Lenovo weathers rough Q3, eyes enterprise, mobile growth
Lenovo held the fort in PCs in its fiscal third quarter, brought its mobile business to breakeven and said it is in "attack mode" on servers and converged infrastructure.
The biggest takeaway from Lenovo's earnings is that the company has integrated the acquisitions of Motorola and IBM's commodity server business and aims to grow.
For the third quarter, however, Lenovo struggled to grow. The company reported third quarter earnings of $300 million on revenue of $12.9 billion, down 8 percent from a year ago. Lenovo was hurt by currency fluctuations.
Lenovo restructured in August and executives noted that the company is on track to save $1.35 billion. On a conference call, Lenovo CEO Yuanqing Yang said:
Although Lenovo, just like everyone else in our industry, was impacted by global macroeconomic slowdown, currency fluctuations and PC market decline, and our revenue declined year on year, but our decisive actions we quickly took in the second quarter enabled us to beat expectations on profit.
Yang said Lenovo's move to focus on emerging markets outside of China helped it handle the economic turbulence. Lenovo said it performed well in India, Indonesia and Russia. Lenovo is also targeting areas like eastern Europe and Latin America.
Lenovo executives seemed most upbeat about the enterprise prospects. Lenovo recently launched converged systems with Nutanix, a software defined storage player, as well as SAP. Lenovo said its mobile approach will depend. Here's a look at the key charts:
