Lenovo Releases Q3 Financial Results

February 20, 2020

HONG KONG, February 20, 2020 – Lenovo Group today announced Group revenue in the third quarter reached a record high of US$14.1 billion, and the tenth consecutive year-on-year quarter of growth. Pre-tax income grew 11% compared to the same quarter a year earlier, to US$390 million and net income also increased 11% year-on-year to US$258 million.

Basic earnings per share for the third quarter were 2.16 US cents or 16.90 HK cents.

“Last quarter, despite the geopolitical uncertainties and industry-wide supply shortages, we delivered a record-setting performance with geographical balance, operational excellence, and solid strategy execution. Both group revenue and pre-tax income reached all-time highs,” said Yang Yuanqing, Lenovo Chairman and CEO. “These core competencies not only enable us to seize the opportunities of technology transformation and drive sustainable growth, but also help us address the challenges we face today.”

Global economic factors

The last quarter has presented multiple industry-wide business challenges including ongoing geo-political uncertainties, component supply shortages and more recently the global Novel coronavirus health situation. As relates to coronavirus, the business priority continues to be ensuring the health and welfare of the Lenovo workforce, continuity of manufacturing and rebuilding capacity, and assisting those working to contain the outbreak. Like the rest of the industry, Lenovo is inevitably facing some short-term constraints and delays as the supply chain is ramped back up after the extended Chinese New Year factory closures. As a result, Lenovo will leverage its geographical balance, operational excellence and strength in managing complex supply chains across a global manufacturing footprint, and solid strategy execution in order to weather the challenges.

Business Group Overview

Lenovo’s Intelligent Devices Group (IDG) continues to lead the company’s strong performance. The PC and Smart Devices Group (PCSD), one of the two IDG business units, set all-time records for revenue at US$11.1 billion, pre-tax income of US$684 million, and a PTI margin of 6.2%. These record results demonstrated Lenovo’s world-class performance capability, especially in overcoming a significant and dynamic industry-wide CPU shortage. In PCs, Lenovo extended its clear #1 position with record high shipments, outperforming a growing market by almost 2 percentage points. Lenovo also finished #1 for the calendar year with share of 24.3%, up 1.6 points year-on-year. Volume in high-growth and premium categories such as Gaming, Thin & Light, Visuals, Workstations and Chromebooks continued to grow at high double-digits and significantly outgrew the market by double digits year-on-year. Looking to the future, while macro-challenges may continue, Lenovo is confident its proven operational excellence will enable it to drive premium-to-market growth and industry-leading profitability. In addition, Lenovo will leverage innovation to drive growth, as demonstrated by its recently announced ThinkBook Plus with top cover e-ink display, ThinkPad X1 Fold laptop with foldable screen and the world’s first 5G PC – Yoga 5G.

IDG’s second business unit, the Mobile Business Group (MBG), posted its fifth consecutive quarter of profitability. In the company’s stronghold of Latin America Lenovo’s volume outgrew the market by 19 points, while improving pre-tax income margin to 5.8%. Going forward, the mobile business will continue to strengthen profitability while driving growth in new markets. In addition, the recently launched Motorola razr signals a re-entry for the company to the premium segment – a market segment that will be an ongoing focus in the future.

The Data Center Group (DCG) saw server shipments grow by 18% year-on-year. While Data Center group revenue remained flat year-on-year due to sharp component price reductions that decreased average system prices, profitability continued to improve.  Non-hyperscale had its highest revenue in four years and grew nearly 16%, with the revenue from the China market alone up 46% year-on-year. Software Defined Infrastructure (SDI) and Storage have both seen year-on-year revenue growth of more than 40%. Looking ahead, future growth is expected across all areas, in particular from servers, storage, SDI, High Performance Computing, software and services as the Group focuses on increasing customer diversity and broadening indirect channels.

Intelligent Transformation growth catalyst for the Group

Lenovo’s intelligent transformation business strategy continued to show strong momentum as a long-term growth catalyst for the Group. Software and Services revenue* surpassed the US$1 billion per quarter for the first time, growing 41% year-on-year, and now contributes 7% of overall Group revenues. In Smart IoT, revenue almost quadrupled year-on-year to US$90 million, driven by growth in AR/VR, consumer Smart Home and Smart Office.  Smart Infrastructure revenue grew more than 50% year-on-year driven by Software Defined Infrastructure and Network Function Virtualization. Smart Vertical revenue doubled as a result of triple-digit growth from Data Intelligence Business Group revenue and PCSD solutions in the healthcare and education sectors.

* invoiced revenue

About Lenovo

Lenovo is a US$50 billion Fortune Global 500 company, with 57,000 employees and operating in 180 markets around the world.  Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com, follow us on LinkedInFacebookTwitterYouTubeInstagramWeibo and read about the latest news via our StoryHub.


