declines for two reasons. One, smartphones and tablets are a ton of fun. Two, because of the use of the aforementioned mobile devices and less need for new PC technology, PC’s simply last longer. Of course all you usually hear is about how companies like Dell are having issues with PC sales while discounting the many reasons they were having issues – like the attempted buyout and Michael Dell making statements like “We’re not really a PC company”.
I'm not dead.
'Ere, he says he's not dead.
Yes he is.
I'm not.
He isn't.
Well, he will be soon, he's very ill.
I'm getting better.
Anyway, companies like Lenovo are moving towards becoming the #1 PC maker with 15.5% of PC sales and they have good news for PC lovers in this press release:
Highlights, if you don't want to read it all:
- Records in annual pre-tax income of US$801 million and earnings of US$635 million
- Record annual sales of US$34 billion
- Record 52.4 million PC shipments and record 15.5 percent global market share
- Full year basic EPS of 6.16 US cents, or 47.78 HK cents
- Net cash reserves of US$3.1 billion (as of March 31, 2013)
Lenovo Group today announced results for its fourth fiscal quarter and full-year ended March 31, 2013. With record full-year sales of US$34 billion, an increase of 15 percent year-over-year, a record full-year pre-tax income of US$801 million, up 38 percent year-over-year and record earnings of US$635 million, up 34 percent, Lenovo had a strong showing. While Lenovo continued to close in on the #1 position in PCs, with a record 15.5 percent market share for the full-year, it accelerated its transformation to become a top competitor in the PC Plus era, with a 5.9 percent share of Smart Connected Devices and global #3 ranking.
Lenovo had record revenues for the fourth quarter of US$7.8 billion, four percent year-over-year growth. The Company achieved pre-tax income of US$166 million during the fourth fiscal quarter, a 63 percent increase over the same period last year. Compared to an overall industry decline of more than 13 percent year-over-year, Lenovo grew at a 14 point premium to the market, besting the industry for the 16th quarter in a row.
The Company’s gross profit for the fourth fiscal quarter grew to US$963 million, an increase of 20 percent year-over-year. Gross margin was 12.3 percent. Operating profit for the fourth quarter was US$169 million, up 67 percent year-over-year, while earnings jumped 90 percent year-over-year to US$127 million.
Basic earnings per share in the fourth fiscal quarter are 1.22 US cents, or 9.46 HK cents. Lenovo’s Board of Directors declared a final dividend of 1.81 US cents, or 14.0 HK cents per share for the fiscal year ended March 31, 2013.
For the 2012/13 fiscal year, Lenovo’s PC shipments grew 10.2 percent year-over-year, compared to an overall industry decline of 8.1 percent during this same period. Gross profit for the full year was US$4.1 billion, an increase of 18 percent year-over-year. Gross margin was 12 percent, while operating profit for the full fiscal year was US$ 800 million, a 37 percent jump over year-over-year. Lenovo’s earnings grew 34 percent year-over-year to US$635 million.
“Despite a challenging macro-economic environment and ongoing PC industry transformation, Lenovo delivered a strong performance in the 2012/13 fiscal year. Not only were we the fastest growing among all major PC players, with record market share, revenue and profitability, more importantly, our smartphone and tablet businesses saw dramatic growth,” said Yang Yuanqing, Lenovo Chairman and CEO. “In fact, smartphone shipments were 3.7 times greater than last year globally and we are now number two in the China smartphone market. This has laid a solid foundation for the successful transformation of Lenovo into a PC Plus leader. Going forward, we will focus our investments on the fast-growing tablet, smartphone and enterprise hardware areas, while working to enhance the profitability of our core PC business. We are very confident in our ability to achieve success in these new areas, just as in the PC business.”
I'm not dead.
'Ere, he says he's not dead.
Yes he is.
I'm not.
He isn't.
Well, he will be soon, he's very ill.
I'm getting better.
Anyway, companies like Lenovo are moving towards becoming the #1 PC maker with 15.5% of PC sales and they have good news for PC lovers in this press release:
Highlights, if you don't want to read it all:
- Records in annual pre-tax income of US$801 million and earnings of US$635 million
- Record annual sales of US$34 billion
- Record 52.4 million PC shipments and record 15.5 percent global market share
- Full year basic EPS of 6.16 US cents, or 47.78 HK cents
- Net cash reserves of US$3.1 billion (as of March 31, 2013)
Lenovo Group today announced results for its fourth fiscal quarter and full-year ended March 31, 2013. With record full-year sales of US$34 billion, an increase of 15 percent year-over-year, a record full-year pre-tax income of US$801 million, up 38 percent year-over-year and record earnings of US$635 million, up 34 percent, Lenovo had a strong showing. While Lenovo continued to close in on the #1 position in PCs, with a record 15.5 percent market share for the full-year, it accelerated its transformation to become a top competitor in the PC Plus era, with a 5.9 percent share of Smart Connected Devices and global #3 ranking.
Lenovo had record revenues for the fourth quarter of US$7.8 billion, four percent year-over-year growth. The Company achieved pre-tax income of US$166 million during the fourth fiscal quarter, a 63 percent increase over the same period last year. Compared to an overall industry decline of more than 13 percent year-over-year, Lenovo grew at a 14 point premium to the market, besting the industry for the 16th quarter in a row.
The Company’s gross profit for the fourth fiscal quarter grew to US$963 million, an increase of 20 percent year-over-year. Gross margin was 12.3 percent. Operating profit for the fourth quarter was US$169 million, up 67 percent year-over-year, while earnings jumped 90 percent year-over-year to US$127 million.
Basic earnings per share in the fourth fiscal quarter are 1.22 US cents, or 9.46 HK cents. Lenovo’s Board of Directors declared a final dividend of 1.81 US cents, or 14.0 HK cents per share for the fiscal year ended March 31, 2013.
For the 2012/13 fiscal year, Lenovo’s PC shipments grew 10.2 percent year-over-year, compared to an overall industry decline of 8.1 percent during this same period. Gross profit for the full year was US$4.1 billion, an increase of 18 percent year-over-year. Gross margin was 12 percent, while operating profit for the full fiscal year was US$ 800 million, a 37 percent jump over year-over-year. Lenovo’s earnings grew 34 percent year-over-year to US$635 million.
“Despite a challenging macro-economic environment and ongoing PC industry transformation, Lenovo delivered a strong performance in the 2012/13 fiscal year. Not only were we the fastest growing among all major PC players, with record market share, revenue and profitability, more importantly, our smartphone and tablet businesses saw dramatic growth,” said Yang Yuanqing, Lenovo Chairman and CEO. “In fact, smartphone shipments were 3.7 times greater than last year globally and we are now number two in the China smartphone market. This has laid a solid foundation for the successful transformation of Lenovo into a PC Plus leader. Going forward, we will focus our investments on the fast-growing tablet, smartphone and enterprise hardware areas, while working to enhance the profitability of our core PC business. We are very confident in our ability to achieve success in these new areas, just as in the PC business.”
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