|By Business Wire||
|January 30, 2013 03:27 AM EST||
Lenovo Group today reported results for its third fiscal quarter ended December 31, 2012. In its best quarter ever, Lenovo continued to outgrow the market in all geographies with record sales, pre-tax income and earnings. Lenovo continued its push towards becoming the world’s leading PC maker and emerging global leader in PC Plus devices, with another quarterly sales record of $9.4 billion, an 12 percent year-over-year increase.
For 13 consecutive quarters, Lenovo has been the fastest growing major PC company. Lenovo was also recognized by IDC as the world’s third largest maker of “smart connected devices,” such as tablets, PCs and smartphones. At the same time, Lenovo had another quarter of record pre-tax income at US$246 million, demonstrating that such rapid growth is being achieved while profits increase.
Lenovo’s third quarter earnings were also a record at US$205 million, an increase of 34 percent over the last year, with gross margin at 11.8 percent. Gross profit for the third fiscal quarter increased 15 percent year-over-year, to US$1.1 billion, while operating profit for the third quarter was US$243 million, a 26 percent increase year-over-year. Basic earnings per share for the third fiscal quarter was 1.99 US cents, or 15.42 HK cents. Net cash reserves as of December 31, 2012, totaled US$4.2 billion.
The Company’s ‘Protect and Attack’ strategy – protecting the two profit pools of global commercial PC and the China businesses, while attacking three high growth opportunities in emerging markets, global consumer and PC Plus products, such as smartphones, tablets and smart TVs – continued to deliver results. This quarter, Attack businesses delivered 50 percent of the Company’s revenues, a significant increase from four years ago when the Company first launched the strategy and attack revenues were 32 percent. Further demonstrating the Company’s balance, its Mobile Internet and Digital Home (MIDH) revenues, which includes its smartphone, tablet and smart TV businesses, accounted for a record 11 percent of Company revenue this quarter, up 77 percent year over year. And for the first time, its smartphone business in China became profitable.
During the third fiscal quarter, Lenovo’s worldwide PC shipments grew 7.9 percent to an all time high of 15.9 percent* marketshare, in a difficult market that was down 7.8 percent year-over-year. This was the 15th quarter in a row the Company grew faster than the industry. Lenovo gained share points in every geography and every product category and in every respective customer segment.
While the Company’s organic growth continues to drive the majority of its success, shareholders should note that Lenovo has closed the joint venture and acquisitions announced in the previous two quarters, including its strategic partnership with EMC that includes a joint venture in EMC’s Iomega business; its acquisition of CCE, a leading PC+company in Brazil, and its acquisition of Stoneware, a US-based cloud computing company. Further, the Company reports that integration of all mergers and acquisitions transactions announced in the last three years are well on-track, and in many cases ahead of schedule.
Lenovo recently realigned its product development and supply chain organizations to create two new groups: the Lenovo Business Group, which will focus on mainstream PCs, mobile internet and digital home products; and the Think Business Group, which will focus on Think-branded products targeting high-end consumers and enterprises. Today, Lenovo is twice as large and much more diverse than it was when its existing structure was established over four years ago. That structure was ideal in supporting Lenovo’s business when it was mostly focused on its China PC and global commercial PC business. Today, the Company has built strong consumer, mobile and emerging markets businesses globally, so the change was proactively initiated to drive continued performance across all of these businesses, stay ahead of consumer demands, while driving speed, agility and innovation.
The recently concluded Consumer Electronics Show (CES) in Las Vegas continued to show that innovation is a significant competitive advantage and future growth driver for Lenovo. The Company was recognized with a record 50 awards at CES, including several “Best in Show” acknowledgments. A robust pipeline of innovative products including the IdeaCentre Horizon - a 27-inch table top PC; ThinkPad Helix - Lenovo’s latest convertible PC designed for business professionals; and the Intel-powered, K900 smartphone are well positioned to continue to stoke new customer demand and drive Lenovo’s performance.
