Lenovo reveals fiscal 2014/15 results with record revenue

Lenovo has just announced its results for Q4 and the full year 2014/15, with record revenue set, but net profit fell considerably due to some heavy pay-outs on the acquisition front.

Revenue for Q4 was $11.3 billion (£7.2 billion), up 21 per cent year-on-year, and the company posted a new record revenue for the full year, hitting $46.3 billion (£29.6 billion), which was up 20 per cent.

However, Lenovo’s net profit for the year was $100 million (£64 million), which was down 37 per cent on the previous year’s $158 million (£101 million).

The company noted that it achieved record annual shipments of PCs, with 60 million units shifted, and 13.3 million in Q4, up 2.7 per cent year-on-year. Q4 sales hit $7.2 billion (£4.6 billion) for PCs, and Lenovo has a total market share of 19.5 per cent (having been top PC vendor for two years solid now).

PCs are, however, less dominant in terms of the company’s revenue, with computers representing 63 per cent of fourth quarter revenue, down from 83 per cent the previous year.

25 per cent of Lenovo’s takings are now from mobile, with 18.7 million handsets shifted in Q4, and 76 million smartphones in total for the year (following the Motorola acquisition, of course – one of the major moves that dented profits).

Enterprise made up the remaining 9 per cent of revenue.

Yang Yuanqing, Lenovo Chairman and CEO, commented: “Lenovo continues to deliver strong and balanced performance. Building on our newly acquired businesses and consistent organic growth of our core operations, three growth engines have been formed. While our Mobile Business Group and Enterprise Businesses Group grew rapidly, our PC business delivered even stronger results, with record market share and increased profitability.

“The integrations of Motorola Mobility and System x businesses are on track and realising good growth momentum, although further time will be required to develop them before they become core businesses like PCs.”

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