Lenovo revenue up 5% in Q4 thanks to PC and mobile business

Lenovo event in 2016Lenovo said its revenue was $9.6 billion (+4.9 percent) in the fourth fiscal quarter, fueled by its PC / smart devices and mobile businesses.

The China-based technology company has achieved revenue growth in the fourth quarter, after five quarters of decline, despite challenging market conditions.

Lenovo’s revenue was $43 billion (–4.2 percent) in the full-year ended March 31, 2017.

“To drive further growth, we have clearly defined the three-wave strategy. 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,” said Yang Yuanqing, chairman and CEO of Lenovo.

“Simultaneously, we will execute our third wave of ‘Device + Cloud’ and ‘Infrastructure + Cloud’ to capture the opportunities brought by new technologies. With this new strategy, we are confident to achieve long term, sustainable growth,” Yang Yuanqing said.

Lenovo’s gross profit fell 9.8 percent to $1.4 billion for the fourth fiscal quarter and fell 7.8 percent to $6.1 billion in fiscal 2017. Lenovo achieved operating profit of $74 million for the fourth fiscal quarter and $672 million in fiscal 2017. Lenovo posted net income of $107 million in Q4 and $535 million in fiscal 2017.

Lenovo has achieved $6.7 billion (+4.9 percent) revenue from PC and Smart Devices (PCSD) business; $1.7 billion (+19.7 percent) from Mobile Business Group (MBG); $850 million (–13.7 percent) in Data Center Group (DCG) in Q4.

Lenovo said its mobile business improved in Asia Pacific led by success in India, while Latin America business improved thanks to Brazil. In Western Europe, shipments were up in France, Germany and the UK.

Lenovo generated revenue of $2.3 billion (–3 percent) from China, $1.7 billion (+9.4 percent) from Asia Pacific, $2.6 billion (+5.9 percent) from EMEA; and $2.9 billion (+8.2 percent) from the Americas in the fourth quarter of fiscal 2017.