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Strong Fourth Quarter Growth Reported By Lenovo For FY17/18

Strong Fourth Quarter Growth Reported By Lenovo For FY17/18
Lenovo Group announced a 11% year-on-year increase in revenues at $10.6 billion in the fourth fiscal quarter FY2017/18 which is the first double increase in 10 quarters.
The pre-tax income of the group was 143% year-on-year increase at $37 million compared to $15 million in the same period last fiscal in the fourth fiscal quarter. For the quarter, the profitability in all three key businesses in the reporting quarter increased compared to same period last fiscal. The operational income of the group for the quarter was at $255 million compared to $76 million in the same period last fiscal. However, the company reported a lower profit attributable to shareholders for Q4 at $33 million compared to the same quarter last fiscal because of a larger tax credit recorded in last fiscal quarter.
The company reported a 5% year-on-year growth in the overall revenue for the full fiscal year at $45.3 billion. the operating income of the group for the years was reported at $193 million, which was more compared to the $96 million last fiscal year. In the third quarter of the fiscal 2017/18, Lenovo had to face a one-time non-cash write-off charge of $400 million from deferred income tax assets which was attributed to the company reporting a net loss of $189 million for the full year.
0.28 US cents or 2.19 HK cents was the basic earnings per share in the fourth fiscal quarter. For the full year, the basic loss per share was 1.67 US cents or 13.05 HK cents as reported by the company.
The company said that it continued with its three-wave strategy comprising of investment in emerging technologies, growth in key segments and focusing on leadership in core businesses. Lenovo said that all of the three core business areas exhibited significant growth and strength in both the last quarter and the entire fiscal; year.
There was 16% year-on-year growth in revenues at $7.7 billion in the forth quarter and the highest for four years in its Personal Computers and Smart Devices (PCSD) segment. This segment also reported 8% growth year-on-year for the entire fiscal year at $32.4 billion.
Lenovo reported 44% year-on-tear growth in its Data Center Group (DCG) segment’s revenue in the forth quarter at $1.2 billion and a 8% increase for the entire fiscal year-on-year at $4.4 billion.
Further, revenues for the Mobile Business Group (MBG) segment for the forth quarter was $1.3 billion and $7.2 billion for the full year.
“Last quarter, we resumed double-digit revenue growth with strong profitability improvement year-on-year, closing the fiscal year with a strong momentum and proving that Lenovo has truly entered a new phase of growth,” said Yang Yuanqing, Lenovo Chairman and CEO. “Lenovo’s vision has long been to become a global leader in intelligent transformation. We will focus on building competitiveness in Smart IoT devices, data center infrastructure and vertical intelligent solution, and we are well positioned to take advantage of smart IoT and intelligence era.”

Christopher J. Mitchell

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