Computing

Acquisition Of IBM Gives Lenovo 392% Boost

Lenovo's (LNVGY.PK) consolidated revenue for the third fiscal quarter ended December 31, 2005, increased 392% year over year to HK$31.1 billion, driven by particularly strong performance in China and the May 2005 acquisition of IBM's PCD business.

In the same period, pre-tax income grew 46% to HK$498 million, while profit attributable to shareholders rose 12% to HK$365 million.

William Amelio, who joined Lenovo in December as president and chief executive officer, said, "Around the world, the Lenovo and Think brands stand for the highest standards of innovation, performance, and service. Excellent progress in recognizing the potential of this company has been made, but our path going forward is very clear.

Basic earnings per share for the third quarter 2005/06 totaled 4.12 Hong Kong cents versus 4.37 Hong Kong cents in the third quarter of 2004/05.

Operating cash flow continued to be strong, and net cash reserves as of December 31, 2005, totaled HK$9.6 billion.

Lenovo's PC shipments grew 12% year over year.

"The acquired business has now been profitable for three consecutive quarters, in line with the Board's expectations, although regional performance has varied," said Yang Yuanqing, Lenovo's chairman. "Now we must meet even higher expectations. We believe our proven business model, an enhanced product portfolio, and a heightened focus on operational efficiency will enable us to optimize profitability across the globe. We are moving quickly to address these issues and to take advantage of the strong demand that exists for our products."

Leave a Reply

Your email address will not be published. Required fields are marked *

Send this to a friend