Time.news – Net profit grew at a rate of 50% for the sixth consecutive quarter, with the third quarter growing 62% year-on-year (reaching $ 640 million). Pre-tax profit of $ 855 million, up 45% year-on-year. $ 20.1 billion in revenue, up 17% year-on-year. These are the numbers of the quarterly report of the tech multinational Lenovo.
“Lenovo – explained the President and CEO Yuanqing Yang – continues to seize the opportunities generated by the acceleration of the digital and intelligent transformation process, we are very well prepared thanks to our new IT architecture and Client-Edge-Cloud-Network functions- Intelligence “. The company continues its 3S strategy (smart devices / IoT, smart infrastructure, smart verticals) by seeing sustainable growth opportunities and profitability improvements in all areas of the business, keeping it on track to double its net margin by the end of the year. year 2023/2024. “For the seventh consecutive quarter, Motorola is also in profit,” added Emanuele Baldi, Executive Director of Lenovo Italy (PC and smart device).
Record quarter
With another record quarter, Yuanqing Yang said again, “we achieved the 6th quarter with more than 50% growth in year-over-year net profit and the first quarter of revenue of $ 20 billion in our history. We remain on track to double both our net margin and R&D investment in three years from FY20 / 21 levels. Once again, we have demonstrated that Lenovo’s innovation, transformation strategy and solid execution can consistently deliver sustainable profitability increases for the future. ”
Infrastructure solutions
For the company in particular, the quarter has a particular significance. “For the first time – explained Alessandro de Bartolo, Country Leader Infrastructure Solutions Group – since Lenovo has been involved in infrastructure, the business has become profitable. A transition that took place in a context of growing revenues. This will allow us to free up additional resources. Undoubtedly an important milestone for this business unit “.
Remote work and increasingly complex IT services
Lenovo’s numbers fit together on a global market where remote working is growing (with the need for tech companies to foster the transformation of new ways of working through support solutions, as-a-service and digital workplace). And in which
the process of ICT infrastructure modernization continues to expand worldwide (the ICT infrastructure market is expected to become a $ 250 billion market by 2025. Within the same period, the peripheral infrastructure market alone is expected to exceed 41 billions of dollars).
Smart devices
The smart device market for its part, Lenovo estimates continues to benefit from the new hybrid working mode and the PC market is expected to remain strong and stable, moving towards the commercial and premium segments. In smartphones, market reshuffling will bring more growth opportunities to Lenovo, and 5G penetration and development of new edge-cloud-network-intelligence IT will provide greater growth potential for emerging smart devices such as embedded. computing / IoT, metaverse-driven AR / VR, as well as smart home and intelligent collaboration solutions.
The future
The company also set the course for the future “with R&D investments up 38% year-on-year in the quarter, as part of the company’s broader commitment to double investment in research and development in three years. The investments are aimed at driving Lenovo’s ongoing transformation into a solutions and services company by developing technologies centered on the “New IT” full stack architecture of “Client-Edge-Cloud-Network-Intelligence”.