MORRISVILLE – To say Lenovo’s chair and chief executive officer is happy about how business is going for the global tech firm is, well, an understatement.
“Last quarter was what I would call a perfect quarter for Lenovo,” Yang Yuanqing declared in an interview with Reuters news service shortly after Lenovo announced its latest earnings.
Riding the strength of demand for technology to enable people and students to work from home and study remotely in times of COVID-19, Lenovo said profits surged 53% year-over-year to some $310 million. That’s well above analysts’ expectations of $224 million, Reuters noted.
Earnings hit 2.48 cents, up from 1.62 cents year-over-year. Overall income climbed to $470 million while revenues surged 7% year-over-year to $14.5 billion.
Records for the company fell across several categories as good news was spread across Lenovo’s business lineup.
Looking ahead, Yang added: “I hope the current quarter could be even better.”
Lenovo CEO Yang Yuanqing (Lenovo photo)
“Our record results this quarter reflect our ongoing commitment to meeting the needs of the rapidly growing work-, learn-and play-from-home economy. All of our core businesses delivered year-on-year growth, while our Software and Services revenue grew to a new record,” Yang added in a statement.
“As the world continues to adjust to the ‘new normal’, we are confident in the long-term growth potential of both devices and cloud infrastructure. We will continue to leverage our core competences of operational excellence and global/local footprint, while accelerating our service-led transformation to better grasp opportunities and drive sustainable growth.”
Lenovo also expects growth to continue as the worldwide struggle with the pandemic continues and a new round of lockdowns begins in Europe.
“The company expects the total PC market to grow well beyond current analyst forecasts to closer to 300 million units in calendar year 2020, around 25 million more than the total available market last year,” RTI news noted.
Added Yang in the Reuters interview: “Our gaming PCs and our thin-and-light PCs actually grow margin faster than other products.”
Lenovo operates two global headquarters – one in Morrisville, the other in Beijing.
Read the full earnings report summary online.
