|By Business Wire||
|November 8, 2012 12:12 AM EST||
Lenovo Group today reported results for its second fiscal quarter ended September 30, 2012. Outgrowing the market in all geographies, Lenovo continued its push towards becoming the number one vendor in the PC industry, with record quarterly sales of $8.7 billion, an 11 percent increase year-over-year. While growing faster than the top four PC companies for three straight years, Lenovo also turned in another quarter of record pre-tax income at US$204 million, evidence that the Company continues to build upon its track record of profitable growth.
During the second fiscal quarter, Lenovo’s worldwide PC shipments grew 10.3 percent, in a difficult market that was down eight percent year-over-year, the 14th quarter in a row that the company has grown faster than the PC industry as a whole. In this challenging environment, Lenovo achieved its highest-ever worldwide market share of 15.6 percent*, gaining share points in every geography, every product category in which it competes, and in every respective customer segment.
This balanced growth has become a hallmark of Lenovo over the past three years, and is the result of the Company’s continued focus on its “protect and attack” strategy, whereby Lenovo strengthens its position in those places or markets where it enjoys a solid business, while simultaneously reaching outwards into new places or markets where opportunities to reach even more customers present themselves. Entering these new markets is essential to Lenovo continuing its position as a leader in the PC Plus era, where tablets, smartphones and smart TVs continue to gain traction and capture record customer acceptance.
In addition to its impressive share gains, Lenovo turned in net income of US$162 million in the second quarter, an increase of 13 percent year-over-year, with gross margin at 12.1 percent. Gross profit for the second fiscal quarter increased 11 percent year-over-year, to US$1.1 billion, while operating profit for the second quarter was US$206 million, a 24 percent increase year-over-year.
Basic earnings per share for the second fiscal quarter was 1.58 US cents, or 12.25 HK cents. Net cash reserves as of September 30, 2012, totaled US$3.6 billion. Lenovo’s Board of Directors declared an interim dividend of 4.5 HK cents per share.
As the PC Plus era continues to take shape, Lenovo made several bold moves during the second fiscal quarter to solidify its leadership position, announcing two significant acquisitions: CCE, widely known in Brazil as a leader in PCs and consumer electronics, which significantly expands Lenovo’s presence in the world’s third-largest PC market, including manufacturing capabilities; and Stoneware, a software company based in Indiana, focused on cloud computing, which will help Lenovo grow its capabilities for both commercial and consumer cloud offerings, particularly the ability to provide secure content across multiple devices in education and government sectors.
Both of these acquisitions came quickly on the heels of Lenovo’s announcement of a global partnership with EMC, forming a server technology development program to help drive innovation and extend Lenovo’s capabilities in x86 industry-standard servers. As part of this agreement, Lenovo will bring these servers to market on its own, and embed them in selected EMC storage systems over time. Just last week, Lenovo announced the formation of the Enterprise Product Group, a new business unit that will focus on expanding the Company’s server, storage, networking and software offerings geared to a variety of commercial customers, including large enterprises, small/medium businesses and system integrators.
Also during the second quarter, Lenovo announced that it was opening a manufacturing line in North Carolina, creating 115 new manufacturing jobs, boosting its competitive position as a global company with strong local roots.
“With the strong execution of our Protect and Attack strategy, Lenovo has continued its strong and balanced growth momentum. Our global PC market share reached another historic high, moving us closer to our dream of becoming the worldwide PC leader. With four years’ effort, our Consumer PC business has become the world’s number one in this segment for the first time. Our smartphone business in China, which we started only two years ago, has again strengthened its number two position,” said Yang Yuanqing, Chairman and CEO of Lenovo. “More importantly, we not only grew rapidly, but also improved our profitability consistently, with pre-tax income reaching a record high this quarter. As emerging markets outside of China and Mature Transactional business have entered the profitable growth stage, and as our smartphone and other MIDH (mobile internet/digital home) business continue to grow, Lenovo’s overall profitability will continue to improve.”
- Lenovo China achieved US$3.9 billion in consolidated sales in the second fiscal quarter, an increase of 20 percent year-over-year, accounting for 44 percent of the Company’s worldwide sales. During the second quarter, Lenovo grew its number-one position in China, the world’s largest PC market, to a leading market share of 34 percent, up 2.4 points year-over-year. Lenovo’s PC shipments in China grew eight percent year-over-year in the quarter, a significant result given that the overall China PC market was flat. As the number one PC vendor in China, Lenovo’s PC shipments are greater than that of the next top four vendors combined. Of particular note, is Lenovo’s continued strength in China’s emerging cities, and the Company continues to build its reputation with other product offerings such as smart phones, tablets and smart TVs, as it leads China’s customers into the PC Plus era.
- In the Asia Pacific/Latin America region, Lenovo achieved a record market share of 11.5 percent in the second fiscal quarter, up 1.6 points year-over-year. In a PC market that was down ten percent year-over-year, the Company grew its PC shipments across the region by an impressive five percent. Lenovo was the leading PC vendor in Japan, the world’s fifth largest PC market, and number one in India as well, where the Company grew 31.8 percent and gained 4.8 share points year-over-year. In the Latin America countries (not including Brazil), Lenovo recorded its first-ever overall double-digit market share, while picking up 4.1 share points year-over-year. Consolidated sales across the region totaled US$1.8 billion for 21 percent of Lenovo’s worldwide sales.
- For the first-time ever, Lenovo in Europe Middle East/Africa achieved double-digit market share, ending the second fiscal quarter at 10.8 percent, an increase of 3.0 share points year-over-year. These gains helped Lenovo become the third-largest PC vendor in EMEA. Lenovo’s share gains were consistent throughout the region, growing in all markets. Among the highlights for the second quarter were the Company’s number one positions in Russia and Germany, where in the latter Lenovo gained 3.9 additional share points year-over-year. Although the overall industry was down eight percent across the region, Lenovo grew its PC shipments by 27 percent year-over-year, a stunning result. The Company had consolidated sales in the second quarter of US$1.8 billion, a year-over-year improvement of 12 percent, and good for 21 percent of Lenovo’s total worldwide sales.
