Lenovo Second Quarter 2007/08 Revenue Jumps 20% to $4.4B
(Business News, 02 Nov 2007 )
Lenovo Group has reported results for its second fiscal quarter of 2007/08 ended Sept. 30, 2007. Consolidated revenue for the quarter jumped 20% year-on-year (YoY) to $4.4 billion, driven by growth in all of Lenovo's operating geographies. For the third consecutive quarter, Lenovo PC shipments exceeded the average growth rate of the global PC market, with YoY growth of 23% far outpacing the industry's average growth rate of 15.7%.
The company's gross profit margin for the second quarter of 2007/08 was 15.1%, compared to 13% in the same period a year ago, and up 0.2 percentage points sequentially. Net cash reserves as of Sept. 30, 2007, totaled $1.7 billion. Lenovo's Board of Directors has declared an interim dividend of 3 HK cents or $0.39 per share.
"Our strong performance in the second quarter once again proved that Lenovo has successfully completed the integration phase of our acquisition, and we are now entering a new phase of profitable growth," said Lenovo Chairman Yang Yuanqing. "In this new phase, we will continue to strengthen the competitiveness of our products and improve operational efficiency, so as to further enhance profitability. We will also continue to tap the growth potential of the PC industry, especially in China and other emerging markets, the SMB and consumer segments in mature countries, and the notebook market worldwide. Our work in all of these market segments is now in full swing."
William J. Amelio, Lenovo's President and CEO, said: "Our second quarter performance demonstrates that our business strategy continues on track, and that we're executing effectively around the world. We achieved market share gains in both desktop and notebook PCs, and all of our geographies posted double-digit revenue increases. Through growing market acceptance, customers clearly are recognizing the value we deliver through our best-engineered PCs and unequaled ownership experience."
"By making substantial progress on all of our critical priorities over the past few quarters, we're now a stronger, healthier company," Amelio continued. "One important sign of this progress is our decision to completely transition our Think products from the IBM brand to the Lenovo brand two years earlier than planned. Concurrently, we've recently launched our own 'Best Engineered PCs' advertising campaign and global sponsorship of the Beijing 2008 Summer Olympic Games to promote our brand worldwide."