Source: Lenovo

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

HPC in O&G: Deep Sea Drilling – What Happens Now   

June 4, 2020

At the beginning of March I attended the Rice Oil & Gas HPC conference in Houston. That seems a long time ago now. It’s a great event where oil and gas specialists join with compute veterans and the discussion tell Read more…

By Rosemary Francis

NCSA Wades into Post-Blue Waters Era with Delta Supercomputer

June 3, 2020

NSF has awarded the National Center for Supercomputing Applications (NCSA) $10 million for its next supercomputer - named Delta – “which will kick-start NCSA’s next generation of supercomputers post-Blue Waters,” Read more…

By John Russell

Dell Integrates Bitfusion for vHPC, GPU ‘Pools’

June 3, 2020

Dell Technologies advanced its hardware virtualization strategy to AI workloads this week with the introduction of capabilities aimed at expanding access to GPU and HPC services via its EMC, VMware and recently acquired Read more…

By George Leopold

Supercomputers Streamline Prediction of Dangerous Arrhythmia

June 2, 2020

Heart arrhythmia can prove deadly, contributing to the hundreds of thousands of deaths from cardiac arrest in the U.S. every year. Unfortunately, many of those arrhythmia are induced as side effects from various medicati Read more…

By Staff report

Indiana University to Deploy Jetstream 2 Cloud with AMD, Nvidia Technology

June 2, 2020

Indiana University has been awarded a $10 million NSF grant to build ‘Jetstream 2,’ a cloud computing system that will provide 8 aggregate petaflops of computing capability in support of data analysis and AI workload Read more…

By Tiffany Trader

AWS Solution Channel

Join AWS, Univa and Intel for This Informative Session!

Event Date: June 18, 2020

More enterprises than ever are turning to HPC cloud computing. Whether you’re just getting started, or more mature in your use of cloud, this HPC Cloud webinar is an excellent opportunity to gain valuable insights and knowledge to help accelerate your HPC cloud projects. Read more…

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been instrumental to AMD’s datacenter market resurgence. Nanomet Read more…

By Doug Black

NCSA Wades into Post-Blue Waters Era with Delta Supercomputer

June 3, 2020

NSF has awarded the National Center for Supercomputing Applications (NCSA) $10 million for its next supercomputer - named Delta – “which will kick-start NCS Read more…

By John Russell

Indiana University to Deploy Jetstream 2 Cloud with AMD, Nvidia Technology

June 2, 2020

Indiana University has been awarded a $10 million NSF grant to build ‘Jetstream 2,’ a cloud computing system that will provide 8 aggregate petaflops of comp Read more…

By Tiffany Trader

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been i Read more…

By Doug Black

COVID-19 HPC Consortium Expands to Europe, Reports on Research Projects

May 28, 2020

The COVID-19 HPC Consortium, a public-private effort delivering free access to HPC processing for scientists pursuing coronavirus research – some utilizing AI Read more…

By Doug Black

$100B Plan Submitted for Massive Remake and Expansion of NSF

May 27, 2020

Legislation to reshape, expand - and rename - the National Science Foundation has been submitted in both the U.S. House and Senate. The proposal, which seems to Read more…

By John Russell

IBM Boosts Deep Learning Accuracy on Memristive Chips

May 27, 2020

IBM researchers have taken another step towards making in-memory computing based on phase change (PCM) memory devices a reality. Papers in Nature and Frontiers Read more…

By John Russell

Hats Over Hearts: Remembering Rich Brueckner

May 26, 2020

HPCwire and all of the Tabor Communications family are saddened by last week’s passing of Rich Brueckner. He was the ever-optimistic man in the Red Hat presiding over the InsideHPC media portfolio for the past decade and a constant presence at HPC’s most important events. Read more…

Nvidia Q1 Earnings Top Expectations, Datacenter Revenue Breaks $1B

May 22, 2020

Nvidia’s seemingly endless roll continued in the first quarter with the company announcing blockbuster earnings that exceeded Wall Street expectations. Nvidia Read more…

By Doug Black

Supercomputer Modeling Tests How COVID-19 Spreads in Grocery Stores

April 8, 2020

In the COVID-19 era, many people are treating simple activities like getting gas or groceries with caution as they try to heed social distancing mandates and protect their own health. Still, significant uncertainty surrounds the relative risk of different activities, and conflicting information is prevalent. A team of Finnish researchers set out to address some of these uncertainties by... Read more…

By Oliver Peckham

[email protected] Turns Its Massive Crowdsourced Computer Network Against COVID-19

March 16, 2020

For gamers, fighting against a global crisis is usually pure fantasy – but now, it’s looking more like a reality. As supercomputers around the world spin up Read more…

