Lenovo posts a profit, rides surge in Moto shipments in 2nd quarter

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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.

source: Lenovo


About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina. Jeff's past Android devices include an HTC EVO, a Samsung Note II, and an LG G3 along with a Samsung Galaxy Tablet 10.1. He currently uses a Motorola Moto X Pure Edition and (very rarely) a Nexus 7 (2013). He is also using a Verizon-branded Motorola Moto Z Play Droid supplied by his job. Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his wife and kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active in his church, a local MINI Cooper car club, and his daughter's soccer club. Jeff is married, has three kids, and a golden retriever.