Chinese technology company Lenovo Group today announced its annual results out of Hong Kong showing that while revenue fell, net income recovered from the previous year's loss.
For the fourth fiscal quarter, Lenovo’s revenue was US$9.6bn, up 4.9% year-on-year. It says this was fuelled in part by a good performance in the PC/smart devices and mobile businesses. For the full year ended 31 March revenue fell to $43bn, down 4.2%.
The company says its gross profit for the fourth fiscal quarter decreased 9.8% year-over-year to $1.4bn. For the full year, gross profit fell 7.8% to $6.1bn. Operating profit for the fourth fiscal quarter was $74m.
The key figures
- Fourth quarter revenue $9.6bn; full year revenue $43bn
- Fourth quarter net income $107m; full year net income $535m
- Full year basic earnings per share of 4.86 US cents, or 37.71 HK cents
- Full year operating profit $672m
- Net income for the full year $535m, up $660m year-on-year
Beyond the numbers
Going beyond the numbers, Lenovo says it made good progress in implementing and executing its new “three-wave strategy,” designed to meet the critical business challenges of today, while positioning it for continued long-term profitable growth.
As part of its self-styled transformation, Lenovo says it put in place an aggressive new end-to-end ownership model to manage each business differently, led by strong new leaders. It says it is seeing improvements as a result.
“Despite challenging market conditions, Lenovo saw revenue resume to growth in the fourth quarter, after five quarters of decline,” said Yang Yuanqing, Lenovo chairman and CEO. “To drive further growth, we have clearly defined the three-wave strategy.
Three waves explained
“We will maintain PC leadership in scale, profitability and innovation in the first wave, while building our second wave, mobile and data center businesses into growth engines. Simultaneously, we will execute our third wave of Device + Cloud and Infrastructure + Cloud.”
He says this will enable the company to capture the opportunities brought by new technologies and achieve long-term, sustainable growth.