Strong PC sales have helped Chinese hardware maker Lenovo beat analyst expectations for its first quarter which ended on June 30th.
For the second straight quarter, the firm has managed to achieve strong double-digit growth in revenue year on year reporting $113m in pre-tax income. Lenovo's net profit came in at $77m for the quarter which is quite the turnaround from the same period last year where it reported a loss of $72.3m as a result of higher costs associated with the component shortage.
Lenovo Chairman and CEO, Yang Yuanqin commented on the company's first quarter results in a statement, saying
“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.”
Last quarter, Lenovo announced that it would combine its Personal Computer and Smart Devices Group with its Mobile Business Group to create its new Intelligent Devices Group (IDG). By rethinking the ways these units and their devices interact and impact customers led to the new group's double-digit, quarterly revenue growth year-over-year and PC unit market share gains worldwide.
Yang also offered some details on Lenovo's plans for the future, saying:
“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.”
Image Credit: Lenovo