Lenovo reports double-digit revenue growth for fiscal 1Q18

In the first fiscal quarter, Lenovo's profit attributable to equity holders grew to US$77 million, up US$149 million year-over-year. Basic earnings per share in the first fiscal quarter was US$0.65, the company said.

"As we persistently execute our 3-wave strategy, all our businesses made solid improvements in both revenue and profitability. Lenovo has passed the turning point and entered a phase of 'acceleration' - accelerating the execution of our transformation strategy and accelerating the rising momentum in business performance," said Yang Yuanqing, Lenovo chairman and CEO. "In the future, we will maintain industry leading profitability and premium to market growth in PCs; return the smartphone business to health; build the data center business into a sustainable growth and profit engine, and continue to invest in 'Smart IoT + Cloud' and 'Infrastructure + Cloud' to drive long term sustainable return."

Business group overview

Lenovo sid it has made steps to consolidate key businesses into a streamlined, integrated enterprise, along with an emphasis on dynamic revenue generators, are quickly yielding significant returns.

Last quarter, Lenovo announced the creation of its new Intelligent Devices Group (IDG), combining its Personal Computer and Smart Devices (PCSD) Group with its Mobile Business Group (MBG).

The company said the Intelligent Devices Group, energized by the synergy of shared platforms and resources, delivered a revenue growth of 14% on year, amounting to US$9.95 billion.

The PCSD business under IDG delivered double-digit revenues growth for the second consecutive quarter, growing 19% on year while maintaining a profitability of 5%.

The MBG under IDG improved significantly during the quarter thanks to three key measures: The group reduced operating expenses by more than US$100 million; it introduced a refined product portfolio; and it focused on selected markets where the company can compete profitably, according to Lenovo.

Lenovo's Data Center Group (DCG) further accelerated its momentum, reporting another record revenue quarter of US$1.6 billion, the third consecutive quarter of double-digit revenue growth, and up 67.8% compared to the same quarter a year earlier.