Lenovo has announced its fiscal Q2 2014 earnings, reporting a net profit of $262 million for the three-month period ended September 30, up 19 percent from the $219.7 million figure the company reported a year earlier, and exceeding the $260 million expected by market analysts.
“Lenovo had another strong quarter that saw excellent market share gains and profit expansion. Not only did we reach nearly 20 percent share in PCs, but we became #1 in the broader PC+ tablet market for the first time. In May, we set this as a two year goal, but achieved it in two quarters”, said Yuanqing Yang, chairman and CEO of Lenovo, adding that the Motorola Mobility and IBM x86 acquisitions, which Lenovo closed last month, helped the company achieve the number 3 position in both businesses.
The company's revenue for the quarter fell short of market expectations, however, standing at $10.5 billion, up 7 percent from $9.77 billion in the prior year. Earnings per share was 2.52 cents, up from 2.10 cents in the prior year quarter.
At $5.5 billion, Lenovo says its laptop PC sales for the quarter were the largest contributor to the company’s revenue worldwide, generating 52 percent of the total revenue. On the other hand, consolidated sales of its desktop PCs increased 11 percent year-over-year to $3 billion, or 29 percent of the company’s total revenue.
Consolidated sales of the company's mobile devices, including smartphones and tablets, decreased 6 percent year-over-year to $1.4 billion, representing 13 percent of the company’s total revenue during the quarter. According to the Chinese company, its "execution focus and innovative products" drove a record high of 35.6 million smartphones, PCs, and tablets shipped globally.
In addition, Lenovo also announced the appointment of Jerry Yang, founder and former CEO of Yahoo, as an independent non-executive director of the company.