Lenovo Group's (LNVGY) results for the third fiscal quarter ended December 31, 2006 show consolidated revenue increased slightly year over year to US$4.0 billion.
During the third fiscal quarter, Lenovo's worldwide PC shipments grew approximately 8%, ahead of the industry average of approximately 7%. For the same period, Lenovo reported pre-tax income of US$64 million and basic earnings per share for the third quarter of 2006/07 of 0.67 US cents, or 5.2 HK cents. Net cash reserves as of December 31, 2006, totaled US$1.3 billion.
"Continued high growth in our China business enabled Lenovo to hold global market share," said Yang Yuanqing, Lenovo's chairman. "All of our geographies except the Americas reported profitability this quarter in a very competitive market. While we are pleased with these accomplishments, we must continue to work diligently to address our most critical challenges of lower expense-to-revenue ratio and operational efficiency. Transformation takes time, but we are confident that we have the right plan in place to achieve our goals and deliver enhanced shareholder returns."
During the third quarter, Lenovo continued to lead the PC market in Greater China, with shipments to the region increasing 17%. Lenovo PC shipments in the Americas decreased 4%. Shipments of Lenovo's Mobile Handset business (conducted primarily in China) decreased 6 percent in the third fiscal quarter and consolidated revenue of US$146 million, or 4 percent of the Company's total revenue.
William J. Amelio, Lenovo's president and chief executive officer, said, "During the quarter, we made tangible progress toward our operational goals, although we still have much to accomplish. We remain sharply focused on our four strategic initiatives: rolling out the transaction model, improving product competitiveness, enhancing our supply chain and building our brand around the world. These are the key to delivering the revenue and profit momentum, cost reductions and enhanced efficiency that will make Lenovo an even stronger global competitor."
