News Feed Item

Lenovo Outperforms Market in 4th Quarter and Full Year 2013/14

Lenovo Group today announced results for its fourth fiscal quarter and full-year ended March 31, 2014. With record full-year revenue of US$38.7 billion, an increase of 14 percent year-over-year, a record full-year pre-tax income of US$1.01 billion, up 27 percent year-over-year and record full year earnings of US$817 million, up 29 percent, Lenovo had a truly outstanding year.

Lenovo expanded its number one position in PCs, adding 2.1 points of market share to post a record 17.7 percent total share for the full-year, representing five percent year-over-year growth, compared to an overall industry decline of 8 percent during this same period. Even while China’s PC market slowed, Lenovo’s operating profit in China PC improved by 1 percentage point. Asia Pacific had record share of almost 15 percent, while improving profitability. For the first time, Lenovo’s EMEA revenue surpassed its China PC revenue in the quarter, while in the US, Lenovo surpassed Apple to take the number three position in PC shipments in the fourth quarter. With 20 consecutive quarters of outgrowing the PC market, Lenovo continued to show it can post rapid growth in absolute shipment and in relative market share metrics, even in difficult markets.

When combining Tablets and PCs together to form the “PC + Tablet” category, Lenovo sold a record 64 million devices, up nearly 18 percent year over year, outpacing this market by more than 13 percentage points. Lenovo posted record total device volume of 114 million, up 37 percent year over year. This was the 4th quarter in a row that Lenovo sold more tablets and smartphones than PCs. These facts illustrate Lenovo’s transformation as a leader in Smart Connected Devices.

“The record sales and profits that we delivered last year prove that Lenovo can grow and deliver its commitments, no matter the market conditions,” said Yuanqing Yang, Lenovo Chairman and CEO. “Not only did we strengthen our leading position in PCs, but we gained three points in tablets by quadrupling sales volume and became the fastest growing major smartphone company in the world. This demonstrates our capability to manage both businesses that are already mature, as well as those that are shifting to maturity. Meanwhile, we are building new engines for growth in the enterprise and ecosystem. Through the combination of our existing and new businesses, Lenovo offers tremendous value to shareholders today, and our value will be even greater in the future.”

Gross profit for the full year was US$5.06 billion, an increase of 14 percent year-over-year. Gross margin was 13.1 percent, while operating profit for the full fiscal year was US$ 1.05 billion, a 32 percent increase year-over-year.

Lenovo had strong fourth quarter revenue of US$9.4 billion, up 19 percent year-over-year. The Company achieved pre-tax income of US$212 million during the fourth fiscal quarter, a 28 percent increase over the same period last year. The Company’s gross profit for the fourth fiscal quarter grew to US$1.24 billion, an increase of 18 percent year-over-year. Gross margin was 13.3 percent. Operating profit for the fourth quarter was US$231 million, up 37 percent year-over-year, while earnings grew 25 percent year-over-year to US$158 million. Compared to an overall PC industry decline of 4.6 percent year-over-year in the fourth fiscal quarter, Lenovo grew shipments at a 15 point premium to the market.

Basic earnings per share in the fourth fiscal quarter was 1.53 US cents, or 11.87 HK cents. Lenovo’s Board of Directors declared a final dividend of 2.32 US cents, or 18 HK cents per share for the fiscal year ended March 31, 2014.


  • Lenovo China improved its fourth quarter operating margin by 0.8 points to 5.5 percent. With US$3.1 billion in consolidated sales in the fourth fiscal quarter, China accounted for 33 percent of the Company’s worldwide sales. Lenovo protected its PC leadership with 32.6 percent share, with PC margins improving 1.1 points with stabilizing shipments and increased average sales price. China continues to invest in the push into Smart Connected Devices to capture opportunities from 4G and Smart TVs.
  • In the Asia Pacific region, Lenovo achieved 15.6 percent PC market share in the fourth fiscal quarter, up 2.1 points year-over-year. While the regional PC market improved, only down slightly at 1.5 percent year-over-year, the Company grew its PC shipments across the region by 14 percent. Lenovo remained number one in Japan with tremendous shipment growth of 35 percent. Consolidated sales across the region totaled US$1.7 billion or 19 percent of Lenovo’s worldwide sales, while operating margins went up 1.3 points to 2.7 percent.
  • Lenovo in Europe, Middle East & Africa grew PC shipments during the fourth quarter by 33.3 percent and building even stronger momentum across the region. EMEA achieved a 15.8 percent market share, increasing shipments 4 share points year-over-year or a nearly 34 point premium to the market. The region had consolidated sales in the fourth quarter of US$2.6 billion, a year-over-year improvement of 39 percent, good for 27 percent of Lenovo’s total worldwide sales. Operating profit margin was healthy at 2.9 percent, 1.0 point increase year-over-year.
  • Lenovo’s PC shipments in the Americas in the fourth fiscal quarter increased 18 percent year-over-year, in a market that fell by about 8 percent. In this environment, the Company gained 2.5 share points to a record high market share of 11.4 percent. Consolidated sales grew 23 percent year-over-year to approximately US$2 billion in the fourth quarter, driven by strong growth across all products. This represented 21 percent of Lenovo’s total worldwide sales. In the US, during the fourth quarter, Lenovo surpassed Apple in PC units, while achieving the number 3 position for the first time in this critical market with record share at 10.8 percent. The Company continued to invest in its fast growing Brazil and Latin America businesses.


