Lenovo Group announced results for its third fiscal quarter ended December 31, 2018

HONG KONG, February 21, 2019 – Lenovo Group (HKSE: 992) (ADR: LNVGY) announced results for its third fiscal quarter ended December 31, 2018. Lenovo posted its highest group revenue in four years of US$14 billion, up 8.5% YOY (12.8% YOY excluding currency impact).

The company reported strong pre-tax income of US$350 million (up 133% / +US$200 million over the previous year) - an all-time record for the company as all businesses continued to report profit improvements.

The Group recorded a net profit of US$233 million for the fiscal quarter, significantly improved from the net loss of US$289 million in the same quarter of last year. Basic earnings per share in the third fiscal quarter was 1.96 US cents or 15.35 HK cents.

Lenovo’s Data Center Group reported its fifth consecutive quarter of profit growth (PTI margin up 3.6 percentage points YOY) on a 31% YOY increase in revenue to US$1.6 billion. In fact, DCG recorded YOY revenue growth in all geographies, highlighted by triple-digit growth in North America, and double-digit growth in Asia-Pacific, EMEA and Latin America. The NetApp joint venture, which is now operational in China, will further strengthen the portfolio and expand business opportunities. Hyperscale once again served as a significant contributor with triple-digit revenue growth and Software Defined Infrastructure (SDI) revenue grew almost 70% YOY. The Group not only remained #1 on the TOP500 list of supercomputers globally, but also increased its lead. *

* Top500 List of Supercomputers, 52nd edition, Nov. 2018 https://www.top500.org/lists/2018/11/ with 140 of the top 500 supercomputers, 56 systems ahead of the nearest competitor.