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Lenovo boasts about robust revenue figures and Motorola’s strength

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.”

Darren Allan
Contributor

Darran has over 25 years of experience in digital and magazine publishing as a writer and editor. He's also an author, having co-written a novel published by Little, Brown (Hachette UK). He currently writes news, features and buying guides for TechRadar, and occasionally other Future websites such as T3 or Creative Bloq and he's a copy editor for TechRadar Pro. Darrran has written for a large number of tech and gaming websites/magazines in the past, including Web User and ComputerActive. He has also worked at IDG Media, having been the Editor of PC Games Solutions and the Deputy Editor of PC Home.