Lenovo Group: Fiscal 1Q20 Financial Results

(in $ million)	1Q19	1Q20	Growth
Revenue	11,913	12,512	5%
Net income (loss)	85	162

Lenovo Group Ltd. announced revenue in the first quarter ended June 30, 2019 reached $12.5 billion, the eighth consecutive quarter of growth.

Net income also more than doubled, up $85 million to $162 million.

The data center group continued to improve profitability Y/Y for the eighth consecutive quarter. Storage revenue grew yearly 82% and software-defined infrastructure continued to grow at a double-digit rate Y/Y.

Overall revenue declined due to a small number of large cloud customers reducing their purchasing after rapid infrastructure growth over the past year and a lower average unit revenue due to declining component prices.

With the relationship with NetApp, Lenovo said that it covering over 92% of the storage market, where a year ago, it was only 15%, adding that “you’re going to see us now not only as the third-largest storage company in China but one of the fastest growing, if not the fastest growing storage company in the world taking share in that area as well.“