Lenovo's revenue for the quarter ended December 31 reached $17.25 billion, up 22.3 percent year-on-year, according to financial reports released today by the tech giant.
Net income for the September-December quarter, Lenovo's third fiscal quarter of 2021, was $395 million, up 53.1 percent year-over-year.
Lenovo's software and services business had the highest margins of any product in the quarter, with invoiced revenue and deferred revenue up 36 percent and 30 percent, respectively, year-over-year, accounting for about 8.1 percent of group revenue.
Within these three key business areas, operations and maintenance services, including Device as a Service (DaaS), grew by 73 percent. All verticals in the Intelligent Solutions segment grew by 49 percent. Additional services continued to grow steadily, up 26 percent in the period under review.
Lenovo's net cash from operating activities for the third quarter of fiscal 2021 was $2.0 billion, up $1.4 billion year-over-year, and the company's net debt decreased by $755 million year-over-year.
On January 20, 2012, Lenovo's Board of Directors approved the issuance of China Depositary Receipts (CDRs) and plans to list and trade the company’s shareson the Science and Technology section of the Shanghai Stock Exchange. The company plans to use the proceeds for research and development, strategic investments in related industries and to supplement working capital.
Lenovo's PC and smart devices business grew 27 percent year-over-year in the third quarter of the fiscal year, achieving a 25.3 percent market share in the global PC segment, representing a 0.6 percentage point annual growth rate.
The Smart Devices business group, which is comprised of the PC and Smart Devices business and the Mobile business group, outperformed other companies in the industry in the third quarter.
Revenue increased 25 percent year-over-year to $15.6 billion, while profit before tax increased 36 percent to $935 million, both record highs.
Mobile revenue was $1,521 million, up 10 percent from a year ago.
Data Center revenue increased 2 percent year-over-year to a record $1,634 million, accounting for 9 percent of total Group sales. Losses decreased further by $14 million to a loss before income taxes of $33 million.
In addition, Lenovo today announced a new organizational structure to drive service-oriented transformation and better capture the opportunities of reforms of intelligence.
Since April 1, 2021, Lenovo will integrate the services teams and capabilities of the current business units within the group to form a new business group: Solutions & Services Group (SSG).
This group is dedicated to driving the growth of industry intelligence solutions, device services, operations and maintenance services, including the Device as a Service (DaaS) business, as a core driver of the company's transformation.