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Lenovo continues to grow and doubles second quarter revenue

Positive results are led by the Intelligent Devices Group, where the computer industry is integrated.

The first quarter of fiscal year 2019/2020 appears to have started well by the Lenovo Group. According to data released Friday by the company , between April and June 2019 Lenovo reported revenue of $ 12.5 billion. These numbers mean the company is growing for the eighth consecutive quarter.

Pre-tax revenue doubled compared to last year, growing $ 127 million to $ 240 million. Net revenue also doubled, from $ 85 million to $ 162 million.
First-quarter results indicate that Lenovo continues to grow, "outperforming the current market and leading the global technology industry despite the industry's geopolitical and commercial uncertainties," the statement said.
Given these numbers, the Chairman and CEO speaks of an "excellent" fiscal start. In a statement, Yang Yuanqing said these results were due to "Lenovo's smart transformation," which is enabling "sustained and profitable growth in today's ever-changing world."
Positive results are led by the Intelligent Devices Group. PC and Smart Devices Group, one of the company's two business units, continued to see double-digit revenue growth (12%). On the other hand, this sector first achieved the highest revenue profit in the first quarter of fiscal year, increasing profitability in this area. Earnings before tax were $ 524 million, an increase of $ 98 million.
In the PC area, turnover surpassed the market by more than 13 points, and the group achieved a record PC market share of 24.9%. That is, one in four PCs manufactured worldwide is Lenovo, consolidating the company's position “as the number one PC worldwide”.
To explain these results, the company refers to “innovation, the consumer-driven product portfolio and an ongoing focus on operational excellence”. This strategy allowed the company to significantly outperform the market in high-growth and premium categories, including Workstation, Thin and Light, Visuals, Gaming PCs, and Chromebook.
In the future, Lenovo guarantees that it will focus on premium segments. and invest in innovating Smart IoT, commercial Smart IoT and develop new devices for homes and offices.
IDG's second business unit, Mobile Business Group, posted another profitable quarter and increased pre-tax revenue by $ 100 million for the fourth consecutive quarter.
In the future “Mobile Business will continue to maintain its profitability and look for opportunities for profitable growth in new markets with increasingly innovative products,” read the statement.
Similar to the growth trend of other sectors, the Data Center Group continued for the eighth consecutive quarter to improve its profitability year over year. As far as High Performance Computing is concerned, the company has extended the No. 1 position on the Top 500 Supercomputers list to 173 systems in 20 markets.
Lenovo now believes that it has all the necessary conditions to remain “well-positioned to manage complex and dynamic market conditions while delivering sustainable long-term results”.
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