Lenovo: Fiscal 4Q20 Financial Results

Full-year revenue for fiscal year ended March 31, 2020 of Lenovo Group Limited exceeded $50 billion for second consecutive year at $50.7 billion, up 43% Y/Y.

More specifically, the data center group (DCG) saw overall revenue decline 8.7% Y/Y due to softer hyperscale demand and significant commodity price declines, but non-hyperscale revenue grew 5.3% yY/Y. This was driven by double-digit revenue growth in software-defined-infrastructure, storage, software and services.

Storage revenue of one of the top 3 Chinese storage company grew 54.4% Y/Y and 28.3% Q/Q.

Storage revenue Q/Q growth

Storage revenue Y/Y growth

In addition, non-hyperscale server volume grew by 14% and China revenue yearly by 23% .

The company also extended its leadership in HPC with 173 of the top 500 systems worldwide.

By regional market, DCG China outperformed and shipment in non-hyperscale segment increased high double-digit in the year after investment will put in place to drive channel and product expansion, while taking advantage of DCG joint venture with NetApp to expand the addressable market in storage product.

The company said it ranks global ≠3 in entry storage market and started to see storage profitability in expansion.

Earnings call transcript