Lenovo beat analyst predictions when it came to its Q3 fiscal results, with a big increase in the company’s quarterly revenue.
In fact, revenue was up 31 per cent on the same quarter in the previous year, hitting $14.1 billion (£9.4 billion).
Pre-tax income (before non-cash M&A-related accounting fees) was $348 million (£232 million), which was up 8 per cent year-on-year, though it slipped 15 per cent if you include said non-cash M&A-related expenses (much of which related to Motorola being snapped up).
Smartphones were a strong area for Lenovo following the acquisition of Motorola, with the Mobile Business Group recording sales of $3.4 billion (£2.3 billion), and Motorola shipping over 10 million units which was more than double last year (up 118 per cent, in fact).
Lenovo boasted of the mobile side: “Combining shipments of Motorola and Lenovo-branded devices made Lenovo a truly global player, the third largest vendor of smartphones behind Samsung and Apple and their most credible challenger.”
Of course, Lenovo’s core PC business remained strong – it’s the number one PC vendor worldwide – and personal computers made up 65 per cent of the company’s revenue (with mobile delivering 24 per cent, and enterprise 9 per cent).
PC sales hit $9.2 billion (£6.1 billion) in revenue with 16 million units shipped, up 4.9 per cent year-on-year.
Yuanqing Yang, chairman and CEO of Lenovo, commented: “Our core PC business maintained its leading position and further improved profitability. The two newly acquired businesses [Motorola and System x] are achieving great momentum in their first quarter of integration. They are definitely becoming our growth engines. Motorola is already a global strength: for the first time it sold more than 10 million units in the quarter and it is now re-entering the China market.”