"With the strong execution of our 'Protect and Attack' strategy, Lenovo has not only achieved record revenue, profit and global PC market share last quarter, but also our smartphone and tablet businesses have delivered hyper growth. Even more, our worldwide tablet and China smartphone businesses have become profitable," said Yang Yuanqing, chairman and CEO, Lenovo Group. "As we continue into the PC Plus era, Lenovo has already laid a solid foundation. Our new organization will provide the structure to elevate our diversified business and drive it to the next level. We are confident that we can win through differentiation and will be the innovation leader in the PC Plus era."
- Lenovo China achieved US$4.1 billion in consolidated sales in the third fiscal quarter, an increase of 17 percent year-over-year, accounting for 43 percent of the Company’s worldwide sales. Lenovo’s PC Plus strategy fueled outstanding performance in China with 83 percent MIDH revenue growth and a revenue contribution in China of 22 percent. The Company achieved an important milestone with China smartphone achieving profitability for the first time. Lenovo grew its number-one PC market share position in China, the world’s largest PC market, to 36.7 percent, up 1.4 points year-over-year. Lenovo’s PC shipments in China grew two percent year-over-year in the quarter, a solid result given that the overall China PC market was down two percent.
- In the Asia Pacific/Latin America region, Lenovo achieved 11.3 percent market share in the third fiscal quarter, up marginally year-over-year. In a PC market that was down nine percent year-over-year, the Company grew its PC shipments across the region by four percent. Lenovo continued its run as the leading PC vendor in Japan. Consolidated sales across the region totaled US$1.7 billion for 18 percent of Lenovo’s worldwide sales, while operating margins continued to be profitable.
- Lenovo in Europe Middle East & Africa grew PC shipments by 25.5 percent and became the second largest PC seller in this region, with 11 percent market share, an increase of 3.2 share points year-over-year. This was the Company’s first ever quarter to reach the number two position in the region. These achievements were made despite the headwind of overall industry decline in shipments of 11 percent across the region. The Company had consolidated sales in the third quarter of US$2.3 billion, a year-over-year improvement of 17 percent, good for 25 percent of Lenovo’s total worldwide sales.
- Lenovo’s PC shipments in North America in the third fiscal quarter increased 11 percent year-over-year, in a market that fell by about seven percent. In this environment, the Company gained 1.5 share points to a record high market share of nine percent. Consolidated sales grew eight percent year-over-year to US$1.3 billion in the third quarter, or 14 percent of Lenovo’s total worldwide sales. Also, for the first time in North America, Lenovo made significant inroads into the high-end consumer space, taking a large slice of sales of Windows 8 powered convertible devices – including 30 percent share of the US$700-and-above market and 45 percent share of the US$900-and-above market.
- In Laptop PCs, the Company’s worldwide shipments during the third fiscal quarter were up 9.5 percent year-over-year, helping Lenovo gain 2.6 share points and achieve market share of 15.8 percent. Across the industry, laptop shipments were down 8.6 percent year-over-year. Lenovo’s laptop computers continued to be the largest contributor to the Company’s sales worldwide, generating 52 percent of Lenovo’s total sales revenue. Consolidated sales for Lenovo’s laptop PC business worldwide in the third fiscal quarter totaled US$4.8 billion, an increase of eight percent year-over-year. During the third quarter, Lenovo took the industry by storm, announcing a new family of convertible devices, touch optimized for Windows 8: the 11” and 13” Yogas, IdeaPad Lynx and ThinkPad Twist. Lenovo also announced ThinkPad X1 Carbon Touch, adding touch experience to the industry’s leading business-class Ultrabook, and ThinkPad Twist, a business-ready device that puts a new spin on the traditional convertible tablet.
- Lenovo’s consolidated sales of Desktop PCs worldwide increased one percent year-over-year in the third fiscal quarter to US$2.8 billion, or 30 percent of Lenovo’s total sales revenue. The Company’s desktop PC shipments worldwide in the third quarter increased 5.8 percent year-over-year worldwide, compared to an overall industry decrease of 6.8 percent. As a result, Lenovo gained 1.9 share points year-over-year and achieved a record-high market share of 16.1 percent. During the third quarter, Lenovo announced its new IdeaCentre Q190, the world’s smallest full-function desktop PC – measuring just 22mm (0.86 inches) wide – and the latest additions to the C-series all-in-one (AIO) family, featuring affordable, but powerful performance, and multimedia capabilities designed for immersive entertainment.
