Lenovo revenue grows thanks to PC and data center business

LenovoLenovo Group has posted revenue of $12.9 billion (+6.3 percent) and pre-tax income of $150 million in its third fiscal quarter ended December 31, 2017.

Lenovo said PC and Smart Devices (PCSD) business group revenue grew 7.6 percent to $9.3 billion.

Lenovo’s Data Center Group (DCG) revenue reached $1.2 billion (+16.7 percent).

Lenovo said Mobile Business Group (MBG) revenue was $2.1 billion (–5 percent).

Lenovo’s sequential revenue growth was fantastic in all divisions excluding mobile phone business.

Lenovo achieved quarter on quarter growth of 10 percent in revenue, 50 percent in pre-tax income, 10.4 percent in PC business, 25.5 percent in data center business and flat growth in mobile phone unit.

“Lenovo is accelerating its transformation to become a world leader across every part of our business. We continue to see significant improvement and strong performance in some of the most exciting technology market sectors, smart devices and data center,” said Yang Yuanqing, chairman and CEO of Lenovo.

The company’s gross profit increased 9.8 percent to $1.8 billion. Gross margin was 13.5 percent, a slight increase compared to last year. Operating profit increased by $114 million quarter-to-quarter.

Lenovo has shipped 15.7 million PC units, flat year-over-year, thanks to momentum strong across the globe with double-digit revenue growth year-over-year in EMEA, Asia Pacific (AP) and Latin America (LA).

Data Center Group (DCG) business achieved double-digit growth and margin improvement in all geographies. North America and EMEA saw their third straight quarter of year-over-year revenue growth.

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