Lenovo Posts Q3 Loss on US Tax Reform Write-Off
Zhao Chenting
DATE:  Feb 02 2018
/ SOURCE:  Yicai
Lenovo Posts Q3 Loss on US Tax Reform Write-Off Lenovo Posts Q3 Loss on US Tax Reform Write-Off

(Yicai Global) Feb. 2 -- Chinas biggest computer maker Lenovo Group Ltd. reported a net loss of USD288 million in the third fiscal quarter due to an extraordinary write-off of USD400 million in deferred income tax assets following the recently enacted tax reform in the US.

This loss will not affect the company's operating performance, said CEO Yang Yuanqing in a statement, adding that the US' low tax rate will help the Hong Kong-based firm achieve long-term business development goals. The firm posted a pre-tax profit of USD150 million, an increase of 48 percent on the same period last year.

Lenovo's revenue for the quarter, running from Oct. 1 to Dec. 31, reached USD12.94 billion, an annual increase of 6 percent, representing the highest earnings for a single quarter since 2014.

Personal computers remain the pillar business of Lenovo, with sales reaching 15.7 million units in the quarter, basically the same as last year. PC revenue was USD9.25 billion, a year-on-year increase of 8 percent.

The firm's data center business saw rapid growth, with earnings of USD1.23 billion, an annual increase of 17 percent. Revenue for mobile equipment reached USD2.08 billion, a decrease of 5 percent.

Lenovo still attaches great importance to the mobile terminal sector, Yang said, despite the smartphone market being close to saturation point, the firm will consider investing in research and development according to the profitability of future mobile devices, he added.


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Keywords:   Lenovo,Tax Reform,Mirage,Star Wars