Stefan Mileschin

Beats estimates

Chinese PC maker Lenovo Group swung to a profit and beat estimates in the first quarter on Thursday, helped by a sharp jump in revenue.

Net profit came in at $77 million for the three months ended in June, compared with a loss of $72.3 million in the same period a year earlier when higher costs hit it amid a shortage of components.

Revenue rose 19 percent from a year earlier to $11.91 billion, its second straight quarter of double-digit revenue growth.

Chairman Yang Yuanqing said: “The group remains confident in its core PC business, and aims to grow at a premium to the market in revenue without compromising on profitability. As we persistently execute our 3-wave strategy, all our businesses made solid improvements in both revenue and profitability. Lenovo has passed the turning point and entered a phase of ‘acceleration’ - accelerating the execution of our transformation strategy and accelerating the rising momentum in business performance.

“In the future, we will maintain industry leading profitability and premium to market growth in PCs; return the smartphone business to health; build the data center business into a sustainable growth and profit engine, and continue to invest in ‘Smart IoT + Cloud’ and ‘Infrastructure + Cloud’ to drive long term sustainable return.”

https://fudzilla.com/news/46967-lenovo-in-profit