dcn-as logo
Story image

Lenovo Data Center Group revenue skyrockets 67.8% in 12 months

21 Aug 2018

Lenovo has announced the results for its first fiscal quarter ended June 30 2018.

The revenue results certainly paint a pretty picture with double-digit growth across the company for the second consecutive quarter.

Overall, group revenue grew 19 percent year-on-year to reach US$11.91 billion. Lenovo’s profit attributable to equity holders grew to $77 million, up $149 million year-on-year with basic earnings per share $0.65.

“As we persistently execute our 3-wave strategy, all our businesses made solid improvements in both revenue and profitability. Lenovo has passed the turning point and entered a phase of ‘acceleration’ - accelerating the execution of our transformation strategy and accelerating the rising momentum in business performance,” says Lenovo chairman and CEO Yang Yuanqing.

“In the future, we will maintain industry leading profitability and premium to market growth in PCs; return the smartphone business to health; build the data center business into a sustainable growth and profit engine, and continue to invest in ‘Smart IoT + Cloud’ and ‘Infrastructure + Cloud’ to drive long term sustainable return.”

The Lenovo Data Center Group was one of the big movers and shakers, reporting a record revenue quarter after surging 67.8 percent over 12 months and bringing in $1.6 billion. This is the third consecutive quarter of double-digit growth for the sector.

Lenovo says the record revenue was driven by software-defined infrastructure, high performance computing, artificial intelligence, and hyperscale. The company’s software-defined products (including the new ThinkAgile brand) underwent more than triple-digit growth.

The hyperscale business also saw triple-digit year-on-year growth and Lenovo says this came while improving gross profit and diversifying the customer base. Despite the rapid adoption of new technologies, traditional infrastructure continued on positive vector with flash-based storage solutions reporting 42 percent year-on-year growth.

And to top it off, Lenovo overtook HPE for the first time to become the #1 supercomputer provider on the TOP500 supercomputing list, with 117 systems.

In terms of the group’s other ventures, last quarter Lenovo announced its Intelligent Devices Group (IDG) which is a combination of its Personal Computer and Smart Devices Group and its Mobile Business Group.

The IDG brought in $9.95 billion year-on-year with 14 percent growth. Under IDG, the PC and Smart Devices (PCSD) business grew 19 percent year-on-year and Lenovo hopes this to continue with further investment in its growing portfolio of smart devices.

As aforementioned, the company hopes to make more inroads into the smartphone industry and it has already made progress with its Mobile Business Group. The group managed to reduce operating expenses by more than $100 million and strengthen revenue and volume in various parts of the world.

Story image
Hitachi Vantara makes play at midsized market with latest offerings
Hitachi Vantara has announced the expansion of its E Series line of high performance NVMe all-flash arrays, additions to the HNAS family of NAS solutions, and introduced the Hitachi Virtual Storage as a Service aimed at midsized enterprises.More
Story image
New 5G download speed record set on a commercial network
The record, 5Gbps for a single smartphone, was announced today by Telstra in collaboration with Ericsson and Qualcomm.More
Story image
Frost & Sullivan: 5G fixed wireless access poised to mimic 4G success
4G fixed wireless access (FWA) is now being delivered through 406 mobile operators in 164 countries around the world, but now is the time for 5G to mimic the same successes.More
Story image
TeleGeography releases data center benchmark tool
“Network designers and managers need to take a lot of factors into consideration such as office proximity, cost and connectivity. This can be a very timely and costly process without the right tools.”More
Story image
Google Cloud launches suite of e-commerce search solutions for retailers
“Retailers are in dire need of agile operating models powered by cloud infrastructure and technologies like artificial intelligence and machine learning (AI/ML) to meet today’s industry demands."More
Story image
JetStream launches disaster recovery software, with support for Azure
JetStream will integrate its offerings with Microsoft to deliver new DR capabilities for Microsoft Azure VMware Solution, employing JetStream DR software along with Azure Blob Storage. More