OREANDA-NEWS. Lenovo Group announced record results for its third fiscal quarter ended December 31, 2013, driven by strong global execution, an innovative product portfolio and an increasing mix of PC Plus revenues.

Quarterly revenue was USD 10.8 billion, a 15 percent increase year-over-year, passing the USD 10 billion milestone for the first time ever. Third quarter profit grew even faster with pre-tax income increasing 30 percent year-over-year to USD 321 million, while earnings also grew 30 percent year-over-year to USD 265 million. Lenovo shipped a record 32.6 million devices in the quarter or nearly 5 devices every second. Lenovo's third quarter mix of sales from its Mobile Internet and Digital Home division which develops PC Plus products such as smartphones, tablets and smart TVs, was 16 percent of total revenues, up from 11 percent one year ago and seven percent two years ago, with steadily improving profitability.

For the third straight quarter, Lenovo was the world's largest PC vendor*, with its highest-ever quarterly market share of 18.5 percent, up 2.4 points year-over-year. Record high share in EMEA, Asia Pacific and China with number one positions in five of the seventh largest PC markets globally - supported this strong performance. Lenovo's PC shipments for the third fiscal quarter were 15.3 million units, again making it the fastest growing of the top five PC vendors. This was also the 19th quarter in a row that Lenovo outperformed the industry as a whole, growing at a 14 point premium to the market.

Also for a third straight quarter, Lenovo's combined shipments of smartphones and tablets - 17.3 million devices - surpassed the 15.3 million PCs it sold. It also continued to be the world's fourth largest smartphone supplier with 4.8 percent share, growing shipments 47 percent year-over-year, driven by excellent performance of its smartphone launches in a number of new markets. In tablets, Lenovo had a record high of 3.4 million shipments, up over 300 percent year-over-year. Tablet strength was driven by the launch of the Yoga Tablet, the world's first multimode tablet. Together, these results clearly illustrate Lenovo's PC Plus transformation.

The Company's gross profit for the third fiscal quarter increased 15 percent year-over-year to USD 1.36 billion, with gross margin at 12.6 percent. Operating profit for the quarter grew 37 percent year-over-year to USD 334 million. Basic earnings per share for the third fiscal quarter was 2.56 US cents, or 19.85 HK cents. Net cash reserves as of December 31, 2013 totaled USD 3.4 billion.