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Lenovo Revenue Hits Record $51B By ‘Intelligently’ Transforming

‘Lenovo’s solid financial performance is the result of persistent execution of our transformation strategy,’ says Yang Yuanqing, Lenovo’s chairman and CEO.

It’s a new dawn at Lenovo as the company reported fiscal year revenue on Thursday reaching an all-time high of $51 billion, up 12.5 percent year-on-year.

“Lenovo’s solid financial performance is the result of persistent execution of our transformation strategy,” said Yang Yuanqing, Lenovo Chairman and CEO in a statement. “At a time of great global change – economically, socially and environmentally – we continue to focus on how we ‘intelligently transform’ ourselves and enable our many customers around the world successfully to do the same. I am proud of our strong results and confident in how we will climb to new heights in the future.”

For the first time, Hong Kong-based Lenovo delivered full year revenue exceeding $50 billion for its fiscal year 2019, which ended March 31, that included its Data Center Group (DCG) sales soaring 37 percent year-on-year to more than $6 billion.

[Related: 5 Ways Lenovo Data Center Group Global Channel Chief Nicole Roskill Is Making Life Better For Partners]

Lenovo DCG’s annual revenue increase was the highest in the last three years, led by growth of hyperscale and software-defined infrastructure, which grew 240 percent and 96 percent year-on-year, respectively. Lenovo did not break out specific revenue numbers for hyperscale and software-defined infrastructure sales.

The company’s PC and Smart Devices (PCSD) group -- which include PCs, tablets, workstations and smart devices – generated full year revenue of $38.5 billion, up 14 percent year-on-year. Lenovo’s PCSD accounted for three quarters of the company’s total revenue for the year.

Lenovo is a market leader and innovator in PCs, recently unveiling the world’s first PC with a foldable screen that CRN recently reviewed. Lenovo said PC growth stemmed from a well-orchestrated strategy to drive growth in the premium and high-growth segments.

For the full fiscal year, revenue from software and services reached $2.4 billion, up 19 percent year-on-year. Lenovo’s gross profit for the year reached $7.37 billion, up 18 percent compared to the previous fiscal year.

Looking forward, Lenovo has a vision to bring smarter technology everywhere -- from Smart Internet of Things (IoT), Smart Infrastructure and Smart Verticals. Lenovo said it plans to relentlessly attack the IoT market unlike ever before, backed by serious investment dollars and an aggressive partner enablement strategy.

The fiscal year report comes on the heels of Lenovo Accelerate 2019 where the company demonstrated the power of its innovation strategy to partners and customers with an array of new solutions.

Overall, Lenovo is moving to capitalize on synergies between its DCG and Intelligent Devices Group that together make up one of the broadest end-to-end portfolios in the industry. Lenovo’s bullish goal of market-share dominance is being jump-started with a strictly enforced channel-first sales model.

“We have a vision and a strategy of intelligent transformation, of being the most trusted data center partner in the industry,” said Kevin Hooper, president of North America for Lenovo’s Data Center Group in a recent interview with CRN. “That trust starts with being able to roll up your sleeves and engage with channel partners in real time.”

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