Business

Lenovo posts revenue gain after five quarters of declines

Electronic device maker Lenovo posted improved revenue following five consecutive quarters of declines and generated better-then-expected net income.

Revenue for the fiscal fourth quarter that ended March 31 totaled $9.6 billion, up 5 percent.

Net income totaled $107 million, which was down from $180 million a year ago. However, analysts polled by Bloomberg News were expecting net income of $97.9 million.

Lenovo is based in China but has a headquarters in Morrisville and employs more than 3,000 workers in the Triangle.

Market research firm IDC previously reported that Lenovo lost it’s No. 1 ranking in the first quarter, falling behind rival HP even though Lenovo boosted its market share by two-tenths of a percent to 20.4 percent. However, a second market research firm, Gartner, ranked Lenovo No. 1.

Lenovo had been ranked tops by both firms since the second quarter of 2013.

Chief Financial Officer Wong Wai Ming said during a conference call that the company’s PC market share in China rose to a record 37.1 percent in the quarter.

He cautioned that tightening supplies and increasing prices of PC components “will continue to bring challenges to the group’s short-term business performance.”

Lenov’s PC business, including tablets, accounted for 70 percent of the company’s revenue. Its smartphone business, which includes the Moto and Lenovo brands, and its data center business – servers, storage devices, software and services – each posted losses during the quarter.

David Ranii: 919-829-4877, @dranii

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