Post-PC era? Surely you're joking, says Lenovo as computers fly out of door

Profits down following acquisitions, though

Funnel of cash. Credit: via SXC –

Computers are still flying out of the door for Lenovo but Q4 profits crashed by more than a third due to a hike in operating expenses that followed several acquisitions.

Net income fell 36.7 per cent to $100m as the buys of Motorola and IBM’s x86 server business took a toll on costs.

The Chinese tech maker reported quarterly sales of $11.3bn, up 21 per cent year-on-year for the period ended 31 March, helped by continued market share gains in the global PC arena.

PC sales, which accounted for 63 per cent of revenues (Lenovo remains world No. 1 PC maker) jumped eleven per cent to $7.2bn - 13.3 million units were shipped, up 2.7 per cent and global market share was 19.7 per cent.

The Mobile Business Group - Motorola devices, Lenovo phones, tabs and smart TVs, reported turnover of $2.8m, but there was a high dependency on China.

The Enterprise Business Group - servers, storage, software and services - reported sales of $1.1bn but a pre-tax loss of $45m including M&A related expenses.

China accounted for $3.1bn of sales or 27 per cent of group revenues, and this was flat year-on-year. In Asia Pacific, sales totalled $1.7bn, grew 15 per cent in EMEA to $3bn - despite the current pressures - and the Americas region was up to $3.6bn on the back of the buys.

Full year revenues jumped by a fifth to $46.3bn but net profit edged up just one per cent to $829m, slightly below analyst forecasts. ®

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