By Oliver Peckham

[email protected] Rallies a Legion of Computers Against the Coronavirus

March 24, 2020

Last week, we highlighted [email protected], a massive, crowdsourced computer network that has turned its resources against the coronavirus pandemic sweeping the globe – but [email protected] isn’t the only game in town. The internet is buzzing with crowdsourced computing... Read more…

By Oliver Peckham

Global Supercomputing Is Mobilizing Against COVID-19

March 12, 2020

Tech has been taking some heavy losses from the coronavirus pandemic. Global supply chains have been disrupted, virtually every major tech conference taking place over the next few months has been canceled... Read more…

By Oliver Peckham

Supercomputer Simulations Reveal the Fate of the Neanderthals

May 25, 2020

For hundreds of thousands of years, neanderthals roamed the planet, eventually (almost 50,000 years ago) giving way to homo sapiens, which quickly became the do Read more…

By Oliver Peckham

DoE Expands on Role of COVID-19 Supercomputing Consortium

March 25, 2020

After announcing the launch of the COVID-19 High Performance Computing Consortium on Sunday, the Department of Energy yesterday provided more details on its sco Read more…

By John Russell

Steve Scott Lays Out HPE-Cray Blended Product Roadmap

March 11, 2020

Last week, the day before the El Capitan processor disclosures were made at HPE's new headquarters in San Jose, Steve Scott (CTO for HPC & AI at HPE, and former Cray CTO) was on-hand at the Rice Oil & Gas HPC conference in Houston. He was there to discuss the HPE-Cray transition and blended roadmap, as well as his favorite topic, Cray's eighth-gen networking technology, Slingshot. Read more…

By Tiffany Trader

Honeywell’s Big Bet on Trapped Ion Quantum Computing

April 7, 2020

Honeywell doesn’t spring to mind when thinking of quantum computing pioneers, but a decade ago the high-tech conglomerate better known for its control systems waded deliberately into the then calmer quantum computing (QC) waters. Fast forward to March when Honeywell announced plans to introduce an ion trap-based quantum computer whose ‘performance’ would... Read more…

By John Russell

Leading Solution Providers

SC 2019 Virtual Booth Video Tour

AMD
AMD
ASROCK RACK
ASROCK RACK
AWS
AWS
CEJN
CJEN
CRAY
CRAY
DDN
DDN
DELL EMC
DELL EMC
IBM
IBM
MELLANOX
MELLANOX
ONE STOP SYSTEMS
ONE STOP SYSTEMS
PANASAS
PANASAS
SIX NINES IT
SIX NINES IT
VERNE GLOBAL
VERNE GLOBAL
WEKAIO
WEKAIO

Contributors

Tech Conferences Are Being Canceled Due to Coronavirus

March 3, 2020

Several conferences scheduled to take place in the coming weeks, including Nvidia’s GPU Technology Conference (GTC) and the Strata Data + AI conference, have Read more…

By Alex Woodie

Exascale Watch: El Capitan Will Use AMD CPUs & GPUs to Reach 2 Exaflops

March 4, 2020

HPE and its collaborators reported today that El Capitan, the forthcoming exascale supercomputer to be sited at Lawrence Livermore National Laboratory and serve Read more…

By John Russell

‘Billion Molecules Against COVID-19’ Challenge to Launch with Massive Supercomputing Support

April 22, 2020

Around the world, supercomputing centers have spun up and opened their doors for COVID-19 research in what may be the most unified supercomputing effort in hist Read more…

By Oliver Peckham

Cray to Provide NOAA with Two AMD-Powered Supercomputers

February 24, 2020

The United States’ National Oceanic and Atmospheric Administration (NOAA) last week announced plans for a major refresh of its operational weather forecasting supercomputers, part of a 10-year, $505.2 million program, which will secure two HPE-Cray systems for NOAA’s National Weather Service to be fielded later this year and put into production in early 2022. Read more…

By Tiffany Trader

15 Slides on Programming Aurora and Exascale Systems

May 7, 2020

Sometime in 2021, Aurora, the first planned U.S. exascale system, is scheduled to be fired up at Argonne National Laboratory. Cray (now HPE) and Intel are the k Read more…

By John Russell

Summit Supercomputer is Already Making its Mark on Science

September 20, 2018

Summit, now the fastest supercomputer in the world, is quickly making its mark in science – five of the six finalists just announced for the prestigious 2018 Read more…

By John Russell

Australian Researchers Break All-Time Internet Speed Record

May 26, 2020

If you’ve been stuck at home for the last few months, you’ve probably become more attuned to the quality (or lack thereof) of your internet connection. Even Read more…

By Oliver Peckham

Nvidia’s Ampere A100 GPU: Up to 2.5X the HPC, 20X the AI

May 14, 2020

Nvidia's first Ampere-based graphics card, the A100 GPU, packs a whopping 54 billion transistors on 826mm2 of silicon, making it the world's largest seven-nanom Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This