Lenovo Group: Fiscal 1Q20 Financial Results

Lenovo Group Limited announced financial results for the three months ended June 30, 2019

Global revenue was $12.5 billion for he huge IT Chinese company, up Y/Y for 8th consecutive quarter.

While the server business slowed, storage networking continued to show clear growth.

Firm continues into its strategic direction and continued investment to grow high-margin storage, services and software defined infrastructure (SDI) businesses remained intact.

Lenovo is also enhancing its in-house design capability to grow its hyperscale business. Sales from SDI increased at a high double-digit Y/Y growth rate in 1FQ20, representing the 9th consecutive quarter of growth.

The storage revenue grew yearly more than 80% as customers start to recognize the value of its expanded storage portfolio.

With its relationship with NetApp, Lenovo said that it is covering over 92% of the storage market, where a year ago, it was 15%.

“So I think 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,” stated the company.