Lenovo announced second quarter results, for the period ended September 30, 2016, today showing the company made a profit and reversing a significant loss they had experienced during the same period in 2015. Although they did not break out financial information for their Moto branded devices, Lenovo did indicate shipments of Moto devices surged during the second quarter by 40% compared to the first quarter. This was primarily attributed to the launch of the Moto G and Moto Z devices.
According to Lenovo, some of their strongest market growth for mobile phones occurred in Asia Pacific and Indian markets, the latter of which saw a 15 percent increase in the number of units shipped compared to 2015. The entire portfolio of Lenovo smartphones, both the Lenovo and Moto branded, experienced 25% growth over the first quarter with more than 14 million devices shipping.
Lenovo chairman and CEO Yang Yuanqing made the following comments regarding the second quarter results:
“Market conditions remained challenging but we delivered solid results…our Mobile business had good quarter-to-quarter volume growth and margin improvement…we remain confident in our vision, our strategy and our team’s ability to achieve new heights.”
For the quarter, Lenovo had $11.2 billion in revenue, which was down 8% compared to the prior year period, but a 12 percent increase compared to the first quarter. Perhaps more importantly, Lenovo had pre-tax income of $168 million, which was a major turnaround compared to the $842 million loss they experienced in the second quarter of 2015. These results suggest Lenovo’s efforts to control costs are paying off despite challenges present in the market.