  • Consolidated sales for Lenovo’s laptop PC business worldwide in the fourth fiscal quarter increased 16 percent year-over-year to US$4.8 billion, accounting for 51 percent of the Company’s overall sales. During the same period, Lenovo’s worldwide laptop PC shipments increased 12.9 percent, against the backdrop of an overall industry decrease of 5.8 percent. In the fourth fiscal quarter, Lenovo announced its newest version of the popular ThinkPad X1 Carbon, the world’s lightest 14-inch ultrabook. Forged from the same strong but light stock as aircraft and racing cars, the X1 Carbon’s carbon fiber casing weighs less than magnesium or aluminum, but is stronger than both. The Company also announced the ThinkPad 11e series of laptops, designed specifically for education and ruggedized for K-12 classroom performance.
  • During the fourth fiscal quarter, Lenovo’s desktop PC shipment grew 6.8 percent worldwide year-over-year, against an industry decline of 3.1 percent worldwide. Lenovo’s desktop PC consolidated sales for the same period increased 14 percent to US$2.7 billion, or 29 percent of the Company’s overall sales worldwide. In the fourth fiscal quarter, Lenovo announced the C560 all-in-one (AIO) desktop PC, a family-friendly large-screen, multitouch home PC that doubles down on work and play, as well as the ThinkVision Pro2840m, a feature-packed, 28-inch, 4K professional resolution display and the ThinkVision 28, a smart display that is not only an ultra-high definition monitor but is also an Android-enabled entertainment center.
  • Lenovo had solid shipments of smartphones, staying China’s number two smartphone maker, with rapid growth across all its Mobile Internet and Digital Home (MIDH) product lines. During the fourth fiscal quarter, consolidated sales of MIDH rose 71 percent to US$1.3 billion year over year, or 13 percent of the Company’s overall sales. The Company’s worldwide smartphone shipments grew 59.4 percent in the fourth quarter, outpacing the worldwide market by 28 percent. The Company also outgrew the market in China as it worked to capture 4G/LTE opportunities by expanding its own Lenovo App store ecosystem. So far the store has delivered 6 billion downloads. It is averaging 25 million downloads daily. Lenovo’s own SHAREit App won the Mobile World Congress award for best app and was the first app developed by Lenovo to reach 100 million users.

In the fourth fiscal quarter, Lenovo introduced several smartphones, including its first LTE smartphone, the Lenovo Vibe Z, a razor-thin, blazing fast device equipped with gesture controls, photo enhancement software and other premium technologies. The Company also announced the new Yoga Tablet 10-inch HD+, a multimode device that infuses Lenovo’s original Yoga tablet with a full HD screen, Qualcomm Snapdragon processor, sharp high-resolution camera and its incredible battery life of up to approximately 18 hours under certain conditions.


Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$39 billion personal technology company, the largest PC company in the world, serving customers in more than 160 countries. Dedicated to building exceptionally engineered PCs and mobile internet devices, Lenovo’s business is built on product innovation, a highly-efficient global supply chain and strong strategic execution. Formed by Lenovo Group’s acquisition of the former IBM Personal Computing Division, the company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include legendary Think-branded commercial PCs and Idea-branded consumer PCs, as well as servers, workstations, and a family of mobile internet devices, including tablets and smartphones. As a global Fortune 500 company, Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; Sao Paulo, Brazil, and Raleigh, North Carolina. For more information see www.lenovo.com.




For the fiscal quarter and full year ended March 31, 2014

(in US$ millions, except per share data)

Q4 13/14

Q4 12/13



Revenue 9,357 7,832 19% 38,707 14%
Gross profit 1,244 1,052 18% 5,064 14%
Gross profit margin 13.3% 13.4% -0.1pts 13.1% NIL
Operating expenses (1,013) (883) 15% (4,012) 11%
Expenses-to-revenue ratio 10.8% 11.3% -0.5pts 10.4% -0.3pts
Operating profit 231 169 37% 1,052 32%
Other non-operating expenses (19) (3) 503% (38) NA
Pre-tax income 212 166 28% 1,014 27%
Taxation (44) (42) 7% (197) 16%
Profit for the period 168 124 35% 817 29%
Non-controlling interests (10) 3 NA - NA
Profit attributable to equity holders 158 127 25% 817 29%

EPS (US cents)











Dividend per share (HK cents)       24 5.5

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.