- As China’s second-largest provider of smartphones and tablets, Lenovo’s MIDH group continues to rapidly build its business. With consolidated sales of US$998 million, a 77 percent year-over-year increase in the third fiscal quarter, MIDH contributed 11 percent to the Company’s overall sales. Year over year, Lenovo gained 4.7 share points in the China smartphone market in the third quarter for an overall market share of 12.3 percent in China. This business achieved profitability as well. During the third quarter, Lenovo announced that it would begin selling smartphones in Russia, in addition to previously announced India, Indonesia, Philippines and Vietnam. These five countries plus China, represent 44 percent of the world’s population, and give Lenovo a strong sales presence in these important emerging economies.
Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$30 billion personal technology company – one of the top two PC makers in the world and an emerging PC Plus leader – serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the Company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smart phones. Lenovo, a global Fortune 500 company, has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. For more information see www.lenovo.com.
*See IDC data, 4Q 2012
For the third quarter ended December 31, 2012
(in US$ millions, except per share data)
|Gross Profit Margin||11.8||%||11.4||%||
|Other Non-Operating Expenses||3||(1||)||NA|
|Profit for the period||200||154||30||%|
|Profit attributable to equity holders||205||153||34||%|
|EPS (US cents)|
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
Oct. 1, 2014 12:15 PM EDT Reads: 2,271
Noted IoT expert and researcher Joseph di Paolantonio (pictured below) has joined the @ThingsExpo faculty. Joseph, who describes himself as an “Independent Thinker” from DataArchon, will speak on the topic of “Smart Grids & Managing Big Utilities.” Over his career, Joseph di Paolantonio has worked in the energy, renewables, aerospace, telecommunications, and information technology industries. His expertise is in data analysis, system engineering, Bayesian statistics, data warehouses, business intelligence, data mining, predictive methods, and very large databases (VLDB). Prior to DataArchon, he served as a VP and Principal Analyst with Constellation Group. He is a member of the Boulder (Colo.) Brain Trust, an organization with a mission “to benefit the Business Intelligence and data management industry by providing pro bono exchange of information between vendors and independent analysts on new trends and technologies and to provide vendors with constructive feedback on their of...
Oct. 1, 2014 12:15 PM EDT Reads: 471
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
Sep. 30, 2014 10:30 AM EDT Reads: 1,523
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Sep. 29, 2014 06:45 AM EDT Reads: 1,885
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
Sep. 28, 2014 09:45 AM EDT Reads: 1,543
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Sep. 27, 2014 11:30 PM EDT Reads: 1,914
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
Sep. 27, 2014 10:30 PM EDT Reads: 1,830
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
Sep. 27, 2014 10:30 PM EDT Reads: 2,293
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
Sep. 27, 2014 09:45 PM EDT Reads: 2,509
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
Sep. 27, 2014 08:45 PM EDT Reads: 2,384
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
Sep. 27, 2014 01:00 PM EDT Reads: 2,049
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
Sep. 26, 2014 11:45 PM EDT Reads: 1,561
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
Sep. 26, 2014 10:45 PM EDT Reads: 1,498
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
Sep. 26, 2014 07:45 PM EDT Reads: 2,310
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
Sep. 26, 2014 06:15 PM EDT Reads: 1,677
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Sep. 26, 2014 06:00 PM EDT Reads: 1,602
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
Sep. 26, 2014 05:00 PM EDT Reads: 1,599
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Sep. 26, 2014 10:00 AM EDT Reads: 2,090
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
Sep. 26, 2014 10:00 AM EDT Reads: 1,543
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
Sep. 26, 2014 09:45 AM EDT Reads: 1,450