- Lenovo’s PC shipments in North America in the second fiscal quarter increased eight percent year-over-year, in a market that fell badly by about 12 percent. In this environment, the Company picked up 1.6 share points to a record high market share in the U.S.A. of 8.3 percent. Consolidated sales grew seven percent year-over-year to US$1.2 billion in the second quarter, or 14 percent of Lenovo’s total worldwide sales. Triggered by a ten-times increase in its retail presence throughout the U.S.A, Lenovo saw significant sales gains in its consumer business there. Commercial account growth was strong there as well.
- For the first-time ever, Lenovo became the world’s largest supplier of Laptop PCs. The Company’s laptop shipments worldwide in the quarter were up 11.3 percent year-over-year, helping Lenovo gain 2.6 share points and achieve a record-high laptop market share of 16 percent. Across the industry, laptop shipments were down seven percent year-over-year. Lenovo’s laptop computers continued to be the largest contributor to the Company’s sales worldwide, generating 53 percent of Lenovo’s total sales revenue. Consolidated sales for Lenovo’s laptop PC business worldwide in the second fiscal quarter totaled US$4.6 billion, an increase of three percent year-over-year. During the second quarter, Lenovo announced a breathtaking array of new products: ThinkPad X1 Carbon, ThinkPad T430u ultrabook, and ThinkPad Tablet 2, the company’s first tablet specifically geared for Windows 8. Last month, Lenovo caught the industry’s attention with its announcement of three new convertibles, Yoga 13, Lynx and Twist, tablets that flip, twist, fold and separate, and are designed for Windows 8.
- Consolidated sales of Lenovo Desktop PCs worldwide increased five percent year-over-year in the second fiscal quarter to US$2.8 billion, or 32 percent of Lenovo’s total sales revenue. The Company’s desktop PC shipments worldwide in the second quarter increased 8.8 percent year-over-year worldwide, compared to an overall industry decrease of nine percent worldwide. As a result, Lenovo gained 2.6 share points year-over-year and achieved a record-high market share of 15 percent. During the second quarter, Lenovo announced its new IdeaCentre A520, a new all-in-one desktop PC featuring a compact 23-inch frameless 1080p display that supports multi-touch with a widely adjustable screen angle (from -5 to 90 degress flat) with perfect picture at any angle so users can watch movies, play touch-based games or enjoy video chat in any position.
- Entering its second full year of operations, Lenovo’s Mobile Internet Digital Home (MIDH) group is forging ahead in leaps and bounds, with consolidated sales of US$718 million, a 155 percent increase year-over-year in the second fiscal quarter, and eight percent of the Company’s overall sales. With smartphones and tablets leading the Company’s PC Plus charge, Lenovo has continued to outpace the hyper-growth in shipments in China, and is now the second largest vendor in China in each of these product categories. Lenovo has gained an incredible 12.5 share points in smartphones year-over-year in the second quarter for an overall market share of 14.2 percent in China. During the second quarter, Lenovo announced that it would begin selling smartphones in Indonesia, Philippines and Vietnam, and just last week, added India to the list.
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$30 billion personal technology company – and one of the top two PC makers in the world -- serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information see www.lenovo.com.
*See IDC data, 3Q 2012
For the second quarter ended September 30, 2012
(in US$ millions, except per share data)
|Gross Profit Margin||12.1%||12.2%||-0.1pts|
|Other Non-Operating Expenses||(2)||(1)||47%|
|Profit for the period||163||145||13%|
|Profit attributable to Equity Holders||162||144||13%|
|EPS (US cents)|
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Dec. 9, 2016 03:45 PM EST Reads: 553
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 03:30 PM EST Reads: 1,222
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Dec. 9, 2016 03:15 PM EST Reads: 972
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 03:15 PM EST Reads: 849
Infrastructure is widely available, but who’s managing inbound/outbound traffic? Data is created, stored, and managed online – who is protecting it and how? In his session at 19th Cloud Expo, Jaeson Yoo, SVP of Business Development at Penta Security Systems Inc., discussed how to keep any and all infrastructure clean, safe, and efficient by monitoring and filtering all malicious HTTP/HTTPS traffic at the OSI Layer 7. Stop attacks and web intruders before they can enter your network.
Dec. 9, 2016 03:00 PM EST Reads: 343
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Dec. 9, 2016 03:00 PM EST Reads: 2,004
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Dec. 9, 2016 02:45 PM EST Reads: 616
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 9, 2016 02:45 PM EST Reads: 1,031
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Dec. 9, 2016 02:42 PM EST Reads: 169
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
Dec. 9, 2016 02:30 PM EST Reads: 786
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Dec. 9, 2016 02:15 PM EST Reads: 358
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 9, 2016 02:15 PM EST Reads: 1,773
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 02:15 PM EST Reads: 809
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 01:30 PM EST Reads: 1,175
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 9, 2016 11:45 AM EST Reads: 2,376
"We analyze the video streaming experience. We are gathering the user behavior in real time from the user devices and we analyze how users experience the video streaming," explained Eric Kim, Founder and CEO at Streamlyzer, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 9, 2016 11:45 AM EST Reads: 713
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 9, 2016 11:45 AM EST Reads: 7,371
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Dec. 9, 2016 11:45 AM EST Reads: 2,239
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Dec. 9, 2016 11:30 AM EST Reads: 1,015
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Dec. 9, 2016 11:30 AM EST Reads: 542